We hope we will achieve our objective. Since Deputies referred to rotational testing, I wished to put on record where that proposal came from and how the matter proceeded. We will never know how effective rotational testing would have been if implemented in full. It was a reasonable proposal which veterinarians should have accepted. From meeting these people at their conference last week I think many of them regret they rejected it.
The eradication of bovine TB is always a contentious issue. It is important to realise that currently less than 3 per cent of the total of 150,000 herds are restricted because of TB. That is contrary to the damaging impression often given that the national herd is riddled with TB. In disease terms 1 per cent infection levels are notoriously difficult to reduce. Deputy Killeen stated that 91 per cent of herds are free of TB, but the figure is 99 per cent. Bovine TB conforms to the predictable pattern in disease eradication, with rapid progress in the earlier stages and eventual reduced progress coupled with increasing difficulty. In the periods when progress is rapid enthusiasm will run high and significant progress can be achieved. Understandably when progress slows to a virtual standstill enthusiasm will wane. When that happens it is very important to ensure enthusiasm is not replaced by pessimism. A one per cent problem is easier to deal with than a 100 per cent problem. Other countries have reduced that one per cent and eradicated bovine TB. Market image will be vital in the GATT-free market, strong competition trade area we are facing. We should recognise the tremendous amount of work and commitment in the farming industry since the 1950s in getting the TB incidence level down to 1 per cent.
In countries where TB has been eradicated, such as Denmark, their eradication programme commenced at an earlier time when national herd populations were comparatively compact, that is prior to the policy to expand livestock production. Thus unlike Ireland, they were not battling to contain and eradicate the disease in the context of an expanding cattle population. In addition, the trading pattern in these countries does not involve extensive animal movement, as is the case here. Their wildlife populations — and therefore any possibility of transmission of disease through the wildlife sector — are relatively small. By contrast, Ireland has the same badger population as Sweden, which is a much larger land mass. In our case the quarter of a million badgers are concentrated in closer proximity to our cattle herds. Many other countries have not eradicated TB — for example, New Zealand, Spain and Italy.
For us the final eradication of bovine TB from the national herd remains the ultimate objective as part of our marketing image projection — that matter was referred to by Deputy Byrne. It is very important that we retain the credibility of our national herd and the disease-free status for which we are renowned among our trading partners throughout Europe. The current level of TB requires that, to maintain our officially TB-free status under the European Union Trading Directive 64/432/EEC, a TB test must be carried out on all animals each year. In the circumstances an annual round of testing will continue to be a requirement, certainly for the foreseeable future. That directive also requires that animals must be certified by an official veterinarian as having undergone a tuberculin test. That in effect rules out the possibility of veterinarians being replaced by technicians for TB testing purposes and, perhaps, answers the question posed by Deputy O'Malley. I was interested to hear Deputy Kitt recommend the use of lay technicians. Some years ago I remember the then Minister Clinton being involved in a dispute with veterinary surgeons over a similar proposal.
The general consensus and advice is that while progress can be made, final eradication of bovine tuberculosis will be possible only when a laboratory-based diagnostic blood test, a vaccine for wildlife and computerised movement control are available and come on stream. A number of Deputies touched on these specific matters in their contributions. Pending the development of these to practical field application, the emphasis must be to contain and, hopefully, reduce the disease and costs; hence the current proposals to introduce a more effective programme and to devolve the cost of testing element to farmer control.
It is worth noting that our reactor compensation package is one of the most comprehensive in Europe, a matter to which Deputy Killeen and others referred. The package is designed to ensure that in broad terms a farmer is enabled to purchase a similar commercial type replacement animal of the non-pedigree type to get quickly back into production. The package comprises two elements, the price paid for the carcase by meat plants on the basis of a competitive weekly tender and the reactor grant structured to take account of the higher replacement value pertaining to higher yielding cows and in-calf heifers, as alluded to by Deputy Leonard, being up to £600 per cow in addition to carcase value. Where the entire herd is depopulated, an additional depopulation grant is paid. Alternatively, income supplement is payable monthly where more than 10 per cent of the herd has been removed and where depopulation is not considered appropriate.
This year some £20 million will be paid to farmers by way of reactor grants. An independent study of the compensation arrangement carried out by Professor Seamus Sheehy of UCD in 1991 concluded that in general the compensation arrangement was fair in its application. The arrangement is non-statutory and works well. Some Deputies saw implications in the new proposals for reactor compensation. It should be noted, however, that reactor compensation is the subject of ongoing review in the light of market trends and any alteration to the grant arrangements is made in consultation with the main farming organisations.
