I wish to share my time with Deputy Farrelly.
Private Members' Business. - Farmers' Incomes: Motion (Resumed).
The following motion was moved by Deputy Coveney on 8 October l997:
That Dáil Éireann, recognising the severe threat to many farmers' incomes this year, arising in particular from the collapse of live exports to both the EU and third countries, the continuing Russian ban on exports of carcass beef from seven Irish counties, the failure to secure payment of national compensation of £17 million to beef producers (£50 slaughter premium) and the disastrous grain harvest especially in the south and south-east of the country, condemns the Minister for Agriculture and Food and the Government for their inadequate and ineffective stewardship of agriculture since coming into office and calls on them to take immediate and effective action to redress the situation.
Debate resumed on amendment No. 1:
To delete all words after "That" and substitute the following:
Dáil Éireann, recognising the threat to many farmers' incomes this year, supports the Minister for Agriculture and Food and the Government in their efforts, since coming into office, to maintain farmers' incomes, to reintroduce live exports to the EU and third countries; to improve access to the Russian market for carcass beef; to secure the approval of the European Commission for the payment of national compensation to beef producers and to seek ways of assisting grain producers who were seriously affected by recent adverse weather conditions.
—(Minister for Agriculture and Food).
Is that agreed? Agreed.
The Taoiseach accused this side of the House of hypocrisy during the discussion of the very sad situation whereby Ray Burke has had to leave his ministry during a delicate family situation. We genuinely give him all our sympathy. However, it makes me sick to think of the problems endured by our Government, led by Deputy John Bruton with Deputy Yates as Minister for Agriculture, Food and Forestry, and how we had to listen to Deputy Cowen and subsequently Deputy Walsh, as the then Opposition spokesmen on agriculture, telling us what they would do if they were in Government at the time of the BSE crisis.
I respect the Minister for Agriculture and Food, Deputy Walsh, as an individual. He is a nice fellow——
No more than Deputy Crawford is.
However, the reality is that he has been an abysmal failure as a Minister.
That is nonsense.
When Fianna Fáil was in Opposition it gave commitments that the minute it got back into Government it would reopen the live shipments. It talked about going on world tours to every possible destination.
They did not stay in their constituency clinics when they should have been out conducting negotiations.
I ask Deputies to conduct this debate with the proper decorum.
That is a typical example of how Fianna Fáil made a major issue of where a person was while he was doing extremely good business on behalf of this country.
I hope now that the Minister, Deputy Walsh, has the opportunity to reopen the Egyptian and Libyan markets he will do so. The Libyan market is extremely important for Friesian cattle. When cattle were left on boats in an Egyptian port, the then Taoiseach, Deputy Bruton, tried to get those markets opened. What has our present Taoiseach or Minister for Foreign Affairs done?
The farm organisations said at that time that if the then Minister for Foreign Affairs, Deputy Spring, went to those places the markets would immediately be reopened. I welcome the small number of people in the gallery tonight but I wonder where all the members of farm organisations are. I was one of them in years gone by.
They have deserted the Deputy.
Are they now part and parcel of the Fianna Fáil regime?
(Wexford): The Deputy's own party members have not shown up.
When Charlie Haughey was the Leader of the Opposition he went to Libya and drew agreements in the sand. We have heard about such agreements in recent times. Those agreements did not work.
(Wexford): The former Minister, Deputy Yates, stayed at home in Kavanagh's pub in Enniscorthy.
The fact is that this time last year the former Minister, Deputy Yates, had the markets open in Egypt. They are not open today. Deputy Browne should talk to the Minister for Agriculture and Food and the Taoiseach and get them to deliver on the promises they made. As far as the cattle business is concerned, the Minister should wake up and follow up on his promises.
Many winter beef fatteners want to know whether the Minister can deliver the £17 million Irish Government aid to farmers — £50 per beast. He has failed to get agreement on that. That is a major scandal as far as many farmers are concerned. The price of beef today is 82p per pound. Thankfully, some farmers in my area can get a further 5p or 6p a pound across the Border. That raises questions about what is happening. The country is awash with money; the Government has been handed a good economy. Why is it not possible to give that money to farmers?
Where is the installation aid which the present Government guaranteed before the election? Where are the grants for farm buildings? The Government promised the return of the much needed pollution control and farm buildings grants. It transferred money from the food industry to pay for the farm buildings which had already been erected. That will have serious consequences for the constituency of Cavan-Monaghan, which has the most intense food industry in the country. I will return to haunt the Minister on that matter.
Our spokesman on Agriculture did a good job today in raising this matter. I wish the Minister for Agriculture and Food and his colleague, the Minister of State, Deputy Molloy, had time to listen to what we had to say. They will have to go back to the country on this matter and we will remind them then of all the promises they made and all the accusations they made against our Government. I assure them that many of those promises, which are on the record of this House, will come back to haunt them.
(Wexford): The Deputy should not do so much research.
I wish the Minister well. A number of measures need to be taken on the promises outlined by his predecessor as Opposition spokesperson. The live trade needs to be opened. There is a huge number of small cattle in the country and there is concern they will be worth very little within the next six to eight weeks.
The Minister informed the House today about the price of cattle by comparison with this time last year. I listened yesterday to the head of the research unit in Grange telling young farmers who received their certificates that the cost of producing a pound of beef is 84p. The Minister told the House today that the price received in the factories is also 84p. This means that everybody is depending on the cheque in the post.
Why has the Minister not delivered the £17.5 million approved by the previous Government? With the Government coffers awash with substantial funds why has he not obtained approval from the EU to spend this money? Why is he allowing the EU to diversify the money to the effect that, if it has its way, only approximately £20 per head will be paid, which is no addition to farmers who have lost substantial amounts of money in the beef industry in recent years?
The Minister referred to the difficulties encountered by grain farmers regarding the harvest. When I produced grain as a farmer 20 years ago it was the same price per ton as it is today. There is a serious problem here which must be addressed.
Regarding the installation aid promised by the Minister and the extra money he undertook to provide for farm pollution control he should recall that the last time he produced the farm pollution control grants he did not provide enough money for those seeking payments because there was insufficient funding from the EU. The Minster promised farmers, including the young farmers, that he would deliver on these promises.
