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Dáil Éireann debate -
Thursday, 4 May 2006

Vol. 618 No. 5

Adjournment Debate.

Poultry Sector.

I thank the Ceann Comhairle for the opportunity to raise this issue and the Minister of State for attending.

This issue is in the context of the recent missive from Brussels of 25 April, in which the Commissioner for Agriculture and Rural Development, Mariann Fischer Boel, stated:

Some countries have suffered a serious drop in consumption and prices in the poultry sector which could not be adequately compensated with the existing tools. Thanks to today's agreement, member states who so wish will be able to design measures best suited to their own particular situation.

The last line of the statement from the Commissioner concludes:

Once member states submit their proposed measures, the Commission will have to approve them through the management committee procedure.

I hope the Minister of State will be able to advise us this afternoon exactly what measures the Department of Agriculture and Food intends presenting for EU Commission support. It is important we recognise there is not a single approach which will satisfy the complexities of the poultry sector. In other words, one size will not fit all. It is important we reflect on the range of needs within the poultry sector, which clearly is currently suffering a significant downturn in terms of the market and the issue of consumer choice. This is reactive to the ongoing publicity and tension involved in the threat of avian flu coming to Ireland. Avian flu is not in Ireland. It is important that we use today's opportunity to say so. The points I want to make must be against the understanding that Irish chicken is of excellent quality and very good to eat. I urge people to have confidence in Irish poultry meat as an option for their personal and family consumption.

We have to consider the range of different needs. The bigger processors clearly have certain requirements and would perhaps benefit from consideration of a rescue package or subsidy linked to cold storage. We are looking at situations where there could be anything up to or exceeding 100,000 chickens in cold storage and little prospect presenting over the 18-month span for safe human consumption. We must therefore look at the whole area of supports for producers and processors, but not intervention. I emphasise that, but we could consider export to Third World countries, where there would be a ready market, albeit at reduced prices. We should regard that economically, as part of our commitment to overseas aid, at the same time ensuring we protect the interests of a critical sector of our agriculture economy.

Recently we have seen a deterioration in demand and prices are reducing as a consequence. Regrettably, if key measures are not taken, we will find there will be a need to dispose of vast quantities of poultry meat that have built up in cold storage over the period. At the same time we have a large amount of cheap imports of poultry of questionable quality and almost no traceability coming into the country.

With regard to smaller processors in the poultry sector, cold storage support simply will not address those processors' needs. They need cash flow to survive. I am referring here to companies which are dependent on wings and legs exports to the African market. With the closure of the Benin market, where avian flu has occurred and the opening up of potential in Gabon but with serious price reductions——

I ask the Deputy to give way to the Minister of State, in fairness to other Members.

I urge the Minister of State and her Department to put forward the most appropriate measures, with the greatest speed possible.

In the last six months the European poultry industry has been experiencing market difficulties as a result of the reduction in demand for poultry meat. This resulted from consumer concerns arising from the publicity surrounding avian influenza. The problem has been felt acutely in Mediterranean countries while more northerly countries have encountered far fewer problems. The current situation in Ireland is that demand has improved in recent weeks and is now approximately 10% down on normal levels. The Minister for Agriculture and Food, Deputy Coughlan, and the Minister of State, Deputy Smith, have kept in very close contact with the sector and recently visited a major processor in the north east.

Apart from demand on the home market, some operators are suffering losses on sales of cuts such as legs and wings that were traditionally exported. Those markets are no longer available as there has been a similar reduction in demand for poultry products in non-EU as well as in EU countries. Those operators who achieved sales had to do so at greatly reduced prices.

Heretofore there was no effective legal basis on which any financial support could be advanced to the poultry industry. As the current difficulties are being experienced in varying levels throughout the EU, the Minister for Agriculture and Food, Deputy Coughlan, along with several of her colleagues in other member states, asked the EU Commission to put forward proposals for a suitable legal framework whereby assistance could be provided, with a view to alleviating the difficulties for the sector.

On 26 April last the Council of Agriculture Ministers adopted a new regulation under which exceptional support measures may be considered for the poultry industry in the event of serious market disturbances directly attributed to a loss of consumer confidence due to public health or animal health risks. Any measures approved under this framework would be co-funded on a 50-50 basis by the EU and the individual member states concerned.

