Vol. 224 No. 2
asked the Minister for Agriculture and Fisheries if he will make a statement on the position regarding the export of cattle to Britain and the price of such exported cattle during the past four months; and how the quantity and price of cattle exports have been affected by the coming into force of the Anglo-Irish Free Trade Agreement.
30.
asked the Minister for Agriculture and Fisheries if he will make a statement on the outlook for the cattle trade over the next six months and the steps his Department propose to take to overcome the present difficulties.
With your permission, a Cheann Comhairle, I propose taking Questions Nos. 29 and 30 together.
The weakening of market prices for cattle recently as compared with the particularly good prices of the past year or two has been brought about by a number of special factors operating together which are outside our control and which have aggravated the normal seasonal decline in prices at this time of the year. These factors are—slower demand for store cattle in Britain attributed partly to credit restrictions, the increased supplies of beef on the British market and the effects of the general economic situation there on consumer demand for beef, and the virtual closing of all the EEC markets to imports of cattle and beef because of seasonally heavier domestic supplies and higher import levies. In addition, there have been the after-effects both of the abnormally late Spring here which delayed the finishing of livestock and of the disruption of shipping facilities due to the British seamen's strike which left us with a substantial back-log of cattle to export. None of these factors are, however, permanent, and it is important that they should not be allowed to cause any lack of confidence by farmers in the future of cattle production. While it is not possible to avoid fluctuations in an industry which is so dependent on exports as our cattle industry is, there can be no doubt but that the long-term export market outlook for the industry generally is basically sound.
The Anglo-Irish Free Trade Area Agreement, which came into operation on 1st July, has provided an assured market outlet and put a floor under cattle and beef prices. First there is the reduction in the waiting period for which Irish store cattle have to be held on British farms before qualifying for the British guarantee payments. If the waiting period had not been reduced from three months to two months, Irish stores would certainly have to contend with a weaker demand from British farmers. Also, the support by Britain for 25,000 tons of Irish carcase beef, which is provided under the Agreement and which the Government has undertaken to extend to any quantities of eligible beef in excess of that amount exported to Britain, has been supporting fat cattle prices here. Without these arrangements there can be no doubt that cattle prices here would be substantially lower under the present difficult conditions on export markets. In order to help further to stabilise the market I introduced at the end of August, a special temporary scheme of headage payments on fat bullocks and heifers exported to Britain for immediate slaughter. This scheme had an immediate effect in steadying the market.
As regards the value of the Agreement with Britain in providing an assured market outlet for our cattle and beef, I would point out that our exports of cattle and beef to EEC markets have been brought almost to a complete standstill by high duties and levies imposed by the EEC countries. On the other hand, as a result of the Agreement our exports of cattle and beef are guaranteed free entry into the UK market.
Every effort is being made to stimulate exports of cattle and beef to markets abroad. Some markets have been found to offer possibilities, especially for young cattle for further feeding, and these possibilities are being fully explored. In the case of Britain, the assurances given last week by the British Minister of Agriculture, Fisheries and Food regarding the availability of credit to British farmers should prove valuable in strengthening the demand for our stores.
As I have already stated it is the view of international authorities that the long-term outlook for beef is sound and that export prospects are good. While there have been depressions in the cattle trade in the past, on no occasion has such a determined effort been made to cushion our producers against the effect of a downward cycle in external prices. I wish to assure the House that I am very conscious of the difficulties which the present situation has created for all producers, that I have taken every step open to me which seems likely to improve the situation and that I shall keep the whole position under constant and anxious review and shall take any other additional measures which appear to be feasible and likely to improve matters further.
Would the Minister not now admit that the claim he made in January of this year was most extravagant, when he said that the Free Trade Area Agreement between this country and Britain would mean an extra £10 million per annum at the outset? Does he still stick to that estimate?
Yes. I would remind the Deputy that the Free Trade Area Agreement is only in operation approximately two months. Furthermore, at that time I said that this Agreement would have a stabilising effect on the market. The thing to be borne in mind, in the present situation, is that the price of our cattle would be considerably worse, were it not for the operation of the provisions of the Agreement at this time.
That is not what the Minister said. The Minister was extravagant in claiming that this would mean an extra £10 million for the agricultural industry in the first year. The Trade Agreement has not been as gilt-edged as the Minister said it would be.