When will the Egyptian and Libyan markets open for live cattle? When will compensation be paid? When will the installation aid, promised by the Minister, be introduced? When will the farm pollution control scheme be introduced? The Minister must deliver on these because he will be judged on his performance.
At an event I attended recently the Minister was introduced as "the real Minister for Agriculture". I do not like to think he will become the "real Minister for Agriculture" in the eyes of the many people who support his party, rather that he will be the real Minister for Agriculture and Food from the point of view of doing the job. That is what he is appointed to do and is what the people and the farmers, especially the young farmers, expect. We are not here to criticise but to point out what the Minister has approved and proposed. We now want action.
I wish to share my time with Deputies Coughlan, Foley, Daly, Michael Ahern and Matt Brennan.
Acting Chairman
Is that agreed? Agreed.
I am glad to have the opportunity to contribute to this important debate. During the course of the last Dáil the only opportunities we had to debate agricultural issues arose because the Fianna Fáil Party continually tabled motions for Private Members' business. The previous Government never provided an opportunity during Government time to debate these issues.
Does that mean the Government will provide time for such debates?
I am sure the Minister will give us the opportunity to debate issues, not just in respect of difficulties facing the Department but also with regard to long-term planning for our farming and agricultural industry, such as the Santer proposals and the Agenda 2000 proposals. I am sure the Minister will take heed of the views of the Members of the House and of the agricultural industry in general when he successfully negotiates the future reforms of the CAP on behalf of the Irish farming community.
When can we have a debate on that?
I am sure Deputy Crawford is an assiduous listener to national and local radio and reader of the national and local newspapers. I am also sure he is aware the Minister visited Egypt recently following on visits by his senior officials to the senior authorities in Cairo. I applaud the progress made by him in those negotiations. He has more work to do.
I also compliment the Minister on obtaining funding from the Minister for Finance to provide a ferry service to enable all classes of livestock to be brought to the Continent. The predominantly small farmers of Counties Cavan and Monaghan whom I represent are very interested in the weanling trade and the provision of a ferry is of the utmost importance to ensure we have a trade for weanling cattle before the marts. I am glad that, through his persistent negotiations, the Minister has provided the finance and has a shipping facility practically in place. I am sure his discussions with the EU Commission and Commissioner will be successful and the new shipping service will be on stream in the near future.
Deputy Crawford mentioned some of the farm investment schemes. I have often spoken at length, both in the constituencies and in this House, on the importance to the constituency I represent of the control of farm pollution and I have highlighted the difficulties we face in needing to provide additional housing for cattle because of the high rainfall in our part of the country, the drumlin soil and the terrain. I was glad the Minister provided an additional £28.5 million for this scheme some months ago.
That is old hat.
It is not. It is paying the bills so often left behind by Deputy Crawford's party when in Government. I am sure the Minister will provide further funding to enable the lifting of the suspension of that scheme, which is of such importance, especially to the smaller farmers because they are not in a position to incur the substantial expenditure needed to provide the proper on-farm pollution prevention facilities.
I know the farming community is anxious to have the most modern and up to date facilities provided on their farms and to eliminate all possibilities of pollution. I appeal to the Minister and the Government to ensure that this scheme is fully operative as soon as possible.
Ba mhaith liom ar dtús báire comhghairdeas a ghabháil leis an Aire úr agus go n-éirí an obair leis. Ag éisteacht leis an diospóireacht seo tá achan duine ag fanacht air anois agus tá súil agam go mbeidh na fadhbanna atá ag cursaí talamhaíochta réitithe agus ba mhaith liom comhghairdeas a dhéanamh le mo chomhleacaí fosta agus go n-éirí an obair leis an Uasal Coveney.
This is an important debate and one which, coming into the autumn season, is timely. Coming from Donegal one is more than aware of the necessity for the live export trade. It is disturbing that many of our other female politicians — not especially within this House, but including those candidates in the presidential election — would not be as supportive of the live export trade. While I appreciate the position taken by many people on this issue there is much misinformation and lack of understanding with regard to farming, especially small farming and the necessity to get a market for our weanlings.
This time last year we were told that while the bigger farmers were going to take the brunt of the BSE crisis it would filter through to others. It is now filtering through to the small farmer. In view of this I must emphasise our welcome for the work done by the Minister. It has been innovative and I hope the pilot project the Minister will initiate will reach fruition.
There is much debate about the fact that the country is losing jobs because we export live cattle and not finished products. Until the lack of competition in the slaughtering trade is dealt with, small farmers will continue to be treated unfairly. The sum of 80p or 83p a pound being paid at present is not good enough. People are suffering losses. I re-emphasise the need to reopen the export trade to Egypt and Libya and to consider other areas, such as the marketing of
Irish produce. We have been unable to get across that message as well as we should have, but much of that is the result of the negative attitudes expressed in the House and in the media generally. It was stated that the debate should be positive because comments made in the House are reflected across the world. We should re-emphasise the fact that Ireland has the best product. Consequently, it should be possible to sell our products all over the world.
As a Donegal Deputy I am most concerned that the restriction on exports to the Russian market was not removed. I hope the Minister will vigorously pursue this matter with the Russians. I am aware that the ban on Wexford cattle was lifted. In facetious terms, I suppose Deputy Yates would claim credit for that if he was the Minister. However, the Border counties are anxious to ensure that the ban on them is lifted because they rely on the live export trade. I hope the Minister will again travel to Russia and hold discussions with officials because there is not a huge incidence of BSE in County Donegal.
There are serious concerns about the Santer proposals and Agenda 2000. There are many older and part-time farmers in rural areas in particular. They can only live on the land if they receive subsidies and support. Ireland is a nation of small farmers because larger farmers can, in most instances, look after themselves. However, small and part-time farmers need support. I hope that support will continue and that unnecessary restrictions are not placed on the various premia and funds from the EU. I hope there will be a debate in the House in the next year on the Santer proposals and that Deputies will have an input in terms of what we feel is best for farming in this country.
