Joe Walsh
Question:9 Mr. J. Walsh asked the Minister for Agriculture, Food and Forestry the current status of third country markets for cattle and beef exports from Ireland and if he will make a statement on the matter. [8660/97]
Priority Questions. - Cattle and Beef Exports.
While a small number of third countries have imposed restrictions on the import of cattle and beef from Ireland, we are trading normally on a wide range of international markets. Strenuous efforts are being made to have these restrictions lifted and the current position can be summarised as follows:
Russia is by far the biggest third country market for Irish beef. This trade is covered by a veterinary protocol concluded in November last which, inter alia, categorises counties according to their level of BSE. Currently meat derived from cattle from eight counties is excluded from this trade. While this is a serious development, trade is continuing from the other counties. We do not envisage difficulties in meeting the likely level of demand from Russia. Some 16,000 tonnes of beef have been shipped to date in 1997 and a figure in excess of 100,000 tonnes is forecast for the full year. It is envisaged that further discussions will take place with the Russian authorities next May. The Russian interests have signalled their commitment in the long term to trade in beef from Ireland.
Egypt is Ireland's largest third country market for live cattle and our second largest third country market for beef. Imports of live cattle from Ireland were banned in January 1997 for a six months period. At the same time, new veterinary requirements were introduced in respect of beef. I am glad that agreement was reached with the Egyptian authorities last week on a revised veterinary certificate to accompany beef exports to Egypt, thus ensuring the continuation of that trade. I am continuing my efforts to have the live cattle market reopened. An Egyptian veterinary delegation has been here. The Taoiseach, Tánaiste and I all have had conversations with and made representations to Cairo, and contact is being maintained.
In relation to Libya, I am glad to report further progress, since Libya always has been an important outlet for live cattle from Ireland. In March 1996 a ban was imposed on Irish imports. As is known, I travelled to Tripoli last year and a technical delegation from Libya is now here to observe our controls. I will meet this delegation tomorrow morning and will impress on them the high quality and safety of Irish cattle.
The Iranian market has always been volatile but, in the past, has taken considerable amounts of Irish beef. A veterinary delegation from Iran visited Ireland last autumn. I am organising a follow-up technical mission to Iran in coming weeks.
Restrictions on Irish beef have also been imposed by the United Arab Emirates, Qatar, Jordan and Turkey. As regards the United Arab Emirates, the authorities there have now agreed to lift their restrictions, formal confirmation of which I expect to receive later in the week. I also understand that the restrictions applied by Qatar will be lifted in coming days.
I will continue to pursue remaining restrictions on Irish beef with the relevant authorities of the countries concerned. Given the nature of the BSE-related difficulties, I believe our beef export trade has achieved a good performance in third countries over the past year. The number of BSE cases in March is five. This is a significant development given there were about 11 cases of BSE in November and December, nine cases in subsequent months and five in March. Given that all our difficulties have related to the incidence of BSE and the increase in 1996 over 1995 this is the first indication of hope that the situation is coming back into line and a further vindication of the eradication measures I have put in place.
Will the Minister agree we are shut out from all the North African countries for live trade? Will he accept our live trade to date this year is only one third of that for last year and about one tenth of that for 1994?
The Deputy was the only Minister——
An Leas-Cheann Comhairle
Let us not have frivolous remarks.
Will the Minister agree that, despite all the press statements following visitations from delegations from these countries, we are still shut out from those markets? What precise measures will the Minister take and can he give a commitment to farmers that he will visit the capitals of those countries? Cattle are down £120 per head and the Minister sits there and says a delegation is coming and soon everything will be OK. The Tánaiste and Minister for Foreign Affairs will issue a missive from Tralee to announce a similar message. Nothing is happening. Will the Minister give a commitment to embark on a visitation of those capitals to open up those markets and give confidence to farmers heading into the summer?
