Concern had been expressed for many years about the dominant position of the Goodman Group in the beef industry, particularly in the context of anti-competitive practices, but the reality is that there has never been any evidence that the group used that position to control cattle prices. This may have been due to the fact that while the group was the dominant player in the beef sector it was never in a position to dictate cattle prices. The Goodman Group never slaughtered more than 31 per cent of all cattle slaughtered in meat export premises. When all cattle disposals, including slaughterings in local abattoirs and live exports are taken into account, Good-man's share of the cattle trade never exceeded 24 per cent. Its current share is 17 per cent.
The two prohibition orders relating to the Goodman Group in 1990 — when Deputy O'Malley was in Government — were designed to prevent the group from increasing market share of cattle slaughterings at meat export premises from 31 per cent to 42 per cent. However, these orders effectively permitted the group to increase its market share to 38 per cent although in any event its market share never exceeded 31 per cent.
There is far less justification now than in the past for concern about the dominant position of the Goodman Group in the cattle-beef industry. In the first place the change of ownership has not affected the market share of the group. Its share of cattle slaughtering has declined from just over 30 per cent in the years 1990-92 to 25 per cent in 1994. Similarly the group's share of total cattle disposals has declined in the same period from 24 per cent to 17 per cent.
The beef sector is extremely buoyant because of the substantial fall in beef production in the European Union in recent years and the elimination of intervention stocks. This has led to very strong competition in the industry and for most of the past 18 months cattle prices have been higher than in the United Kingdom.
The live export trade to third countries provides considerable competition for the meat plants. This favourable market situation is likely to be maintained for the foreseeable future, and there is no reason to believe that Goodman will be in a position to dictate cattle prices. Apart from the live export trade there are after all some 17 other beef companies operating in the beef sector and these are strategically dispersed throughout the country.
The question of what action the Department might take to prevent the operation of a cartel in the event of the live export trade being discontinued is hypothetical. There is no immediate risk to the live export trade to third countries. This trade has not been subjected to the same degree of criticism from welfare activists as has trade to the Continent. In any event any cartel arrangements or lack of competition between beef plants is a matter to be dealt with under competition legislation and that is a matter for the Minister for Enterprise and Employment.