Young Members of the House, including myself, encourage young people to go into and remain in farming. I ask the Minister to reconsider the applications for installation aid. I hope the applications with Teagasc at present will be met because we are honour bound to pay the installation aid to support young farmers.
A further point may mean nothing to other Members with the exception of some of my colleagues who have a number of IAWS fish industries in their constituencies. I attended a meeting recently where several companies received the ISO 9000 award. However, there is concern that the European Agriculture Commissioner is considering banning fish meat in terms of agri-business. As a Deputy representing Killybegs, where 500 jobs rely on fish industry factories, I hope that proposal will be shelved. I ask the Minister to give serious consideration to this matter.
I thank my colleagues for sharing their time. In recognising the serious financial threat to farmers this year, I support the Minister for Agriculture and Food, Deputy Walsh, and the Government in their efforts since coming into office to maintain farmers' incomes, to introduce live exports to the EU and third countries, to improve access to the Russian market for carcase beef, to secure the approval of the European Commission for the payment of national compensation to beef producers and to seek ways of assisting grain producers who were seriously affected by recent adverse weather conditions.
So far this year the EU has accepted almost 50,000 tonnes of our beef, representing approximately 21 per cent of the EU total. While it is not in our long-term interest to be dependent on intervention, I am satisfied this is used by the industry only as a last resort. It is an essential market support measure, principally during our peak disposal period. However, there are good grounds for believing that the improved market balance in the EU will reduce the need for intervention next year and the beef industry will substantially increase its presence on the EU market, thereby enabling it to put in place what is believed to be the best foundation for further development into the next century.
With regard to cattle prices, I am aware that while there has been an overall improvement in cattle prices compared to this time last year, prices still remain below those that prevailed before the BSE crisis. The low prices are due to a combination of factors which are well known by now. It is fair to state that prices this autumn are better than would have been predicted a few months ago. In fact, current prices are better than this time last year.
Egypt was an important market for live cattle but it has been closed to imports from Ireland since the beginning of January 1997. The Minister, Deputy Walsh, confirmed that a commitment in principle to reopen the market for Irish cattle was communicated on 4 June to his predecessor. However, that agreement in principle was subject to a number of conditions in the first instance. Therefore, discussions on the conditions for resumption of the trade were essential. These culminated in the visit of two delegations from the Department of Agriculture and Food in August and I congratulate the Minister on this initiative. Many of the veterinary requirements for the resumption of trade were agreed and a package of proposals was offered, including assistance for the removal of specified risk material. This was important in terms of allowing the Egyptian authorities to provide the same type of health guarantees as available to European consumers.
I also congratulate the Minister on his recent visit to Cairo where he met the Egyptian Ministers for Agriculture and Trade and Supply. As a result of these meetings the Egyptian authorities agreed to consider accepting a trial shipment subject to certain conditions. The proposal for such a shipment is at present being formulated in the Department of Agriculture and Food in conjunction with the live cattle exporters' association for consideration by the Egyptian authorities. I hope that a properly controlled trial shipment will convince the Egyptian authorities to reopen the market fully to Irish cattle imports as Egypt is now one of our most important markets for frozen beef; exports have increased substantially this year.
The quantity of frozen beef exported in the first half of this year is estimated at 30,000 tonnes, which is equivalent to almost 100,000 cattle. This exceeds the total for all of 1996. Regarding beef, Russia remains our most important market although trade has been subject to restriction since November 1996. However, I understand that to date 40,000 tonnes have been exported to Russia this year.
The issue of live exports to the continent is of major concern. The difficulties faced by exporters are due to the decision of the principal provider of ferry services from Ireland to the Continent to refuse to carry live animals, other than pedigree animals. It is now accepted that no restrictions should be applied to the export of livestock from Ireland and that any trade which complies with the strict animal welfare conditions applicable in Ireland as well as appropriate EU animal conditions should be allowed to travel unhindered to its intended EU destination.
I welcome the recent announcement of Government assistance for the provision of an alternative ferry service. This is the strongest possible way in which we can show our support for this trade. I understand that a vessel suitable for the carriage of livestock has been inspected and passed by officials of the Department of Agriculture and Food with independent marine surveyors. Subject to clearance by the EU Commissioner of the State aid involved, this will clear the way for a resumption of this trade.
Grain production is very dependent on weather conditions, a risk factor inherent in crop production generally. Last year was an excellent year with high yields, excellent quality and low moisture levels in contrast to the bad weather conditions in August this year. This created major difficulties for a number of grain growers. For this reason I welcome the recent statement by the Minister in which he confirmed he had meetings with representatives of the merchants and lending institutions. He also had discussions with farm representatives. In his discussion with the lending institutions he stressed the need for a sympathetic approach on behalf of the banks towards those who might be facing financial difficulties as a result of the poor harvest. He confirmed the reaction of the banks was positive and was assured they would take a long-term view of the situation of growers who had financial problems and that there would be understanding of their difficulties. Also his discussions with the grain merchants had a positive result. They offered full co-operation in trying to minimise the loss from the harvest and agreed to provide extended credit facilities. This is welcome.
I congratulate the Minister, Deputy Walsh, and the Government. In a short period the Government has made tremendous progress in dealing with what appeared an impossible situation. In the next few weeks we can look forward to a positive response with regard to the Russian market and also in relation to the export of live cattle to Egypt.
Like other speakers I congratulate the Minister for Agriculture and Food on his appointment and wish him every success in his onerous task. With his vast knowledge and experience of the agriculture industry we are fortunate that Deputy Walsh is the Minister for Agriculture and Food at this time. He has already made some important decisions in relation to the development of that industry. I encourage him to continue the work he has started in Egypt to open up that market. His mission to that country at the end of September was worthwhile and there are positive indications of the prospect of the market being fully opened soon.
I had the opportunity, as had the acting chairperson, when in Cairo at the Interparliamentary Union meeting to discuss with some Egyptian parliamentarians this problem. We stressed the importance of reopening that market. Our ambassador, and his officials, have some internal problems which are not related to the status of Irish beef. In further discussions with the Egyptian authorities it is important the Minister continue to use his influence to canvass those who are embarking on the campaign, especially in the media, in Egypt to try to minimise the imports of live cattle, not only from Ireland.
