I move:
That Dáil Éireann approves the following Regulations in draft:—
Bovine Diseases (Levies) Regulations, 1984.
The proposed regulations are being made under the Bovine Diseases (Levies) Act, 1979, which was introduced by a previous administration mainly to secure a financial contribution from the farming sector towards the cost of the bovine TB and brucellosis eradication programme. The Act provided that the levies could be varied by regulations and rates of £1.90 per bovine animal slaughtered or exported live and 0.3p per gallon of milk produced were introduced with effect from 1 January 1984. The original levies introduced by the then Minister for Agriculture, Mr. Gibbons, on 1 September, 1979 were withdrawn on 1 February 1981.
In the national plan 1985-1987, the Government decided that, from November 1984 to the end of 1985, an increased contribution should be sought from the farming community towards the cost of the disease eradication programme. The rates of levies proposed — a doubling of the present rates to £3.80 per bovine animal slaughtered or exported live and 0.6p per gallon of milk — will apply from 5 November 1984, and are expected to yield an additional £7 million in 1985.
Regarding the live export of cattle, I would refer to a matter raised a few minutes ago by Deputy O'Keeffe. We as a Government are very interested in continuing to trade with Libya. We have nothing but the highest admiration for the wonderful work that has been done in this regard by some leading cattle exporters.
We would like to reciprocate the very strong market which has been generated. We would like to do as much trade as possible with Libya. I want to clear up any confusion or misconception which may have arisen on this matter. There have been a number of statements to the effect that the Government were not interested in doing business with the Libyan Government or buying Libyan oil. We would be only too glad to do so but — and this I must stress — the price has to be competitive. If the terms of the sale of Libyan oil are competitive we will be only too glad to do business with them. We have nothing but the best relations with the Libyan Government, and I would like to contradict any impression which some people have attempted to give to the contrary. We are very anxious that that trade continues.
In 1983 we sold 77,000 head of live cattle to Libya and almost 7,000 tons of beef. That is a very valuable trade and we want to retain it. At present a technical delegation is preparing to go to Libya to discuss the terms of any such sale. As I have repeatedly stated, I would be only too glad to go to Libya to conclude any such deal if the terms are right and the oil prices are competitive. I have been willing to go there over the past few months and I will gladly go there in the coming weeks if necessary.
It has been made clear that a meeting of the Joint Commission would not take place unless there was a commitment to buy Libyan oil. That has been an inhibition because we have said that we are only prepared to buy at a competitive price. As everyone knows, there is a very difficult situation in the world oil market because of moves by a number of countries to undercut the prices being demanded by most oil-producing countries. That has created an uncertain climate and it will be some days, if not weeks, before the situation is clarified.
We export live animals and beef to a number of oil-producing countries. I would like to give the House an indication of the volume of that trade. In 1983 we exported 191,000 head of live cattle to the United Kingdom, 138,000 head of live cattle to Egypt and 77,000 head of live cattle to Libya. Deputies will gather from that that the live trade is thriving. Our main importer of live cattle is the United Kingdom, our second importer is Egypt and our third is Libya, but those statistics can change from year to year. Libya has been our most constant customer over the past number of years and we value that trade.
In 1983 we exported 110,000 tonnes of beef to the United Kingdom, 52,000 tonnes to other EEC countries, 623,000 tonnes to Iran, 6,616 tonnes to Libya, 9,694 tonnes to Egypt and 67,824 tonnes to other destinations. Deputies will see that we are not exporting to only one particular country. We are exporting enormous quantities of beef and other agricultural products to many oil-producing countries. If we had to pay all those countries the top price for oil, it would mean a considerable expense to the Exchequer and, indirectly, to the Irish taxpayer.
As I pointed out earlier, there is a need for prices to be competitive. We cannot impose additional burdens on the Exchequer and the taxpayer if we can buy the commodity cheaper elsewhere. If the Libyan Government wish to do business with us at competitive prices, we will be only too glad to do so. I want that message to go out very clearly from this House. There has been a great deal of confusion about our intentions. There is no political consideration involved. I read a startling headline in one of yesterday's evening papers which said this was mainly a political consideration, and we have read similar stories in recent weeks. I want to repeat: there is no political consideration involved. This is strictly a business deal.
