Dáil Éireann debate -
Tuesday, 8 Feb 2000

Vol. 513 No. 6

National Beef Assurance Scheme Bill, 1999 [ Seanad ] : Second Stage (Resumed).

Question again proposed: "That the Bill be now read a Second Time."

Mr. Finucane

I welcome the Minister. We all recognise the importance of the Bill because the issue of quality assurance and food safety became extremely important as a result of the BSE crisis. While it had a downside with regard to the European markets for Irish beef and the troublesome phase it endured at that stage, it probably had a positive side because there is greater appreciation of quality assurance and food safety aspects. Given the importance of the beef industry to Ireland, involving more than £1 billion worth of exports, we must pursue quality assurance and traceability aspects.

However, given that the Bill stops at the farm gate and does not deal with the consumer aspects of beef, it will be necessary to involve the Food Safety Authority, which is answerable to the Department of Health and Children, and the Department of Agriculture, Food and Rural Development. The Minister must create confidence with regard to the entire chain and ensure it is enhanced by the Bill. It was stated in the Seanad that it might be better overall if all stages of the beef assurance scheme were administered by the Department of Health and Children. However, given the logistics involved, it is questionable whether that would succeed. In addition, as the Minister set up the inspectorate, which will inspect the various beef units around the country, it is obvious that will be handled by the Department of Agriculture, Food and Rural Development. Perhaps it is unsustainable to have only one agency involved, but I am sure there will be a close link.

I greatly appreciate the work that has been done so far by Dr. Patrick Wall and the Food Safety Authority. The integrity of food has been considerably enhanced as a result of the establishment of the authority. Consumers are extremely important in the context of the overall process and the quality assurance aspects of the Bill will add extra credibility. Would it be possible to extend the Minister's actions with regard to the beef industry to other food components, such as the pig and poultry industries? I am not raising any questions about the current status of those products. The poultry industry is strong in my area and I have spoken on this issue on many occasions. However, the large supermarkets, such as Tesco and Dunnes Stores, dictate the quality required in the poultry industry. They carry out inspections of poultry units. The Minister has different departmental veterinary officials in different poultry processing units and one would be happy with the inspection process regarding Irish poultry products. However, over time there has been massive importation of poultry products from EU countries and beyond. I would like to think controls similar to those we have in Ireland exist in these countries also. We have seen the dioxin scare in Belgium and the use of sewage in France and people are concerned by the products we might be importing. Commissioner David Byrne will have a considerable role to play in this regard. If we are to be in the vanguard with our beef assurance and traceability and with our other products, such as pigs and poultry, Bord Bia's marketing will be made much easier, as we will be ahead of the posse when the White Paper on food safety is produced. I look forward to more positive action in this regard.

The day of consumers being taken for granted is gone. Consumers have proved in recent times that they will dictate the quality they expect in future and that is why the traceability being developed by the Minister is laudable. There is much work still to be done in this area, as the Minister will agree.

I am concerned by certain aspects of the Bill. When the inspection takes place and the situation is found to be unsatisfactory, the farmer has a right of appeal, but after that he must use the Circuit Court. Many of our farmers are elderly and I am concerned that they have had difficulty adjusting to the level of bureaucracy required by Europe and that many of them would be intimidated by the Circuit Court.

Mr. Power

This Bill is being introduced at a very appropriate time. Irish beef is working its way back on to EU shop shelves after the BSE crisis, which began in March 1996. We paid a heavy price for that crisis and I acknowledge the efforts of the Minister in visiting Italy, France and the Netherlands to try to solidify our existing markets and to open new ones. The demand from Egypt, our biggest third country market, remains strong and there are indications that Russia will be back in the commercial market this year after its economic problems. The Iranian market may also be reopened this year. EU intervention beef stocks have been effectively cleared since December and intervention products will no longer compete with Irish beef for third country markets. We have not lost major markets as a result of the recent dispute between the meat factories and farmers, and Bord Bia predicts that the 15% increase in beef exports we experienced last year will be enhanced this year. Things are finally beginning to look up for the beef industry after three difficult years, while live cattle exports are running at record levels. That is why it is important we have a comprehensive set of measures in place to safeguard the markets we are regaining, as we cannot take them for granted.

