Vol. 360 No. 6
(Limerick West) asked the Minister for Agriculture the steps he intends to take, as a matter of urgency, to protect the price of beef to Irish producers following the unfavourable prices agreed for the Egyptian export trade which was signed recently by a major Irish meat packer on behalf of a consortium of Irish Meat Packers and in which he played a crucial personal role; and if he will make a statement on the matter.
69.
asked the Minister for Agriculture if he is satisfied with the recent Egyptian beef deal which was negotiated on his initiative and which will cause huge losses to producers in the Irish meat industry; and if he will make a statement on this matter.
I propose to take Questions Nos. 16 and 69 together.
The purpose of my recent visit to Egypt, and of the Protocol of Co-operation subsequently signed with the Egyptian Ministry of Supply and Home Trade, was to provide a framework within which Irish exporters, together with CBF, could make detailed commercial arrangements with the Egyptian purchasing authorities. The visit had to be arranged at extremely short notice in order to safeguard the overall position of Irish cattle and beef in Egypt, which was under serious and immediate threat from competing countries.
I am not a party to the contracts which were negotiated by Irish exporters subsequent to my visit. I can only assume that the exporters concerned entered into those contracts on the basis of their own commercial judgement of what the total market environment is likely to be at the time the cattle and beef have to be supplied to Egypt. In this respect the contracts are no different from any others concluded by Irish beef exporters.
(Limerick West): Why was it necessary to confine the deal to the group concerned, that is, the group who went to Egypt? Is the Minister not aware that other groups or meat factories were involved in previous deals with the Egyptians and why were these not invited to participate on this occasion?
I did not invite any individual or group to accompany me to Egypt. In the ten days or two weeks preceding my visit, it had been brought to my notice by a number of exporters who were heavily involved in the Egyptian market that there was a grave threat to our supplies to that market because of conditions being offered by at least one other country. In the light of the information I received from the suppliers to that market, I decided to travel to Egypt to meet the relevant Ministers in an effort to ensure that our portion of that market was not lost. I notified the people who had alerted me to the danger of losing the market that I was travelling to Egypt but I did not invite anyone to accompany me. Anyone who travelled to Egypt did so of his own accord.
(Limerick West): Did the Minister not consider it odd that the contract was not drawn up in the name of the State board, CBF, as opposed to being in the name of a private company? Is the Minister not aware that in such circumstances those kinds of contracts are on a state to state basis which is the more acceptable practice?
I was not in the least surprised in regard to the contract because CBF do not enter into trade agreements. They do not have the finance that would enable them to do so. They are merely a promotional body, so they do not sign contracts either for the buying or the selling of beef. It is a matter for the individual traders to engage in that process and I played no part in that side of the negotiations. My involvement was solely on grounds of protocol.
(Limerick West): Would the Minister regard the price achieved as a good price and what consequences does he foresee that price having on cattle prices generally in the autumn?
I am very annoyed at the bitchiness, if the Chair will excuse the unparliamentary language——
There seems to be creeping into the Dáil debates, not only on the part of the Minister but on the part of others, a tendency towards coarse language. I have detected this on two or three occasions in the past week.
How nasty.
I would deprecate any such tendency because it is only a short step to another stage when the whole situation would be out of hand.
That reprimands the Minister.
Far be it from me to be offensive. I deprecate the acrimony that has entered into this question. Some people complain that they are not included in the Egyptian deal while on the other hand they complain that the price achieved is too low. Where is the consistency in that attitude? These people cannot have it both ways. If the heat in the kitchen is too great, they should move out. The deal was based on the commercial judgement of the parties concerned and I am not here to featherbed them if they are not happy with every aspect of the deal.
I am calling Question No. 17.
(Limerick West): Would the Minister consider the deal a good one?
It was a magnificent deal.
(Limerick West): What are the Minister's views as to the consequences the deal will have on cattle prices in the autumn?
While we are in the EC we are subject to a support system and assuming that the support systems remain as they have been, and particularly as they were in the past year, they will tend to be excellent for Irish farmers.
I have called the next question.
Did the Minister consult with CBF before going to Egypt?
I requested CBF to look after all aspects of the Irish beef industry and they duly took part in the negotiations.
