Dáil Éireann debate -
Wednesday, 24 Jun 1992

Vol. 421 No. 5

Adjournment Debate. - Sheep Farmers' Incomes.

Mr. Deasy

The regrettable incident at Agriculture House on Tuesday should not deflect people's attention from the central issue, that is the imminent loss of £30 million per annum to sheep farmers due to the severe cut in the ewe premium in the order of £6 per head. I understand a certain reduction was contemplated but the cut is greater than anticipated. Having regard to the fact that the lamb market is severely depressed this will result in a massive income drop for sheep farmers. Their predicament must be addressed and rectified at the next meeting of the Council of Agriculture Ministers. We are now witnessing the worst scenario that I predicted after the Common Agricultural Policy reform talks, that is, a drop in prices along with a reduction in the support system.

The market is depressed for a number of reasons, but I venture to say that the primary reason is that the British have got rid of their variable premium which was payable to their lamb producers and are now flooding the French market with fresh lamb and making up the balance in the home market with frozen lamb from New Zealand. Unless we can secure a reduction in the amount of New Zealand lamb entering the market in the European Community in the ongoing GATT negotiations, the problems of lamb producers in this country will be exacerbated as time goes on. We have to see to it that New Zeland lamb is either removed from the marketplace or that the amount is reduced considerably because we are finding it very difficult to sell our lamb given the preponderance of fresh English lamb on the market.

I would now like to give way to my colleague, Deputy Sheehan, and to Deputy McGinley also, who wish to contribute on this subject.

Mr. Sheehan

I, too, would like to express my disapproval with regard to the serious announcement that was made in Brussels yesterday. It clearly reveals that there was a lack of proper dialogue between the Department and the authorities in Brussels on this issue. The proposed reduction of over 20 per cent in the ewe premium will spell disaster for our sheep farmers whose incomes will be slashed by at least £30 million this year. This is shocking treatment and it has been meted out by Commissioner Ray MacSharry who should well understand the position given that he comes from a good sheep breeding county, County Sligo. He should know what this premium means to the farmers on the slopes of Benbulben and along the western seaboard from Malin Head to Mizen Head. It is clearly evident that the farmers are very frustrated.

This announcement confirmed the fears I had when I digested the package negotiated by the Minister, Deputy Walsh, in Brussels. It received wide press coverage. It is diabolical that there is to be a reduction in the ewe premium when one considers that a colossal amount of New Zealand lamb has been allowed into the European market. What action does the Minister propose to take with regard to this disastrous blow so far as our sheep farmers are concerned? This will sound the death knell for the sheep farming sector. Our sheep farmers are in a state of shock and their action yesterday bears out in no uncertain fashion that they are completely frustrated following this disastrous news.

Mr. McGinley

In the time available to me I would like to say that this reduction of £6 per ewe will cost the 5,300 sheep farmers in County Donegal in the region of £4 million per annum. This amounts to a drastic and almost fatal blow, as my colleague, Deputy Sheehan, said. When one considers that the price of lamb this year is between £6 and £8 lower than the price that could be obtained this time last year and that the price of wool is less than 20p per pound I cannot see any future for our sheep farmers.

The final point I want to make is that it is ironic that news of the drastic reduction in the ewe premium was not announced until after farmers had voted in the Maastricht referendum. If the present trend continues the traditional small to medium-sized sheep farmers will be wiped out not only in County Donegal but throughout the country.

Minister for Agriculture and Food (Mr. Walsh)

In thanking the Deputies for raising this matter I would like to give some background information in relation to this development. The first advance or tranche of 30 per cent of the estimated 1992 ewe premium which forms an important part of sheep farmers' incomes was fixed by the European Community Sheepmeat Management Committee on Friday, 13 June and it had nothing whatsoever to do—

Mr. Sheehan

19 June.

Mr. Walsh

That is correct.

Mr. Sheehan

The Minister said 13 June.

An Ceann Comhairle

Let us hear the Minister without the slightest interruption. He has only five minutes in which to reply.

Mr. Deasy

Friday the 13th can be very unlucky for some people.

An Ceann Comhairle

Please, Deputy Deasy, the Minister has only five minutes.

Mr. Walsh

At any rate, I want to make the point that it had nothing whatsoever to do with the Maastricht Treaty. The amount of the premium this year is, for the first time, calcuated on the basis of a single region of the entire Community and is in accordance with the agreement reached by the Council of Ministers in the autumn of 1989, during the French Presidency, on the forms of the sheepmeat regime. Therefore, this decision dates back to 1989 and it was well signalled by the IFA and others to their members. As a result, the advance for Ireland, in relation to the first tranche, amounts to £4.99, a drop of £1.76 on last year's level of £6.75. The reduction outside the disadvantaged areas, which Deputies McGinley, Sheehan, and Deasy, I think, and I represent, will be £1.76——

Mr. Deasy

I have already referred to them.

