Jim O'Keeffe
Question:40 Mr. J. O'Keeffe asked the Minister for the Marine and Natural Resources his views on the collapse in herring and mackerel prices; and the steps, if any, he will take to deal with the situation. [26553/98]
Other Questions. - Herring and Mackerel Prices.
The global market situation for herring and mackerel is currently very worrying. The crisis is due to the collapse of the Russian economy coupled with the economic recession in Japan. Japan is a key market for mackerel and herring and has been a major importer of produce from Europe with related demand for Irish products, notably herring roe. In more recent years, the Russian and other CIS States were significant buyers of mackerel and herring. The heavy demand resulted in historically high prices for mackerel on European markets in the past two years which was reflected in significant sales abroad by Irish mackerel fishermen and processors.
However, the Russian economic collapse has resulted in a major price reversal in the past four months. I hope to see some improvement in mackerel prices in early 1999. In the meantime, my Department and BIM are working closely with the Irish fish processors and exporters to maximise all possible market openings for Irish herring and mackerel, notably in Eastern Europe.
The Task Force on the Management and Marketing of Herring recommended a series of measures to maintain and enhance the Irish herring exports in the very difficult global environment. All of these recommendations are being implemented, including quality development programmes for the fleet and herring processors, an industry marketing group, market research and new product development. These initiatives will help the industry through the present difficult market situation and position it well for development in future.
In the present scenario the Department is also working with the industry to ensure use is made as appropriate of the existing EU market support schemes. The schemes allow for withdrawal of herring and mackerel from the market when the minimum withdrawal price for sale is not reached and the payment of a subsidy where product is held over with a view to reintroducing it to the market at a later stage.
These are difficult times on the pelagic market front and the difficulties are due primarily to external factors over which we have no control. In that difficult scenario the focus will continue to be on developing new market opportunities and maximising quality and competitiveness to deliver best possible prices for Irish product. I also stress the need for greater co-operation between the catching and processing sectors of the Irish pelagic industry to ensure that supply and demand is in synergy and works to national economic advantage. That co-operation is vital to maintaining jobs and exports in the Irish pelagic sector.
Is the Minister aware of just how bad is the situation he presides over? Is he aware that there was more than 700 tonnes of mackerel for sale in Killybegs last week and only 20 tonnes were sold? Is he aware that the price has collapsed from £400 to £500 per tonne down to a position where it hardly makes the intervention price of £123? Is he aware that herring, which was making £400 per tonne five years ago, is not making the intervention price of £123 either? Is he not ashamed to preside over this situation as Minister? The prime product of our seas is resulting in our fishermen being next door to bankruptcy as a result of the collapse in prices. What will he do about it?
I have set out not just what I am doing but what BIM and the fishermen are doing. This is an area where there is close co-operation.
The Minister is failing.
The point is that we are dealing with the world market, in which, as I explained——
That is the excuse.
——the major markets are depressed. At the March fisheries council meeting I was successful in reducing the quantity of herring that could be imported tariff free this year to the Community, which was a strong recommendation of the task force. That is one thing I have done. I also made my position on free quantity clear at the October meeting, and I will continue to campaign against any move to introduce such a measure at the December meeting. The abolition of free quotas for herring is our objective, because at a time when the markets are so difficult, there should not be free outside quotas without duty. Those are some of the steps, but one of the main ones is to improve quality. Fishermen are participating in measures in that regard.
It just is not working.