There are indications of a general increase in beef consumption here and in Egypt and a drop in production so that the balance in the beef market will mean we will be able to give incentives for the development of our beef industry.
I support the amendment. There are some matters that underlie milk quotas. Sustaining the incomes of small dairy producers in the west, including those in County Clare, is essential to the beef industry. Since the introduction of milk quotas 1,000 small dairy producers in County Clare have ceased milk production. This means a further erosion of incomes which are critical in maintaining the number of small family farm holdings. I wish to emphasise the importance of providing additional support measures in relation to milk quotas to ensure that the incomes of small dairy producers in the west can be protected and sustained.
This is a critical industry as far as the west is concerned. Agriculture has been and continues to be the backbone of the economy of the western counties. In any development of the industry in the future it is important to take account of some of the issues which are causing problems such as the restriction on milk quotas and the lack of incentives for introducing new developments such as the anti-pollution measures. Difficulties have arisen in respect of the installation aid issue. I suggest the installation aid be directed towards those who need it most in the 13 western counties. I encourage the Minister to continue the good work he is doing and he will have our full support.
I congratulate the Minister on his reappointment as Minister for Agriculture and Food and wish him every success. The months of October and November are important for the small farmers in the west, particularly in the constituency of Sligo-Leitrim which I represent, with ten, 12, 15 and 20 suckler cow herds. They do not keep their calves for the winter. The Minister must try desperately hard in the next few weeks to ensure the live export of cattle is allowed to continue. It will be difficult because a number of people are totally opposed to the live export of cattle. Some people call those involved the do-gooders. If we have a good quality ship I am all in favour of animals being well treated while being exported. We want the best quality ships to prove that our cattle can get to their destination safely. If we can do that it would be of great benefit to the people in the west and those I represent.
Farm pollution grants should be restored. If funding cannot be got from Europe we should get Exchequer funding. Farmers are not seeking bigger grants, they would be happy to accept half that already received to provide winter housing, slatted houses, and to prevent farm pollution. For the convenience of keeping and feeding cattle for the winter these farmers would be happy to receive smaller grants.
A number of farmers depend on cheques in the post in respect of headage, suckler cow grants, beef premium, etc. Some thanks for this is due to a former Member, the ex-commissioner Ray MacSharry, who negotiated a good deal to allow farmers to receive cheques in the post. He could see that some day farm incomes would not be as good as they should be. The former Minister, Deputy Yates, did his best while in office and I am sure Deputy Walsh will do his utmost to reopen the live export market for cattle and thus ensure farmers get a good price for their stock. There will be a serious fall in prices if we cannot export cattle. For those who are concerned about the export of livestock we must ensure the ships meet the necessary requirements.
I congratulate Deputy Joe Walsh on being appointed Minister for Agriculture and Food. He has vast experience in this area which he has brought to bear for the benefit of agriculture and the general community when he was previously in that post. I am sure he will do likewise now. I also congratulate Deputy Hugh Coveney on being appointed spokesperson for the main Opposition party. He also has vast knowledge of this area. I wish him well.
I have a direct interest in farmers in that 30 or 40 of them pay me for work I do for them. This gives me hands-on experience because, although I do not work at ground level, I see the bottom line. In my area the farming community is engaged in all areas of farming — milk production, beef, cereals and vegetables. What I have seen in the past few years would not indicate a decline in farm incomes as the Opposition parties would like us to believe. Without doubt there have been difficulties in the grain area. Farmers producing malting barley were particularly badly hit, as were those producing vegetables, due to inclement weather. The Opposition has been calling for money to look after grain farmers. The Minister is having the cost of losses estimated by Teagasc and its estimate is not yet to hand. This motion is, therefore, premature. However, I suppose the Opposition parties are judging us on their own approach when they would not allow discussion on agriculture, except on a few occasions, over the past two and a half years.
I am concerned about the price of milk in the years ahead especially now that PLCs play such a big role in that area. Co-operative societies are paying a higher price to milk producers than PLCs. My fear is that in the years ahead PLCs will be under such pressure from shareholders that profits which were going back to the farming community, and through the farming community to the extended business community, will be reduced.
On exporting beef, particularly from Cork, a boat in Cork has passed the European directives and has been passed by the Danish Government as being suitable for exporting cattle. However, the former Minister for Agriculture, Food and Forestry, Deputy Yates, signed a directive to the effect that because this boat did not have a 15 second rollover period it could not be allowed to carry cattle. The European directive says that a ten second rollover period is within the law. I ask the Minister to look at that.
I am delighted that the IFA has again come to life. For two and three quarter years we heard nothing from the IFA. It is back again like the unions. We know who they were run by, but now that Fianna Fáil is in power the IFA has suddenly risen like the phoenix.
I wish to advise the House that I am sharing my time with Deputies Dan Neville, John Browne, Paul McGrath, P.J. Sheehan and Michael Creed, a formidable team indeed.
I join the previous speakers in wishing the Minister well in his new ministry. I had the pleasure of meeting him in my constituency and was very glad to see him there. I also wish Deputy Hugh Coveney well as Opposition spokesman on Agriculture.
In wishing the Minister well, I also wish he would do something for the hard-pressed farmers. There is no doubt that farmers' incomes are on the decline and cattle prices are falling. There is no reason for this other than that we simply do not have an export system in place. It is unacceptable that we cannot get the produce of the primary industry here to the European market. We are a member of the European Union and we are entitled to trade freely in Europe. If this happened in any other sector of industry there would be uproar; the unions would be outside the House protesting loudly. Where are the farmers' representatives? Where is the IFA that we heard so much from over the past two and a half years when we had a Minister who was doing trojan work? The president of that association has simply gone to ground. Why are they not supporting back-bench Deputies who are seeking to highlight the fact that we have no shipping facilities in place to get our stock to market? It is claimed that the Government is putting in place a certain amount of capital. From correspondence I had from the Minister's own constituency, that is totally unnecessary. A firm trading under the name of Walsh Warehouses Limited is prepared to make available a ship, The Caroline, suitably licensed by the Danish Government, meeting all the criteria laid down by Europe, to bring cattle to the European market. It only remains for the Minister to give these people a licence to do the job. They are not seeking one penny of taxpayers' money.