Member states are required to forward their plans and costings for proposed measures for consideration by the Commission. A poultry management committee meeting will take place in Brussels on 17 May next. At this meeting, the Commission will provide clarification on how it intends to proceed with these proposals, including the types of measures it will accept for co-funding. The Commission will have regard to overall budgetary considerations, as funding will have to come from elsewhere within the CAP budget. The Commission will also be anxious to avoid interfering with the relative competitiveness and income of operators in the various member states as countries may vary greatly in the level of support, if any, they will provide to their industries.

The Commission has already indicated its strong preference for measures that will solve the problem at source, that is, a reduction in the number of breeding poultry to bring the level of poultry meat production into line with actual demand.

The Minister for Agriculture and Food will shortly be proposing a package of support measures to the EU Commission for approval and co-funding. Due to the European State aid rules this route, involving Commission approval and co-funding, is the only legal mechanism for providing such support to the sector.

The Department will be requesting support for measures that operators may decide to take to reduce their throughputs. This will cover the destruction of hatching eggs and reduction of the breeding bird population. I envisage that this scheme will come into operation soon after approval and will apply long enough for corrective action to be taken and fully implemented by the industry.

The Minister will also be seeking short-term support for poultry farmers and processors for reduced throughputs. Aid for private storage is another mechanism that would be useful to the industry as there are already unusually high quantities of poultry meat stockpiled here. She hopes the Commission will approve a storage scheme that will assist processors over the next few months.

As some operators have already taken steps to adjust outputs to the new reality, the Department is anxious that an element of retroactivity be provided in approved measures.

The rates of export refunds have already been increased to extraordinarily high levels but these are having little effect because third countries have reduced their demand for poultry for the same reasons as are at play here in the European Union.

We will have to wait until 17 May before we know the exact timescale and procedure for approval of measures that the Commission is working to but the Department fully appreciates that whatever measures are going to be available should be commenced at the earliest possible date.

The poultry industry is a valued part of the agricultural economy and I am anxious that it remain viable and prospers. The sector must position itself to produce product for which there is a real demand and remain competitive. Undoubtedly there are severe competitive pressures on this industry at the best of times. The Department is strongly of the view that special short-term support is warranted in the context of the current avian influenza difficulties.

I assure the House and the poultry industry that the best interests of the sector on this issue will be promoted and defended to the EU Commission, at official and political level, to achieve the best possible outcome with regard to the introduction of the most useful special support measures to meet the particular needs of the Irish poultry sector at this critical time.

I thank Deputy Ó Caoláin for raising the issue.

Grant Payments.

I thank the Ceann Comhairle for allowing me to raise this issue. The first crop of miscanthus grass in Ireland was harvested three weeks ago in Adare. An Adare company, JHM Crops Limited, was formed to promote miscanthus as a viable alternative crop. The first harvest came from the Hogan farm in Adare, County Limerick. JHM Crops Limited and Quinn's of Baltinglass have formed a relationship to jointly promote the growing of miscanthus in Ireland, as they have an exclusive agreement with Bical for their rhizome in Ireland.

They have identified the growing of miscanthus as an alternative farm enterprise and have established crops for rhizome and cane production. A feasibility study carried out by Dr. J.J. Leahy at the University of Limerick shows the project has excellent potential. Miscanthus is a low-input, high-yielding multipurpose crop, suitable for production across large areas of Ireland. The crop is undergoing much research in Europe, the United Kingdom and more recently, Ireland, as a renewable energy crop to produce heat and power. Miscanthus has other environmentally positive applications such as use for equine bedding or garden mulch. The establishment of more processing facilities to meet the needs of growers and end users is essential, providing an opportunity for farmers to maximise returns, especially in the early years.

I urge the Minister of State to review the supports given by the Government to miscanthus growers. The crop is supported through the energy crops scheme, which only provides €45 per acre to farmers. The benefits of the product are such that it deserves much greater support than that which is currently available.

Miscanthus is a woody perennial grass originating in South East Asia and is commonly known as elephant grass. The non-flowering forms are of interest agriculturally as they grow rapidly, have low nutrient requirements, produce high yields, suffer from no known pests or diseases and conventional agricultural machinery can be used to plant, maintain and harvest them.

