Dáil Éireann debate -
Wednesday, 13 Oct 2004

Vol. 590 No. 2

Other Questions.

Bovine Diseases.

Mary Upton

Question:

6 Dr. Upton asked the Minister for Agriculture and Food her views on the discovery in recent weeks of another case of BSE in an animal born after the imposition of the ban on the use of meat and bonemeal in animal feed; the number of such cases discovered since the ban was imposed; the number of BSE cases to date in 2004 and the way in which this compares with the same period in 2003; if she has satisfied herself with the measures in place to combat BSE in animals born before and after the ban; and if she will make a statement on the matter. [24479/04]

Mary Coughlan

I assume the Deputy's question refers to the incidence of BSE in animals born after enhanced control measures on meat and bonemeal, specified risk materials and the processing of mammalian waste were introduced in 1996 and 1997. I am aware of the case to which the Deputy refers which involves a cow born in 1998 and identified on a farm in County Mayo. Epidemiological investigations are carried out into the feeding regimes of all herds in which BSE is identified with particular attention being paid to herds in which the disease occurs in animals born after the feed controls were re-enforced in 1996 and 1997. The investigation in this particular case is ongoing.

The diagnosis of BSE in a small number of animals born after 1997 is to be expected. To date, six animals born after 1997 have been diagnosed with BSE. My Department had always foreseen the likelihood that on occasion individual cases would arise due to circumstances specific to particular farms and in contrast to the general trend as the incidence of the disease in the national herd receded. There is no basis for suspecting that the case mentioned or other such isolated cases are indicative of a systemic failure in controls or of a reversal of or deviation from the overall positive trend in the incidence of BSE in Ireland.

In 2004, 100 cases were confirmed to 9 October compared with 144 in the same period in 2003. This is a reduction of 30%. Of confirmed cases, 96% occurred in animals born prior to the introduction of the additional controls. The shift in age profile of BSE cases as well as a reduction in case numbers indicates that the additional controls introduced in 1996-97 have been effective in significantly reducing the exposure of animals born subsequently to the infectious agent. It is expected that the incidence of the disease will continue to decline as cows born prior to 1998 leave the system.

Dr. Upton

It is of some concern that in the period since the ban was imposed a total of 13 cases have occurred in animals born in 1997, 1998 and 1999. Admittedly, the cases occurred sporadically around the country. There is a need for thorough investigation, particularly in the most recent case in respect of which it appears the ban should have been in force for quite a number of years. If the ban had been effective it would no longer have been reasonable to associate the disease with meat and bonemeal. Is it that meat and bonemeal are somehow or another getting into the feed chain?

Can the Minister assure me that the Department is monitoring all relevant research and developments in this area? If all infected meat and bonemeal has been removed from the feed chain why then is BSE still emerging? Is the Department actively pursuing the research line in that regard?

Mary Coughlan

Given the nature of the disease and its publicity in terms of concern regarding the health of the national herd, the Department was actively involved in monitoring and controlling the issue. I took the opportunity to brief myself on the matter and have been advised that when introducing the controls in 1996-97 the Department was of the opinion that there would be occasions when the disease would arise. The information available to me is that six animals, four born in 1998 and two born in 1999, have been diagnosed as having BSE. I am delighted with the reduction in the incidence of BSE by 30%. It indicates that the control measures are working. The Department always foresaw the likelihood of individual cases arising. Such cases are strenuously analysed, taking into account the concerns expressed by the Deputy. The specific case the Deputy mentioned is ongoing and the investigation will be thorough. Any lessons learned will be taken into account in the context of the overall management of the disease.

Dr. Upton

Is there any connection countrywide in terms of the cases identified post-1997? In other words, are there pockets of the country where such incidences are recurring more frequently taking particular account of animals born in 1997? Is there a geographical link?

Mary Coughlan

To the best of my knowledge, there is no geographical link. Such a possibility would have been taken into consideration when compiling research. The disease is quite sporadic.

