Jim O'Keeffe
Question:6 Mr. J. O'Keeffe asked the Minister for the Marine and Natural Resources if he will put a scheme in place to take into account the enormous drop in herring prices; and if he will make a statement on the matter. [19001/97]
Other Questions. - Herring Prices.
I fully share the Deputy's concern about the worrying state of the herring markets. As I stated in the House on October 22, prices in the autumn fisheries have been low, particularly when compared with the historically high prices achieved last year. I outlined the background to the current situation and the global nature of the problem. The main underlying factor is oversupply on the key Japanese herring roe and European herring flap markets. This is due to forward purchasing of herring roe in 1996 coupled with very high output in the Canadian herring fisheries and the new Atlanto-Scandic herring fishery earlier this year. The output from the Atlanto-Scandic herring fishery alone this year, in which Irish fishermen participated also, was over one million tonnes. This has had a depressing effect on global herring markets.
The extent and impact of the actions which can be taken at a national level must be set in this global supply and demand context. I am pursuing a range of measures in order to improve the returns from our Celtic Sea and North West Herring fisheries in the interests of the Irish industry. My Department is closely monitoring the herring fisheries, particularly the Celtic Sea, and will introduce a temporary closure of the fishery if there is a sudden market collapse or if quality of fish landed is poor. This will help to ensure maximum benefit is obtained from the available quotas. We are also working on the ground to ensure fishermen are facilitated to make maximum use of existing market support schemes. These allow for the withdrawal from the market of herring if it fails to reach the minimum withdrawal price when offered for sale and the payment of a subsidy where product is held over with a view to reintroducing it to the market at a later stage when prices improve. I have also asked BIM to give priority to increasing market opportunities for Irish herring in overseas markets.
In the final analysis international action is needed to tackle this serious problem. At EU level, I am pressing hard for a reduction in the level of preferential access to European markets for herring from third countries. Ireland and others are up against the large scale processing industries of Denmark, Holland and Germany in this fight. It has consistently opposed the opening by the EU of tariff quotas for herring imports and I will continue to vigorously oppose this trend and look for support from other affected member states. A lower global total allowable catch for Atlanto-Scandic herring in 1998 is likely to be agreed and this will contribute to easing the oversupply problem next year.
The scope for additional schemes to compensate fishermen is constrained given that income subsidy is ruled out under European law. I have met the fishermen involved in the Celtic Sea herring fishery to hear their views at first hand. I am fully up to date with their difficulties and I agree with the industry that a hard, collective look at the market situation needs to be taken.
I will set up a task force involving the fishing industry, BIM and the Department which will assess the options for better management and marketing of herring and which will draw up realistic recommendations designed to put the Irish herring industry on a sound footing. I asked the industry to nominate representatives to the task force who will fully reflect all interests involved across the supply and demand chain, including catching, processing and marketing. It is imperative there is maximum co-operation between the catching and processing sectors if the supply and demand problem is to be solved. I will ensure Castletownbere is represented. I am confident the task force will develop a set of realistic proposals, within the ambit of EU law, which will improve the management of the Irish herring fisheries, identify new markets, and secure the best returns from existing markets. The task force will complete its work as quickly as possible with a view to taking action in the short to medium term.
The measures in train will help us to stabilise the situation. I look forward to new thinking from the task force which will tackle supply/demand and related management issues and which will enable us to minimise the impact of global price fluctuations for the Irish herring industry.
Does the Minister accept that herring prices have halved since last year — one fisherman said they are the worst in living memory — and that as a consequence those who fish the Celtic Sea face bankruptcy and the livelihoods of those involved in the processing industry are at risk? Approximately 1,500 along the seaboard of the Celtic Sea are dependent on herring fishing. Even though the Minister's good intentions are not in doubt does he accept that his words are cold comfort to those facing bankruptcy as he talks about monitoring, temporary closures and giving priority through BIM? Where are the concrete measures that are needed to help those involved? I wish to make a number of suggestions.
It is not in order to make suggestions.
I accept the task force is a good idea in the medium term. The Minister referred to making maximum use of existing market support schemes. I will not ask him to break EU law because I acknowledge the problem with subsidies but in terms of immediate action, will the Minister ensure the minimum price of £123 per tonne is available? The current market price is between £80 and £85 per tonne. I understand it operates on the basis that one cannot sell under £123 per tonne but will only receive £80 per tonne having dumped the fish. Will the Minister convince his colleagues in the EU to ensure the minimum price is the same as the compensation price?
The Minister referred to the carry-over scheme. With all due respect, this is misleading as the scheme applies to only 6 per cent of the quota. It should apply to all fish so that the market can be protected. Will the Minister put those two suggestions into effect straight away?