The Minister will have noted in his travels, as I have at the provincial shows, that we have never had a better stock of quality cattle. One reason for that is that farmers have done their job. They have upgraded the breeding of their cattle. Travelling the countryside one will see the quality and standard of cattle. It is sad to think that those cattle are being given away. Unforeseeable weather beset the grain producers in the south and south-east, but in Cavan and Monaghan in the west, the weather was favourable for grass growing. We never had a better year for grass, and cattle never looked as well. It is sad to think that there is no outlet and that these cattle have to be given away.
According to my research we do not have an abundance of cattle. We may have a substantial number of breeding stock, but the stock for sale is down on other years. The reason for that is that cattle are coming to fruition at an earlier age. The traditional three to four year old bullock is practically gone. Beef is now being produced at 24 to 36 months. Progressive farmers are able to finish their cattle at 24 months so that there is no buildup of older stock. In Cavan-Monaghan, in Leitrim and in the west generally what we are interested in is the sale of weanling stock. They must be sold because we do not have the facilities to house them over the winter. The buyers know that there is pressure on farmers to sell in the next fortnight or three weeks. Bringing in shipping in a month or six weeks' time when the sales are over is of no use.
It would be a disaster and would have serious consequences for the confidence of farmers in future to continue the job of upgrading and improving. I compliment them on the improvements they have made to their farms and farmyards to control pollution under the REP scheme. I implore the Minister to reinstitute the installation aid scheme immediately to attract young men to the industry.
I congratulate the Minister and wish him well. At a time when everybody is celebrating the success of the Celtic Tiger one of the basic parts of the economy is under extreme stress. The fall in the price of cattle will have a severe impact on farm incomes this year. It has been predicted that within the next two weeks the price of cattle will fall to 80p per pound leaving no profit margins. There is therefore a need to ensure competition and export outlets for our cattle in Europe and third countries. The Egyptian authorities assured the previous Minister, Deputy Yates, that market would be reopened. I do not know what has happened in the meantime or the reason for the delay. Expectations were raised following the Minister's visit to Egypt in the past ten days but it has been reported that possibly 2,000 cattle will be exported. This will have no impact on the crisis.
A price of 85p per pound is mind-boggling. Ten years ago when I was involved in the meat trade the price ranged between £1.05 and £1.10 per pound. At one stage it was as high as £1.20 per pound. The Government's lack of urgency in seeking to have live export markets reopened is compounding the crisis. The Minister's failure to secure the £17 million compensation package promised by his predecessor is appalling. He should ensure he obtains clearance for the immediate payment of the £50 slaughter premium to ease the position.
During the August weekend in the middle of a deluge the Minister announced his decision to unilaterally withdraw installation aid. This sends out the wrong signal to those completing their farm certificate course. The payment of £5,600, which was seen as a carrot, was designed to cover legal expenses in the transfer of land. This is an indication that the Government is not interested in attracting young people to the industry. I urge the Minister to endeavour to save one of our basic industries which guaranteed the survival of the economy over many decades, although it is not as important as it once was.
(Carlow-Kilkenny): Ba mhaith liom mo chomhghairdeas a ghabháil leis an Aire. Ta siúl agam go mbeidh gach ádh leis san obair atá roimhe.
On 15 April this year the following words of wisdom were uttered in the House:
The single most important thing that the Minister can do is seek to have live export markets reopened. This requires a political initiative.
The person who uttered those words must have wonderful ideas. When the Minister has recognised his own words perhaps he will tell us what he has up his sleeve. He went on to say at volume 477, column 990 of the Official Report on that day:
Farmers know that even the most rapid computer system in the world will not return prices at marts to their previous levels in the same way as the reopening of the live trade market. If the Minister does nothing else in the coming weeks he should visit the capital cities of those third countries and reopen markets for our live cattle trade.
In recent weeks the Minister visited one of the cities in question but without much success. I said at the time that he seemed to think the only thing that would open them was a corkscrew. He should not have been so cynical. Fianna Fáil on its return to power would reopen markets was the song being sung but the big question was how? The Taoiseach has asked us to take the views of the Egyptians into account. Why was the same respect not shown for the Egyptians' views when Deputy Yates was Minister?
I support the demand for a restoration of installation aid. My heart went out to a young farmer who lost out because the necessary documentation did not come through in time from the Land Registry. People should have been notified well in advance that it was to be discontinued. The Minister should honour the promises made by his party prior to the election and reinstitute the installation aid scheme to give young farmers a head start in the industry. What he did was wrong.
The price of beef is governed by a number of factors. If the big beef producers do not buy in stores this winter the price of beef will be lower than expected. The Minister will have to make a major effort to convince them that the price will be as high as he is convinced it should be.
According to the latest official figures reported on radio this evening the profit margins of corn growers, of which they are many in my constituency, have narrowed to £150 per acre. As the Minister is aware, they cannot sustain these figures for too long. I ask him to come to their assistance. Given the bad weather in the south-east this autumn it comes as no surprise that they are in difficulty. I ask the Minister to assist those farmers.
I join my colleagues in congratulating the Minister and I emphasise the importance of his role. I noted the Minister's wry smile when Deputy Browne quoted a speech he made last year. I was in the Chair this morning when similar remarks of the Minister were referred to. The Minister's comment was that there is a change in emphasis from one side of the House to the other.
The Minister is saying that it does not matter what one says in Opposition. One can say anything to get into Government and then one can do what one likes. That is a cynical approach, both to the Minister's present position and his previous post of spokesman on agriculture. The Minister should be ashamed of what he said and he should tell farmers: "I made a mistake. That is not what I meant to say. I am not as cynical as that and I will do all I can for you." Irish farmers are owed £17 million in compensation to beef farmers on the slaughter premium and compensation on the BSE crisis. That money was promised by the Minister's predecessor, Deputy Yates; it is from the Irish Exchequer. The approval needed from Europe was in the offing before Deputy Yates left office and it would be cynical of the Minister not to deliver the money owed to farmers. Those farmers have budgeted for receiving that money and are entitled to it. When one sees how prices have gone, it is clear they must get it. If the Minister does not deliver, he will be reneging on a strong promise. Will he do that for political expediency? I do not think so because he is decent, but he must shape up and deliver the goods for the farmers.
