Dáil Éireann debate -
Tuesday, 16 Dec 1980

Vol. 325 No. 7

Supplementary Estimates, 1980. - Veterinary Inspection Fees: Motion:

Minister for Agriculture (Mr. MacSharry)

I move:

That Dáil Éireann approves the following regulations in draft: Pigs and Bacon Acts, 1935 (Part II) (No. 7) Regulations, 1980, and Agricultural Product (Fresh Meat) Act, 1930 (Exporters' Licenses) (Fees) Regulations, 1980 copies of which were laid in draft before the Dáil on the 11th day of December, 1980.

The effect of the regulations would be to reduce to a nominal amount the fees payable in respect of pigs presented for veterinary inspection under the Fresh Meat Acts and the Pigs and Bacon Acts. I would hope, with the approval of the House, to have the remission of these fees in operation as from 1 January 1981. In a full year the total remission comes to £500,000.

The purpose of this remission is to afford relief to the Pigmeat Industry for a period of two years, that is for the years 1981 and 1982, to help overcome the serious difficulties being experienced by the sector at present. The chief contributing factor to these difficulties has been the depressed state of the pigmeat market throughout the Community during the past year. The UK Bacon Market, our chief export outlet, has been weak. Confidence in the industry has also been adversely affected by uncertainty about marketing arrangements. As the House is aware, the industry has engaged a good deal of my attention over recent months and I have had several meetings with the various interests to consider ways of helping the industry over its current difficulties.

At the most recent of these meetings, which took place last Thursday, 11 December, I was very glad indeed to have confirmation from representatives of the bacon curers and the pig producers that they all have agreed among themselves, and I emphasise all, on measures to improve the centralised marketing of pigmeat. In short, we now have a unified approach by all concerned. I feel certain that this remission of fees which I propose will provide the necessary stimulus to the pigmeat industry to establish itself on a surer footing for the longer term.

A unified approach is vital if exports are to be maintained, not to mention increased, and if we are to compete effectively with possible imports. A fall in exports would mean a drop in throughput in the factories and a consequent threat to jobs.

In addition to the temporary remission of veterinary fees, the Government have decided to provide a grant of £200,000 per year over the next two years to the Pigs and Bacon Commission, to enable the commission to increase its work in the promotion of pigmeat. This work will be a very important part of the ongoing work of improving the industry.

Finally, I should mention that I hope to be in a position very soon to introduce legislation to extend the statutory levy to all pigs slaughtered for pork, including slaughterings for the home trade. This levy is the administrative levy at present payable to the Pigs and Bacon Commission on bacon pigs. The extending of the levy to pork pigs will, I believe, lead to a more comprehensive and co-ordinated approach within the industry.

I hope Deputies on all sides of the House will support the proposed regulations which are now before the House in draft.

Mr. Bruton

I am extremely concerned about the threat to the home bacon and pork market from potential imports of Danish bacon. I do not think we are adequately prepared to meet the threat which now, as a result of our membership of the EEC, is very real.

There are two areas in which action must be taken if we are to hold our home market, because it is important to recognise in the case of the Irish pig industry that the home market is very important. It is far more important in the case of the pig industry than it is, relatively speaking, in the case of the beef or milk industries. We run a serious risk of massive penetration of our market by Danish bacon unless we take immediate action to discourage such imports, because once they become established it will be impossible to get them out. They will have made an investment and will not want to leave. They will want a return from that investment. We must take action now, before they move into our market, to show we are determined to hold on to it. We may, by resolute action, scare them off and they may not come in at all. I am not satisfied that the Minister is tackling the problem in the manner in which it should be tackled.

In their 1977 election manifesto the Government made a very specific and clear promise to establish a domestic marketing council for the promotion of Irish food on the home market. That specific promise has not been kept. If it had been it would have provided a very useful means to promote Irish food on the home market, in particular Irish pigmeat. We have to look at the quality standards of Irish bacon, because Danish bacon has attained a justly high reputation for quality, and there have been recent suggestions of undesirable practices being used, such as pumping excess levels of brine into bacon, thereby selling more salt than bacon. I am not satisfied that the system of inspection in the factories is sufficiently rigorous to prevent this happening. I would like the Minister to tell the House the number of prosecutions that have been instituted for practices of this nature which are not in line with the law as it stands in relation to consumer protection. I would also like to know the frequency with which each factory is inspected. Is every carcase inspected? Is the brine content of each carcase inspected each time, or is it purely a spot-check operation?