The measures proposed in this Bill will go a long way towards reassuring customers and consumers of Irish beef. They include proposals to give a statutory basis for the development of common standards for the production, processing and trade in Irish cattle and beef for human consumption and for the manufacture and trade of animal feedstuffs. These are to be applied to a system of registration, inspection and approval for all beef farmers. The Bill also provides for the enhancement of an animal identification and traceability system for Irish cattle. Under the Bill, all farmers keeping cattle must have a certificate of approval and be registered if they are mixing feeds and farms. Farmers and feed merchants deemed not to be complying with the new legislation face fines of up to £1,500 and or a year in jail for a summary conviction, and fines of up to £100,000 for an indictable conviction. The Garda are getting new powers of inspection and seizure on premises. They will be able to demand records and get a search warrant for the farmer's home. The Bill also includes enabling legislation for the cattle movement monitoring scheme and for the national cattle census. I have heard criticism of some measures in the Bill on the grounds that farmers will face additional bureaucracy and regulations, but the dioxin and BSE scares are clear proof, if it was really needed, that safeguarding consumer confidence is crucial for the future of any sector and the food industry in particular. This is now the number one priority and we cannot allow that to change.

Think of the devastation that would be wrought on the food sector if we had a scare similar to the Belgian dioxin scare? The beef sector alone accounts for almost 40% of our entire agricultural output and is worth in excess of £1 billion. It contributes to the livelihoods of up to 250,000 people between producers, their families and workers in the processing industry. The value and importance of the industry were brought home very forcefully during the recent blockades of factories. A food scare like the dioxin scare would wipe us out.

Consumers are demanding, and are entitled to safe and wholesome food. This is as it should be. We should not have to make do with anything less than the highest standards in the food we eat. Farmers should not allow anything in the food chain they would not eat themselves, but they should be treated properly by the big export plants with which they do business. I am delighted the Government has set up a committee to investigate complaints of anti-competitive practices in the meat industry and the huge gap between what the farmer gets for his cattle and what the consumer pays for beef. I have raised the problem of the meat factories all singing from the same hymn sheet several times here and I hope we are on the threshold of a new era of price transparency and reporting of cattle prices by the meat factories. Several Members have expressed concern about this matter over the years and I am delighted it is to be dealt with in an open and transparent fashion.

The Minister is to be congratulated for getting the farmers and the factories to agree to set up a market price transparency mechanism based on independent verification. This is to be done through the beef task force monitoring committee, where the factories will contribute to a market reporting model that will be independently audited by a firm of reputable auditors. In addition, the Department intends to publish a weekly list of the actual prices paid for cattle by named factories, as opposed to quota prices, which is another major step forward. I commend the Minister on this.

Part of the factories' problem as a processing industry was that they were unwilling to yield ground on anything in the past, which led to the unprecedented frustration among farmers which was manifested in the recent blockades. The consistent refusal of the factories to come forward with any constructive proposals for the development of the beef sector or even to contribute to the new cattle breeding federation like all other sectors of the agricultural industry has left a sour taste. The meat factories will have to accept that a totally new approach is needed; the old tradition of nods and winks over a penny a pound here and there or transport deals for the favoured few will not suffice any longer. The only way forward is for the beef industry to pay for quality and to have a fully traceable product from the farm to the fork. The implementation of this scheme, which we are discussing, will make Ireland the first country in Europe to establish a national assurance scheme on a statutory basis.

The Bill applies to all people involved in the primary production and processing of Irish cattle and beef – farmers, cattle dealers, live cattle exporters, livestock marts, slaughtering premises, etc. It is a pity it does not bring food businesses in the retail sector under its wing also. If farmers are effectively to be licensed and regulated and expected to produce beef from the time they first feed their animals to the time they sell them, with traceability from birth to slaughter, should the same provisions not apply to the retail sector, which will sell their produce?

It will take some time to complete the inspection and licensing of all beef farms and I welcome the provisions for transitional arrangements under which all participants will be deemed to be provisionally approved until they have been either granted or refused approval under the scheme. This is a sensible approach by the Minister and should take much of the heat out of the initial registration process. The Minister is also to be congratulated for allowing those farmers found not to be in compliance with the scheme a specific period of time to bring themselves into compliance. This reinforces his claim that the provisions are being introduced not alone to safeguard and protect producers but to provide assurances to consumers and buyers.

The Bill will give credible assurances to customers and consumers about the quality of Irish beef and when operational, will enable us to say that beef and beef products produced in Ireland are safe and wholesome to eat. I hope it will be used as a platform for a concerted marketing drive for Irish beef at home and overseas. We have Kerrygold, Newbridge cutlery, Baileys and Waterford Glass. The challenge now is to develop a similar reputation for beef in the new millennium. The product itself has a great taste and flavour. One will find none better. I hope this Bill will help us to realise the full potential of our single biggest industry and that the customer is king.

