Deputy Crinion has requested permission to raise the subject matter of Question No. 47 on today's Order Paper.
Committee on Finance. - Adjournment Debate: Cattle Exports
I was not satisfied with the reply I got this afternoon, in which it was stated that the Department would try to discourage farmers from selling weanling bulls through these advertisements. A farmer will always sell to the highest bidder. It would be easier to discourage the individuals who are putting these advertisements in the newspapers. There is the advertisement to which I have referred and possibly there are others.
The Minister should use his good offices in Brussels to allow us restrict the export of weanling bulls to the Continent. We could put forward the case that we are building up our herds. In the newspapers this morning it was reported that our cow herds had increased by 13 per cent in the past 12 months and this was considered a dramatic increase. If this export is allowed to continue it will reduce our cattle stocks here. At the moment we have about two million cows but if all weanling calves are exported we would need six million cows in order to utilise our grasslands.
We are the only beef exporting country in western Europe. Why should we sell young animals and let the Italians reap the benefit? We should use our grasslands to the utmost and bring our cattle to a mature age. Then we could export them to the Continent or to England or, preferably, send them to our own factories and thus ensure that employment is available. In the past two years the factories have had a difficult job to get a sufficient number of cattle to keep in 100 per cent production. There is a scarcity of beef throughout the world and the continentals want our beef. When we send our cattle to the factories here there is the additional advantage that processing work can be carried out. It was said about the bacon factories that the only thing that went to waste was the pig's squeal. We should have a rational approach to the sale of weanlings because if this continues it could have a dangerous effect. The Department should state emphatically that they are opposed to the export of weanlings and the Minister should get permission from Brussels to impose restrictions on the export trade.
In The Irish Farmer's Journal dated 2nd June there is an advertisement for the contract buying of young bulls and it mentions a new deal for producers of young cattle. The advertisement states they will be paid £22 per cwt. or at least 10 per cent more than the selling price of cattle sold at marts. When I hear someone guaranteeing 10 per cent more than the market value of cattle, I take it with a grain of salt. I have made some inquiries about this advertisement and, although the person concerned did not put his name to the advertisement, I understand it is Raymond Crotty who has a master's degree in Economics. A little over a year ago he was the chairman of the Defence Committee to stop us from entering the EEC——
The Chair does not deem it appropriate to refer to personalities in this manner.
The Irish people should be warned. This man has not been successful in any of his farming adventures——
The Chair deems it wrong that personalities should be attacked in this manner, especially those outside the House who cannot defend themselves. The Deputy should desist from such action.
I think that the farmers should be protected. This person was totally opposed to the Common Market but he is now trying to make a fast buck out of the EEC. This country is only starting to make use of the grasslands. At present our cattle numbers about six million but, with the use of fertilisers and management techniques, we could increase cattle numbers to ten million. Therefore, it is essential that we keep our cattle until they are mature.
It is rather serious that the Department are not taking any notice of the advertisement in question because the person concerned intends to start exporting as from September next. We should make a stand against this now. If the Minister takes our case to Brussels it will take time to complete the arrangements but we have another three months to make our case for the control of exports of young cattle. Not only are we selling them at an immature stage but we are creating a stock wastage, a consequent shortage of stocks of mature beef animals and we are thereby upsetting our balance of payments. After all, beef cattle sales are our major export and to interfere with this supply by selling off weanlings would cause a serious change in our beef economy which it would take years—at least three or four—to remedy.
It would, therefore, be a pity if the Minister permitted this sudden change —it may exist for only a short time— to cause a deterioration in our numbers of stores and, therefore, in our output of finished beef animals. In my constituency in particular, in Meath and part of Kildare, at the back end of the year an enormous volume of yard fattening takes place. Those engaged in this business would no longer be able to procure their supplies of young animals. Their economy would, therefore, take a disastrous turn. They have large grass growing capacity, they carry large stocks of silage and apart from the upset to our balance of payments which the export of our weanlings would cause, there would be an enormous wastage of grass and silage.
In the long term interests of our economy, it is most important that we retain our cattle to maturity. We know that it does not now take as long to produce a beef beast as it did some years ago: agriculturists say beef cattle can now be put out after two to 2½ years. I can see the Department of Agriculture and Fisheries being in difficulty if this new market is allowed to develop. Cattle numbers would decrease quite rapidly, farmers would not be able to make use of the excellent grass crops we are fortunate enough to be able to grow.
The offer in this advertisement of 10 per cent extra can be taken with a grain of salt. Free sale in our fairs and markets is all right so long as it does not promote the export of our young, immature stock. I suggest that in the EEC the Minister should make a statement advising the retention by member countries of their young stock and rearing them to maturity. Beef is in short supply at the moment and by retaining our young stock we would be doing work for the benefit of the entire Community because in that way our cattle numbers would increase and we would have more beef animals to export. Beef is an export commodity which is in short supply, unlike butter and other milk products. In making his case in the EEC, therefore, the Minister would be likely to get a sympathetic ear.