Mr. Crawford

I congratulate the Minister on her appointment to such an important portfolio. I know she has been in her new Ministry for only a short time but has she considered the lunacy of taking out a farmer's total herd? I am aware of a case close to the Border in County Monaghan in which a farmer lost a herd he had personally built up. Had that farmer lived one mile further down the road in Northern Ireland, on the same island and within the EU, only one animal and its cohorts would have been taken out.

I was on the Government side of the House when the policy for the destruction of full herds was introduced. However, we have moved on somewhat since then as have our counterparts in Europe. Perhaps the Minister will reconsider that decision.

Mr. J. Brady

I, too, wish the Minister and her two Ministers of State well in their new portfolio. They are three very able people and I wish them well in the years ahead.

Like Deputy Crawford I know of a neighbour who recently lost his herd of 900 stock. The infected animal was closer to his neighbour's stock than to some of his. This crazy decision to take out a whole herd affects not only the taxpayer but the farmer and his family.

Mary Coughlan

I am aware that another Deputy may raise this matter at a later stage. The Department reviewed the policy quite recently. Members will be aware a report compiled by the FSAI's sub-committee on BSE found that all existing controls and regulations are strictly complied with. There is no added food safety value of a cull, something of which Deputies have spoken. We cannot under estimate the trauma imposed on a farmer who loses an animal as a result of any type of disease.

Members will be aware of the great campaign a number of years ago — some of us were on the other side of the House then — which sought to address the issue of market value as opposed to compensation payments. That matter has been dealt with. Ireland is particularly vulnerable as an exporter and in that regard we must ensure no herd is tainted. On that basis, the considered view is that we should not allow the existence of a herd, which had a perceived or real problem were we to take out only the animal infected. For example were we to take out only one or two animals and its cohorts a farmer whose herd is publicly acknowledged as having the disease may encounter difficulties. That concern must also be taken into consideration.

Given the statistics indicate a reduction in the number of animals with BSE and its potential impact on our very valuable export trade the necessity for strict controls can be reviewed on an ongoing basis. While I take on board the expressed views of the farmers' organisations, equally I take cognisance of Members' views. In that regard, these matters will be reviewed on an ongoing basis. However, I cannot give a guarantee on the floor of the House that there will be a policy change in this area.

Dairy Industry.

Jimmy Deenihan

Question:

7 Mr. Deenihan asked the Minister for Agriculture and Food her proposals to assist with milk prices; and if she will make a statement on the matter. [24450/04]

Mary Coughlan

The price paid to farmers for milk is a commercial matter between milk producers and the purchaser. A combination of the international market for dairy products, the product mix and efficiency of the processor, as well as the overall operation of the EU price support mechanisms determines price.

This year has been a relatively good one for the dairy industry with milk prices in Ireland remaining steady. There has been strong demand for dairy products on the EU and international markets and while there have been reductions in export refund levels, this reflects the improved level of demand for EU exports. I hope the current period of strong markets for dairy products will continue into the future. For my part, I will carefully monitor market developments to ensure that all EU market management mechanisms available are utilised in the best interests of all involved the dairy industry in Ireland. At the same time, it is essential that the industry achieves the maximum degree of efficiency along the producing and processing chain.

Mr. Deenihan

I join my colleagues in congratulating the Minister on her appointment. I am sure she will be effective in the Department of Agriculture and Food over the next two years.

There is a great deal of concern, which I am sure the Minister's colleague shares, regarding the price of manufactured milk and liquid milk. The price of liquid milk has been greatly affected by imports from Northern Ireland. Approximately 15% of our liquid milk now comes from Northern Ireland and that is suppressing the price of milk here. The suppliers of liquid milk are deeply concerned about this.