In relation to installation grant aid, I have spoken to a number of young people, some of whom were on the point of applying and others who had further to go. The Minister will be aware that getting all the documentation together, getting the land into one's own name and completing the agricultural course is a slow business. Many farmers had begun the initial procedures and receiving the £5,600 in grant aid was part of their plans. It was disastrous for them that the Minister cancelled this scheme with the stroke of a pen in August. It is particularly disappointing when one considers the commitments made by the Minister as spokesman for agriculture to Macra na Feirme in relation to young farmers. The Minister made promises willy-nilly and failed when the chips were down. It is no wonder that people become cynical about politicians when that is the case. The attitude of the Minister this morning regarding those promises emphasises that point.
The final word will go to the Independent Deputies who claim to represent rural communities such as Deputies Healy-Rae, Fox and Blaney. We have heard them speak many times of preserving rural communities. Tonight they can stand foursquare behind the farmers and vote for Deputy Coveney's motion. Alternatively, they may throw up their hands and say they do not care what happens to rural Ireland.
Why is the Minister of State at the Department of Agriculture and Food, Deputy Ned O'Keeffe, not involved in this debate? Is it the case that Deputy O'Keeffe understands the serious situation the farming community is in and is so au fait with it that the Minister is afraid to let him speak in case he sides with the Opposition and forces the Minister to yield to the pressure we are putting on him?
I am reminded of the Deputy's Clonakilty speech.
Cork South West produces a huge amount of weanling and finished cattle, and the Minister lives in the heart of that constituency. I am from an outpost on the western edge of it where the weanling and beef industry are feeling the pitch.
(Carlow-Kilkenny): The Deputy should take the Minister on a trip.
I am surprised at the lethargic attitude of the Minister and his Department regarding farmers who have been devastated by the collapse of cattle prices over the past six months. Stability will not return to the cattle industry unless and until the export of live cattle resumes. The Minister was very vehement in Opposition and seemed very critical of his predecessor, Deputy Yates.
However, the Minister has made little or no progress in opening up the live export trade to Russia or the Middle East. The Minister's election manifesto pledged that on his return to the Department of Agriculture and Food, he would immediately do so, but, four months since then, not one animal has been exported live from Ireland.
Last week the Minister went to Cairo and returned with only a half-hearted promise from the Egyptian authorities that they would agree to consider accepting a trial shipment of 2,500 animals subject to certain conditions. I emphasise the word "consider".
The Minister need only visit Bandon Mart any Monday to see the 2,500 animals to fill that shipload. I will only believe that trial shipload leaves if I see it, and that will probably happen when the cattle season finishes. It is cold comfort to the beleaguered farmers who are held to ransom by the meat factories, which have no opposition when there are no live exports. Competition is the life of trade.
Is the Minister aware that a huge market exists in mainland Europe for finished cattle of 600 to 700 kgs? Why does he not immediately allow reputable Cork and Kilkenny livestock exporters to utilise the services of a ship, the Caroline, which they have chartered and which was engaged in cattle transport, breeding, feeding and slaughtering stock, from this country from 1990 to 1994? The ship was surveyed by the Danish marine authorities and complies with Danish regulations, which implement the EU directive 91/628/EC. It should not, therefore, be debarred from loading in Ireland. The vessel also carries a permit for world-wide trade and transportation of stock.
The Minister should wake up before it is too late, cut out the red tape and bureaucracy and allow this vessel to ply between Cork and European ports immediately. Only a few weeks I was with the Minister at the presentation of more than 125 certificates to young students in the Bandon area. The previous day I attended the presentation of 125 certificates in Clonakilty. Unfortunately, through no fault of his own, the Minister was unable to attend that presentation, although he was there in spirit.
The Minister has debarred 250 qualified young farmers in his constituency from receipt of farm installation grant. He should let commonsense prevail and look after the young farmers in his constituency and throughout Ireland. One eighth of the 2,000 young farmers who qualified are from the Minister's constituency of Cork SouthWest. Will the Minister restore the farm installation grant, the only incentive for young farmers today? The Minister gave that promise during the general election and I ask him to implement it.
Was Deputy Jim O'Keeffe at those presentation ceremonies?
I have rarely seen the level of despair and despondency which has engulfed the farming community. We are specifically talking about the beef, small dairy and cereal sectors, which faces difficulties because of the bad weather conditions. I acknowledge the presence in the public gallery of the president of the United Farmers Association. This sector is largely voiceless and the criticisms expressed recently by a former president of the IFA about how the organisation has lost its way in terms of representing the needs of large sections of the agricultural community are evident by the absence of members of the IFA. In the past, in times less difficult, large numbers from such organisations attended debates.
We spend much time wondering why politics and politicians are held in such low esteem. It has as much to do with the McCracken tribunal report and recent scandals as with promises made and words spoken in this Chamber which are not acted on subsequently. Many of my colleagues quoted from the Minister's contributions to previous agriculture debates which will come back to haunt him.
Live exports are critical. A ship and markets are available yet we are placing a self-imposed exile on ourselves — a quarantine of our own making — because the Minister will not sign a regulation to allow that ship to sale. The ship meets all EU regulations but does not meet Irish ones. Will the Minister seriously consider the question of live exports? Markets are available to us which are not as difficult as the Egyptian and other third country markets, and I ask the Minister to respond to that issue.
The former Minister, Deputy Yates, introduced the regulations affecting the ship. The Deputy failed to mention that Minister got a ship, The Purbeck, which has been passed by independent marine surveyors and the Department. It will bring cattle to the much sought after European market. It is important that is recognised because the Minister went to Government, got cash and devised a set of proposals on how to export cattle in that situation.
That is for weanlings.
There is no condition which says "weanlings only". If the Deputy knows about the continental market, he will know it is more than "weanlings only". We were excluded from that market until now because a previous commitment given to the Minister by Pandora was not fulfilled. When Pandora withdrew from our market, it left us without a way to export cattle. The export market in Europe is now available. We should also recognise the Minister had the ban lifted from County Wexford. The former Minister made a promise on 5 June, close to election day on 8 June, yet nothing was done. The Minister has opened up markets and we are no longer an island.
