asked the Minister for Agriculture if he proposes to take any action in relation to the threatened layoff of several hundred workers in the meat processing industry throughout the country; and if he will make a statement on the matter.
9.
Ceisteanna—Questions. Oral Answers. - Meat Processing Industry.
8.
asked the Minister for Agriculture if he is aware of the closedown of practically the entire plant of Irish Meat Producers, Leixlip, County Kildare and the consequent loss of employment; and if he will make a statement on the matter.
I propose to take Questions Nos. 8 and 9 together.
Supplies of finished cattle are seasonally low at this time of the year and slaughterings normally decline to a half or less of the level reached in the late autumn. This situation inevitably involves a reduction in meat factory employment throughout the country.
My Department's functions relate primarily to the EC support and trading conditions under which the meat industry operates. In this connection every effort continues to be made to ensure that these conditions are as favourable as possible for the industry.
The Minister did not refer specifically to the decisions taken by the Canadian authorities some months ago. Has there been any positive indication from the Canadians with regard to their response to proposals made to them following their decision in December last? I might add that this question was down for Private Notice on 23 January last when it was evident that closure was about to take place in a number of areas and it was disallowed on the grounds that it was a private company. I should be grateful for that information now.
I might just say that it was not down in the same form, Deputy; a different form was used. It is in order now.
I answered a question specifically about the Canadian problem yesterday. I shall deal with it very briefly now. The EC quota was reduced by the Canadian Government on 21 December last. Ireland had the bulk of that quota over the last couple of years but they reduced it to 2,700 tonnes. Obviously this has caused problems for a number of meat processing plants here. We strenuously objected to this measure at the EC. I raised the matter specifically myself on two occasions in the months of January and February last. The EC are the people who do the bartering when it comes to trade with third countries and there have been continuous, prolonged discussions with the Canadians. The outcome has yet to be decided. A figure has been mentioned which would be reasonably satisfactory but the Canadians are anxious to attach strings to the deal. It is not as clearcut as we would like. The EC have indicated that if the Canadians do not allow what we regard as a reasonable amount of beef from the Community into Canada, retaliatory action will be taken in regard to Canadian goods coming into the EC. There has been no final decision on the matter.
What has been the Canadian reaction to the retaliatory suggestions that have been put to them? While I accept what the Minister says in relation to a valley period for slaughterings in beef at this time of the year, quite a number of meat processing plants are still operating at a fairly high output. I am referring particularly to a plant which has a large amount of its business carried on in Canada. Unless something is done fairly dramatically a very serious situation might develop in which the future of the plant may be in jeopardy.
The Taoiseach has been fully briefed on the matter and will be taking it up with the Canadian authorities during his visit. I do not want to say anything further on the Canadian situation because the negotiations have not been finalised. During the late autumn the average kill in plants here comes to about 30,000 to 35,000 head of cattle. During the spring and early summer that number falls to something like 10,000 or 11,000 head of cattle. There is bound to be a cutback in the numbers employed in each plant as this is a seasonal operation.
It is not sufficient for the Minister to give the reasons for a fall off in the work at the meat plants. What is the Minister doing about this problem which has been with us for many years? Has the Minister a plan to ensure a continuing supply of finished beef or has he plans to ensure that at least there will be no exportation of finished cattle at a time when there is a slow supply?
That is one of the things over which a Government or a Minister has no control. The market dictates the trend in price whether it is in terms of live exports or killings in factories. A lot of people got their fingers burned in this area last year because of the drop in prices in March. They were trying to do what the Deputy would like. People were fattening cattle in the winter on the assumption that the price of meat would be high but instead it dropped. This is a practical difficulty about which it is hard to do anything. The market place dictates the price. We got such heavy support from the EC last autumn between intervention and aids to private storage that there was a tremendous amount of beef taken in. A lot of that has been released now so there is not the same demand for cattle as we would have liked.
(Limerick West): Is the Minister optimistic with regard to the ongoing negotiations between the EC and the Canadians? Is the Minister happy that we are promoting and marketing our beef products as vigorously as we could in order to ensure that what happened this year will not happen again?
I do not want to comment further on the negotiations and I do not want to create optimism or pessimism. I am just expressing my concern. We have indicated that we will take retaliatory action against the Canadians if they do not agree. With regard to marketing, the meat board was specifically set up to get involved in the marketing of Irish beef, sheep meat and so on. I am satisfied that they are doing a good job and I do not see why the situation should be changed.
Will the Minister agree that never in our history was there more disarray in the beef business than there has been over the last six months? Will the Minister agree that there must be regulations or else we will have a complete fall off in winter feeding and a consequent fall off in the demand for grain and that that will have serious implications? We must get some regularity into the industry.
That is rather alarmist. The beef industry went through a phase which it often goes through. To say it is the worst in history is ridiculous. The situation in 1974 was a great deal worse. From the statistics the lowest price for beef in March, when prices were at their lowest, was 102p per pound. In the last week or so the price per pound has risen from 107p to 109p per pound and one factory is currently paying 110p per pound.
Will the Minister tell us the name of the factory?
I can, but I will not mention it specifically in the House.
Would the Minister agree that 101p to 103p was the average price paid one week ago?
That was not the average price.
We are having argument.
It would have been the average price in March. If the Deputy wishes I will give him the name of the factory privately, but I will not name it in the House.
In relation to the need for control, the Minister's reply that market forces dictate the price and that there is nothing he can do is not satisfactory.
Has the Deputy a question?
Will the Minister agree that methods such as subsidies can be used to interfere in market forces and could he not use such methods to ensure a continuing supply of cattle at this time of the year for the plants? Has the Minister a plan of incentives or subsidies to ensure a continuing supply?
We have plans to increase the beef herd considerably as illustrated in the national plan. Next year we will provide £11 million extra to improve the beef herd, but we have not plans on seasonality.
I will allow Deputy Treacy a final question.
Would the Minister agree that the cost of winter fattening of cattle is much higher than the cost of summer grazing? The Minister said that he could not dictate the situation. But incentives were available last autumn to take the glut of cattle off summer grazing and surely he could have forseen that if similar incentives were not available in spring we would run into this situation. Can the Minister assure the House that there are no constraints on the chief executive or the members of CBF in promoting livestock marketing here and abroad? Can the Minister assure the House that the staff and chief executive of CBF have his total support?
I can assure the Deputy of that. I do not interfere with the operations of CBF; the board of CBF make their own decisions. In relation to winter feeding and summer feeding, the market dictates the price. It was obvious to many people in the cattle business that prices being paid last autumn were too high. In view of the additional aids provided from the storage aid scheme it was obvious that there would be a glut of meat and that there was a danger of a price reduction.
I will allow one final supplementary to Deputy Durkan who put down the question.
Is the Minister aware of developments in recent times between the management of IMP in Leixlip and the Canadian authorities which might have the effect of bringing about a reopening of that plant?
I am not aware of any private agreement. I have told the Deputy as much as I can about the overall Canadian situation. Hopefully, it will be resolved.
Ceist 10.
I do not wish to express optimism or pessimism.