Dáil Éireann debate -
Wednesday, 7 May 1997

Vol. 478 No. 7

Written Answers - Export Refunds.

Joe Walsh

Question:

217 Mr. J. Walsh asked the Minister for Agriculture, Food and Forestry the proposals, if any, he has to assist producers who sold finished cattle to the livestock marts in spring 1997; and if he will make a statement on the matter. [11976/97]

Mary Coughlan

Question:

231 Miss Coughlan asked the Minister for Agriculture, Food and Forestry the action, if any, he proposes to take to stabilise the factory price for cattle and to ensure that prices are increased; and if he will make a statement on the matter. [12104/97]

Minister for Agriculture, Food and Forestry (Mr. Yates)

I propose to take Questions Nos. 217 and 231 together.

I am aware of the income difficulties being experienced by beef producers because of the recent fall in cattle prices. The main cause of the current difficulties is the series of cuts in export refunds by the EU Commission in an attempt to stay within the limits on EU subsidised exports which were agreed in the context of the last GATT. The substantial fall in EU beef consumption arising from the BSE crisis has increased the surplus of beef on the market and made it more difficult to stay within these limits. The effect of the reductions in export refunds on Irish producers has been exacerbated by the revaluation of the Irish Green Pound.

I have recently announced a range of measures to assist producers, including those producers who sold finished heifers through livestock marts. These measures include (i) the £20 million EU funded aid package to compensate for the revaluations on 11 November 1996 and 10 January 1997; (ii) a further EU funded £11 million compensation package for the revaluation of 29 March and (iii) a nationally funded compensation package amounting to £17 million to top-up the EU compensation. Subject to clearance with the European Commission, I intend to use the national funds to pay a top-up of £50 per head on all male cattle and heifers slaughtered in meat export plants and local abattoirs and on heifers sold through marts during the period 1 April-10 June 1997. Applications will be required to provide proof of ownership of the animals on 1 April 1997.

I have made a number of suggestions to the Commission for the strengthening of the EU beef support system in order to provide more effective support for the market and my Department will continue to pursue these through the Beef Management Committee.

The adjustment to the deseasonalisation slaughter premium which I secured last year to ensure the continuation of this premium into 1997 and future years is of major assistance to our winter finishers. This premium, which will be worth some £20 million to Irish beef producers this year or 7p per lb, should, along with all of the other measures I have mentioned, help to alleviate the difficulties of beef producers.