asked the Minister for Agriculture whether about one-third of the EC's butter mountain held in storage is now rancid and inedible; if he will take immediate action at EC level to have a large portion of the butter surplus disposed of as it is a massive drain on Community funds; and whether the butter surplus now stands at 1,500,000 tonnes.
Ceisteanna—Questions. Oral Answers. - EC Butter Mountain.
4.
There are about 1.4 million tonnes of surplus butter in intervention storage, about 5 per cent of which is more than three years old and 21 per cent more than two years old. So far as I am aware none of the stock is rancid and inedible but the oldest stocks are more suitable for processing rather than for direct consumption. The high volume of stocks is a cause for concern and I have been pressing the Commission for the introduction of further effective disposal measures in order to restore the stock level to manageable proportions with minimum disruption of normal market activities.
Can the Minister say what it has cost the Community to store the butter mountains in each of the past three years?
It costs the community IR£250 to hold one tonne of butter for one year. The total cost to the Community in 1985 to hold and dispose of intervention butter under all measures was £945 million.
A Cheann Comhairle——
Arising from that——
I am calling Deputy Ned O'Keeffe and then I will call Deputy Shatter.
Will the Minister outline for the House the Government's policy on the large butter surpluses in the EC?
Our policy is the policy followed by the EC. We have been endeavouring with minimum market disruption to dispose of this butter in various ways.
I take it that the Government have a policy programme?
The butter goes to social assistance schemes and charitable institutions. A lot of it goes into confectionery. Indeed butter has been exported to specified third countries.
Will the Minister continue the story?
I am calling Deputy Shatter now.
Will the Minister agree that this problem is not specifically created by Ireland but that it is an EC problem affecting all countries in the EC? Will the Minister also agree that the preservation of these surpluses is now a massive drain on Community funds which could be better used in the creation of jobs and job opportunities throughout the Community than in the storage of butter and other commodities, many of which ultimately will not be sold? Will the Minister take action through the European Communities and ministerial meetings to bring pressure to bear on other countries in the EC to reform the procedures applicable to the storage arrangements relating to such commodities?
As the Deputy is probably aware the disposal of existing stocks is very problematic and there is not an easy solution.
A final question——
I have control over the number of questions allowed. I will allow this question from Deputy Shatter.
Will the Minister agree that the Community would be better off if it simply disposed of the butter mountain, simply destroyed it, if there is not a market for it? Alternatively they could distribute free to all old age pensioners throughout Europe the portion of the butter mountain that is still usable. Will the Minister agree that that would be an appropriate way of dealing with it, that it would reduce Community expenditure in this area——
The Deputy is now making a speech rather than asking a question.
——provide a much needed social service and have a less detrimental effect on Community finances than the current system?
Every possible way out has been looked at. With regard to the three-year old butter stocks, for instance, quite a lot has been used on animal feed. It is being disposed of in substantial quantities.
I will allow Deputy Noonan a question and then I am moving on to the next question.
(Limerick West): Will the Minister agree that the mountain, in large part has been created by imports into the Community of New Zealand butter, oil and fats which come in huge quantities without restriction, and by feeding stuffs which come freely into the EC? What plans have the Government to remedy the situation?
The Deputy knows that many of the agreements regarding imports outside the EC are causing the problem.
(Limerick West): Is the Minister agreeing with me?
Yes, but we cannot do a lot about GATT agreements.
Is the Minister aware of recent press reports emanating from Brussels to the effect that much of this rancid butter should be dumped at the bottom of the sea?
I am not aware of such a proposal.
Would the Minister be in favour of such a proposal?
No. However, I am not aware of the existence of rancid butter.
Is the Minister aware of the fact that there is butter which is unfit for human consumption?
It is frozen butter which is suitable for human consumption.
The Chair has been requested by the Whips to make progress at Question Time and Deputies should not delay the House.
The Community is ensuring that older stocks are used for animal feed and processing——
Are they fit for human consumption?
Obviously yes, if they are being used in food processing.
We will have butter fed cod.