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Dáil Éireann debate -
Thursday, 18 May 2000

Vol. 519 No. 4

Other Questions. - Beef Industry.

Emmet Stagg

Question:

14 Mr. Stagg asked the Minister for Agriculture, Food and Rural Development his views on comments made in Dublin Castle on 31 March 2000 by the EU Commissioner, Mr. Franz Fischler, that cartels exist within the Irish beef industry; if he will formally respond to these comments; and if he will make a statement on the matter. [13831/00]

The Government has engaged an independent group of consultants to examine allegations that the Irish beef industry engages in anti-competitive practices and their report is expected shortly. The matter was referred to the Competition Authority in 1997 but its investigations did not enable it to conclude that the industry was involved in such practices. I understand, however, that its investigation is continuing.

As the actors say, "They would say that, wouldn't they?". The Minister was at the meeting with Commission Fischler on 30 March in Dublin Castle. What does the Minister think of his comments that the effects of a formal cartel were virtually evident? Was the Minister surprised that he drew attention to the fact that after the EU began paying winter premium for cattle being slaughtered, the price started to decrease within a week to exactly the same level as before the premium? What does this indicate to the Minister? The Commissioner said he did not find an adequate explanation for the farm gate price differential between Irish cattle and those on continental Europe, and I ask the Minister to comment on this. Can he proffer an explanation given that Commission Fischler could find none? Is there an explanation?

Farm organisations were very successful in January in trying to break this cartel. What steps will the Minister be able to take if, when cattle numbers are high at the back end of the season, the same effort is made by factories to cut prices? Will he be able to help farm organisations avoid such a situation? The only way to avoid it is to ensure the live export trade to Libya and other such places is opened to ensure proper competition. I appreciate there are live exports to Europe, but these are high quality weanlings rather than beef. Opening the live cattle trade to Libya and such places is extremely important if the cartel is to be broken.

Commissioner Fischler said he could not understand the difference in prices between here and continental Europe. He also referred to the fact that when the deseasonalisation premium was reduced by 4p per pound, prices also reduced everywhere by the same amount and he could not get an adequate explanation for that. Europe has a domestic market and Ireland has a large export market but at the same time the Government has established a three man group, including Professor Séamas Sheehy. It is to report by the end of next month and we await its outcome. The group should provide an explanation for these matters and ascertain whether there are any difficulties.

Written Answers follow Adjournment Debate.

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