Vol. 517 No. 3
7 Mr. Penrose asked the Minister for Agriculture, Food and Rural Development the reason local authority abattoirs have not been grant aided in spite of recommendations from his Department that this should be done through Structural Funds or State funds; and if he will make a statement on the matter. [9926/00]
I take it the Deputy's question relates to the request by local authority abattoirs for investment aid to upgrade to the minimum standard set out in the Abattoirs Act, 1988, (Abattoirs) Regulations, 1989, as amended by the Abattoirs Act, 1988, and (Abattoirs) Regulations, 1998.
The use of State aids is governed by the EU treaty and, from an operational point of view, by Community Guidelines for State Aids in the Agriculture Sector. These guidelines preclude payment of aid to establishments which, inter alia, fail to meet the minimum mandatory hygiene, environmental and animal welfare standards. While there is the possibility of an exemption in the case of green field investments or newly introduced minimum standards, neither of these situations apply to the type of upgrading in question in this instance.
Proposals for aid under the food related initiatives of the national development plan for other purposes can be considered and my Department has had a number of meetings with the representatives of the local authority abattoirs to discuss this. A further meeting with these representatives has been arranged and will take place shortly.
Has the Minister of State, Deputy Ned O'Keeffe, been sidelined or has he been put out to grass? I understood he would answer this question.
Fianna Fáil gave a commitment prior to the last election that State aid would be given to these abattoirs, the smaller ones in particular. Will the Minister ensure that such aid will be delivered?
Is the Minister aware that paragraph 4.2.3 of the rules for State aid says that where "investments are made in order to comply with newly produced minimum standards—
It is not appropriate to quote on Question Time.
The Chair will not stop me from asking. I have had too much of this. The Leas-Cheann Comhairle is siding with the Minister when he is under pressure. I will not take it from him.
I ask the Deputy to withdraw that remark about the Chair.
I withdraw it but I am entitled to put a question.
The Deputy is entitled to put a question but he is not entitled to quote. That is a long-standing convention.
Is the Minister aware of the EU rules for State aid? Is he aware that he can give grant aid to ensure that minimum standards are achieved? Does that not include those abattoirs in rural areas which are being closed down by EU and national policy acting in concert? Is the Minister against the move to industrialise and transform production of meat for rural consumers or does he not want to preserve the small abattoirs? I want an answer and no one in this House will stop me asking questions on behalf of the thousands of small abattoirs that kept this country going for 50 years.
Regrettably there are no longer thousands of small abattoirs.
The Minister got rid of them.
There are 383 such abattoirs now. The use of State aid is governed by EU treaty and Community guidelines for such aid. There is a possibility of an exemption in the case of green field investments or newly introduced minimum standards. I am sympathetic to this case. It was in my party's election programme that we would try to help the small abattoirs. Unfortunately we did not get an overall majority. I meet the representatives and there is a further meeting arranged for a week's time. We want to find a way to ensure the survival and continuity of local family businesses. Typically the local butcher and abattoir have been in the same family for years and we want to find a way to help them.
I thank the Minister for his reply, which contained the information I sought. Will he clarify that the trend in Government policy is not one of rationalisation aimed at closing small abattoirs and centralising slaughtering in larger plants? That is the nub of my question.
That is not the Government's policy, particularly given the advent of traceability. Customers can learn the source of the meat they buy from their local butchers. It is usually the produce of four or five local farmers. There is a trend towards organic production and people have tremendous confidence in the produce sold by their local butchers. The Government is seeking in every way possible within the State aid regulations to help these people.
I thank the Minister for those comments.