I pay tribute to the IFA President, Tom Parlon, who has been reinstated. One has to be careful in this House when paying tributes to people who on other occasions are very critical of Members. I congratulate him on the leadership he has shown in dealing with a difficult and ongoing problem which farmers have had to endure for a long time. All his contributions, as a leader of Irish farmers, have been fair and balanced. That is not easy when one is leading a group as big as that led by Tom Parlon. He has shown exceptional leadership. I am pleased to see him back at the helm again. As Deputy Finucane said, this is a positive development arising from what would be considered difficult problems. There is now a greater understanding among urban dwellers of the difficulties which farmers have to endure. The common perception, even among Members, that farmers were rolling in money, could not be further from the truth. For the majority of farmers, farming is a livelihood and a way of life for which they are not well paid but they do not want to change. If they can make a living from it, they are quite happy and content to remain on the land. It is vital that this House gives them every encouragement and assistance to do that.

I thank the Minister for bringing the Bill before the House. It is a welcome development and it is in all our interests that it proceeds.

Mr. Timmins

I wish to share time with Deputy Ulick Burke.

An Leas-Cheann Comhairle

Is that agreed? Agreed.

Mr. Timmins

I welcome this Bill in that its intention is to reassure consumers with respect to the safety and quality of beef, and in so doing, to enhance and strength of the beef industry as a whole. For many years the beef industry was in a strong position, obtaining prices close to 90% of the EU price on the European market and moving away from an over reliance on the lower end of the economic scale in third world markets. However, the arrival of BSE in early 1996 was to dramatically change this. A certain fear of beef was propagated across the markets and Ireland, despite the fact that it had a very low level of BSE cases, witnessed a rapid decrease in demand for its beef product and some countries banned Irish beef.

Consumer confidence was undermined, prices hit rock bottom and the agricultural community took a severe battering, the effects of which are still visible today. Certain measures were taken at local and European level. The EU sought to expand its control and inspection services in the food, veterinary and plant health sectors and a system was put in place to provide early warning of food safety alerts. However this system needs to be modified.

The Government established the Food Safety Authority of Ireland. This body was tasked with protecting consumer health by ensuring that our home produced food products meet the highest standards in hygiene and safety. With regard to the beef sector, the regulations on animal identification and movements were strengthened. In addition, there was a commitment in Partnership 2000 to develop a national beef assurance scheme which would promote the quality and safety of Irish beef, the main element of which would be the provision of a comprehensive animal identification and tracing system. This is the basis of the Bill before the House.

The concept of traceability is the most important aspect of this industry. It is accepted by virtually all elements in the trade that traceability is central to the success of any assurance scheme. Most butchers have penned their own information on the counter front, to ensure customers can be satisfied as to the origin of the beef they are about to buy.

One of the main complaints from the agricultural community is the increased bureaucracy and red tape with which they must become involved. While I agree there is a proliferation of paperwork, certain measures must be implemented and adhered to, in order to guarantee the quality of beef. In May 1999, Deputy Connaughton produced Fine Gael's proposals for profitability in beef production entitled "Beefing up the Future". I shall refer briefly to some of the excellent proposals in that document. If these measures were to be implemented, I have every confidence the beef industry would not only return to the pre-1996 position but would improve from the pre-BSE position.

The conformation of our cattle is crucial and this can only come from a proper breeding policy. Some 80% of Irish suckler farmers have less than 20 cows and as they generally cannot afford to buy a bull, they use AI stations, which favour bulls which can facilitate calving. In an industry that is very definitely driven by quality, this can no longer be the principal factor. A quality animal is crucial for the future of the sector – as you sow so shall you reap. It is estimated that an improved cattle quality would bring a breeding dividend of £30 million for the beef and dairying industries.

I welcome the establishment of the Irish Cattle Breeding Federation which has taken over responsibility for cattle breeding affairs from the Department of Agriculture, Food and Rural Development. However, funding for this body needs to be brought into line and the charges, certainly in the initiation period, should not be imposed on the producers. This new body, in conjunction with Teagasc, should develop and implement a breeding education programme, designed to give producers a more scientific approach to breeding. A greater role will have to be found for the bull testing facility at Tully, County Kildare. We should look at the concept of producing beef for a definite market and if a variation is desirable we should ensure its creation.

When we get the product right we have to be able to market it. We have to be open to the opportunity of new markets as the globe becomes one's local shopping store, and loyalty to brand and country of origin can no longer compete with quality and price. For too long, certain meat processors have been allowed to control and dominate the marketing of the vital sector.