Miscanthus is grown commercially as an energy crop for use in power generation. Commercial power generation projects using biomass crops such as miscanthus commenced some time ago in the United Kingdom and Europe, with more due to come on stream in the next number of years. Ireland is only now waking up to the potential of biomass power. JHM Crops Limited, in Adare, is committed to supplying crops for a similar market in Ireland.

The crop is propagated by rhizomes, will grow to three metres in height within three years of planting and remain viable for at least 25 years. As the plants are sterile, there is no danger of proliferation of the crop onto adjoining lands. The crop is perennial, with stems emerging from an underground rhizome complex annually, in March or April, reaching its maximum height of three metres towards the end of August. Cooler temperatures in autumn trigger senescence and translocation of reserves below ground. The crop is left in the field over winter during this phase. Leaf material falls to the ground, recycling nutrients and providing mulch which suppresses weed growth. By spring the cane is ready to harvest, typically using a forage harvester similar to that for maize. It can also be harvested using mower conditioner power prior to baling. Detailed information on the agronomy of miscanthus can be supplied.

Miscanthus differs from short rotation copices in that it provides an annual harvest and therefore an annual income for the grower. In Ireland, long-term arid harvestable yields from a mature crop will exceed seven tonnes per acre per year and will, in many cases, amount to eight or nine tonnes. Miscanthus has at least three end uses in the UK at present. It is a renewable energy source as baled miscanthus straw is used to generate electricity in purpose-built straw-fired power plants. Miscanthus straw, blended with sawdust or wood is pelletised to produce biomass fuel and miscanthus straw is used to make briquettes for use in domestic fuel.

It is also used to make equine, cattle and pet bedding, cat litter and chicken house bedding. It is used for garden mulch. Other possible uses are the manufacture of chipboard and plywood. I ask the Minister of State to review the low levels of support in place, in view of the opportunities for the State for a friendly energy production policy.

I welcome the opportunity to comment on this matter. There is renewed interest in the potential of energy crops, including miscanthus and short rotation coppice, having regard to environmental considerations and the increasing cost of fossil fuels. In this context, the Department is working closely with the Department of Communications, Marine and Natural Resources, which is responsible for overall energy policy.

From an agricultural perspective the cultivation of energy crops specifically for bioenergy purposes represents an opportunity to generate new income and diversify the rural economy. The reformed Common Agricultural Policy allows farmers to concentrate on producing to meet market requirements. This new freedom to farm opens the possibility for farmers to explore alternative farm enterprises such as energy crops.

Miscanthus, as the Deputy stated, is also known as elephant grass and is not grown to any great extent on a commercial basis in Ireland. However, recently some producers have explored the possibilities for growing miscanthus as a feedstock for bioenergy purposes. I am delighted to hear the first harvest has come in on the farm concerned. I met the farmer some weeks ago. As Deputy Neville stated, miscanthus has three possible fuel markets, commercial boilers in baled or chopped form, stoves and small boilers in pelleted form and power stations in baled form.

Support to farmers for the growing of energy crops may only be granted in accordance with EU regulations. At present, such support is provided by way of the energy crops scheme introduced by Council Regulation (EC) 1782/2003 and is administered by our Department. Under this scheme, energy crops may qualify for aid of €45 per hectare provided they are intended primarily for use in the production of biofuels and electric and thermal energy produced from biomass. The aid is granted in respect of areas where production is covered by a contract between the farmer and the processor, except in the case of processing undertaken by the farmers on his or her own holding. The aid is payable in addition to the single payment. In Ireland, the only crop sown under this scheme in 2005 was oilseed rape, except for a small amount of willow. Miscanthus is among the non-food crops that may be grown on setaside land to activate setaside entitlements under the single farm payment.

As part of the EU strategy for biofuels, it is intended to review the operation of the energy crops scheme during the coming year. We do not believe that the €45 per hectare available under the energy crops scheme is sufficiently attractive in itself to stimulate the growing of crops for energy. At the February Council of Agriculture Ministers meeting, the Minister for Agriculture and Food, Deputy Coughlan, called for a review of the premium. The European Commission has undertaken to review the operation of the scheme and has indicated it would probably present proposals for revision. The Department has also received a number of proposals for the introduction of establishment grants for miscanthus and these are being considered.

