Vol. 403 No. 10
3 Mr. Connaughton asked the Minister for Agriculture and Food the steps he has taken to ensure that meat processors pass on the maximum level of intervention benefits to beef farmers; his views on whether meat factories are hiving off undue profits; and if he will make a statement on the matter.
10 Mr. Rabbitte asked the Minister for Agriculture and Food if, in view of the recent comments made by the Minister of State at his Department that the margin being taken by some meat plants is too high, he will outline the steps he proposes to take to deal with this practice and to ensure that famers get a reasonable return for their stock; and if he will make a statement on the matter.
27 Mr. J. O'Keeffe asked the Minister for Agriculture and Food whether his attention has been drawn to the fact that prices as low as 81 pence per pound have been paid for cattle by our meat factories; and if he will take steps to ensure that a reasonable floor price is established so that beef farmers' losses can be minimised.
I propose to take Questions Nos. 3, 10 and 27 together.
While prices for poor quality animals not eligible for intervention can be low, this reflects the market value of such animals. However, these categories are by no means representative.
Some time ago I met with representatives of the meat processors and impressed on them the need to ensure that the value of the intervention support system were adequately reflected in prices paid to producers. I am pleased to note that since then prices for all categories, including non-intervention categories, have increased and the trend continues to be upwards.
The Department on my specific instructions are and have, at all times, been in regular contact with the industry to ensure that farmers get a fair price for products purchased into intervention.
I am, of course, concerned that farmers should receive adequate returns for their cattle. My Department are continuously monitoring the situation. However, the question of any lack of competition as between meat processors is a matter to be dealt with under competition legislation which is a matter for my colleague, the Minister for Industry and Commerce. As Deputies are aware, he will be introducing new competition legislation to strengthen controls in this area in the near future.
Does that not basically mean that, despite what the Minister, his junior Ministers and the Commissioner for Agriculture, Mr. MacSharry have said publicly, so far as the Minister's dealings with meat factories here are concerned, he is in no better position than a paper tiger and that he has no control whatsoever over them? I do not want to allow this opportunity to pass without saying that, if the Minister thinks the meat factories are not perpetrating a rip-off at this stage in regard to intervention prices which they are receiving, which they subsequently pass on to farmers, then the Minister and his advisers are ill-advised. The Minister and his two junior Ministers, know as well as I do, that this is a rip-off.
Please, Deputy, we must proceed by way of question.
What I want to find out is whether it is the Minister or Commissioner MacSharry who has control over this and what can be done about it.
The Deputy is imparting a lot of information rather than seeking it. This is Question Time.
With regard to some of the alleged information Deputy Connaughton is seeking to impart, let me say that, since we made our first appeal in October, and since I met representatives of the industry in October, by way of persuasion and positive influence, prices increased immediately by over 2 per cent and have hardened since——
Where?
——across the board and have moved consistently in that direction. I did say to the Deputy in reply that while I would be very happy to use my persuasion and influence, which have in fact proved effective — and the same would apply to Commissioner MacSharry — the fact is that I do not have statutory——
He dispenses the funds.
If the Deputy wants a reply, would he please allow me to continue? I do not have any statutory authority. The Minister for Agriculture and Food does not have statutory authority to order any price control or level of prices in this area. Any such authority, or the nearest thing to it, rests with the Minister for Industry and Commerce.
The Minister can blame another Minister——
I did not say that; the Deputy should not misinterpret what I said. I simply made a statement of fact, that is all.
The time for dealing with questions nominated for priority is now exhausted. We proceed to deal with other questions.