The following six Middle East countries are major oil producers: Algeria, Libya, Egypt, Iran and Saudia Arabia. In 1983 the value of our agricultural exports was as follows: Algeria, £35.3 million; Libya, £41.1 million, Egypt, £77.6 million, Iraq, £9.8 million — a little low perhaps but the previous year the figure was £40.7 million — Iran £32.2 million and Saudia Arabia £31.7 million. Deputies can see the significance of those exports to these oil producing countries which are members of OPEC. We could also add to that list Nigeria to whom in the past we have exported a colossal amount of fish. If we were to have reciprocal trade with all those oil producing countries, paying the top price for oil, there would be an enormous extra cost to our Exchequer. That aspect has to be borne in mind.
The bovine disease levies were, of course, introduced in 1979 by the then administration. I would point out that at that time they fixed the rates of levy at 0.5 pence per gallon of milk and at £3 per head of cattle. Translated into present-day values those rates would amount to fractionally less than 1p per gallon and just under £6 per head of cattle, whereas the rates now proposed are substantially lower at 0.6 pence per gallon of milk and £3.80 per animal. Adding to this the fact that cattle and milk prices today are much better than they were in 1979 it is readily apparent that the impact of the levies now is far less than it was then. I would ask the Opposition to bear this in mind when speaking on the motion. The rates of levy now proposed could be increased by about 60 per cent before they would represent the same burden on producers as applied when the levies were originally introduced in 1979.
These increases must be viewed in the context of the quite massive investment of Exchequer moneys in the eradication programme to date and the substantially increased funding being allocated for the schemes over the next three years. The fact that we are no longer in receipt of an EC contribution towards the cost of eradication measures must also be taken into account. A sum of £31.5 million is being provided for the operation of the schemes in 1985, that is, an increase of £10.5 million on the 1984 allocation. It is a very sizeable amount for disease eradication, a programme that has not met with the kind of success we would have liked, especially in recent years. The figure of £31.5 million is exceptionally high when compared with figures in previous years which averaged around £20 million. In fact, in 1979 the figure was as low as £14 million. We are providing a very considerable amount of extra money for the disease eradication programme but we want to get results and we intend to get them.
While brucellosis eradication is at a very advanced stage and ultimate success is now well within our grasp, efforts towards eradication of bovine TB have been less successful. For some years past, our eradication measures have managed only to contain the disease at an incidence of around 2.5 per cent of herds. The result is that potential for growth and development of the livestock and livestock products sector is being seriously hampered, with consequent losses to the farming community. The incidence of bovine TB in herds increased in the period 1981 to 1983 despite the vast amount spent on the scheme. This must give cause for alarm.
In their national plan, the Government have cited the final elimination of TB as a priority and to that end a fresh onslaught is to be made against the disease. While substantially increased funds have been allocated to the eradication programme over the next three years, including an additional provision for stock replacement, the Government have made it clear that availability of these moneys will be subject to the introduction of a number of radical changes in the operation of the disease eradication schemes. These are set out in paragraph 7.36 of the Government's national plan and include direct nomination of veterinary surgeons for TB and brucellosis scheme testing; payment of testing fees to a veterinary surgeon who carries out the scheme test thus making the veterinary surgeon personally responsible for the proper execution of the test; earlier removal of reactor animals; tighter official supervision of all trading at marts; strict enforcement of all procedures and prosecutions in all cases for breaches of disease regulations; the establishment of a central epidemiological unit in my Department to co-ordinate and assist in the analysis of disease outbreaks, prevention of disease and so on. In addition, I have arranged for the establishment of an advisory group on research and investigation into various aspects of TB. Experts from UCD, An Foras Talúntais, the practitioners and my own animal health research staff will be involved. The general aim of the group will be to pinpoint areas of research which they consider require further pursuit.
The health status of the national herd is of major importance to the future development of Irish agriculture. In the interest of our very valuable meat and livestock trade, both domestic and foreign, it must be obvious to all that bovine TB and brucellosis must be totally eradicated. The cost of the schemes to date — over £750 million at present-day values, excluding administration — has proved a massive drain on Exchequer funds over the years. If administration costs were included, the total cost would be in excess of £1,000 million in present-day values. The Government are convinced that, with the co-operation of all interests concerned, the extra funding now being provided, allied to the changes set out in the national plan, will give renewed impetus to the eradication programme and will bring about a significant reduction in disease incidence levels.