Vol. 496 No. 5
3 Mr. Connaughton asked the Minister for Agriculture and Food the position on the opening of the live cattle trade to Libya; the reason this market did not open when the announcement was made over six weeks ago; when the Iranian trade will reopen; the steps, if any, he has taken or will take to ensure the meat processors will pass on the full intervention price to farmers; and if he will make a statement on the matter. [23333/98]
Agreement was reached with a Libyan Government delegation in July last providing for the re-opening of the Libyan market for Irish cattle and beef on the basis of agreed veterinary health conditions and terms of contracts. This agreement was the culmination of extensive contacts with the Libyan authorities since early 1997. The Libyan Government, through the General Peoples Committee, formally cleared the agreement before the end of September and written confirmation to this effect was received. Although the Libyan authorities indicated their wish to have the agreement implemented immediately, there have been delays in the conclusion of contracts for Irish cattle. To establish the reasons for these delays which were of concern both to me and the Government our ambassador in Rome, who is accredited to Libya, visited Tripoli again in mid-October. The ambassador was assured there was no political blockage to the agreement and that it was now a matter for Irish exporters to pursue contracts with the purchasing agency in Libya. Ongoing contact is being maintained with the Libyan authorities through every possible channel with a view to ensuring that the July agreement is implemented in practice. Our position is that an official agreement has been reached with the Libyan authorities and that it should be honoured.
Iran was a traditionally important market for Irish beef until 1996. I am pleased to say that a veterinary protocol was signed in Dublin on 29 October 1998 providing for detailed arrangements for the immediate resumption of the export of beef to Iran. The successful conclusion of this protocol followed a week long visit here by a veterinary delegation from Iran and the decision in principle by Iran to re-open its market to Irish beef which I had negotiated in Tehran two weeks previously. The conclusion of beef contracts is now a matter for the industry but I hope these will be completed with the minimum of delay.
As regards the short term, the current market weakness in the beef sector which results from the collapse of the Russian market has put downward pressure on prices paid to producers. However, the improvement in the intervention arrangements which I negotiated this month along with the 21 per cent increase in export refunds has had the effect of arresting the decline in prices and bringing about some upward movement. On a number of occasions I have indicated to meat processors that the full benefit of the improved intervention arrangements should be availed of and that the commensurate returns should be passed on to producers.
I have also asked the EU Commission that everything be done to maintain the existing commercial infrastructure in Russia so that it continues to be a viable economic market when the Russian economy improves.
It appears the Minister is blaming exporters, that everything was all right with the Libyan deal but that for some strange reason exporters did not follow through on it. I am not blaming anybody because I do not know who is responsible, but the Minister announced that contracts were in order. What status have these contracts? Are they pieces of paper which nobody takes any notice of? The Minister said it is up to exporters to use the facility. However, according to my information one of the exporters bought cattle which did not go to Libya. It is a cruel thing for a Minister or the Government to make an announcement that this trade had recommenced. Several farmers held their cattle for two or three weeks and got five pence per pound less for them at the market.
The same situation pertains to Iran. The Minister said the Iranian market is open, but how can any farmer believe him? How do we know what status it has? I think the Minister is not giving us a full account. Is it true that the Australians wiped our eye and that we have not a hope of getting into the market? The Minister should come clean. The worst thing of all is to believe a market is open when there is not a hope in hell of us doing business there. I want the market to open and the Minister wants it to open, but it is not possible to say to farmers that the Iranian market has any status given what happened in Libya. What status has the contract and did the Australians wipe our eye?
The situation is quite straightforward. An agreement was reached with a Libyan delegation and signed by representatives of the Department of Foreign Affairs and the delegation on 25 July. It was then endorsed by the Peoples Assembly in Tripoli. During that time I kept people informed that the agreement was reached, signed and then endorsed by the Peoples Assembly. It was then a matter for the trade to deliver on the agreement. I expect the Libyan authorities to honour the agreement which was signed in good faith by both sides. I recall one of the major people in the trade arriving back from Tripoli to Dublin and announcing he was in a position to begin trading. I am not sure whether the Deputy received information that either that trader or somebody else bought cattle for that market.
The cattle did not go to Libya. The Minister should admit this.
I am not saying where they went. I have kept people informed that an agreement was signed by a delegation representing the Libyan authorities and the Department of Foreign Affairs. This was endorsed by the Peoples Assembly and one expects that the agreement between two sovereign countries will be honoured by both sides and delivered on.
In the circumstances it was not worth tuppence. Will it happen before Christmas? No.
