Michael Creed
Question:5 Mr. Creed asked the Minister for Agriculture, Food and Rural Development the plans, if any, he has to tackle the collapse in cattle prices. [26440/99]
Ceisteanna–Questions. Priority Questions. - Cattle Prices.
There has been no collapse in cattle prices this year. While cattle prices in the early part of this year were below 1998 levels because of increased supplies of cattle, continuing difficulties on the Russian market and substantial competition from sales of beef out of intervention, the situation has now improved. Throughout the autumn cattle prices have remained relatively firm and, in recent weeks, they have begun to move ahead of last year's levels. In addition, there has been an orderly and high level of disposals of cattle during the year. For example, to date the level of cattle throughput at meat plants has increased by over 200,000 head, a 12% increase, and there has been substantial growth in live cattle exports which are running two and a half times higher than last year. Taken together, disposals are 25% up on last year. I expect those prices to remain firm for the rest of this year. The market has been helped by the reduction in beef production in the European Union and by the appreciation of the dollar against the euro, as well as the stable export refund environment.
The overall situation on the beef market is reasonably satisfactory, particularly in view of the substantial increase in export slaughterings this year, which has resulted in a record level of commercial beef exports. At the same time, there is scope for further strengthening of prices, particularly in view of the fact that EU intervention stocks have been virtually eliminated, thereby removing a strong source of competition for Irish beef exports. In addition, cattle supplies in Ireland are likely to be significantly reduced next year because of the reduction in cow numbers and the high levels of weanling exports this year.
Cattle prices, while supported through the EU beef regime, are ultimately determined by market forces and, in particular, the availability of market outlets. There is evidence that Irish exporters are beginning to recover some of the markets lost as a result of BSE and the subsequent renationalisation of markets. There has been a creditable performance on the part of the Irish beef industry this year in securing increased sales to the Netherlands, France and Italy. Exports to third countries are also expected to be somewhat higher than in 1998. The recently renegotiated removal of the Russian ban on beef for five counties should help to increase trade to Russia next year. Exports have also recently commenced to Indonesia and there are reasonable prospects for exports to Turkey, Jordan, Tunisia and Syria. With the support of An Bord Bia, I will use every opportunity to ensure that the industry is in a position to exploit the market opportunities for beef that exist in the European Union and third countries.
I find the tone and the content of the Minister's reply extraordinary at a time when the CSO report today mentions a collapse in farm incomes of 13.3%, or 20% over two years. The Minister does not appear to be in touch with reality. In the context of last week's budget, £150 million could be found in a day to resolve the botched job in relation to stay at home spouses, yet only £4.2 million was specifically earmarked for the agricultural community by way of VAT refunds. Will the Minister accept that a decrease of 20% in farm incomes is nothing short of a betrayal of the farming community by him? In the context of the request made by the IFA as late as yesterday for a rescue package of £150 million, will the Minister be in a position to deliver something tangible to those farmers? Talking about thousands of tonnes of beef and hundreds of thousands of cattle being exported means nothing to the farmers who are not getting a fair price for their product.
The Deputy is at least consistent in the nastiness of his comments, which are well fitting to him.
The Minister is getting sore.
The position, according to this week's report from An Bord Bia, which is in touch with reality—
The Minister should talk about farmers' incomes, not statistics.
—is that our three steer prices are on average 83.6p per lb. at November 1999 as against November 1998 when they were at 79p per lb.
They could be worse.
The industry was ignored by the Rainbow Coalition until I came into office. There was not even one vote —
People are more interested in the future, not the past.
The Minister without interruption, please.
If the Deputies are interested in a history lesson, the Rainbow Coalition neglected the industry to the extent that there was not one single ferry.
Is that all the Minister has to offer farmers?
This Government had to put The Purbeck on the high seas. There are now 17 boats on the high seas approved by me because the restrictions aided and abetted by animal welfare were so restrictive under the rainbow regime that they absolutely strangled the industry. Over 400,000 head of cattle will be exported from Ireland this year. It may pain the Opposition Deputies to listen to that, but they will listen to it.
It is the history books, not farmers, the Minister is thinking about.
What about the 20% reduction in farmers' incomes?
Over 400,000 head of cattle will be exported regardless of whether the Opposition Deputies like it.
The Minister is rattled.
In addition, over 200,000 additional head of cattle will be slaughtered in Irish beef processing plants this year.
Where else would they go, the zoo?
If the Opposition were in Government, the cattle would go nowhere. They would have eaten the tails off one another under the rainbow Government because there was no ferry to take them out of the country. It may hurt members of the Opposition to listen to that but it is the reality.
The time for Priority Questions has now concluded. We move on to Question No. 6.
The Minister is not Santa Claus for farmers.
Surely I am entitled to ask a supplementary question?
Deputies can ask all the supplementary questions they like within the six minutes allocated to questions.
We had to listen to a history lesson from the Minister. He did not outline a single positive measure for farmers.