Vol. 446 No. 7
2 Mrs Doyle asked the Minister for Agriculture, Food and Forestry arising from Parliamentary Questions 101 and 104 of 13 October 1994, the response he has received, formal or otherwise, from the EU Commission regarding measures to alleviate the situation of our pig and poultry sectors; the help that will be available; and when help will be available. [2896/94]
No response has been received from the EU Commission to the notification by my Department of the provision of additional resources for CBF to intensify their pigmeat promotion programme or to the submission by my Department seeking action on Irish feed prices, although the former was discussed briefly at a recent meeting of the pigmeat management committee. Until the Commission's response is received, it is not possible to say what or when assistance will be available. However, the Commission has indicated that a separate proposal to relieve pig producers temporarily of the veterinary inspection levy would not be acceptable.
Is the Minister aware that the promises he gave last April of considerable measures to alleviate the hardship in the pig and poultry sectors are still awaited? Will he indicate the type of measures he would like to take to alleviate the extreme pressures on pig and poultry competitiveness since there are 10,000 people employed in the pig sector and 7,000 in the poultry sector and there has been a crisis for several years, in fact since the revised CAP cereal regime was put in place? What will the Minister do to alleviate hardship and loss of jobs in this sector? Is he concerned about the seriousness of the problem and the loss of jobs? When will we hear precisely what he intends to do? For example, will there be a cereal incorporation subsidy, a feed equalisation grant? What does he intend to do and will he say how quickly something can be done?
I am concerned about the position of pig producers, particularly the smaller ones, and have been endeavouring to identify and assist them, but this is rendered difficult because of EU regulations on direct aid to pig producers. I have authorised Teagasc to recruit additional staff. I have put some pressure on the European Commission to authorise the sale of intervention barley and wheat. I have sought Commission approval for urgent consideration to adopt appropriate measures to restore and maintain the price relationship that existed between Irish feed prices and those obtaining elsewhere in the European Union prior to CAP reform decisions being taken. Suggestions put to the Commission to achieve this were a transport subsidy and the release of intervention grain. We are still in negotiations with the European Union on these matters. At each monthly meeting of the Council of Ministers. I have raised this matter and have had bilateral discussions with Commissioner Steichen about the pigmeat difficulty and the prices being paid to pig producers is Community-wide. I am hopeful that there will be some positive outcome of our negotiations in Europe. In the meantime, I have had discussions with pig processors and grain merchants to ascertain whether they can be helpful, particularly to the smaller pig producers.
I have also made available an extra £2 million to CBF to allow them intensify their pigmeat promotion programme. While this is and always has been a cyclical type industry the position over the past month or so has not been quite as bad as it had been over the past year. I accept that the industry has been in quite a depressed state but the most recent prices up to last week were 103.6p per kilo and the price of feed has come down by approximately £10 per ton from July to October this year. The margin is relatively good but does not compensate for the long duration of the recession. I continue to exert pressure on the European Commission to endeavour to assist, in particular, the family-type pig producer.
Has the Minister investigated the price of compound feed from our millers? Does he consider there is any evidence of a cartel among pigmeat processors? Would he consider the immediate removal, or even reduction by half, of the veterinary inspection levy, pending a response from Brussels on the other points he has put to them? Does the Minister understand the urgency of the position for these two sectors?
I understand the urgency and am sympathetic to their position. I know that some of the smaller family-type producers are going out of business. The real problem for me is that European Union regulations preclude me from giving direct aid to those pig producers.
The Minister should remove the veterinary inspection levy.
I have made a specific case to the European Union for the removal of the levy. The levy is about £1 per pig and would cost in the region of £3.5 million. I would be quite prepared to do that were it within Community regulations. However, I have been told that it would be illegal to do so. I have done everything possible to try to help pig producers, the one sector that has gone through a difficult time. I know sympathy is not much good to them and that they want something tangible. I met the processors and told them that in the long term interests of the industry they need to keep their producers in business. I also told them that in the context of environmental considerations it would not be in the interests of the industry to be too concentrated. I also met with the grain merchants; put pressure on them and the price of grain has reduced by £10 per tonne. The margin is far better now but it does not make up for the duration of the operation of depressed prices.