Export credit has often been a more important factor than a quality market. We have to face up to the fact that a great disservice has been done to the industry and shaking off some irresponsible works is part of the task. An Bord Bia has to take on this role and lead the way. The Board has identified four target markets which will provide the best returns for the industry, namely, Britain, France, the Netherlands and Italy. Each market will have different product requirements, vis-à-vis consumer attitudes, retailing and the pricing policies.

However, An Bord Bia should not set a line to the markets that may be penetrated. Irish culture has infiltrated the most unique and unusual corridors and it is not unreasonable to assume beef can do likewise. If An Bord Bia can encourage Bono to eat a burger in Botswana or Roy Keane to lower a fillet steak before facing Florentina the sky may become the limit and many small producers could aim for a very specific market. The market vehicle is almost as important as the product.

In his speech the Minister recognised it is now fully accepted that the maintenance and improvement of market position is dependent on meeting consumers' requirements, particularly in relation to food safety. I note that a new so called "designer steak" with guaranteed tenderness and colour characteristics has been produced by manipulating the diet of animals and by using newly developed procedures at meat processing level. Researchers at the National Food Centre and at the Beef Production Research Centre at Grange, have found that cattle finished on a diet of concentrates, produce a more tender beef than that from animals finished on grass alone. Also, it would appear that animals fed on maize silage produce whiter fat than animals fed on grass silage. Consumers in some European markets show a distinct preference for beef with white, rather than cream fat. This is the type of detail that needs to be addressed to ensure we can compete. I realise we are taking some steps but the message and supports have to be put in place for each farmer and the information has to be relayed to that farmer.

Teagasc, as part of the campaign to increase the quantity of beef suitable for European markets, has produced a new suckler cow breeding handbook. The handbook contains comprehensive advice for suckler farmers on the breeding strategies necessary, which, in a nutshell, should exclude dairy genes from the suckler herd. I do not know how comprehensive is this campaign, but it is imperative that the information filters down the line.

One of the main reasons for the drop in beef consumption on the home market has been the advent of fast frozen foods allied to the use of the microwave oven and the decline of the traditional butcher's shop in the face of the superstores, which provide a choice of products that can easily substitute for the traditional meat cut. The temptation to purchase Donegal catch or a pizza as a time saver by those in the many households where all adults work, often wins out. Even if the frozen steak and kidney pie is selected the meat content is far less than the home produced equivalent.

This makes for a glum picture. It is predicted that by 2007, real national farm incomes will be approximately 15% less than they were in 1998. This will represent a drop of almost 10% in the value of agricultural output, although it should be compensated for by an increase in the direct payments. The combined effect of reduced output and lower prices will lead to a drop of approximately 25% in the value of beef output by 2007. While direct payments are welcome in that they relieve hardship, they have eaten at the heart of the agricultural community. Farmers want a fair price for their product and their depth of feeling on this was demonstrated earlier this year. The most unusual aspect of their recent protest was the almost unanimous backing by the urban sector, which has shown a lack of understanding of the agricultural sector over recent decades.

The beef industry needs to be market rather than premium led. In addition to the identification of markets to which I have referred, the live export trade must be promoted. The report of the beef task force failed to adequately address this aspect and the Minister has been silent on the subject. The Department of Foreign Affairs must play a greater role in re-establishing old markets and opening up new ones. The problem of inadequate shipping facilities is also a handicap in this area.

It is no secret that beef producers are losing millions of pounds because of the lower grading results on the national kill. This deterioration in quality is a direct result of a forced change of emphasis by producers to premia farming because of the low return on quality cattle. However, it will be different in the future, with much greater emphasis on quality, and on payment for it. It will be related to the return which producers receive. There has not been any encouragement to produce quality animals, and farmers, like all other groups, will respond to where they can get the best return. This concentration on premia farming did not put any emphasis on what the market required or on the production of quality animals.

The Bill is weak in that it does not include any measures to deal with a proper labelling initiative. While it is good that retailers will be obliged to display a history of the product, the process would be helped by a suitable labelling system. I am not satisfied the Government has given the Bill the high priority it requires. Second Stage commenced last November and in the interim it has been put on the shelf for long periods. However, in so far as it seeks to meet consumer requirements it is welcome.

The Minister said the Bill was discussed extensively with the representatives of the main participants in the scheme, namely the farmers, abattoirs, meat plants, marts and the animal feeding stuffs trade. While concern has been expressed about the scope of the provisions on the cost of compliance with the scheme, the Minister believes these problems vis-à-vis the non-application of the scheme to the retail sector can be addressed by legislation covering food hygiene in that sector. That is a matter for the health boards, but there should be a clearer link between them in the Bill. Following recent events I am sure the Minister will carefully monitor the cost of compliance and where it falls.