Only two months of the first year have elapsed yet, and in fact under the Agreement the subsidy being paid at present on our dead meat exports is about 15/- per cwt., which is about £6 or £7 per animal.
Who is getting it?
The Minister stated in his reply that the long-term outlook for beef is sound. Arising out of Question No. 30, I am more concerned with the short-term outlook. Perhaps the Minister might throw some light on this question which most farmers are now asking. Would it be advisable for them to sell their cattle now or to hold them?
My own view is that any farmer who can do so would be well advised to hold on.
How is the small farmer to hold on?
There are various credit facilities available to the small farmer.
I would love to know them.
Would the Minister agree that during the course of the debate here on the Anglo-Irish Free Trade Agreement some months back, a definite impression was given to the farmers by Government speakers that as a result of this Agreement, cattle prices would increase, in the case of two-year olds, by at least an average of £6 per head? Does the Minister now appreciate that as a result of that impression, which we now know to be false, many farmers withheld their cattle during the past months and now coming into winter are faced with the position that they must sell their cattle at greatly reduced prices, mainly as a result of our discussions here and the false impression created of the benefits —the so-called benefits—of the Free Trade Agreement?
I claimed two things for the Free Trade Agreement, that it provided us with free access to the British market in all circumstances——
We always had it.
That guarantee of free access is very important to us at this present time.
"The British market is gone—thanks be to God."
That guarantee of complete and absolute free access to the British market is very important. Secondly, I maintained that the provisions of the Free Trade Agreement would put a floor under the price of our cattle and beef.
It is a pit.
That in effect is what is happening at the moment.
Prices have not gone anything as low as they did in 1956.
Ridiculous.
The Deputy may not remember, but fat cattle in the Dublin market made 90/- per live cwt. in September, 1956.
Order.
When the Minister was listing the factors responsible for the present disastrous cattle prices, should he not have included his own failure to do anything whatsoever to improve the marketing organisations for Irish cattle in England?
That is nonsense.
The Minister has advised the farmers to withhold their cattle. Will he give the same advice to the rate collectors who are demanding their pound of flesh?
It was always a characteristic of the Fine Gael Party to try to exploit any national difficulty.
If that is a fact, we have been kept very busy recently.
Will the Minister agree that the returns from our cattle exports in recent months are much less than they were in respect of similar months last year——
That is not correct.
——despite the fact that the Minister boasted that our cattle export returns would increase appreciably this year? If that is not so, the information the Minister gave to the House yesterday was wrong. My information is based on a reply given to a Parliamentary Question yesterday.
The figures for the two months are approximately the same.
Can the Minister tell us what feature of the Free Trade Agreement had any effect on our store cattle trade with Britain?
If it were not for the reduction in the waiting period from three months to two months which we procured in the Free Trade Area Agreement—after the Fine Gael Party threw it away years ago—the outlook for stores would be much weaker than it is.
That is quite incorrect.
I will allow one more question.
Is it not a fact that the two conservative Parties voted for this Free Trade Area Agreement?
You should allow more questions, Sir. Both Parties voted for the Agreement.
Can the Minister say if there is sufficient fodder in the country to ensure that if any great number of cattle are withheld, they will not be in danger of malnutrition?
This may bitterly disappoint the Fine Gael Party, but the fodder position is excellent.
Never better.
Let me say this——
The Deputy will please resume his seat.
If I am to be blamed for the price of cattle, I think I am entitled to take credit for the present good harvest.
Can the Minister tell the House on what he is basing his long-term confidence in cattle prices?
On the reports of various international authorities, conversations which I had with practically every Minister for Agriculture in Europe, and on the general consensus of opinion of most of those engaged in this field.
The Minister left out the Free Trade Agreement.
Is the Minister replying to Questions Nos. 30 and 31?
To Questions Nos. 29 and 30.
I am coming to Nos. 31 and 32 as soon as I am let.
Question No. 31.
Hold a minute: this is important. I want to ask the Minister whether the price of cattle is likely to be increased within the next few months. That is a very important question.
The Deputy should have some respect for the House.
I have great respect for the House. The question I am asking is in order. I want to know whether it is likely——
The Deputy will cease interrupting. Question No. 31.
May I ask a supplementary question?
If the Deputy continues to interrupt, I will name him to the House.
Hear, hear.
