asked the Minister for Agriculture and Fisheries the total sum paid on exports of cattle, live and dead, to all countries since the introduction of MCAs; and the total payments during the same period from FEOGA in the beef sector.
Ceisteanna—Questions. Oral Answers. - Cattle Trade
21.
In the period September, 1973, to March, 1976, a sum of £18.57m. has so far been established as monetary compensatory amounts falling due on the export of cattle and beef. In the same period a total of £121.72m was received from the guarantee section of FEOGA in the beef sector in respect of losses on intervention, slaughter premia, aids for private storage, accession compensatory amounts, and monetary compensatory amount subsidies. It should be noted however that the bulk of the MCA charges on cattle and beef arose on exports to the United Kingdom, and that a greater MCA import subsidy was payable in the UK on these imports.
22.
asked the Minister for Agriculture and Fisheries whether distortion of trade has arisen in this country from the availability of 100 per cent intervention in Northern Ireland; and, if so, the steps he proposes to correct it.
No distortion of trade has arisen from the operation of intervention buying of beef in Northern Ireland. The quantity of beef being purchased into intervention there is in practice being limited to about 25 per cent of slaughterings.
Does the Minister not concede that the availability of 100 per cent intervention, if necessary to Northern Ireland farmers, is an advantage we do not have on this side of the Border?
It is true to say that we have been confining intervention to 50 per cent but we have the evidence here that it is being confined in the North of Ireland to 25 per cent. I do not see how they have an advantage because of this, because it would be possible for them to have 100 per cent. In fact, the 50 per cent has never been used here since we decided that it should be 50 per cent. The highest it has ever gone to is 42 per cent.
Is the Minister not aware that the supply of cattle to factories in the coming year is likely to be a great deal less than it was last year and that, for that reason if no other, our resort to intervention would probably be lessened that much? All the same is it not well known that, against any contingencies of market failure—for instance, through the relaxation of the safeguard clauses in the EEC— we would have reliance on 100 per cent intervention if we needed it?
It is very difficult at this stage to forecast what might be the result of relaxation in the safeguard clause. I think the Deputy will agree with me that it would be a very bad practice for this country to become more reliant on intervention as a way of selling beef. For that reason I have been doing everything possible to induce people to retain and expand markets, selling markets, rather than intervention. If we have over-reliance on intervention we will be in a very serious situation.