Grants are paid promptly once the herdowner has submitted the requisite back-up documentation as requested by the district veterinary office. Nevertheless, it is accepted that breakdowns create hardship and inconvenience and no genuine farmer wants the disease.
In regard to expenditure and benefit, the scheme for the eradication of bovine TB was first introduced in Ireland in 1954 initially on a voluntary basis followed by a progressive extension of compulsory measures. Gross expenditure, including administration on TB and brucellosis disease eradication in the 40 year period up to the end of 1995, will be an estimated £1 billion with receipts of £353.2 million, giving a net expenditure of £646.8 million. The predominant receipt was the disease levy amounting to £285.3 million in the total period. The gross annual expenditure in 1994 was £64 million and will be £67 million in 1995. Excluding the administration cost of some £20 million, the £44 million operational cost in 1994 comprised compensation for reactors of £17 million, testing fees of £20 million and materials, research and travel costing about £7 million. Farmer levy receipts amounted to almost £28 million.
Professor Sheehy's 1991 cost-benefit analysis carried out on the scheme expenditure demonstrated that the 16 per cent rate of return to expenditure was strongly cost beneficial having regard to access to markets which could have been denied in the absence of embarking on an effective eradication programme. The annual expenditure must be seen in the context of protecting an industry with some £3 billion annual output, £2 billion in export earnings and its related employment which is substantial, and also in the context of the sheer magnitude of the essential annual programme involving ten million TB tests, 3.5 million brucellosis tests and the removal of and grant payment in respect of 30,000 TB reactors and 8,000 brucellosis reactors. It should be noted that in the interest of efficiency in expenditure, TB and brucellosis tests are in general carried out simultaneously.
On the question of administration costs raised by Deputies, it is the intention that the Department will arrange to have an assessment undertaken in the context of the strategic management initiative and the reorganisation of the Department by a consultancy firm into staffing levels and other resources required to deliver the agreed programme with the following terms of reference, "to evaluate the staffing levels and structures and other operational aspects and resources required at the Department's headquarters, DVOs and laboratories and elsewhere to effectively and efficiently implement the revised programme for disease eradication."
On the wildlife aspect, the fact that bovine TB can be transmitted by infected badgers and cattle was recognised by all participants including the wildlife lobby at the Royal Irish Academy Conference in 1991. There is also evidence available from the east Offaly project that removal of badgers helps to reduce the disease. The extent of the involvement of wildlife is the subject of ongoing scientific research. We are increasing the research effort on this aspect and farmers will assist the Department in the ongoing work which will be undertaken under licences from the Wildlife Service and in accordance with the provisions of the wildlife legislation. There is increasing concern about a position which requires the compulsory removal of valuable infected livestock while at the same time action is not being taken to address other sources of infection. It is increasingly evident that all potential sources of infection must be considered so as to protect rural farm families and their livelihoods. The increased research activities on wildlife will involve validation of data from the east Offaly project through replication of that programme in a number of areas where it is considered that bovine TB infection may be related to infected badger activity; the securing of single and multiple licences in cases of breakdowns where there is a veterinary view of wildlife involvement and the continuation of other research. Farmer participation under the direction of DVOs will be a significant element in the efficient implementation of the licensing arrangements under the foregoing research measures.
A comprehensive research programme is continuing to examine all aspects in relation to the transmission of bovine TB and to develop new technological tools to address deficiencies. While some of this work is promising, field application of blood testing and vaccines is still some way off. The Commission team which visited Ireland recently was extremely impressed with our research programme and this will continue both at national level and in conjunction with other countries. In this context I refer in particular to the comments of Deputies Noel Treacy and Hugh Byrne when they criticised the amount of expenditure on research. We hope to build on this programme and expand it. I agree we need to put more money into research but the reality is that our present programme is quite a good one. It is important that we build on it in order to arrive at an ultimate solution.
A TB investigation unit with specialist staff is examining factors such as the possibility of DNA strain-typing. Significant work on vaccine development and other projects is under way in the universities. Irish researchers collaborate with their counterparts in other countries. It can be noted that the tuberculin test is the scientific and legal test used throughout the EU and in most countries worldwide and it has been used to eradicate TB from cattle in most of the north European countries such as Denmark, Holland and France.