I welcome the provision whereby the origin and history of all cattle and beef entering the food chain is to be verified. I hope the Bill will deliver what it sets out to do and that our long held belief in beef, which has taken a hit recently, can be restored and improved. Beef is but one of the many sectors in the agricultural community that is suffering, but the light at the end of the tunnel is the re-examination process that is now taking place. Other sectors to suffer include the sheep industry, and I am aware the Minister has received several submissions on the various measures that need to be implemented to assist sheep farmers. It is imperative he puts as much energy into solving these difficulties as he has into other sectors.

Mr. U. Burke

I welcome the opportunity to contribute to this timely debate. The beef industry is the most difficult sector in processing and manufacturing. It has been rocked to the core by the actions of unscrupulous people whose main motive has been profit at all costs, at the expense of consumers, producers and the Government. The scandals of the past 20 years will not be easily erased and legislation will not, of itself, correct or undo the irreparable damage done by the beef barons, as they have been called.

While the Bill is well intentioned, it will not be possible to teach an old dog new tricks. Too many people have been involved in past activities which made profit the goal. Legislation will not prevent them from continuing such activities. That can happen only at the greatest cost. No matter how well intentioned the Minister's efforts, including on the legislative front, he has an enormous and unenviable task in derailing these people and in taking hold once more of a very important sector of industry.

Despite many people having been dependent on beef for their income, these ruthless people have taken over the industry. Section 23, which provides for powers for authorised officers and the Garda Síochána, is well intentioned, but how effective will it be given that even the highest court was unable to bring these people to task, people who only in the recent past hounded the industry?

While legislation will be a help, it will not hinder the activities of these people unless there is a sea change regarding the way our beef is marketed. The Minister has an opportunity to reassess the whole process of marketing beef, in the interests of producers, consumers and the Government. It should be done along the lines adopted by the milk marketing board.

We cannot expect processors, who are engaged in a form of manufacturing, to be concerned with the income obtained by farmers and producers while they have the opportunity to sell. The Minister knows they have always taken the soft option. They have sold vast quantities of quality beef in some cases, into intervention, where it did not belong. Then other people removed it from intervention and sold it at enormous profit. It is now time for a root and branch reappraisal of the beef marketing process.

Successive Governments have spent enormous sums of money marketing beef in select European markets. For all the money that has been spent marketing Irish beef, something that was necessary given that the beef industry was on its knees, can the Minister identify one new market which we have penetrated? If there is such a market, what quantity of beef has been sold in it as a result of the marketing initiatives? It is important that we reassess what is happening. We must restructure the approach to marketing and take it out of the hands of processors who have failed producers, the Government and consumers.

I am not being political when I say that the Minister gave an undertaking prior to the last general election that he would provide grant assistance to abattoirs – private, family run businesses – to upgrade in order that their premises could satisfy EU regulations. There were 1,500 such abattoirs a couple of years ago, while today there are only 400 privately run family abattoirs. We have no indication that the Minister will give grant aid and assistance to these people to allow them sufficiently upgrade their premises. Let us compare what has happened to these people with what has happened in terms of major processors and the millions of pounds of taxpayers' money which they have received. They have pushed the abattoirs in private ownership out of business. Many of the remaining 400 privately owned abattoirs will go out of business if we do not do something. I plead with the Minister to say these people will be immediately looked after through grant aid to allow them reach a sufficient standard to allow them operate efficiently and effectively in the interests of consumers and the safety and quality of food they produce.

The Minister should not blame the quality of our beef for the current difficulties. Quality beef is being produced at a basic level but, unfortunately, it is being siphoned from the country by lucrative overseas markets. We want to add value to the quality beef being produced at a basic level, and incentives must be put in place at that level to allow producers hold on to animals by guaranteeing them that their endeavours will be rewarded in terms of a realistic price.

Mr. B. O'Keeffe

I wish to share time with Deputy Daly.

The Minister has said from the outset that he is anxious that beef being produced in Ireland and exported to other countries is of the highest quality. He has been to the forefront in ensuring that farmers, producers and consumers are at one with him in this regard. The national beef assurance scheme is obviously a step in the right direction.

