Dáil Éireann debate -
Thursday, 18 Dec 1997

Vol. 485 No. 4

Written Answers. - Beef Prices.

Bernard J. Durkan

Question:

105 Mr. Durkan asked the Minister for Agriculture and Food the efforts, if any, he will make to ensure that beef producers get a fair and reasonable price for their product; and if he will make a statement on the matter. [23544/97]

Bernard J. Durkan

Question:

106 Mr. Durkan asked the Minister for Agriculture and Food if his attention has been drawn to the worsening crisis in the beef sector; if his attention has further been drawn to the damage this trend is likely to do to the national economy; the plans, if any, he has to address the situation; and if he will make a statement on the matter. [23545/97]

Minister for Agriculture and Food (Mr. Walsh)

I propose taking Questions Nos. 105 and 106 together.

I am fully aware of the current difficulties facing the beef sector.

While the underlying problem in the cattle sector can be primarily attributed to the fall in beef consumption in the EU as a result of the BSE scare in 1996, the difficult market situation has been exacerbated in recent weeks by the disruption of Irish imports into the UK and the recent announcements in relation to BSE and bone-in beef. The British market is the single most important market for Irish beef and any disruption to that trade creates immediate and substantial difficulties for the beef sector in Ireland. Every effort is being made to allow unimpeded access of Irish beef into the UK market. The matter has been raised bilaterally with the British authorities at all levels, including at prime ministerial level. I myself met the British Minister for Agriculture, Dr. Jack Cunningham, in London on 4 December and again on 15-16 December in Brussels. I also raised the matter at the meeting of the Council of Ministers this week in Brussels, where I apprised the Commission and my counterparts in other member states of the difficulties facing the Irish beef industry.

I am satisfied that these representations have resulted in firmer action being taken by the UK authorities against protesters and in greater protection being afforded to Irish hauliers. The position is that our hauliers are now succeeding in delivering their consignments unimpeded to their intended destinations. However, the campaign by British farmers asking British consumers to buy their own beef is a matter of concern and my Department in conjunction with An Bord Bia are monitoring the situation closely.

In view of the difficult market situation, I have made strong representations to the European Commission for effective and flexible intervention arrangements to underpin market prices. The decision last week by the Beef Management Committee to accept 2,330 tonnes of beef into intervention between now and mid-January is a clear indication of the success of our efforts in this regard. This tender will require 7,000 steers at prices ranging between 83 and 87p/lb for the R3 grade and should help to stabilise the market. I am disappointed that the Commission has not accepted my request that grade 04 steers should continue to be eligible for intervention for the first quarter of 1998. I will, however, continue to press the Commission for the implementation of effective intervention arrangements which are capable of supporting the market in a way that provides reasonable prices for producers. Finally, I should point out that the payment of the deseasonalisation slaughter premium, which is worth over £60 per head, will be an important factor in underpinning the incomes of producers and in particular winter finishers at this time.