As with most biological tests, the TB test has certain limitations. A small number of reactors are found subsequently not to be infected, while others who test clear are found to be diseased. The blood test is attempting to overcome these limitations. Of the 10,000 herds restricted annually for bovine TB, 5,000 have a single reactor only. Of these, a percentage do not have infection but reactions occur for nonspecific reasons. We intend to increase the analysis of glands and, based on herd and area disease positions obtaining, we expect that it will be possible to lift restrictions on some herds earlier than heretofore.
The clear intention is that restrictions will be lifted only where the most exhaustive laboratory tests of glands show no evidence of infection, there is no disease history in the herds involved and after considering the disease position in the area in question. In practice, any earlier lifting of restrictions will arise only where such release does not pose any increased risks than would exist otherwise.
The definition of an infected animal is that the animal reacted to the tuberculin test. The absence of visible lesions at post mortem does not mean the absence of TB infection. Arising from the regular and thorough testing programmes in Ireland, the disease is often detected before the advanced, visible lesion stage has been reached. Any early lesions may be microscopic in nature and not visible to the eye.
While the current cattle identity card system is generally sound, the development of computerised animal movement control with a permit for one movement only will improve tracing of disease. Under the current cattle identity card system an animal may move any number of times within the 60 day TB test validity period. The project has been complicated by the need to prioritise the computerisation of the CAP reform payments. The Department is currently reviewing the requirements for a movement system in the light of the measures that are now in place. I am very anxious to ensure that this review would be completed quickly.
In regard to the likely benefits of the proposed new arrangements, it should be noted that the existing arrangements contained the disease at about the same level over the past 30 years but at considerable and escalating cost to the Exchequer and farmers. The objective of the revised regime is to make the programme more effective and to moderate costs. To this end, cattle will continue to be tested each year and there are very strong measures in place or to be put in place to ensure that this will happen, i.e. checks at marts, meat plants, export points, restrictions on movement into and out of herds which are not tested, potential disallowance from premia/ headage schemes if farmers do not have valid identity cards, ultimately prosecution and fines and disallowance for compensation under schemes if rules are not observed. I trust that this will allay the fears raised by Deputies that the abolition of the 60 day pre-movement test would increase the incidence of disease. Farmers in general are responsible and will wish to protect their herds and investment. The DVOs will supervise testing and arrange a higher level of testing by departmental vets and contract vets. This testing will be targeted to areas where disease levels are high and where the testing programme is falling behind. A quality control unit will be set up to monitor testing and to investigate suspicious events. We will continue the random surveys and we will have a more active approach to research on transmission of TB by wildlife. In essence, the objective will be to operate a more targeted and strategic approach to this disease.
Finally, in regard to the technical issue of the Bill, following the establishment of the Single Market, it is necessary inter alia to provide a legal basis for payment of levy on exports directly to the Minister for Agriculture, Food and Forestry rather than via the Revenue Commissioners as the Minister's agent, which was the former position.
As the Minister indicated at the outset, the proposed amendments do not involve any extension of the levy arrangements or any change in the rates of levy. There are, however a number of technical adjustments proposed to improve the supervision and inspection of the levy system. In particular it is proposed to extend the definition of an accountable person by whom or on whose behalf an animal is being exported from the State, to remove the exemption in regard to the keeping of records by whom or on whose behalf an animal is being exported and to provide for the inspection and removal of such records by an authorised officer of the Minister.
The Bill also provides for increased maximum fines on summary conviction for offences under the diseases levies legislation from £500 to £1,500 and an increase in the maximum fines in respect of certain offences under sections 48 and 49 of the Diseases of Animals Act, 1966. The latter fines were last increased from August 1979 under section 23 of the Bovine Diseases (Levies) Act, 1979. The proposed increases are from £500 to £1,500 in respect of a summary conviction, from £2,000 to £10,000 in respect of a conviction on indictment in respect of specified offences and from £1,000 to £5,000 in respect of other indictable offences.
I have answered a number of specific questions in my contribution this evening. Deputy Kitt asked about extending TB testing to deer and we are making progress in this respect. If Deputies want any further information, they may contact me. Overall this was a good debate which attracted a lot of interest. A number of good suggestions were made which I hope we can examine and, if possible, take on board. I ask the House to endorse these necessary administrative charges.