I congratulate the Minister and Minister of State on their appointments. Live exports is the most important issue with which the Minister of State has dealt. I represent the constituency of Sligo-Leitrim to which the export of weanlings is very important. I do not understand the reason the problem has remained unsolved for so long. I agree with the majority of my colleagues who said the cynical comments made by the Minister when he was Opposition spokesman on agriculture sent out the wrong vibes and signals to people who honestly believed the Opposition, when returned to Government, would put procedures in place which would allow for the export of weanlings and live exports to mainland Europe and third countries. Unfortunately, nothing has happened.
A number of my Fianna Fáil colleagues in Sligo-Leitrim went around the constituency during the general election saying the control of farmyard pollution grant would be reintroduced. This is an important grant which the Government should reintroduce. It was a pre-election promise, yet neither the Minister, since coming into office, nor my constituency colleague have suggested reintroducing this grant. I ask the Minister to ensure the CFP grant is reintroduced as a matter of urgency.
The Teagasc centre in Ballinamore, County Leitrim, has been up and running for a number of years but has been under pressure. I understand a decision was taken at the last meeting of the board of Teasgasc to close the centre. Will the Minister state that he has made a decision, in principle, not to allow the centre in Ballinamore to close. A number of jobs are involved and the farming community in that part of the country need research and development. It would be a retrograde step if the Department and the Minister allowed the Teagasc centre in Ballinamore to close.
I am glad of the opportunity to contribute to this debate, although we need a more substantive one on this issue which I hope we will have before Christmas. Looking at the prospects for farmers, the Minister and the Ministers of State face a major challenge. Agricultural inflation is running at about 5 per cent compared to national inflation of .8 per cent. Gross incomes this year will probably be down about 10 per cent. We must look at that scenario when we address the problems facing the agricultural sector.
I remember when the Minister's predecessor assumed office at the end of 1994 we were faced with having to deal with the baggage emanating from the beef tribunal and the festering problem of BSE which did not really manifest itself until 1996. Despite that, in 1995, we had the highest agricultural incomes in the history of this State which held up in 1996 and which, in real terms, will be repeated this year. That was achieved by a very active Minister who, whenever a crisis arose, proved his capacity to negotiate in Europe by obtaining approximately £180 million compensation. However, we have not yet received that compensation despite having been informed it was imminent, a reflection on the very casual attitude of the Minister to this problem. While the months of August and September may not be the busiest in Brussels, the feeling within the farming community generally — some of whom I am delighted to see represented in the public gallery this evening — is that this Minister and Government, despite all the commitments outlined by Deputy Coveney in introducing this motion, are totally ignoring the present plight of farmers.
In March 1996 we experienced the worst ever crisis in agriculture but responded to it. The Minister's predecessor went out, fought for compensation in Europe, overcame the odds and was very successful but that same urgency does not appear to be present now. I appeal to the Minister to emulate his predecessor, to go out and fight for the compensation required in the cereal and other sectors.
While recognising that the Minister has established an expert group to examine the future of the beef industry, no doubt his officials will agree that now more than ever we need a national futuristic plan for the industry. The Minister's predecessor had justified the overall base for an equality insurance scheme and had taken on the issue of food safety, which meant that the Minister inherited a very good position overall. More than anything else that vitality and commitment to the agricultural sector is now needed.
In regard to the £17 million compensation due to be paid, I know how slowly the European Union Commission moves on such issues, as I had one such experience with regard to requests for an increased level of Leader funding, about which a proposal was submitted months ago for community and tourism projects. I learned yesterday, in reply to a parliamentary question that the Commission has not yet taken a decision on the matter. I assure the Minister that the only way he will obtain such a decision is to go over to Brussels and exert pressure there, which obviously has not been done over the months of August and September. Those £17 million, of such importance to beef producers between now and Christmas, is there for the sake of negotiation since, as Deputy Coveney pointed out, Commissioner Fischler promised the Minister's predecessor that that commitment would be honoured.
I envisage major challenges and problems ahead for our agricultural industry which warrant a fuller debate than that just concluding. I compliment Deputy Coveney on having brought the overall issue of agriculture to the forefront within the short time since his appointment as Opposition spokesman on the subject.
In previous debates here on agriculture I remember the Fianna Fáil Party, then in Opposition, would have the public gallery full of representatives of the Irish Farmers' Association, the ICMSA and others — while acknowledging the presence here this evening of Mr. Michael O'Callaghan representing the United Farming Organisation in the gallery — intent on telling farmers what they would do for them. Indeed they set up a reign of terror throughout rural Ireland, promising farmers what they would do for them.
Terror?
Yes, the Deputy's party struck terror into the farming community.
Vote-catching tactics.
Absolutely.
The Deputy is now smiling.
Deputy Deenihan without interruption.
What has his party done since?
It has let them down totally but they are not fooled by such promises. It is quite clear to them that they have lost all the initiative displayed going into the last general election, are sitting back in the hope that they will have four years within which the overall position will recover automatically. That will not happen; they will have to make it happen.
I thank Deputy Deenihan for his confidence in mentioning four years.
That is what Deputy Davern thinks. I should like to avail of this opportunity to recognise and compliment the quality of the Minister's officials. There is no doubt that, if he gives them leadership, they will produce the goods.
Mr. Coveney
This short debate centred on five or six topics. First, the overall question of reopening markets for live exports to the European Union where the issue is about shipping and to third countries where the issues are more complex.
The Minister of State mentioned using a specific ship “The Purbeck“ which, if true, I welcome wholeheartedly. A ferry is not ideal in the case of the other trade about which we have been speaking, for which purpose I would ask the Minister to consider using the Caroline.
I accept the criticism that Deputy Yates, when Minister, brought in a regulation which renders the task more difficult for his successor but it does not render it impossible. I hope the Minister will examine the matter on a one or two shipment trial basis and no more which, if possible, would alleviate the position.