The Minister may be aware we use approximately 100 million gallons of liquid milk and approximately 1 billion gallons of manufactured milk. As the Fischler proposals factor in, export refunds have been reduced and intervention prices for skimmed milk have been considerably reduced. There is a fear that the price of milk could reduce considerably. The average price for liquid milk is 92 cent per gallon. I am sure Members will remember that 20 years ago liquid milk cost £1.08 per gallon. While much of the policy in this area is decided by Europe there are many things that can be done here in terms of marketing and encouraging manufacturers to make more use of and diversify from milk constituents. Does the Minister foresee the Department having a direct input in that regard? Does the Minister have a plan to offer more options to manufacturers so they can keep the price of milk up?

Mary Coughlan

There are concerns. Change leads to trepidation in all industries and the diary industry is no exception. We are satisfied that the dip in prices, 0.6%, is small given the change that has taken place. My predecessor, Deputy Walsh, involved the dairy industry in the Prospectus report where we looked at greater efficiencies, reducing costs and the most effective ways to get a return on investment. The Minister met everyone involved in the sector and the findings have been discussed. The implementation of the findings in the report will be of importance in ensuring this valuable sector will be in a competitive position to deal with the change taking place. We will analyse the effects that change will have in combination with the changes in the Commission. At the moment we are satisfied that things are going well this year for the dairy industry but we are keeping an open mind on the matter.

Mr. Crawford

Is the Minister prepared to encourage consumption of milk? The liquid milk trade is under pressure. If we compare the price of a litre of milk and a litre of water, which costs nothing to produce, a major effort is being made to sell water.

Will the Minister make every effort at the world trade negotiations to ensure products are produced on the same basis? I was on a farm in the United States where steroids were clearly being used and production was massively increased. Deputy Browne, the Minister of State, was with me and it was clear that we are not competing on an equal basis.

Mary Coughlan

The Minister of State might have a greater insight about what the Deputy was doing in the United States but obviously his sojourn was productive. There are issues of grave concern that have been regularly discussed. There are degrees of acceptance of beef production practice all over the world. It will be difficult to deal with those issues but we will do our utmost to ensure that we form an alliance on the question. Sometimes these affairs are outside the national remit, they are European issues, but we will strenuously argue the case when it comes to market fairness.

The dairy industry has had a good run in recent years. The concerns relate to efficiency and effectiveness. The Deputy asked how we could increase consumption of liquid milk. Some of the creameries are looking at marketing. At the ploughing championships we saw the research that is being done to encourage young people to drink milk. In my previous role we were anxious to ensure milk was part of the school diet. It is easier said than done with all of the competition but a number of the creameries have looked at the potential and taken on board new ideas to be proactive in the market.

I laughed when the Deputy said how much it costs to produce a pint of milk. It must cost at least twice as much to produce a good pint of quality water — new water schemes cost several million euro. It is important, however, that we encourage young people to move away from obesity resulting from soft drink consumption, among other things. As Deputy Deenihan said, it is incumbent on people in the trade to ensure they get that market share, and that must be supported from all perspectives, including the health value of liquid milk.

Dr. Upton

I draw to the Minister's attention a substantial difference between the prices of different brands of milk — it can be up to 15 cent in the supermarket. That could be investigated under a different heading.

Mary Coughlan

I know exactly what the Deputy means. It is terrible to be a woman who goes to the shop and knows what is going on in the country.

Live Exports.

Seymour Crawford

Question:

8 Mr. Crawford asked the Minister for Agriculture and Food the steps which have been taken to reopen the live cattle trade in Libya and Egypt; the country or countries from which they are now sourcing their needs; and if she will make a statement on the matter. [24506/04]

Mary Coughlan

The live cattle trade is an important and valuable dimension to total trade in agricultural products. It provides a balance to the beef trade and a valuable outlet for farmers at particular periods during the year in the disposal of calves and weanlings. The live trade is a critical component to overall competition in the beef trade. Access to all markets is intrinsic to free and open competition and it is my policy that there should be free and open access to all markets both within the EU and in third countries for Irish beef and cattle.

