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Dáil Éireann debate -
Tuesday, 6 Dec 1977

Vol. 302 No. 5

Ceisteanna—Questions. Oral Answers. - Poultry Industry.

32.

(Cavan-Monaghan) and Mr. Conlan asked the Minister for Agriculture if he is aware of difficulties being experienced by poultry producers and poultry processors in counties Cavan and Monaghan due to the inequality in the price of feedstuff as between the Republic and Northern Ireland; and if he proposes to take steps to alleviate these difficulties.

33.

asked the Minister for Agriculture if he is aware of the threat to employment in the poultry industry due to the unfair competitive advantage enjoyed by Northern Ireland producers and processors due to MCA credits and employment subsidy; and if he will make a statement on the matter.

With the permission of the Ceann Comhairle, I propose taking Questions Nos. 32 and 33 together.

Representations have been made to me by the poultry processing industry to the effect that the industry is operating at a competitive disadvantage visà-vis Northern Ireland processors by reason of lower production costs in Northern Ireland. This is a fact; but taking all factors into account, including the MCA charge on exports to here, the margin of advantage to Northern Ireland processors marketing poultry meat in the Republic is not substantial. As my predecessor discovered, there is no action open to the Irish authorities under EEC conditions to establish full equality of broiler production costs North and South. I may add that only limited quantities of poultry meat are being supplied to the market here from Northern Ireland and these have not shown any increase in recent months.

(Cavan-Monaghan): Is the Minister aware that there is an adverse difference of approximately £25 per ton between the price here and that charged for feed in Northern Ireland? Has the Minister been informed, and does he agree, that the price at which produce from Northern Ireland is being sold here virtually amounts to dumping? Is he aware that poultry producers here are in danger of having to go out of business?

I am aware that there is an imbalance between the price of poultry feed in Northern Ireland as against here. I am also aware that the amount of poultry from Northern Ireland being sold here is rather limited and there has not been any increase in modern times. On the other hand, the circumstance with regard to the MCA obtaining in the North and down here, while it has an adverse effect in this area, is to our great benefit in such a large area otherwise. It is to the advantage of producers here as a whole that this situation should continue.

(Cavan-Monaghan): Is the Minister aware that the MCAs are not effective and do not relieve the situation? Is the Minister also aware that, apart from official imports, huge quantities are brought across unapproved? That virtually amounts to dumping. Presumably the Minister is aware that the value of the poultry industry was about £45 million for 1977 out of the farmer's gate and more than £70 million retail. Is he aware that about 6,000 people are employed in this industry and that they are in danger of being put out of business by virtue of this unfair competition? These people simply want to be put on equal terms with their competitors a few miles away.

I do not know whether the Deputy wants equalisation upwards or downwards of the British and Irish MCA. I would be glad if he would inform me which way he would like it.

(Cavan-Monaghan): In plain language, I want the Minister to put our producers on equally competitive terms with the importers.

One way would be to equalise the level of devaluation of the green £ in the North and down here. I am sure that would be very detrimental to the interests of producers generally down here and the Deputy must be aware of that.

(Cavan-Monaghan): I do not care how the Minister does it. Is the Minister aware that these producers are working under a serious disadvantage as a result of the feed being £25 per ton dearer here than in Northern Ireland? Is it the intention of the Minister to stand by while this valuable industry is put out of production? There is a precedent for helping them, as the Minister must be aware.

The actual circumstance that gave rise to the situation which undoubtedly exists also redounds to our benefit in every other field of production.

(Cavan-Monaghan): Do I take it that the Minister is not concerned about the poultry industry and wants to get rid of it?

The Deputy has not given careful enough consideration to the question and the supplementaries he has asked. If he had, he would find himself contending for cheaper prices for cattle, cheaper prices for pigs, and cheaper prices for a whole range of agricultural products in the South visà-vis the North.

(Cavan-Monaghan): One last supplementary.

Perhaps the Minister and the Deputy might adjourn to another room while we go on with the rest of the business.

(Cavan-Monaghan): Unfortunately the poultry producers cannot do that. The Minister is aware that in another industry separate action was taken, that is, in the biscuit industry. Why cannot some similar protection be given to this very important industry which is employing 6,000 people?

The remaining questions will appear on tomorrow's Order Paper.

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