The Deputy's time is up.
I conclude by urging on the Minister to take this matter up at EEC level because not only would the retention of our young stock benefit our farmers but it would keep our balance of payments in order.
I am a little at sea as to the motives of Deputy Crinion in raising this question at such length. Knowing him, I am convinced that his motives are sincere and genuine, that he is particularly interested in this question and anxious that our young cattle should be retained and fattened at home instead of exporting them as 5 cwt and 6 cwt lightweights. In the course of his remarks, I got an idea that his motives could be differently prompted—that he was trying to reflect on a group, irrespective of whom they are, who inserted an advertisement in The Farmers Journal, indicating that they were prepared to purchase a certain type of young animal and indicating the prices they were prepared to pay for them.
We all have experience of selling cattle. Whenever I went to a fair I always liked to meet the man who would give me the highest penny for my animal and I did not inquire whether he was from Cork or from Kilkenny. It did not make any difference.
This advertisement indicates that we have a new outlet for this type of cattle. We like to see our markets expanding. That is why we joined the EEC. Even though as indicated by the Department and particularly by the Minister on several occasions the Department do not like farmers to sell young cattle of the type and quality referred to by the Deputy. At the same time, farmers are quite entitled to do so. It is their legitimate right. Since 1st February last, in accordance with EEC regulations, we cannot preclude farmers from doing so. We have no power to do so. The export of cattle to UK destinations was subject to licensing control prior to 1st February. While we had this control, limitations were imposed and licences were rarely given for animals of less than 8 cwts.
I do not think there is any great justification for Deputy Crinion's fears regarding our cattle population or our cattle sales or, indeed, regarding our balance of payments as a result of the selling of young cattle. My view is that farmers generally are shrewd businessmen and if they sell cattle at a certain stage of development they do so for some good business reasons. The reasons may be that a farmer may require ready money or that he may wish to have some money to develop his farm with. People like to hold on to their cattle. I know it happens in many cases. In my side of the country they like to hold on to young cattle which would be likely to improve rapidly. However, due to shortage of cash they would have to dispose of them at that stage.
That has happened year in, year out. In any fair or market one attends this type of cattle are there for sale. It has always been the practice for my people in the south to sell such cattle to Deputy Crinion's neighbours in Meath. Indeed, this has been a predominant feature because we were not able to hold on to stores or to weanlings. Is it to be suggested that because——
They were not exported.
On that score, this firm will be in competition with the other buyers on our market. Do not think that any farmer will sell his animal to this or any other group in Deputy Gibbons' constituency who have issued this advertisement. unless they are prepared to pay a bigger price. It is up to others to hold on to their cattle for fattening with a view to selling them to the processed meat trade here. There must be competition and I would not like to stifle it if at all possible. When I went to fairs I liked to see as many buyers as possible coming around me.
Mr. Gibbons
Muna bhfuil agat ach pucán gabhar——
That is the principle. I am in favour of retaining our cattle to full maturity if at all possible. Did Deputy Crinion read yesterday's Irish Times? There is a report there on the Minister's visit to Luxembourg. He addressed himself to this question particularly and he objected to the proposal for two reasons. The heading to the report is “Italian Duty on Fat Cattle Opposed”. The report refers to the Italian proposal for subsidies for the importation of immature cattle. The report says this proposal was opposed at a council of Agriculture Ministers' meeting by the Minister for Agriculture and Fisheries.
I am glad to hear that.
The report states that Deputy Clinton objected to the proposal for two reasons. He said that Ireland's interests did not lie in the sale of young cattle but in finishing them in Ireland. He feared that the new regulation might induce farmers to sell cattle before they were ready. Therefore, the Minister is trying to do what Deputy Crinion suggests. That is his policy and the policy of the Department. As I said this afternoon in reply to the question, we have to exhort farmers to do this. We have to consult with them. As I have said, farmers are sound businessmen and I do not think any farmer will sell his young stock unless he has a very good reason for doing so. The reasons could be other than financial. We have reached a position in my part of the country when farmers are over-stocked. Young cattle are coming along and the farmers have to select stock for sale. If this group in Kilkenny will give a bigger price for such young cattle than farmers can obtain from other sources, I see no reason why they should not sell to them.
The Parliamentary Secretary's time is nearly up.
I am anxious to put one question.
I will say just a few words in conclusion. The Minister is actively engaged on this question in Luxembourg.
If the Parliamentary Secretary had told us this today, I would not have come back here on the Adjournment.
The Dáil adjourned at 11 p.m. until 10 30 a.m. on Thursday, 7th June, 1973.