Thank you for allowing Deputy Ferris and me to raise this matter. I wish to share my time with Deputy Ferris who has taken a keen interest in the matter of abattoirs throughout the country. There are a large number of abattoir owners who slaughter up to 1,000 cattle units per annum, in premises which have been adopted and licensed for use as abattoirs under the Abattoirs Act, 1988, and the abattoirs regulations, 1989, and extended by the Fresh Meat Directive 64/433/EEC as amended by Council Directive 91/492/EEC.
These abattoirs are small units providing for a small throughput and the majority are used simply to provide supply to the abattoir owners and butchers' shops in the immediate locality. For the most part these abattoirs are located in rural areas, and facilitate local farmers, especially heifer producers — and helped to maintain the price recently when under threat — as the abattoir owners buy produce from local farmers and sell it to the local population.
These regulations imposed a huge financial burden on these small abattoirs, to keep their premises up to the designated standard. Failure to do so led to closure of many as, due to financial constraints, they were unable to bring their premises up to the required standard.
The owners were allowed up to a maximum of five years within which to bring their premises up to the licensing standard. The 1984 regulations applied the same standards to the larger factories as to the small abattoir owner without any derogation or exception. There was no financial assistance, grant or tax incentive to help the owners bring the premises up to standard.
In 1991, the EC introduced Directive 91/497/EEC setting out the hygiene and structural standards which must be adhered to by all abattoir owners involved in the production of fresh meat. In this case, the legislation provided for a derogation for small abattoir owners, for example, an exemption was provided to smaller abattoir owners whose throughput capacity did not exceed 1,000 cattle units per annum. These throughput figures were advised to the Department of Agriculture and Food by the abattoir owners. The abattoir owners brought their premises up to the standard required to comply with the 1988 regulations, and spent about £17.5 million pounds without grants or any other financial assistance. The meat markets suffered serious losses due to BSE from 1995 to 1997. This involved enormous financial pressure for all sections of the beef industry, not least the section dealing with abattoirs and butchers.
The bombshell arrived when, in a letter dated 20 June 1997 from the Department of Agriculture and Food, the Irish Butchers' Association was informed that the Department had decided, following a review by a team of EU veterinary inspectors, that the 1989 regulations did not fulfill the requirements of Directive 91/497 in all respects and that there are a number of matters which are now required in each small abattoir to bring them up to the standard required.
This was contrary to the expressed representation given by the Department in December 1991, that the 1991 EEC Directive corresponded and equated with the 1989 regulations. This means that in addition to the expenditure of £17.5 million already incurred by the abattoirs in upgrading their premises they will now have to spend a further £20 million by virtue of the fact that the works already done will have to be undone or further upgraded. Many of the premises have been upgraded in a specific fashion and are virtually incapable of being structurally adapted to the new regime or requirements.
Will the Minister help the abattoirs to deal with the problem which is not of their making and promptly consider either one or all of the following: direct financial assistance, grant aid and tax incentives? Further, a reasonable period should be allowed for the abattoirs to carry out the necessary work as set out in the Department's letter.