I do not need to refer at length to the early removal of the Russian ban on our imports, something everybody wishes to achieve as quickly as possible. I ask the Minister to put his shoulder to that endeavour because it has spin-offs in third countries and so on.
The payment of national compensation to beef producers in the sum of £17 million has led to much comment. I was concerned to note that the Minister was very strong on platitudes and bureaucratic statements but very weak on specifics in the course of his remarks, since all he had to say about that was that he was hopeful there will be a satisfactory outcome to the issue in the near future. That is hardly good enough in the month of October for those farmers expecting such payments. I hope the Minister will take stronger action on that issue.
Since the Minister's party gave a very strong commitment to the reintroduction of installation aid, it is a political imperative. Although the Minister explained at Question Time yesterday some of the reasons he sought not to do so, young farmers found those reasons very difficult to accept. Indeed one of the Minister's own party colleagues said that if he were able to deal with even those applications already submitted, or place a time limit on such grants, it would help because a small number of farmers feel very badly let down in that respect.
The control of farmyard pollution was also mentioned. We had all been hopeful that the mid-term review would enable whichever Government was in office to obtain additional funding for that scheme so central to the future of rural life, the preservation of the environment, sustainable farming and so on. I hope the Minister will be able to procure funding for that purpose.
I was disappointed there was so little, in any really specific sense, forthcoming from the Minister in response to some Members' queries, not least those in respect of grain growers. It is not good enough for the Minister to say he hopes to have a report shortly and that he will then be in a position to make an overall assessment which will give a more precise overview of crop damage. The people whose harvests are devastated will regard that statement as weak. I hope the Minister will examine some of the suggestions I made this morning with a view to helping grain growers whose incomes have been devastated in the south and south east.
There was a reference to the possibility of having a substantive debate in Government time before Christmas. I ask the Minister to consider that favourably because many issues cannot be dealt with in detail if Members have only five minutes to contribute. Perhaps in a month or two from now we can have a debate on agriculture in Government time. I ask the Minister to give that serious consideration.
Amendment put.
The Dáil divided: Tá, 75; Níl, 60.
Tá
- Ahern, Dermot.
- Ahern, Michael.
- Ahern, Noel.
- Andrews, David.
- Ardagh, Seán.
- Aylward, Liam.
- Blaney, Harry.
- Brady, Johnny.
- Brady, Martin.
- Brennan, Matt.
- Brennan, Séamus.
- Briscoe, Ben.
- Browne, John (Wexford).
- Byrne, Hugh.
- Callely, Ivor.
- Carey, Pat.
- Collins, Michael.
- Cooper-Flynn, Beverley.
- Coughlan, Mary.
- Cowen, Brian.
- Cullen, Martin.
- Daly, Brendan.
- Davern, Noel.
- de Valera, Síle.
- Dennehy, John.
- Ellis, John.
- Fahey, Frank.
- Fleming, Seán.
- Flood, Chris.
- Foley, Denis.
- Fox, Mildred.
- Hanafin, Mary.
- Harney, Mary.
- Haughey, Seán.
- Healy-Rae, Jackie.
- Jacob, Joe.
- Keaveney, Cecilia.
- Kelleher, Billy.
- Kenneally, Brendan.
- Killeen, Tony.
- Kirk, Séamus.
- Kitt, Michael.
- Kitt, Tom.
- Lawlor, Liam.
- Lenihan, Brian.
- Lenihan, Conor.
- Martin, Micheál.
- McCreevy, Charlie.
- McGennis, Marian.
- McGuinness, John.
- Moffatt, Thomas.
- Molloy, Robert.
- Moloney, John.
- Moynihan, Donal.
- Moynihan, Michael.
- Ó Cuív, Éamon.
- O'Dea, Willie.
- O'Donnell, Liz.
- O'Donoghue, John.
- O'Flynn, Noel.
- O'Keeffe, Batt.
- O'Kennedy, Michael.
- O'Malley, Desmond.
- O'Rourke, Mary.
- Roche, Dick.
- Ryan, Eoin.
- Smith, Brendan.
- Smith, Michael.
- Treacy, Noel.
- Wade, Eddie.
- Wallace, Dan.
- Wallace, Mary.
- Walsh, Joe.
- Woods, Michael.
- Wright, G.V.
Níl
- Barnes, Monica.
- Barrett, Seán.
- Bell, Michael.
- Belton, Louis.
- Boylan, Andrew.
- Bradford, Paul.
- Broughan, Thomas.
- Browne, John (Carlow-Kilkenny).
- Bruton, John.
- Burke, Ulick.
- Clune, Deirdre.
- Connaughton, Paul.
- Cosgrave, Michael.
- Coveney, Hugh.
- Crawford, Seymour.
- Creed, Michael.
- Currie, Austin.
- D'Arcy, Michael.
- De Rossa, Proinsias.
- Deasy, Austin.
- Deenihan, Jimmy.
- Dukes, Alan.
- Enright, Thomas.
- Farrelly, John.
- Ferris, Michael.
- Finucane, Michael.
- Fitzgerald, Frances.
- Flanagan, Charles.
- Timmins, Billy.
- Upton, Pat.
- Hayes, Brain.
- Higgins, Jim.
- Higgins, Michael.
- Howlin, Brendan.
- Kenny, Enda.
- McCormack, Pádraic.
- McDowell, Derek.
- McGahon, Brendan.
- McGinley, Dinny.
- McGrath, Paul.
- Mitchell, Gay.
- Mitchell, Jim.
- Mitchell, Olivia.
- Naughten, Denis.
- Neville, Dan.
- Noonan, Michael.
- O'Keeffe, Jim.
- O'Shea, Brian.
- Penrose, William.
- Perry, John.
- Rabbitte, Pat.
- Reynolds, Gerard.
- Ring, Michael.
- Sargent, Trevor.
- Shatter, Alan.
- Sheehan, Patrick.
- Stagg, Emmet.
- Stanton, David.
- Wall, Jack.
- Yates, Ivan.
Tellers: Tá, Deputies S. Brennan and Callely; Níl, Deputies Barrett and Sheehan.
Amendment declared carried.
Question, "That the motion, as amended, be agreed to", put and declared carried.