Meanwhile, Teagasc is conducting research into the potential use of miscanthus and other arable crops and residues as heating fuels. Last year, our Department began providing direct funding, on a competitive basis, to support priority research projects in relation to biofuels. This funding is channelled through the Department's research stimulus fund programme. Three of the projects selected under the 2005 call for proposals directly relate to biofuel and energy crops and received total grant assistance of €900,000. The funding available under the programme has now been substantially increased and a further call for projects was recently advertised in the national press. This call also includes the non-food uses of agricultural land.

The potential contribution of agriculture to the development of bioenergy is recognised in the Department's action plan in response to the AgriVision 2015 report. The Department will work towards the achievement of the actions on biofuels and bioenergy detailed in that action plan. In this context the Department will continue to work closely with the Department of Communications Marine and Natural Resources. I thank the Deputy for raising the issue and giving me an opportunity to clarify the matter.

Forestry Sector.

I thank the Ceann Comhairle for allowing this matter to be raised. I was born more than 40 years ago in Dundrum in south Dublin and grew up there. Every Sunday afternoon, to rescue my poor mother from myself and my brothers and sisters, my father brought us to walk on Ticknock mountain. I grew up with the trees on that hill. I was seven or eight years of age when we started walking, and was roughly the same height as the trees at that time. As I grew up — unfortunately I now grow more out than up — I saw the trees growing up and out to a similar, if not larger, width.

As a representative of a constituency in south Dublin, there is no doubt in my mind that one of the greatest benefits and attractions of living in south Dublin, particularly near the hills, is that we have that wonderful resource where one can go for a cycle or a walk and escape. It is still only five, ten or 15 minutes away from most of the houses in my constituency. We must protect that valuable asset.

It was with shock that, when I was recently back up on Ticknock going for a Sunday afternoon walk with my young children, I realised the forest with which I had grown up was being clear felled. It is quite a shock for anyone who grew up with a forest to go to the mountain or landscape and see it as the scene of barren devastation. Every single tree in an approximately ten-acre site was cut down. Nothing but stumps were left, with topped and tailed trees on the ground. To me, it is a tragedy that must be stopped. I call on the Minister of State at the Department with responsibility for forestry to take action, make direct contact with Coillte and stop the practice until the concept is discussed with local politicians.

Viewing the forests from Coillte's timber industry perspective, it may be time to cut down those trees. It is standard operating procedure that 45 year old trees are sent for milling. The value of those forests as a recreational resource far exceeds the value which accrues from it as simple timber. Similar special status applies to forest parks across south Dublin, parts of Wicklow and forests close to Galway and Cork. In Ticknock, approximately 30 acres of forestry is due to be cut down. Ten acres have been taken out so far and another 20 acres are awaiting clear felling pending the building of a road. The ten acres taken would provide approximately 6,000 cubic metres of timber for the building industry, with a sale value of approximately €500,000.

There is no way that compensates for the loss of value for the thousands of people who go to that forest park every year to walk through the woods, cycle, horse ride and use it in a multitude of ways. Coillte must be supported by the Department in recognising that such forest parks so close to cities have a recreational value as well as a timber value. I urge the Department to consider providing compensation directly to Coillte, as it is a commercial company, in recognising that if it is not to take the lumber from those forests it must get some value instead. That is a role which the Minister of State's Department, in conjunction with the Department of Finance and local authorities, should take on board. I ask that the Minister of State's Department enter into immediate negotiations with Coillte in that regard and put a stop to the clear felling until that issue is sorted out.

As a public representative for the area I engaged in a process two or three years ago, with local authorities and Coillte, in an effort to get a joint co-operative approach to how those forests would be developed, recognising that it is not just the responsibility of Coillte to develop them. It requires the local authority to have a role. I regret that Dún Laoghaire-Rathdown Council did not at the time pursue such a line, and it indicated this was because of budgetary reasons. I regret that the council is taking a line solely concentrating on the legal right to access to the forests. That is not a sufficient approach.

We must take a holistic approach, recognising that these forests close to urban areas — in particular these forests in south Dublin but there are possibly other forests in similar circumstances — have a significant recreational value. It makes no sense to take all the trees out in clear felling. It makes much more sense for the Department to recognise their value and support Coillte in an alternative ecological approach to the parks.