The Republic of Ireland has considerable trade in live cattle to EU destinations, notably the Netherlands, Italy, Spain and Northern Ireland. There is also a considerable trade in live cattle to Lebanon. Last year total live exports amounted to some 221,000 animals, equivalent to 12% of domestic slaughterings. While the live trade has been less buoyant this year, this signifies a better return on price at slaughter plants and a strong export market for beef.

My Department will continue its efforts to ensure that difficulties associated with commercial live exports to Libya can be overcome. An agreement signed with Libya in June 2000 provided that Ireland would be officially listed as a source country for all Libyan tenders for the supply of live cattle. Since then, the Libyan Foreign Minister indicated that it had not been possible to import live cattle because of what he called logistical problems. Efforts at diplomatic and technical level are continuing to ensure that the agreement signed with Libya is fully implemented.

With regard to Egypt, while efforts were made to re-open that market to live cattle from Ireland, the Egyptian authorities opted to lift the ban for beef only. The BSE-related ban continues to apply to live cattle. The Egyptian market was previously a large-scale market for Irish beef, taking close on 154,000 tonnes at its peak. The current position is that the Egyptian market is open to Irish beef but for commercial reasons and in view of demand for Irish beef within the EU, traders are opting instead to supply these markets.

Mr. Crawford

I see the Minister has the same script writer as her predecessor.

Mary Coughlan

He tells the truth.

Mr. Crawford

The Minister did not tell us much. The Minister was asked where Libyans are sourcing their products at present. It is important that we know what the opposition is and why we are not getting in there. The Libyan market was supposedly opened up in 2000 and the market in Egypt got a few tonnes of beef at the same time but nothing has happened since. I am not criticising the Minister but she mentioned that she was on this side of the House when BSE was rampant and I remember her party telling us how easy it was to open these markets. During that crisis we kept the live trade to Egypt going in a difficult situation.

Farmers are being badly hit with regard to beef prices. There is difficulty in selling cattle at a reasonable price. In that context, several people have asked me the reason the Libyan market is being ignored and no effort is being made to penetrate those markets. The old saying is that to keep a market live, one must have a live market. We need to have some opposition to the present meat regime which seems to have a monopoly on price decisions.

The Minister is new to the Department. We look at what is possible and at how the prices can be supported by other means than just the meat factories.

Mary Coughlan

If it were easy to do, then I assure the Deputy it would be done. Those on this side of the House are great advocates of the live export trade. I do not agree with the Deputy's view that it is difficult to sell beef at present. Our trade has changed from being almost completely live export to high quality beef production, which is very important. There has been a deficit in the EU. The Department, Bord Bia and the farming organisations have done much work with the commercial processors to access those good markets. There has been a difficulty with the Italian market which provided great opportunities for Ireland's beef sector, but the situation has improved considerably as a result of much work, and a better price is now being achieved for Irish beef products.

I am an advocate of the live export trade. The Libyan issue is causing some difficulties. Ireland has been officially listed. Libya subsequently issued some tenders for the supply of beef and Ireland was one of the countries included. A number of Irish companies submitted bids at the time but were unsuccessful. The Deputy asked whether efforts are being made. They are still being made at both a diplomatic and veterinary level to secure permission from the Libyan veterinary authorities for Irish beef to be imported. This has not been successful to date but the Government will renew its efforts in that regard. On the question as to where Libya sources its beef, I do not have an answer for the Deputy but if that information is available to me, I will forward it to him.

Mr. Crawford

Will the Minister inform the House what is the price available for O and R grades in the meat factories? That will give some indication of the difficulties being experienced.

Mr. J. Brady

Many new markets have been opened in recent years. In particular, the market in European countries for live weanlings has been significant. I do not expect the Minister to have an answer now but will she inform the House as soon as possible of the amount of beef exported to European countries both as live weanlings and dead beef?

An Leas-Cheann Comhairle

I suggest the Deputy table a question. The Minister may reply.

