asked the Minister for Agriculture and Fisheries if he is aware of a report (details supplied) that meat factory managements, which are soon to meet the Minister on the subsidy question, maintain that a number of factories are on the brink of closure and that their £50 million trade is experiencing its worst ever year because of present Government policy; and what action he intends taking to protect the industry.
Ceisteanna—Questions. Oral Answers. - Meat Factory Report.
70.
I have seen the report referred to. I have not been made aware that any meat factory is on the brink of closure but I have had representations from the Irish Fresh Meat Exporters' Society to the effect that the industry is meeting difficult trading conditions this year. The difficulties which the factories are experiencing arise mainly from the continuing high cattle prices and the strong demand for live cattle for export. I have received certain proposals from the society which are under consideration.
Is the Minister not aware that many meat factories are trying to keep their work force in employment but they have been on quarter time in some factories for the past few months? Unless something is done there is a danger of some of the factories letting half of their work force go between now and Christmas. Would the Minister try to bring to a speedy conclusion whatever negotiations are going on between himself and the meat factories and increase the subsidy if possible?
The position of the factories is being considered at present.
Would the Minister not agree that part of the reason for the increased demand for live cattle which is affecting the factories is that cattle exported to Britain and to Northern Ireland and slaughtered there qualify for an appreciably higher rate of subsidy than that given to our factories under the beef export guarantee scheme? This differential was not there originally when the scheme was introduced and is a major contributory cause of the difficulties in which the factories find themselves at the moment.
The main reason is the continued buoyancy of the cattle trade during the past year, during which subsidies were not payable at all.
Is it not the case that subsidies are being paid at the moment to factories in Britain and Northern Ireland but are not being paid to our factories and that this puts our factories at a severe disadvantage?
Is the Deputy talking about subsidies?
I am referring to the beef export guarantee scheme and the UK fatstock guarantee scheme. Those schemes were linked originally but as a direct result of Government policy they have been reduced on our side.
The Deputy is over-simplifying the matter a great deal. The differential to which the Deputy has referred was made variable in order to even out what has been called the "off-the-grass" period. We were accused by the British authorities of creating an over-supply situation in the British market in that period.
The Minister will "even out" some of our factories.
Our factories have had a remarkable success in the past five years. The tonnage of carcase beef exported this year, speaking from memory, was greater than ever before.
Profit margins have been reduced very steeply.