The Deputy will be uniquely aware that when we had no cases of BSE in 1990, Ireland was banned from many of those North African countries and related countries for three years. During his tenure and that of Mr. O'Kennedy, nine out of every ten steers in 1989 and 1990 were sold into intervention. We have succeeded in much worse circumstances where we have had over 200 cases of BSE in Ireland and have kept the show on the road with real markets. On the specific question of visiting countries, I have already been to Libya and Russia. I had been advised not to visit Egypt while the certification issue was taking place — it related to cuts of meat close to the spine, and has been sorted out — but the optimum time would be during a major trade fair in Egypt on 8 and 9 May. If my diary permits me to go at that time I will give it active consideration. In the discussions I have had with officials in Cairo, they were not in a position to reverse the decision immediately. May would be the most appropriate time for a visit. In all of these matters I rely on the best diplomatic advice, the best trade and technical advice from the live shippers, our Embassy in Cairo and so on as to the best time for a trip. Deputy Walsh, as a former Minister, would take advice as to the most timely and effective purpose of a visit, rather than run around like a headless chicken visiting every capital in the world. This must be done in a measured, timely and strategic way and when I am advised it is appropriate I will be happy to lend my weight to all the diplomatic, technical and political efforts already under way.
Will the Minister comment on the likely effect the additional cut in export refunds will have on efforts to re-establish these markets?
That is a separate question. Obviously I am concerned about the competitiveness of Irish and European beef against Australian and South American customers. The decision of the Commission yesterday to cut export refunds by 7.5 per cent was unjustified notwithstanding the heavy prefixations this week and last, some of which is related to currency speculation. I will be redoubling my efforts to have that 7.5 per cent cut reversed. Long before BSE and the statement of 20 March 1996 there were cuts in refunds in late 1995, all of which is connected with the management of the GATT quota. The Deputy will be aware of this since he negotiated the GATT quota while Mr. MacSharry was Agriculture Commissioner. We had to reduce the volume and value of exportable beef to third countries with export refunds by 21 per cent and 36 per cent respectively. The cuts in the refunds are designed to keep us in that volume quota. Each GATT year begins on 1 July and ends at 30 June. We are over quota for this GATT year. All the problems with refunds are directly related to the Commission's independent powers to monitor the quota. I am concerned about that issue and that we maintain our competitive position by providing the cheapest meat to those markets.
Since the removal of the permanent Garda checkpoints at the Border, established 12 months ago in connection with the BSE difficulties, is the Minister satisfied the necessary and appropriate security arrangements are in place to prevent any illegal movement of cattle from the North?
An Leas-Cheann Comhairle
That is an extension of the question.
We accept all comments here. It was found to be more cost effective to transfer some Garda activity, which led to costly overtime, with Army personnel. The checks have also been made mobile. This makes sense. Who would drive to a fixed Garda checkpoint with an illegal consignment of animals? Based on intelligence and cover right around the Border I am advised the system now in place is as effective. I rely on the Garda and Army authorities and I am advised the system in place effectively polices the Border and preserves the integrity of our animal health status and delineates us from Northern Ireland.
Since most of this question relates to the level of live trade, will the Minister state unequivocally that he fully supports the live trade? Will the Minister inform the House that no Minister or Minister of State has made a statement, inside or outside the House, against the live trade since that made by Deputy Joe Walsh when Minister for Agriculture, Food and Forestry, deploring the high level of live trade in 1993?
My policy on the live trade is as follows. It is essential, given that we produce the equivalent of 550,000 tonnes of beef and consume about 50,000 tonnes, that there be adequate competition between all segments of potential buyers of cattle, weanlings and adult animals, within Europe for live exports to third countries but we must get a balance. Obviously we want the maximum added value. Some element of competition is vital. History has shown that in the 1970s and 1980s where the meat factories have a cartel, a monopoly and are the sole purchaser, they use that strategic strength against farmers. That is the reason I put in place the credible long-term rules in relation to the condition and duration of animal welfare conditions. We have run into a temporary difficulty with BSE but I expect it will be overcome as the number of cases diminish. Some of the plainer animals — the dairy breeds of male cattle and so on — are more suitable to the live trade. Since they do not slaughter that well, there is a strategic need for them to be exported live.