Mary Coughlan

As the Deputy will be aware, 500,000 tonnes of beef are exported. Deputy Crawford asked a question on prices for O grades. I know the price of R3 steers but I am stuck on the price of O grades. If the Deputy listens to the farming news on RTE, he will learn the price at the marts and at the factories.

Mr. Crawford

That is the reason I am looking for a live trade.

Mr. Timmins

I say fair play to the Minister.

Mary Coughlan

I have not had time to record it but some of the other Deputies may be able to inform the Deputy. It is a while since I bought anything in a mart or have been involved in the industry. I imagine the Deputy knows the answer.

Alternative Farm Enterprises.

Eamon Ryan

Question:

9 Mr. Eamon Ryan asked the Minister for Agriculture and Food the way in which she proposes to promote the bio-fibre sector within farming here. [24555/04]

Minister of State at the Department of Agriculture and Food (Mr. Browne)

I thank the Deputies for their kind words and good wishes.

The main bio-fibre crops relevant to Irish farming are flax, hemp and miscanthus. Hemp has many processing possibilities and can be used for fibre, fuel and oil production. In a series of hemp production trials at its Oak Park research centre in the late 1990s, Teagasc obtained consistently high yields of biomass and fibre. However, no commercial development followed this work as no significant home market for the raw material could be found. Teagasc has developed an agronomy package for the crop and is ready to promote its production among farmers but can only do so if a profitable outlet can be established.

Flax was widely grown in Ireland, especially in the north of the country, early in the previous century, but the costs and water pollution risks associated with traditional water retting systems became unacceptable. It was therefore concluded that it would not be possible to establish flax production in Ireland based on dew retting alone. Technology may become available in future that would help overcome this problem and this is being kept under review by Teagasc scientists in Oak Park.

Miscanthus is a perennial plant that has given high dry matter yields in many countries. Its main potential uses in Ireland would be as fuel or in board mills, but to date neither of these uses can be exploited profitably. Moisture levels are high at harvest but, nevertheless, the crop could be grown by many farmers with Teagasc guidance if there were a market for the material.

The production and processing of flax and hemp are governed within the EU by the common organisation of the market for these crops. Notwithstanding that EU aid for the growing and processing of these crops into fibre under certain conditions is available, only small areas of both crops are grown in this country at present for the reasons I have already outlined.

In summary, a number of bio-fibre crops could be grown by Irish farmers. The limiting factors are the lack of home-based industries that would use these crops as raw materials and the cost of exporting such low-density produce to foreign markets.

Mr. Sargent

Ar dtús ba mhaith liom gach rath a ghuí ar an Aire, an Teachta Coughlan, agus Airí Stáit, an Teachta Browne agus an Teachta Brendan Smith. Go n-éirí go geal leo sa Roinn.

I am glad to hear the Minister of State's reply, given that it takes into account a number of bio-fibre products. As a result of her visit to the national ploughing championships I am sure the Minister will be aware of the level of interest in diversification from the traditional farm enterprises which are running into serious market difficulties.

Apart from the trials and the statement about the lack of a home-based industry to take advantage of the raw materials, will the Department be proactive in encouraging farmers, through Teagasc and other advisory mechanisms, to familiarise themselves with the potential and to realise some of that potential? Does the Department liaise with the Department of Enterprise, Trade and Employment in respect of the lack of home-based industry to take advantage of these raw materials? I take it that the Minister of State was referring to crops rather than to bio-fibres as such because wool would also be part of the equation in the bio-fibre sector. Is there any proactive promotion of that sector, given the need for diversification in agriculture beyond the traditional food sector?

Mr. Browne

The Department continuously reviews this area. I note what the Deputy has said. Substantial EU support is available in area aid. For example, €383 per hectare is paid in area aid payments and €90 per tonne is available for processing, but this has still not encouraged farmers to become involved in this area.

The European Commission will report on this sector in early 2005. The Department will make a substantial input into this report because in our view, the present system is not working to Ireland's advantage. The Government will make its views known to the Commission and will seek for substantial changes to encourage Irish farmers and other sectors to consider the potential in this area.