Numerous criticisms have been made of the Bill, the bulk of which have been concerned with the effect on small and elderly farmers who may not be able to withstand the stricter regulations for beef production. If we look to the past we will find that while those criticisms were previously directed towards other schemes, small farmers responded to ensure that the quality of their production always met the demands of regulations. While we take into account the concerns of these people, we must look at the benefit which will result from the Bill, namely, the safety of Ireland's food supply which is of paramount importance. Everybody recognises that if small farmers and producers are to compete on an international market, their product must have the assurance of the strictest safety and highest quality, which is what the national beef assurance scheme will ensure. By developing standards for production, processing and trade, and by applying these standards and enhancing the animal tracibility system the Bill will increase confidence in Irish beef and ensure its safety, thereby protecting consumers and producers.

Ireland exports food to more than 57 countries, with beef accounting for 40% of the country's agricultural output. Therefore, it is necessary that we strive to ensure the safety of our beef at home and abroad. The reputation of our cattle industry is contingent on its ability to protect consumers against BSE and dioxin diseases. In March 1996 the explosion of the BSE crisis in the UK opened the world's eyes to its severity and the threat to health. Aside from the economic damage, the credibility of the beef and cattle sector was seriously damaged. The consequences of the recent dioxin scare in Belgium has served as a reminder of the dire results of failing to swiftly and firmly respond to such a threat.

The Minister for Agriculture, Food and Rural Development stated in his speech introducing this Bill to the Seanad that the safeguarding of consumer confidence and the prevention of BSE and dioxin food scares is to be our number one priority. Of course, it logically follows that in attainment of this priority lies the chance to save small farms. Inevitable as confidence in Irish beef is boosted, there will be an increase in demand. Therefore, the industry can be saved, not harmed, by Government regulation.

Innovation is necessary if the beef and the cattle industry is to survive. Farmers will have to find new methods of creating desirability for Irish beef. The Bill provides such a scheme which will boost confidence in the product. The environment in which food is produced has changed dramatically in the past ten years, with consumer expectations and standards rising substantially. Producers must respond to consumer demand for demonstrably safe and wholesome food. Consumers have a right to demand and expect food which is safe, wholesome, of high quality and produced in ultra-hygenic conditions. Farmers understand that the market environment for beef has changed radically. Provisions for independently backed and credible guarantees for the safety of Irish beef are necessary to satisfy consumers' reasonable and legitimate demands and increase our market share. Farmers also understand that this will, of necessity, impose some extra obligations on all elements of the beef sector. However, we have striven to keep these obligations to levels consistent with delivering a credible scheme which will address the concerns of consumers of Irish beef. Any additional assurances regarding the safety and quality of Irish beef will work to the benefit of farmers through an increase in demand for beef.

The Bill has also been criticised because of its lack of regulations for supermarkets, restaurants and catering services in the retail sector. However, these accusations are simply unfounded given the existing legislation covering the retail sector. The FSAI has the authority and responsibility to enforce regulations on the sale of beef. The Bill is criticised for placing an undue burden on farmers and for not regulating the retail sector. This is considered to be a severe contradiction. There is no need to provide further restrictions on the retail sector because it is already obliged not to purchase beef that does not meet the requirements of the scheme. Given that the Bill applies to all persons engaged in the primary production and processing of cattle and beef, the retail sector will receive beef which has been assured to be safe. It is already regulated by the Minister for Health and Children through the food hygiene regulations and they will continue to be applied. It is, therefore, not necessary to introduce a second tier of regulations, inspections or other approvals.

Non-compliance with this provision will constitute an offence under the Bill and it is intended to empower health boards to conduct inspections to ensure it is complied with. The threat of disease will be eradicated from beef that is sold to the retail sector at the primary level because only persons meeting the prescribed standards will be approved to participate in the industry. The action taken at the primary level of cattle production will provide for the safety of beef sold by retailers and the safety of beef on consumer's plates is contingent on the precautions which are provided for in the Bill.

The Bill has the support of farmers, whom it affects most. Tom Parlon, the IFA president, stated that farmers supported the scheme as it was contingent on a fully computerised traceability system for which the IFA had been calling since March 1996. It contains provisions for this request and includes a traceability system for cattle movements and other events in their life cycles. While farmers question the exclusion of regulations for the retail sector they must note the redundancy of such regulations. The retail sector is included in the existing regulations which come under the FSAI's jurisdiction.

A closer examination of the legislation also verifies that it provides the statutory basis for the scheme, the purpose of which is the development of common standards for the production, processing and trade of beef. At the end of the day, the Minister and his Department are trying to reintroduce confidence in the beef sector. He is ensuring that there should be a total commitment to traceability and quality approval. He wishes to restore pride in beef production and encompasses that with vigorous marketing that depends almost completely on rigorous regulation, which is desirable from the point of view of consumers and the State.

