asked the Minister for Agriculture if he is aware of reports that two ships loaded with butter are anchored off the Irish coast; if this is correct; and, if so, the reason.
Ceisteanna—Questions. Oral Answers. - Butter Shiploads.
16.
Until recently intervention butter was stored on two refrigerated ships in Cork harbour but it has now been sold. The refrigerated ships were used because land-based storage was not available when required.
Would the Minister agree that this chaotic system is pushing up the price to the Irish housewife and is denying possible food supplies — not just butter but other goods — to the Third World and that the idea of storing food while people are starving an hour's flight away is an obnoxious principle? Surely it is anti-humanity.
Yes. It is, no doubt, a very honourable viewpoint but I would point out that the butter is eventually sold, maybe at half price, to countries such as the Soviet Union and other places in the Eastern Bloc, the Middle East and the Caribbean. If it were not sold, even at half price, financing of the Community and in particular the common agricultural policy would be seriously undermined. That should be borne in mind.
How many tonnes of butter were stored on these ships?
The amount of butter stored between the two ships was 8,115 tonnes.
Is the Minister happy with the present system of intervention for dairy products?
I am not satisfied but I am reasonably happy. Our problem is that we are not producing the type of products that sell freely on the open market. I have repeatedly stated the need for diversification. We are producing huge amounts of butter and skimmed milk powder which are not readily saleable. There is a vast world surplus of these commodities. We need a whole variety of cheeses, yogurts and other dairy products. We are producing less cheese to day than 12 or 13 years ago. That is a very unfortunate situation. I am not satisfied with the situation that pertains in the market place. As regards intervention, we are lucky it is available because otherwise we would not be able to sell what we are producing. We would be able to sell some of it but not all.
This is a specific question about the contents of ships off the Irish coast but does not raise the whole policy of milk production. I cannot allow a debate to develop.
How long were these ships at anchor? How long was the butter stored on board? Who purchased the butter? What price did it make? What was the cost of storage?
The ships were chartered in March and April 1984. All the butter was sold in November 1984 for export to the Soviet Union. It was recently taken over by the purchaser and transferred to Belgium and Holland for processing.
Who was the purchaser?
I have not the name of the purchaser.
What was the cost of storage?
The cost of storage was £1.4 million and the estimated level of FEOGA recoupment is £0.5 million.
I will allow Deputy O'Keeffe to ask the last question. I am sure he could make a final speech on the matter.
The Minister has stated that there is too much emphasis on butter and skimmed milk powder. Would the Minister not agree that the EC price guarantee encourages farmers to produce butter and skimmed milk powder? Having toured the Spring Show this afternoon I was appalled to see quite a lot of foreign cheeses displayed on stands as being Irish products. That is something we cannot condone. Perhaps the Minister would comment.
It is a fact of life that intervention is encouraging the production of butter and skimmed milk.
Will the Minister try to change that policy?
I have been continually advocating that we should diversify and should not be using intervention as a last resort. Regarding Deputy O'Keeffe's statement about Irish cheese, one of the-most impressive aspects of the Spring Show was the excellent food display by a number of Irish companies, particularly co-operative societies.
We cannot discuss our experience at the Spring Show on this question.
I will just deal with cheese. A considerable effort is being made by a number of co-operatives to diversify and produce a number of different cheeses and yogurts. I compliment them on that. My experience at the Spring Show was not the same as Deputy O'Keeffe's. I was very impressed at the efforts being made to diversify.