Mr. Sargent

I am sure the Minister, Deputy Coughlan, is keenly aware of the loss of employment in her area. I suggest that the bio-fibre sector be considered when replacement industry is being considered as it is traditional in that area. I suggest a trial and pilot scheme to integrate farming and industrial development as there is a tradition of textiles that should be fostered.

Mr. Browne

This team in the Department will consider all aspects of farming and the suggestions made by the Deputy will be taken on board.

Mr. Timmins

Deputy Sargent reminded me of something when he talked about diversification, technology and the increased input into the bio-fibre sector. I noticed recently from GM studies that sheep dip can be used to grow a certain wool, which is easier to use with dye and so on. While Ireland is not a cotton growing country, the production of genetically modified cotton has increased dramatically in recent times, and farmers often vote with their pocket. I am sure Deputy Sargent would not advocate that we go down the GM route——

Mr. Sargent

I did not say that.

Mr. Timmins

——and I am not necessarily saying so either, but given that the issue is dealt with by the Departments of the Environment, Heritage and Local Government, Health and Children and Agriculture and Food, does the Minister agree we need to debate this issue in a logical and open manner?

Mr. Browne

As Deputy Sargent said, in regard to industry and commerce, and energy and natural resources, for which I had responsibility previously, the various Departments, including mine, need to become actively involved to deal with the issue of farmers wishing to diversify. I will open a conference tomorrow morning in Wexford on bio-fuels. Obviously, it is of major interest to farmers who are looking at alternative industry and we will continue to support that.

Food Industry.

Jack Wall

Question:

10 Mr. Wall asked the Minister for Agriculture and Food her plans to promote research into further adding value to food commodities; and if she will make a statement on the matter. [24505/04]

Minister of State at the Department of Agriculture and Food (Mr. B. Smith)

I thank Deputies on both sides of the House for their good wishes and kind remarks.

Under the National Development Plan 2000-2006 significant funding is provided for specific food related initiatives, including capital investment, marketing, human resources and research and development. Investment in research and development, innovation and new product development are key to maximising the food industry's competitiveness and ability to respond to changing market requirements. The national development plan provides funding for food research both through the food institutional research measure and by way of funding for in-company research.

The food institutional research measure administered by the Department provides funding for public good food research. The programme and its predecessor have, over a ten year period, provided the Irish food sector with a significant research base in science and technology and a cadre of highly qualified researchers. The measure is available to universities, institutes of technology and Teagasc. Since 2000 over €55 million has been allocated to 114 projects. The themes funded include food safety, new and innovative products, food ingredients, flavourings, consumer foods and nutrition and health. Almost €28 million has been paid on foot of research completed to date. As a follow on to the awards announced in September, the Department is arranging for a specific call for research proposals in the area of food safety and is considering an initiative to target research, which would be of benefit to the speciality food sector.

The in-company research measure is administered by Enterprise Ireland which has allocated almost €20 million since the commencement of the national development plan for the purpose of in-company research and technology transfer. Recent interest in the measure has focused on the areas of nutritional and functional foods. The Department will continue to work with Enterprise Ireland to ensure that the Irish food industry scales up investment in research and development activity, which will have substantial spin-off benefits for the sector's competitiveness and for the wider economy.

Dr. Upton

I thank the Minister of State. I am pleased to hear of the commitment to ongoing investment in research and technology. It will be more critical than ever given the change in the direction that agriculture inevitably will have to take post Fischler. Serious consideration will have to be given to small producers and how to support them in terms of research, development and innovation. They are in a different category from the large multinationals and will not be able to stand alone. They need a different level of support to allow them develop and grow. What is the Minister of State's view on our science and agriculture graduates who are well trained and in whom we have invested a good deal of money? I am beginning to appreciate that it is not always easy for them to get jobs in the food development area. Perhaps that issue could be looked at with a view to having it refocused and redirected.