The Deputy rightly stated that the withdrawal price is £123 per tonne and that the market price is down to between £90-£100 per tonne. The reason for this is the reduction in demand. The compensation paid to producer organisations in respect of withdrawn product is limited to 14 per cent of the annual quantity sold. If it becomes necessary to go beyond that I will take up the matter. The task force will advise me in that regard.
The problem is that they only receive £80 per tonne dumped.
I understand the withdrawal price is £123.
They are not supposed to sell below that price.
They get £80 per tonne if they dump the product.
Will the Minister agree that is ridiculous?
The product can be withdrawn and sold later.
But it is limited to 6 per cent of the total.
The total amount which can be withdrawn is limited to 14 per cent of the annual quantity.
The carry-over is limited to 6 per cent.
During the spring fishery they were paid in respect of 6.7 per cent, IFPO, and 14 per cent, ISWFPO, of the quantities sold. This means that the IFPO has some spare withdrawal capacity for the autumn fishery. Withdrawals by the ISWFPO will be limited to 14 per cent of total sales this season. At present withdrawals are running at approximately 8 per cent of total sales. Withdrawal aid is 87.5 per cent of the withdrawal price for the first 7 per cent and 75 per cent for the remaining 7 per cent of the annual quantity sold. That is the basis on which one calculates the annual return.
Will the Minister agree that the schemes to which he referred are unsatisfactory in the present disastrous situation? Will he take on board my two proposals so that some support is given to herring fishermen and those working onshore in processing during this dire emergency?
On access by Canadian and Norwegian fishermen, I have no problem with access by third countries but the same rules governing subsidies should apply to them. Tens of thousands of tonnes of herring are imported from countries outside the EU which give subsidies to their fishermen. Similar subsidies are not paid to our fishermen. Will the Minister agree that this is ridiculous? Will he raise the matter with the EU so that herring fishermen and those dependent on the industry for their livelihood have some prospects for the future? Otherwise they might as well close shop.
I agree it is ridiculous for the EU to allow the importation of 23,000 tonnes of herring from third countries. We will seek to negotiate a reduction in that figure for next year. However, this is not of much use now.
There should be no subsidies for herring.
We have been trying to secure further markets. There are some possibilities but the people concerned want to keep the commercial information to themselves for their own benefit. I assure the Deputy that the Department and BIM are working in this area. The task force, whose members will come from the industry, will be set up within the next few weeks and my Department will work with it.
Deputies Gilmore and Sheehan may put their questions, after which the Minister will reply.
Will the Minister agree that the reduction in the price of herring is further evidence of the failure of European fishing policy? There are very severe restrictions on quotas, tonnage, etc. Yet there has been a collapse in herring prices at a time when wild fish generally are in decline. Does the European Union propose taking measures which will stabilise the price of herring and ensure the continuation of the livelihoods of fishermen who fish for that species?
Is the Minister aware that fishermen depend on herring from September to December? Is he further aware that the price of herring has decreased from £10 per box ten years ago to £3 per box today? Canadian and Norwegian stocks seems to be flooding the EU market, while the German market for fillet herring seems to have disappeared — it is now buying its stocks from Canada and Norway. The Germans are very good at producing——
A question, please, Deputy.
Is the Minister aware that the Germans are very good at producing the finished product in herrings? For example, herrings in beer, wine, mustard and brine are on sale in German and Irish supermarkets. We import the fillet herrings we exported to Germany after they have been processed and tinned in beer, wine, mustard and brine.
The Deputy is making a statement.
The Minister should investigate this end of the market to see if we can compete with our counterparts.
If the Deputy does not have a question he should resume his seat.
If the Minister closes the Celtic Sea herring fishery we will return to the position which obtained ten years ago. At that time I said herrings were dying of old age. I am afraid that the same will happen again.
It will be a big funeral.
As the Deputy correctly stated, one must look at diversification and other approaches. As a result of the problems with which it has to deal, the industry is beginning to do this. I also agree that the people involved in this industry have had a disastrous autumn period.
Deputy Gilmore referred to the failure of EU policy. It is no secret that I am not very happy with the EU in terms of most of our arrangements in regard to fishing. Like the Deputy, I inherited a situation with which I am not comfortable or happy. For that reason I plan to shortly undertake a wide-ranging review of the present position and proposals for the longer term. I will continue the work in which the Deputy was engaged as Minister.
In the measures currently undertaken by the EU, there is a withdrawal system. The EU is in a vulnerable position in allowing 23,000 tonnes of imports from third countries. We will make our views well known and will do everything possible at EU level in this regard. If the task force is set up quickly we will work in conjunction with it, which is probably the best approach. I will pass on Deputy Sheehan's information on beer, wine, mustard and brine.