Vol. 474 No. 1
14 Mr. J. Walsh asked the Minister for Social Welfare if he has ministerial responsibility for the implementation of the butter voucher scheme; the representations, if any, he has made to restore the scheme to two vouchers per month to social welfare recipients; and if he will make a statement on the matter. [2617/97]
The butter voucher scheme is provided for in Regulations of the European Union which provide for the sale of butter at a subsidised rate to social assistance beneficiaries.
The cost of the subsidy is borne by the European Commission. The Minister for Agriculture, Food and Forestry is responsible for the negotiation of the scheme at European level and for the redemption of the vouchers and the recoupment of the sums involved from the European Union. My Department is responsible for certain aspects of the implementation of the scheme, mainly the printing of the vouchers and their distribution to eligible beneficiaries.
Ireland is the only member state still operating the scheme. It was due to expire at the end of 1996. I was concerned to ensure that its benefits were not lost and I liaised very closely with the Minister for Agriculture, Food and Forestry to ensure its continuance.
The Minister for Agriculture, Food and Forestry successfully negotiated the continuance of the scheme for a further two years. However, the Agricultural Council was only agreeable to its continuance with a reduced budget. The reduction was proposed by the Commission due to the declining pattern in Irish butter consumption over the last number of years.
Does the Minister agree it is scandalous that there is a butter mountain in Europe and that farmers are pouring milk down the drain, yet the Minister and the Minister for Agriculture, Food and Forestry agreed to the halving of the butter voucher scheme to the most deserving recipients in this country? Will the Minister explain how that decision was arrived at?
On receiving this question I was surprised to note that Deputy Walsh had to ask if I was responsible for the scheme because I understand he had responsibility at some point for it when he was in the Department of Agriculture, Food and Forestry and negotiated the ending of the scheme at the end of 1996. I, along with the Minister for Agriculture, Food and Forestry, have ensured that it continues for a further two years. The fact that it operates only in Ireland and that all other member states have had their schemes withdrawn by the European Union indicates the Government's success in continuing the scheme, not the reverse.
Does the Minister consider the slashing of that scheme by 50 per cent a success? This decision was taken during our Presidency, surreptitiously at the meeting in Dublin about which there was so much cant and hype on 16-17 December. It was only a few weeks ago that the Minister for Social Welfare and his Department notified social welfare offices around the country that the butter voucher scheme would be reduced by 50 per cent which would affect large and poor families. Is this another failure to implement a European Union scheme following the non-implementation of the Poverty IV Programme? What representations has the Minister made to allow a continuation of this scheme given the surplus of butter within the European Union?
I took an active interest in this matter and as far back as September I made contact with the Minister for Agriculture, Food and Forestry as I was concerned that the scheme should continue. The Government of which Deputy Walsh was a member was responsible for negotiating an end to the scheme at the end of 1996.
This is the only member state in receipt of money from the European Union for the issuing of butter vouchers. The ending of the scheme in other countries is the result of the decline in butter consumption. It was introduced in the first instance to encourage its use but there has been a substantial decline in recent years. The EU Commission review of the scheme in 1995 demonstrated that between 1987 and 1995 butter consumption in Ireland fell from 21,000 tonnes in 1987 to 12,000 tonnes in 1995. It also showed that trends in the consumption of spreads such as Dairygold had moved in the opposite direction. Clearly, the purpose of the scheme was no longer valid so far as the European Union was concerned. Despite this, the Government succeeded in having it extended for a further two years.
The Minister has informed us that butter consumption has declined. What was the uptake of vouchers last year and the year before? It is my information that there was no decline in the number of vouchers issued; in other words, they are still being utilised by the most needy families. How many recipients are availing of the scheme?
I do not have that information but I will convey it to the Deputy.
Last year 22 million vouchers were issued.