Mr. B. Smith

We are fortunate to have research centres of excellence such as University College Cork, the Teagasc dairy research centre at Moorepark and the National Food Centre in Dublin. Greater opportunities will be available for graduates and specialists in those areas to carry out further research. The Department will issue a bid for more proposals for further research. The Department and Enterprise Ireland have set up a small working group to examine initiatives based on research produce coming forward which would assist the Irish food industry to scale up investment in research and development activity. That will have substantial spin-off benefits for the sector's competitiveness and for the wider economy. The food institutional research measure, through the Relay project which is administered by Teagasc, allows the centres to disseminate the information to all interested bodies. The result is not confined to those who carry out the research but is available to the entire food industry and all interested parties. It is an important factor that research which is funded by the taxpayer and carried out by the institutes of technology or Teagasc is available to the entire industry.

Farm Retirement Scheme.

Gerard Murphy

Question:

11 Mr. Murphy asked the Minister for Agriculture and Food her plans to carry out a review of the early retirement scheme for farmers; and if she will make a statement on the matter. [24438/04]

Mr. Browne

As part of the expenditure review process established in 1997 under the strategic management initiative, my Department is completing an expenditure review of the early retirement scheme. The purpose of the expenditure review is to analyse systematically whether the scheme is meeting its objectives so as to inform future decisions regarding priorities on expenditure programmes. The review will be laid before both Houses of the Oireachtas in due course and I will study its findings carefully.

Mr. Timmins

I am sure the Minister of State is well aware of the difficulties for those who availed of the farm retirement scheme and feel they have lost out. While I realise there is only so much cake on the plate, I ask the Minister of State to meet this group to see whether anything can be done for them. With the advent of the single farm payment, many have lost out and, in many respects, are penalised for farm practice. While the freedom to farm is fine, there are many groups which have been disenfranchised and will lose out and there will be increasing discontent. I ask the Minister of State to be aware of the discontent, to keep in touch with the groups to see how the injustices, through nobody's fault, can be addressed. During the past few weeks I have encountered a few farmers, whom one would have thought were well off and doing well, who are in genuine difficulty. We always speak about a section of the agricultural community which portrays the poor mouth.

Mr. Browne

I am well aware of the group to which the Deputy refers. The group originated in Wexford and I have met it on a number of occasions. It speaks about the increased rate of payment, index linking and the retirement pension. I accept there are anomalies and we will take those on board with a view to seeing what can be done. I assure the Deputy we will give the matter favourable consideration.

Dr. Upton

I encourage the Minister to State to view this question sympathetically because, in fairness, many retired farmers were unaware of the negative consequences that would follow on down the line for them, such as non-indexation. I appreciate it is outside the control of this country specifically as it is an EU matter. I ask the Minister of State to look sympathetically at those issues and to discuss them with the retirement group to hear its point of view and appreciate the difficulties being encountered.

Mr. Sargent

The Minister of State will realise that while the group may have originated in Wexford it is countrywide at this stage and we have all received representations. Like other Deputies, I urge the Minister of State not only to meet the group but to recognise that among its number are people who are selfless in terms of wishing to allow young people make a career from farming. Given the demographic profile of farmers, who are generally older than other professions, it should be recognised they are looking at the common good and hope to help farming in general. In that context they should be met and their interests viewed sympathetically.

Mr. Browne

I assure Deputies that we will review the situation sympathetically. There are some road-blocks at EU level and in the Department of Social and Family Affairs which we need to get over. However, given that the Minister for Agriculture and Food has come from that Department, I am sure she still has some contacts there and we can do so.

Grant Payments.

Phil Hogan

Question:

12 Mr. Hogan asked the Minister for Agriculture and Food when REPS 3 payments will be made; and if she will make a statement on the matter. [24443/04]

Mr. B. Smith

The issue of REPS 3 payments commenced on 23 September 2004. Processing of applications and approval of payments is proceeding on a continuing basis. By the end of this week, REPS 3 payments amounting to €8.1 million will have gone out to more than 1,350 farmers. The vast majority of applications have been processed within the target periods agreed with the farming organisations in the protocol on direct payments to farmers.