I thank Deputy Eamon Ryan for raising this matter. As the Deputy is aware, Coillte Teoranta was established as a private commercial company under the Forestry Act 1988 and day-to-day operational matters are the responsibility of the company. Clear felling is an operational matter for the company and my Department is involved in this issue in so far as it is responsible for the issue of felling licences under the Forestry Act 1946.

Ticknock forest comprises 148 hectares in total. Coillte has developed a forest management plan for the management of this area, which involves the harvesting and replanting of areas as they mature. This management plan has been the subject of consultation with the local community at a public meeting and on an individual basis following any inquiries regarding the plan. Some 16 hectares are being harvested and a felling licence was issued. As part of the licence application, Coillte consulted all the statutory bodies.

The felling operation is not interfering with the public's use of Ticknock forest except in the immediate vicinity of the harvesting operation where access is restricted for health and safety reasons. I assure the Deputy that the area will be replanted in the spring of 2007. I thank the Deputy for his support of the recreational policies in the forest. I hope today's children will have the opportunity and joy that the Deputy experienced when they watch the trees grow over the next 40 years.

It is important to state that the felling licence was granted following inspection and approval by the forest inspectorate and following consultation with the relevant environmental bodies such as the national parks and wildlife service, fisheries boards and county councils. Under the conditions of the licence, Coillte is obliged to replant trees on any land cleared within 12 months of expiry of the licence in accordance with the general practice of good forestry. Furthermore, as part of the conditions of the licence, all felling and planting operations must be carried out in accordance with the code of best forest practice and the national forest standard published by my Department and operations must also comply with landscape and environmental guidelines laid down by my Department.

The Act establishing Coillte requires it "to carry on the business of forestry and related activities on a commercial basis and in accordance with efficient silvicultural practices". However, Coillte is also highly aware of the value of forestry as a recreational amenity and its role in this regard. As recently as last year, Coillte produced a revised and updated position of its role and policy on recreation following extensive consultation with more than 170 organisations. This policy is contained in its publication Recreation Policy — Healthy Forests, Healthy Nation, which the Minister for Agriculture and Food, Deputy Coughlan was pleased to launch last September.

Coillte has 11 forests parks, most of which provide facilities such as toilets, parking, picnic sites, playgrounds for children, and a shop or restaurant on a seasonal basis. Coillte also has 150 recreation sites, including Ticknock forest, most of which provide basic facilities such as parking, picnic sites and walking trails. I thank the Deputy for his support for recreational policy relating to forests and thank him for raising the matter. I hope this clarifies the issue.

School Staffing.

I am grateful for the opportunity to raise this important matter on the Adjournment debate. Crossmolina national school, roll number 20125I, will not be included in the school support programme under DEIS. The Minister opened the school on 20 September 2002, and from then until now an enormous amount of great work has been done assisted by the disadvantaged programme. This has enabled the school to reach out and help children at risk.

The success of this ongoing programme, which is provided with resources associated with the concentrated disadvantaged status, is now deemed a reason to exclude the school from the school support programme. However, since that date, the Crossmolina national school catchment area has been directly affected by job losses in Bellacorick power station, Bord na Móna, ESB, Hinnegans and Oasis Europe in Ballina and Volex in Castlebar. Bank of Ireland recently closed its branch in Crossmolina, and four shops have been closed in the town as a direct result of job losses. The area has not created any new jobs since the school was opened.

The school is at a loss to understand, in light of these negative events, how it is losing its concentrated disadvantaged status. Education is the key to breaking the poverty cycle, and the school has appealed this devastating decision to the Department of Education and Science.

How exactly did this come about, and how was the decision made? The principal and teachers have done trojan work to provide a myriad of different activities in the school, and this has done wonders for those who would not otherwise have thrived in the educational system. Against a background of gross neglect and unbalanced treatment in development, it is soul-destroying that Mayo schools such as Crossmolina are to lose their disadvantaged status. Other schools would be an Chorráin, Tóin Na Gaoithe and Leath Ardán group of schools.

In the case of Crossmolina, that will mean the loss of the equivalent of two teachers and many other essential school activities, due to the break in the cycle of funding. I received a statement from the Minister on the matter, and I find it confusing and unsatisfactory. It raises more questions than answers with regard to how these schools were removed from the disadvantaged category. The Minister has stated that no school has been told they will lose resources. It would appear that schools will hold on to the resources until the end of 2007 and lose them after that. That is a problem.

