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Dáil Éireann debate -
Tuesday, 1 Feb 1994

Vol. 438 No. 1

Adjournment Debate. - Bovine TB and Brucellosis Compensation Schemes.

Thank you, a Cheann Comhairle, for permitting me to raise this matter on the Adjournment. I am glad to see you back and in good form again. I thank the Minister, too, for coming to the House to listen to my contribution. The eradication of bovine TB and brucellosis in this country has cost the Government and the taxpayer very large sums of money over a long number of years. Tonight I want to draw the Minister's attention to the serious financial losses and the trauma that many farming families continue to suffer as a result of anomalies in the compensation scheme.

First, I would ask the Minister to reconsider the situation of individual farmers on low-income dry stock and suckler cow production who find themselves, for the first time in their lives, with over 100 animals on their farm on the day of a TB test. For example, a farmer with 35 suckler cows, 50 young calves and 20 other cattle will not get income supplement if he loses over 10 per cent of his herd, yet he has no other income until he gets three clear tests and can sell cattle some six months later if he or she is fortunate enough to have no other reactors. Compare this with the situation of an intensive dairy farmer who could have up to 99 top class cows with no followers who, if he lost over 10 per cent of his herd, would get income supplement even though he would continue to have income from the yield of up to 88 cows on a monthly basis.

We should be able to use some imagination and use a system of livestock units rather than just animal numbers to rectify this anomaly. Livestock units are used in relation to headage claims and other claims. Why it cannot be used in this case I do not know. This situation must be rectified now. There is a danger that herd owners would be tempted to hold back a few cattle so as to remain under the magic 100 figure.

The above example must not be taken as a suggestion that dairy farmers do not suffer major financial losses in many cases also. As one dairy farmer who has to provide for a young family said to me the other day, when talking about his five year trauma with bovine TB, it is an economic nightmare. He had lost over 30 animals in one year alone. Another young dairy farmer with a milk quota of just over 25,000 gallons found himself losing 22 of his 29 dairy cows. In an independent study of the financial implications of TB on that farm, it is clearly proven that the farmer lost £13,000 after Government compensation was paid. In that study it is stated that six of his cows would have been sold as cull cows to allow for his own replacements and he allowed for £1,700 credit and only bought in 16 replacements. I have the full study here which was published in the "Irish Farmers' Journal" a couple of weeks ago.

The Minister must realise that only a small number of farmers lose over 10 per cent of their herds and they must be looked after. It cannot continue that farmers would only receive £800 in total for good cows which would cost at least £1,300 to replace, and that does not take into account the loss of yield. Compensation for TB and brucellosis should be compared with that for other diseases. For example, a farmer gets the market value of an animal suffering from what is called mad cow disease. People whose animals have contacted TB and brucellosis find it difficult to understand why they cannot get similar compensation.

It is regrettable that negotiations which have been taking place for many years have failed to draw down the £10 million EC aid that was available. That aid has been given to other areas but we must continue to fight for it. If that aid was available it would save the taxpayers and farmers of this country a great deal of money over five years.

Under the TB and brucellosis eradication schemes there are a number of elements which are designed to assist herd owners whose herds are restricted due to disease breakdown. There is a comprehensive scheme of grants based on animal type and weight which supplements the slaughter value of reactors paid to the herd owner by the meat plant. A reactor collection service is provided free of charge to herd owners for the removal of reactor animals.

Generally speaking, these grants are designed to bridge the difference between the slaughter price and the cost of an equivalent replacement animal. The prices being paid for reactor animals by meat factories are relatively good and this together with the reactor grant means that by and large herd owners get fair compensation. Herd owners whose herds are depopulated — totally or partially — in the interests of disease control may also qualify for depopulation grants which cover the rest period before restocking can take place. Also, an income supplement grant is paid in cases where disease breakdown results in the removal of more than 10 per cent of animals in a herd but where depopulation is not appropriate. Payment is in respect of each animal removed as reactor from herds in which there are 100 animals or less on the date of restriction. Animals in transient herds or in feed lots do not qualify for income supplement. By its nature this is not an open ended scheme and the parameters set were devised to make the best use of scarce resources and to focus the assistance towards herd owners which need it most.

The limit of 100 animals indicates that all small and reasonably substantial enterprises can benefit.

It can be appreciated that there is a limit on the amount of funds available for grants under the TB eradication scheme to which owners themselves contribute substantially by way of payment of bovine diseases levies on each gallon of milk processed and each animal slaughtered or exported.

In order to ensure that these funds are used in a fair and economical way the criteria for eligibility for the grants are fully adhered to. To make exceptions in any grant scheme would create a precedent and would clearly lead to claims from other individuals in similar circumstances. It also has to be recognised that if a limit is established there will always be cases at the wrong side of the limit.

In practice it would be administratively difficult to devise a system based on livestock units. Even if it were feasible, the same difficulties would arise in terms of the limit set.

In the overall, the reactor compensation scheme as operated here is regarded as one of the most comprehensive animal compensation arrangements in the EC. The payment arrangement has in recent times been the subject of an independent economic analysis study. The outcome of the study showed that, in general, the compensation mechanism was reasonble and fair in its application.

In the normal course, reactor grant rates are reviewed on an on-going basis in line with market trends and taking account of a variety of factors including prices being paid by meat plants for reactor animals.

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