Mr. Daly

I warmly welcome the legislation and compliment the Minister on introducing it. Everybody recognises that beef is fundamental to Ireland's export industry and quality assurance in the beef industry is critical in order to ensure that it continues to play an important part in the overall development of the agriculture industry and that people involved in production and processing earn a decent living. When the Leas Cheann-Comhairle and I served in Cabinet together, a major effort was made to adopt a national plan for the development and exploitation of the beef industry. It came unstuck because it was not accelerated to the required dimensions. A big effort was made by the Minister for Agriculture at the time but, nevertheless, such a plan did not materialise and that still needs to be remedied. It is as fundamental to progress today as it was ten years ago. The industry is fragmented and disjointed at all levels and that was evidenced during the recent dispute at meat plants. It is essential that there should be close co-operation and liaison between primary producers and those involved in processing and marketing. Until that happens difficulties will continue in the industry and the marketplace.

The beef tribunal was mentioned in a critical fashion earlier and many of those who studied the tribunal's report searched for references to scandals and wrongdoing in the industry and these were identified and highlighted. However, the tribunal acknowledged the outstanding contribution of beef exports to the economy. Currently, approximately £1 billion worth of beef is exported and it makes a substantial contribution to the economy. A few key areas in the beef industry must be examined not just to ensure that it continues to make such a contribution but to expand it in order to create further employment opportunities, especially in the highly skilled technical area of beef processing and to generate greater income for producers.

It is also necessary to examine the overall structure of the meat processing industry. There are 42 plants, of which only two have attained the ISO 9000 standard, which has become the standard for industry generally. The beef industry is no different to any other industry. We have an opportunity to use a natural raw material to develop an industry which would result in further employment opportunities and the production of top quality beef for home and foreign markets. The BSE crisis sent shock waves through the beef industry in Europe especially and it had an impact in Ireland. However, it has regained its market share in France, Italy and the Netherlands since 1996 and the prospects for beef and cattle prices in the longterm must be stable. If we can get our house in order, we can continue to have a viable industry which will continue to give sustainable employment to many people, especially small farmers in my constituency.

A proper structure for beef production is fundamental to the development of the beef industry. The Minister of State, Deputy Davern, has been very much involved in the breeding sector and tracking suckler cow herds through the system. In my county, since changes have taken place and since many people have left the dairy industry, we have a very sound suckler herd industry in my constituency. They have been looking at breeds such as Belgian Blue and Charolais and so on, to improve the quality of breeding and that is fundamental. A large amount of money has been invested in disease eradication and other aspects of the agriculture industry which had needed to be remedied for a long time. However, there was not sufficient investment in breeding. There is a need to have a detailed look at that, and I ask the Minister to do so, and to provide some additional finances to ensure that those involved in suckler cow breeding – there are many in my constituency – get some support to enable them to improve the quality of the breeding stock. That is vital to the long-term development of the industry.

It has been necessary to carry out a radical overhaul of the standards of quality food. I compliment our new Commissioner, David Byrne, on the impact he has had in the European Union in improving and regulating the standard and quality of food generally, particularly in relation to beef. I compliment Commissioner Byrne on the work he is doing on food quality and in urging the national agencies here involved in food quality to work with the overall EU policy he has put forward. I congratulate him also on the establishment of an EU quality food standards agency. I hope representations will be sufficiently strong to get such an agency established in Ireland. We must ensure that the Irish agencies with responsibility in this area would be part of the overall EU policy put forward by Commissioner Byrne. We must have effective food quality standards and a highly regulated system in place so that the consumer will have the confidence to buy the product from the supermarket. We must be able to stand over the product we are putting on the national market.

I want to refer to some problems being experienced by many of the small butchers in my constituency as a result of efforts to bring them up to standard. Some of these butchers are being forced out of business. I appeal to the Minister to provide grant aid for the small butchers throughout the country who are providing an excellent service. Many of them have been in the business for generations. A grant aid scheme should be put in place to enable those butchers to provide the chilling, refrigeration and other facilities they need.

This is a very successful business, but difficulties have arisen and there is a need for an overall national plan for the industry. We need to be vigilant with regard to imports. I am aware that Brazilian imports are coming onto the market, particularly in the catering business. We need to ensure that beef is subject to the same regulatory standards applied to beef here. I compliment the Minister on what is the first step in putting a decent beef industry in place which will make a major contribution to the economy and in terms of employment.

Mr. Neville

I wish to share time with Deputy Crawford.

An Leas-Cheann Comhairle

That is agreed.

