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Dáil Éireann debate -
Thursday, 29 Nov 2001

Vol. 545 No. 3

Written Answers. - Purchase for Destruction Scheme.

Alan M. Dukes

Question:

24 Mr. Dukes asked the Minister for Agriculture, Food and Rural Development if he will have the special purchase scheme for cows extended beyond 31 December 2001; if he is satisfied with the pricing and payment arrangements under this scheme in slaughtering plants; and if he will make a statement on the matter. [30044/01]

Breeda Moynihan-Cronin

Question:

57 Mrs. B. Moynihan-Cronin asked the Minister for Agriculture, Food and Rural Development the number of animals slaughtered to date under the special purchase scheme; the cost to the Exchequer of this scheme; and if he will make a statement on the matter. [30148/01]

I propose to answer Questions Nos. 24 and 57 together.

Some 278,025 animals were slaughtered in Ireland under the European Union purchase for destruction scheme, PFD scheme, which ended on 30 June last. The European Union special purchase scheme, SPS, replaced the PFD scheme and, to date, the carcasses from 152,000 animals have been taken in by my Department under that scheme. As far as beef intervention is concerned, forequarter beef from about 54,000 animals has been taken in so far this year, whilst the full carcass was purchased in the case of a further 2,000 animals.

Expenditure on the PFD scheme, to date, has amounted to £198 million, that is, purchasing costs of £160 million and expenditure on operating costs, to date, of £38 million, of which £97 million will be reimbursed by the EU under the terms of the co-financing arrangements governing that scheme. In the case of the SPS scheme, the total purchase cost of the carcasses taken over by my Department amounts to about £61 million while expenditure, to date, on operating costs, for example, takeover, rendering and storage has been £5.1 million. By virtue of the provisions of the European Union regulation governing the SPS scheme, 70% of the purchase cost of the animals concerned is reimbursed by the European Union.

The prices at which carcasses are purchased under the SPS scheme are fixed by the European Commission in Brussels on the advice of the management committee for beef and veal. Payments for product taken over under the scheme must be made by my Department within 65 days of the final date of takeover under each tender. The pricing and payment arrangements between participating slaughterhouses and their supplier farmers in respect of carcasses presented for take-over under the scheme are, therefore, a commercial matter for those parties.
The current text of the EU regulation governing the SPS scheme provides that the scheme shall apply until 31 December 2001. Having regard to the present market circumstances, I have asked Commissioner Fischler that the scheme be extended for the first quarter of 2002. He has undertaken to keep the market situation in the beef sector under review and to take any necessary measures in the context of the management committee for beef and veal. In the case of steers, the intervention system will continue to be available as a market support measure.
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