I propose to take Questions Nos. 498 and 541 together.
The calf processing scheme was originally introduced by the European Union as part of the 1992 CAP reform package in an effort to reduce the number of calves available for beef production. This scheme, which was voluntary on member states, was implemented only by Portugal, the United Kingdom and France.
Both the European Commission and the Council of Agriculture Ministers recognised that the fall in beef consumption in the EU in 1996 created a new surplus of beef in the EU and that the surplus could most effectively be removed in the short to medium term by a reduction in production. The measures adopted by the Council in October 1996 for this purpose obliged member states to introduce an early marketing premium scheme for veal calves or the calf processing scheme. As Ireland has no veal industry we are obliged under Council Regulation (EC) No. 2222/96 to introduce the calf processing premium scheme.
Nine EU export licenced meat premises have been selected as processing centres. The centres are strategically located to minimise haulage distances for the calves. The transport of these calves is subject to the strict conditions set down under EU and national legislation. In addition, the processing centres are required to meet the hygiene and animal welfare requirements applicable to meat plants. Failure to comply with these requirements would result in the applicant concerned being removed from the scheme. The calf processing premium will be paid only on animals which are in a fit and healthy condition on presentation at the processing centre and are processed in conformity with the very strict conditions applying under the scheme.
In view of the foregoing, I am satisfied that the scheme as operated should not give rise to any serious animal welfare problems.