Mr. Walsh

——while the reduction within the disadvantaged areas will amount to 45p. The additional premium will be paid to some 37,500 producers within the disadvantaged areas, out of a total of 52,000 producers who will benefit. It should be noted that the payment will amount to some £39 million. It should also be noted that in April this year those sheep farmers were paid £45 million, giving a total of £84 million.

The Council agreement of 1989 resulted in a change to the market support arrangements for the sheepmeat sector. As part of the premium arrangements it was agreed that the variable premium system which operated only in the United Kingdom would be abolished and a single premium would apply for all member states. It was further agreed that these arrangements would be phased in over a three year period or until the UK authorities decided to terminate the variable premium arrangements. This decision was taken for the 1992 marketing year, that is, one year in advance of the original time schedule but within the Council agreement.

Mr. Deasy

What will the reduction amount to in the non-disadvantaged areas?

An Ceann Comhairle

Let us hear the Minister's reply.

Mr. Walsh

As stated in the press release, it amounts to £1.76 while it will amount to 45p in 72 per cent of the country.

Mr. Deasy

Additional?

Mr. Walsh

At any rate I want to deal with the nub of the problem——

An Ceann Comhairle

The Minister must be allowed to make his speech in his own way without interruption.

Mr. Walsh

I acknowledge and understand the feelings of farmers who are experiencing difficulties at present and have reduced prices on account of difficult market conditions. This means, with the reduction in the premium, that they are in receipt of lower incomes. I understand that totally and am doing everything possible I can to alleviate their position. I have been in contact with CBF, the Irish Meat Export Board, to impress on them the importance of obtaining the best possible return for sheep farmers. They are decent people trying to eke out a living and are entitled to the best possible return on their endeavours. However, the fact of the matter is that this loss of income and of premium does not justify some farmers' behaviour, who air their grievances by forcing a number of unfortunate ewes into the foyer of the Department of Agriculture, intimidating junior staff, messengers, receptionists within that area and causing extreme anxiety along with stress to the animals involved. I want to put on the record of this House that I deplore and will not tolerate that type of behaviour.

What is most disquieting about it is the fact that the deputy president of the IFA has stated that that was only a tea party compared with what he has in store for the future. I want to tell the House that I will not be intimidated by that type of language. I have brought the matter to the attention of the Garda. I am arranging for additional security. It is intolerable in a democracy that the deputy leader of the IFA would threaten our democratic institutions in this manner. It is absolutely outrageous that junior staff members, who had nothing whatsoever to do either with the premium or with depressed prices, should be assaulted within a Government Department. I want to reiterate that I deplore and will not stand for that type of behaviour.

Mr. Sheehan

That is farmers' frustration.

Mr. Walsh

The Deputy should not endeavour to justify that type of behaviour.

Mr. Sheehan

Their utter frustration.

Mr. Walsh

The Deputy should not try to justify that type of behaviour. I want to place something else on the record of this House. There was not one single sheep farmer from west Cork up here yesterday, not one, and I met the people who were there.

In regard to the unfortunate animals involved, I want to say that Ireland is a signatory to the Council of Europe Convention for the Protection of Animals kept for Farming Purposes. One of the recommendations proposed under that convention, which I fully support, is that sheep should not be used to achieve any goal, including public spectacles or demonstrations, if such use is likely to be detrimental to their health and welare. Clearly the actions to which I have referred were in conflict with that goal.

I also want to place on the record that I am available to meet farmers, their representatives, or anybody from the agricultural community at any time. The ironic thing about this is that yesterday morning I met Mr. Alan Gillis, the leader of the IFA, Mr. Tom O'Dwyer, leader of the ICMSA and Mr. Benny Nagle, President of ICOS, from 10 a.m. to 10.55 a.m. At no time in the course of that meeting was the matter of sheep, the income or premium drop, initiated with me. Yet the leader of the IFA was able to go out into Kildare Street subsequently and force his way into the Department of Agriculture to make a point. I find that to be extraordinary behaviour.

I repeat that I am prepared to sit down with any member of the farming community or their representatives to negotiate and discuss in an endeavour to help the farming community in a rational, coherent way. I will be meeting the farming leaders again on Friday morning. I have no difficulty with that. But certainly the bully boy tactics used in this case are totally out of the question.

To revert to the present problem, I want to point out that I raised this matter at recent European Council meetings and pressed for an increase in the rural world premium as a means of compensating farmers in member states where market prices are particularly low. I want to assure the House that we are talking here about the first tranche; there will be another in November and a further one in March next. I will seek to have the premium restored between now and the granting of the next two tranches. I will begin that process at the very first opportunity, which will be the next Council of Ministers meeting which will take place in a week's time.