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Dáil Éireann debate -
Thursday, 11 May 1995

Vol. 452 No. 7

Adjournment Debate. - Sheep Prices.

I know the Acting Chairman, Deputy Browne, will be familiar with this subject as there is a large sheep population in County Carlow. My colleague, Deputy Cowen, cannot be present because his insistence, in the face of the Government's provocative silence this morning, led to his being shown the red card by the Ceann Comhairle.

Fianna Fáil will not remain silent in the face of the crisis within the sheep industry engendered by the Government's inactivity and procrastination. My constituency colleague, the Minister for Agriculture, Food and Forestry, Deputy Yates, has made a mess of the live export issue having endeavoured to please both sides. Indeed, his efforts to date have so impressed Compassion Within World Farming that they are mounting a protest at the port of Rosslare on Saturday next. His appeals and promises so impressed the United Kingdom-based ferry companies they refused absolutely to take live animals on board their ships.

The crisis in sheep prices has arisen from this fiasco and the problem was highlighted by the huge attendance at meetings and demonstrations by farmers, their families and others whose livelihoods are threatened. I compliment the Minister, Deputy Yates, on his public relations machine; never in the history of this State have so many photographs of a Minister been seen within such a short period, together with a list of so many of his promises. If even half the energy of his public relations machine was invested in agriculture, probably we would not have had the conference held in Wexford on Friday last or the demonstration that took place outside this House yesterday. On being invited to a function, I understand the Minister's first question is whether there will be a cameraman present.

The Minister's response to an all-time low in sheep prices is to place 1,000 tonnes of hogget into private storage. That is what I would describe as a sticking-plaster solution, the resultant 2p price increase having evaporated within a week. Factories, being aware that farmers have no alternative, are determined and have successfully pushed prices to the floor. That remedy merely postpones to the autumn an even worse problem, when that 1,000 tonnes of hogget will come out of storage on to the market, hindering rather than helping farm incomes.

The Minister has refused to explain from where his departmental budget for this remedy emanates, its cost and who will have to bear it. It is inexplicable that Stena Sealink and P&O Pandoro have made such fools of our Government. Notwithstanding their inexperience, surely it has dawned on somebody that in discussions between Government and the ferry companies the issue of a £20 million investment in Dún Laoghaire and almost similar investment at Rosslare must be a factor. That is the type of pressure that can be exerted.

It is time to take off the gloves, we do not have to tolerate the United Kingdom ferry companies cherry-picking traffic to and from this island. We have one of the toughest regimes of animal welfare regulations in Europe, thus rendering the compassionate stance being adopted on the part of world farming interests totally unjustified; there is a missing chapter from their agenda, which is compassion for farmers.

Specialisation in farming, encouraged by successive Governments, has exacerbated the present hardship experienced by farmers in the collapse of sheep prices, whereas erstwhile farming was more varied. Many farmers now affected have no other source of income. A succession of farmers in Wexford on Friday last informed me, and others, of the possibility of their having to get out of farming altogether. There is no doubt there is a huge market for Irish lamb, it is an indigenous and sustainable industry. Our right of access to the Single Market of continental Europe is absolute.

Fianna Fáil's position on this issue is unequivocal. It supports the rights of farmers to export live animals, but of course standards must apply. The highest possible standards are in the best interests of Irish farmers. It must be noted that exporters have a vested interest in the animal arriving at its destination in the healthiest possible condition.

As the Minister for Agriculture, Food and Forestry does not appear to have the courage, I call on the Taoiseach to vindicate the national interest immediately.

Listening to Deputy Byrne one would not realise that there has been a problem in the sheep industry for a long time.

The Minister of State is in Government now.

Carlow-Kilkenny): Let us hear the Minister without interruption.

This is typical of the Deputy's bully-boy tactics. I did not interrupt him, but he always interrupts.

The Minister of State was overawed with what I had to say.

There is a touch of sour grapes in regard to agriculture matters between the two Deputies from Wexford, especially Deputy Byrne. He should support Ministers from his constituency, as other Deputies do.

When he does something I will support him.

A few years ago when farmers brought their sheep into Agriculture House the problems were much greater.

It is true to say there has been a strong focus recently on prices in the sheep meat sector and that producers have been disappointed at returns during the Easter trade for spring lamb. It is inappropriate to describe the situation as a crisis. It is also clear that the Minister has responded quickly and effectively. Current prices in the sheep industry have to be seen in context. The pattern for sheep meat prices varies within any particular year.

The high price of lamb at the beginning of 1995 led to speculation that the price would continue its traditional rise and bring Easter lamb prices to a new peak. This did not happen because of currency fluctuations; more aggressive competition from other meat producers, mainly from pork and poultry producers; a weak French market, more French lamb was retained for the French market following a decline in Fench live exports to Spain; an overhang of hoggets on the market, causing problems for both the lamb and hogget trade; strong competition from UK lamb producers, fuelled by a weak sterling; the end of the ewe premium retention period brought extra supply on the market; and problems with the export of live animals.

This combination of events caused certain difficulties. The overhang of hoggets in particular undermined the market for spring lamb. Some of those hoggets were over-fat, certainly for the French market.

The average price for the first quarter of this year was 7 per cent up on the same period in 1994, which was an extremely good year. The problem emerged with the spring lamb trade. Discussions were held with the farming organisatons and with meat processors and no time was lost in reacting.

Effective and speedy action was taken to assist the sector. Agreement in the European Union Commission to introduce an aid for private storage scheme was secured literally within a matter of days.

Who is paying for it?

This measure is exceptional to Ireland and is designed to remove the overhang of hoggets from last year's production and thereby help spring lamb prices. Officials of my Department have had discussions with processors about the conditions of the scheme. Tenders for aid must be submitted before 17 May and will be adjudicated on on 19 May. This is the normal arrangement for the operation of the aid for private storage scheme and I expect processors will make proper use of the measures. There is evidence already that the decision is having an impact and that prices have hardened. There has been a recovery in prices this week.

On the question of live exports, no effort has been spared to resolve this issue. New regulations governing the welfare of animals during transport have recently been introduced by the Minister, Deputy Yates, and there is no reason any ferry company should refuse to transport livestock from this country.

This is a sensitive issue and there are strongly held views on both sides. Progress is being made towards a final solution and we will persist with our efforts until this is achieved.

Apart from the aid for private storage scheme a range of other issues is being addressed to consolidate the medium and long term future of the industry. These include a top-up premium to compensate Irish sheep producers for the absence of price convergence under the ewe premium system. Specific proposals have already been submitted to Commissioner Fischler in that regard that these will be pursued in further discussions.

Equally, it must be recognised that consistent high quality is the key to the future development of the sector and to meeting the exacting requirements of export markets. Sheep meat is an expensive product relative to other types of meat. The focus on quality would be greatly strengthened by the introduction of carcase classification on a general basis, it currently operates in two plants. We will work on this in the future.

A review of the approach to breeding and genetics is also being initiated in order to improve output performance and quality standards. An Bord Bia has been asked to assess the strategy on marketing, especially in the highly important French market. These are conflicting views as to whether our approach to the French market is as effective as it should be; if there are weaknesses these should be identified and action taken. These initiatives indicate a strong commitment to ensuring that the sector achieves its full potential and that a decent level of profitability is available for those involved in the industry. Full support is being given to the sector to deal with both its short term problems and to put it on a secure footing for the future.

I hope Deputy Byrne will not be disappointed when the transport problem with the ferry companies is resolved shortly.

We will be delighted.

The Dáil adjourned at 5.20 p.m. until 2.30 p.m. on Tuesday 16 May 1995.

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