I would like to know the position that obtains in relation to standards at slaughtering premises killing solely for the home market. I understand there are numerous rules relating to what may be done at export premises, but such rules and the consequent right of inspection to ensure that they are enforced do not apply to small butchering premises which are sending meat only to the home market.

If people buy bad home-produced bacon which has come from a premises which is not subject to law, that is sufficient to blacken the name of Irish bacon, particularly if there is an alternative Danish product on the shelf. Does the Minister intend to ensure that there is an adequate service and just as rigorous an application of the regulations to home slaughtering premises as well as to those licensed for export under the relevant legislation.

I would like the Minister to give his view of the future of the pig industry. As he is aware, in 1980 there was a bad harvest all over the world and this meant a considerable shortage of feed. Obviously the pig industry depends for its profitability on the price of feed. The use of concentrated feed is far higher per pound of meat produced in the pig industry than in the beef industry. A moderate change in feed prices can have a dramatic effect on the pig industry. I would like to hear the Minister's views on this. Is there a section in the Department analysing trends in world feed prices to see what impact they will have on the economics of the pig industry? Will the Pigs and Bacon Commission spend some of the money being allocated for promotion on the Irish market or will this be devoted solely to the export market? It is very important that some of this money should be spent on the Irish market.

What are the arrangements for the long-term financing of the commission? Are any changes envisaged in their powers? Does the Minister intend extending their powers to make them similar to those given to CBF under recent legislation? Will they be allowed enter into actual marketing arrangements? I know the Minister will introduce legislation relating to levies, but how may the commission use these levies?

This is a time of great worry in the pig industry for two reasons, first, the threat of imports and, second, the failure of the Government, as perceived not just by myself but by many people in the pig industry, to adequately enforce quality regulations so that the producer who sends a good pig into the factory can be assured it will be properly processed and sold to the consumer. If that does not happen it is the producer who will lose, because he is not in a sufficiently strong marketing position to ensure that the failings of the processor are not passed back to him in lower prices.

These were a few points I wanted to make, but obviously I welcome this proposal.

Minister for Agriculture (Mr. Mac-Sharry)

I thank Deputy Bruton for his contribution. I share his concern about the threat of imports. The best and only solution to any such threats is to have available a good home product at a competitive price. Irish bacon producers and curers have the means to put such an Irish product on the market and, as long as they are doing that and continue to do it, they need not worry too much about the threat of imports.

Mr. Bruton

Is the Minister not worried about this?

Mr. MacSharry

I said I shared the Deputy's concern and that the way to overcome this problem was to put the right product on the market at the right price and I am satisfied our producers and curers can do that.

Mr. Bruton

They will want to get the skids on fast.

Mr. MacSharry

Imports will only be allowed in under strict veterinary supervision. The Deputy asked about the quality of bacon and inspections at bacon factories. Licensed bacon factories are under the full control of the Department of Agriculture; the question of processing of registered pork butchers is under the control of the Minister for Health and the health boards. I am studying this matter to see what can be done to improve conditions but, as the Deputy said, there is room for improvement.

Mr. Bruton

The Minister is talking about hygiene but that has nothing to do with quality.

Mr. MacSharry

I took action earlier in the year about quality and, if the Deputy has complaints about any factories, we would like to know about them.

Mr. Bruton

I have already given them to the Department.

Mr. MacSharry

I did not see them but I guarantee they will be examined and I will report to the Deputy. I share his concern about having suitable quality. Nobody wants the home consumer or our consumers abroad getting bacon which is not suitable. The general approach of the bacon curers, producers and the Pigs and Bacon Commission has been one of concern for the industry and they agreed unanimously with the proposals now put before us. It is intended that the Pigs and Bacon Commission will promote bacon and pork on the home market when we have the new legislation.

Mr. Bruton

Can they not do it until then?

Mr. MacSharry

They can and they will for bacon——

Mr. Bruton

When will they start this promotion?

Mr. MacSharry

Immediately. We will be giving them the extra £200,000 as and from 1 January. I do not intend to widen the powers of the Pigs and Bacon Commission. With the measures we have taken I hope the outlook for the industry will improve over the next two years. Having had lengthy discussions on many occasions with the interests concerned I am satisfied that they have confidence in their future and are prepared to work towards an improvement of the whole sector. I am equally satisfied that with the assistance now being given them they will succeed in those efforts.

Mr. Bruton

Does the Minister have any intention of establishing this domestic food marketing council as promised in the manifesto?

Mr. MacSharry

Not at this stage.

Question put and agreed to.