Vol. 258 No. 11
asked the Minister for Agriculture and Fisheries if he has considered the very difficult position in certain meat factories; if he is prepared to review the subsidy arrangement; and if he is, in fact, in contact with both proprietors and workers' representatives in such factories to secure the maintenance of full employment in each particular industrial undertaking, both at present and under EEC conditions.
68.
asked the Minister for Agriculture and Fisheries if his Department are considering modifying the existing subsidy arrangements on meat exports with a view to averting and alleviating any further redundancies in the carcase beef trade.
With your permission, a Cheann Comhairle, I propose to take Question Nos. 67 and 68 together.
As I announced on 27th January, the Government have decided to raise the price level on the basis of which carcase beef export support is calculated to 0.104p below the UK level, that is, reducing the differential between our rate of export support payment and the deficiency payment rate under the British fatstock guarantee scheme from 0.52p to 0.104p with effect as from the 31st January, 1972.
I have been in touch with both the proprietors and the workers' representatives of the factories concerned with a view to maintaining the highest possible level of throughput and employment at meat factories.
Is the Minister aware that one factory in Leixlip notified their employees that next week they will go on three days or else there will be a complete closedown or redundancies? Is the Minister satisfied that the measures he has taken will avert this and prevent this unemployment?
I am aware, having met the representatives of the workers and of the trade as well, of all the relevant facts. One point that was very heavily emphasised by both parties was the existence of the differential in old pence terms of 1¼d between our export support and the British deficiency payment. As the Deputy is probably aware, because of the buoyancy of the market in Britain, the liability of the British Government to pay deficiency payments at all has only arisen marginally in the past year. Consequently, our fresh meat factories did not get the corresponding payments that they would have got if deficiency payments became payable during the past year. The Deputy has not mentioned any other steps he has in mind.
I am not Minister for Agriculture and Fisheries. You are the man to see there is not this unemployment or that the workers are not put on a three-day week.
One obvious reason for the current situation is the buoyancy of the live export trade. If the Deputy is suggesting that this should be restricted in any way he should say so.
I am asking the Minister if he can come out with any concrete proposals? Has the Minister got proposals to avert this terrible unemployment that will result? The staff have been told that there will be three days next week or a closedown. It is one or the other. Work on three days a week is not adequate for these workers. Can the Minister take urgent steps to avert this? Will he make a statement to the Dáil on this matter?
The Deputy is ignoring completely a whole lot of outside considerations that I think frankly would be better not discussed in the Dáil because they concern the internal business transactions of firms in the livestock trade. They concern such matters as the devaluation of the dollar, the existence for a long period last year of an extensive dock strike on the east coast of America and the entering into contracts by the meat trade that proved to be very unprofitable. These are circumstances over which the Department of Agriculture and Fisheries have no control at all and they react on the industry naturally when they prove to be unprofitable.
Does the Minister honestly believe that the devaluation of the dollar, which has only very recently come into effect and was only ratified yesterday, is the cause of the problem?
I do, because contracts of the kind I am talking about are generally rather long-term contracts.
They did not anticipate the devaluation of the dollar. It was only a last-minute decision by President Nixon.
I am calling Question No. 69.
In view of the unsatisfactory nature of the Minister's reply I will raise the matter on the Adjournment. The Minister has not given a satisfactory answer at all. He is hedging and is not taking measures to deal with this.
The Deputy is too late to raise the matter on the Adjournment this week. Question No. 69.
The Minister is showing indifference to the employment of workers in this factory. I propose, with your permission, to raise the matter on the Adjournment.
The Chair must inform the Deputy that he is late for such a matter this week. He will have to wait until next week.
I will raise it on Tuesday next.
69.
asked the Minister for Agriculture and Fisheries if the fact that slaughterings of cattle at meat factories for the final quarter of 1971 were 12 per cent down on slaughterings for the same period in 1970 is likely to reduce the funds available to these factories to modernise and extend capacity in preparation for EEC membership; and if he will indicate his policy in the matter.
While slaughterings of cattle at meat export premises were down about 12 per cent in the final quarter of 1971 compared with the same period in 1970, total cattle slaughterings at these premises in 1971 were slightly higher than total slaughterings in 1970. Slaughterings of sheep and lambs in 1971 were 56.5 per cent higher than in 1970.
In recent years the meat exporters have modernised and considerably expanded their capacity. The majority of the plants fully meet the standards required for international trade.
Is the Minister aware that in January of this year slaughterings were down 50 per cent on January last year and that a really critical situation in employment is now being reached in the meat industry? Would the Minister consider some form of Government subvention to the meat factories to put them in a position of having sufficient investment funds to expand and improve their capacity to take advantage of what are admitted to be the considerable benefits which can be derived from EEC membership?
I am fully conscious of the importance of the fresh meat export trade in our economy generally. I am just as concerned about it as the Deputy is. The Deputy is quite well aware that this particular branch of our livestock industry boomed and had a most spectacular growth during the sixties. Because of the circumstances I have already mentioned in reply to another question there has been some recession in the profitability of the undertaking. This is not to assume that this will be a permanent circumstance.
Would the Minister agree that there may have been a boom in volume of throughout but that was not necessarily reflected in high profits and that therefore the funds are not necessarily available at the moment to enable the industry to modernise?
I am very glad to say that over the last decade, or even less, investment in this particular trade was spectacular.