Mr. Neville

I welcome the Bill. It will reassure customers about the quality and safety of Irish beef and, in doing so, will help the marketing of beef products outside the State. We must ensure, however, that there is adequate education, assistance and understanding of the impact of the new system on Irish farmers. It must not be used as a policing approach, rather it should be used as an advisory and helpful approach.

The beef industry has gone through a terrible time over the past 12 months. There has been little profit in farming. The beef industry is very important to the economy. The industry is not just about the beef processor. There must be a partnership with the primary producers, the meat factories and other service agencies. The meat processors will have to recognise that a totally new approach is needed, and the Minister must ensure that happens. He must recognise that the question of inspection levies and VAT has to be addressed and that the full quota of market returns will have to become a reality.

Cohesion in selling into third countries will have to come into effect. That was the central recommendation of the McKenzie report but it has been ignored, with farmers picking up the bill for the weak selling. So far, factories as have refused en bloc to countenance such proposals. Instead, they have succeeded in turning the political and democratic system against themselves. How long can they sustain public and political odium? They will now inevitably find themselves recipients of a new legislative system and outlook.

As an exporting nation, it is important that this State stands over its products and, in doing so, enhances the marketing of our beef internationally. One of the important aspects of the national beef assurance scheme, if it is successful, will be determined by improvement in the prices the farmers will get for their produce. I am concerned about the level of bureaucracy which will result from the proposals. This will add further pressure to the farming community and it should be rewarded financially if the scheme is to be successful. It would mean that a producer of Irish meat will be in a position to check with the Department of Agriculture, Food and Rural Development that an animal was reared under certain environmental conditions and to identify the farm at which it was kept during its lifetime. This traceability is very important. It will be possible to confirm the conditions in which the animal was kept, to confirm that such conditions were environmentally friendly and that the animal was well looked after.

I commend the National Food Safety Authority on the excellent work it has done. The population is beginning to acknowledge and accept that it is a truly independent body taking an up to date, scientific and professional approach to its responsibilities, and is obtaining credibility for its views. It brings together many elements of the beef industry. It is important yet difficult to have a foolproof system of traceability based on the ear tagging of animals with almost eight million cattle in the country and a higher rate of movement of cattle than any other EU country. Theoretically it should be possible to know the location of every animal at any one time, and this is the aim of the Department. In November the Minister stated that 2.2 million cattle were registered on the system. In building up the register we must ensure the system operates sufficiently and that the computer database has been examined and proven to be beyond fault.

I wish to refer to a number of problems with the Bill. On-farm inspections will be carried out and if farmers do not pass inspections, their herd numbers will be taken from them. This will restrict severely their ability to farm. The Minister must ensure his approach is sympathetic and understanding, advisory and educational, rather than being a policing system. Enormous costs will be involved if care is not taken with the inspection process. Inspections should be carried out on the day the veterinary surgeon visits the farm to carry out the TB and brucellosis tests. In his contribution, the Minister said that this would be the case, but some veterinary surgeons say the system merits more attention and that they must receive more information before visiting the farm, otherwise they will have to visit the farm a second time. There is an obvious cost implication for this. We must ensure that the inspections do not add extra cost to the farming community. In most cases veterinary surgeons are aware of the farming practices of their clients and the health status of their herds.

It is important to stress that the scheme should not create extra costs for veterinary services to the farmer. It should form part of an integrated approach under a cost compliance scheme being introduced by Brussels. There will be more farm inspections and if an inspection is failed the farmer will lose his or her headage and REPS payment. We must ensure that we do not create a policing approach with employees of the Department of Agriculture, Food and Rural Development being obliged to seek out farmers whom they can fail for inspection. Strict criteria must be put in place for inspections. Farmers deserve to be treated fairly and to have their integrity and dignity respected.

The Bill will create special difficulties for elderly farmers who will find it more problematic to respond to the changed needs. The Minister should introduce a comprehensive educational programme to prepare the farming community for the changes. This could be done through Teagasc and the farming organisations. It will take time to outline the changes to farmers. There will be difficulty in understanding the changes given the speed at which they are taking place. Due to the complexity of the changes farmers will not readily understand them. The Minister referred last November to the running in time and this should be used to allow farmers to understand and experience new changes. No income should be lost by any farmer during this period.

I would like to ask the Minister the reason the same traceability procedures will not apply to imported meat or meat products. Will he agree that this places an enormous anti-competitive burden on producers in the State? Why does the safety net now being applied to Irish producers not cover outside producers?

I wish to refer to the issue of non-compliance with the scheme. Under the proposals, farmers will be warned first and then given a reasonable time to improve their farms.

Debate adjourned.