I strongly encourage farmers to consider joining REPS 3 in the light of the substantially increased payments now available to them. The new scheme includes reduced penalties, requires less planner involvement and is presented in more farmer-friendly documentation. I also urge farmers who are already in REPS 2 to take up the opportunity to transfer to REPS 3 at the first opportunity.

Mr. Timmins

I thank the Minister of State for his reply. He is working quickly because this issue has been causing difficulty for some months. As the Bible says, "only say the word and my soul shall be healed". The Minister of State has done just that.

Mr. Sargent

I welcome the Minister of State's reply. Will he comment on the difficulty many intensive farmers in Dublin North, many of whom are involved in horticulture, are having in gaining access to the REP scheme despite seeking opportunities to do so? Will the Minister of State more closely examine the cases of some intensive farmers who are over a barrel in respect of the market forces they face? Can the Minister advise how such farmers can move towards the REP scheme?

Mr. B. Smith

I am not in a position to reply directly to the Deputy's question but if he brings specific details to me I will be glad to have them considered by the Department.

Animal Diseases.

Denis Naughten

Question:

13 Mr. Naughten asked the Minister for Agriculture and Food the plans she has to review the compensation schemes for farms locked up by tuberculosis or brucellosis. [24425/04]

Mary Coughlan

The compensation regime for the TB and brucellosis eradication schemes was improved significantly with the introduction of the on-farm market valuation scheme, which became fully operational from April 2002. This scheme provides for compensation to be paid to farmers on the basis of live market valuations of all TB and or brucellosis reactor animals by qualified independent valuers. The arrangements allow for the rejection of the first valuation either by the farmer or the Department and for a valuation to be undertaken by another valuer. Where either the farmer or the Department further rejects the appeal valuation, the case can be referred to an arbitration panel set up to deal with these matters.

Apart from the market valuation element, farmers whose herds are affected by these diseases may, subject to conditions and the circumstances involved, also qualify for assistance under the income supplement, hardship or depopulation grant schemes. The overall compensation arrangements are working well and I have no plans to change them. However, my Department keeps the compensation schemes under ongoing review.

Mr. Crawford

I welcome the changes to some degree but there are problems from time to time depending on the state of the stock, for example, whether animals are in calf, freshly-calved or otherwise. It is sometimes difficult to get agreement with the Department in this context. I am aware of a case in which a herd went down just after Christmas and the previous year's production was more in the farmer's favour than the current, yet the Department insisted on taking account of the current year with the result that the farmer lost €6,000. There must be some degree of common sense and flexibility. This case occurred two years ago when bad weather conditions prevailed and the farmer's production fell dramatically but the lower production level was taken into account. Will the Minister examine this issue?

Mary Coughlan

I am glad the Deputy has recognised that we have moved from the flat rate to the valuation system. According to the figures to the end of September of this year, some 5,611 valuations took place involving 24,596 bovine animals. Of those, just 1.5% of the first valuations were appealed with 0.2% going towards arbitration. Therefore, in comparative terms, there is quite a degree of satisfaction. I appreciate that on individual cases there may be outcomes that are disputed.

At the risk of being accused of being facetious by the leader of the Labour Party, I cannot avoid the opportunity to remark on an altercation Deputy Crawford and I had in the House when he implored me to take into consideration the current valuation for farm assist grants. What goes around comes around. To be fair there have been changes.

Mr. Crawford

At least the Minister remembered——

Mary Coughlan

I always remember.

Mr. Crawford

——although she did nothing about it.

Mary Coughlan

In regard to individual farms and farmers, one cannot make up for personal, not to mention financial, loss. If there are particular concerns, I ask the Deputy to bring them to my attention and I will do what I can to ensure the system is fair.

Written Answers follow Adjournment Debate.