There is nothing factual from the Department with regard to the current situation. Schools are in limbo. For schools not in the programme, the basis will be decided by pupil. What does this mean for the school and places such as Crossmolina which has done so badly? What has the Minister in place and how fair is the assessment process?

I note from the Minister that the process is calculated through different factors, such as incidence of lone parents. There are possibly fewer lone parents in Crossmolina. Other factors include ethnic groups such as Travellers. Perhaps there are fewer Travellers in Crossmolina than in Ballinrobe, for example, or inner city Dublin. Perhaps there is less local authority accommodation in Crossmolina than there should be, and there should be much more. People are in private rented accommodation, so I would like the Minister to explain how the process has been calculated.

Employment is another factor, but much employment in the Crossmolina area in particular is of a temporary nature. An example of this is the upgrade of the ESB lines, in which many people in the Crossmolina and Leath Ardán area would be employed in. How and when will this be reviewed? If it occurs years down the line, all these people will have lost their jobs and people will be in a bad situation compared with Dublin which has public sector jobs. There is a great need for a clear commitment that schools will not lose resources. The Minister is implying this but not stating it outright. If schools are not going to lose resources, why has this not be expressed clearly.

The role of the school liaison co-ordinator is crucial. There should be some guarantee that the position will not be lost. I have written to the Minister to ask her to meet the parents and teachers to tell them what is happening and the process has been worked out. I hope the Minister of State will give some clear answers.

I will reply on behalf of the Minister for Education and Science, Deputy Hanafin. I hope the reply will clarify the matters raised by Deputy Cowley.

As the Deputy is aware, the school has not been told it will lose any of the resources it has been in receipt of under the breaking the cycle scheme. The school has simply not been selected for inclusion in a new school support programme, which is aimed at providing even more resources for the most disadvantaged schools in the country. The Minister for Education and Science has, however, made it very clear that Crossmolina national school will keep the extra resources it receives under existing schemes for the 2006-07 school year and that after that it will continue to get support in line with the level of disadvantage among its pupils.

The new DEIS programme will be of huge benefit to schools in Mayo. This particular school has not been selected for the programme but I am sure the Deputy will agree that it is important to make sure that schools serving the most disadvantaged communities get all the extra support possible, and that he will welcome the extra resources that DEIS will provide for Mayo schools.

An extremely fair process was put in place to identify schools for inclusion in the new programme, with schools being selected by the Education Research Centre for inclusion on the basis of questionnaires filled in by their principals. There was no ministerial interference with that process.

DEIS is designed to ensure that schools serving the most disadvantaged communities in the country benefit from the maximum level of support available. Over the years, no less than eight separate schemes for disadvantaged primary schools have been put in place. Some schools benefited from just one or two of these and others benefited from more. The DEIS initiative is designed to ensure that the most disadvantaged schools benefit from a comprehensive package of supports, while ensuring that others continue to get support in line with the level of disadvantage among their pupils.

No school has been told that it will lose resources. On the contrary, four urban or town primary schools, 59 rural primary schools and six second level schools in County Mayo alone have been invited to benefit from all the resources available from the new programme. Indeed, nearly 20% of all the rural schools invited to benefit from the new programme nationally are in Mayo.

I assure the Deputy that there is no reason for schools that have not been identified for the new programme to worry, as they will continue to get support in line with the level of disadvantage among their pupils. Neither Crossmolina nor any other school in Mayo has been told that it will lose resources as a result of DEIS.

A review mechanism has been put in place to address the concerns of schools that did not qualify for inclusion in the school support programme but regard themselves as having a level of disadvantage which is of a scale sufficient to warrant their inclusion in the programme. This mechanism will operate under the direction of an independent person, charged with ensuring that all relevant identification processes and procedures were properly followed in the case of schools applying for a review. The school to which the Deputy refers has submitted a review request. It is intended that the review process be completed by the end of the current school year.

The Minister thanks Deputy Cowley for raising this matter and for giving her the opportunity to outline the Government's support for schools serving disadvantaged communities in Mayo.

The Dáil adjourned at 5.25 p.m. until 2.30 p.m. on Tuesday, 9 May 2006.
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