The presence of Deputy Connor is unusual. He is welcome.
My presence is more usual than the Deputy's. I knew the question would needle him.
The Deputy's pathetic attempt to discredit me is false and without foundation. What were the levels of live trade in 1993, 1994, 1995 and 1996?
Can I read the Minister's statement which he made in 1995?
The Deputy is pathetic.
An Leas-Cheann Comhairle
Let the Minister reply.
The Deputy is letting himself down.
I do not have the figures to hand. My recollection——
They are readily available.
They are. I just do not have them in my files. A figure of 377,000 comes to mind.
It was 403,000.
The Deputy was critical of that number.
The figure increased in 1995. In 1996 a number of factors, not least the reduction in refunds, changed the situation. The particular difficulty with the live trade is that what we are doing with the specified risk material, by removing certain offals, obviously cannot be done with live animals. That is a problem. In Egypt, for example, people eat the animals' brains. Eating those offals is banned in this country. I have offered to make the sophistication of our industry publicised in Egypt and we are working with Dr. Ali Moussa and the other chief veterinarians to have the trade restored as soon as possible.
I urge the Minister to ensure the live trade is restored at the earliest opportunity. I remember a two-year period when there was no live trade and a six-year period when only an average of 40,000 live cattle were exported.
This year and last year come to mind more quickly.
The figures are clear. Last year, in spite of the BSE problem, 135,000 cattle were exported. I hope the Minister will do everything possible to restore the live trade.
That is tremendous reassurance.
It was a disaster when Deputy Walsh was the Minister. There were no live exports.
The Deputy should go to Cootehill and find out what is happening in his constituency. Cattle prices are down by £120 per head. The Government is presiding over the greatest disaster in agriculture.
The Deputy was the biggest joke when he was Minister.
Blather will get us nowhere.
An Leas-Cheann Comhairle
Has the Deputy a question for the Minister?
If I am given the opportunity. Deputy Walsh was Minister for a long time——
He was not there for the last two years.
——and we were worse off. He allowed alterations and we are now reaping the benefit. The arrangement made by Deputy Walsh when he was Minister and the previous EU Commissioner from the west was a disaster. How much is that costing farmers today?
That is ridiculous.
The Deputy is ridiculous.
An Leas-Cheann Comhairle
This is a ridiculous level of interruptions. The Minister to reply.
I will make a few points in the midst of the crossfire. Some Deputies wish to highlight the live export figures for 1994 and 1995. In 1990 and 1991 there were no live exports. We can all pick a year to find statistics to suit us.
We have a serious problem with Egypt. It requires urgent action and I am in constant touch with our ambassador about an appropriate follow-up. We have received the report submitted by the senior technical people from Egypt who visited this country. They saw all facets of our industry and we have just resolved the beef issue. It became more difficult than was anticipated. At an appropriate time I hope to visit Cairo to seek the lifting of the ban. It is a six-month ban and the earliest time it can be reviewed is in May.
Deputy Walsh has referred to a £120 reduction in the price of cattle. Notwithstanding the difficult BSE situation, the part played by CAP reform in the beef sector should be remembered. In 1991 the price of beef was £101 and the premium was 4p per pound. The Commission can confirm to Deputy Walsh that it was agreed that the value of the premium be increased from 4p to 25p per pound on the basis that prices would decrease by about 15p per pound. Even if the BSE problem had not occurred, cattle prices would have decreased. We have had an exceptional difficulty. However, CAP reform, through lowering product prices to provide direct income aid, was not something I negotiated but something I have had to endure in my period as Minister.
I negotiated the premia.
The Deputy forgets the price.
The Deputy negotiated a disaster.
I negotiated the increase from 4p to 25p.