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Dáil Éireann debate -
Thursday, 3 Dec 2015

Vol. 899 No. 2

Topical Issue Debate (Resumed)

Beef Industry

I am disappointed the Minister of State at the Department of Agriculture, Food and the Marine is not here. I understand the Minister is in Africa but I am surprised the Minister of State is not here. We were told that one of the reforms of the Dáil which would take place would be that Ministers or Ministers of State, where relevant, would be present in the House.

A year ago, there was huge concern in the beef industry about the price differential being achieved between British and Irish cattle on the British market. We had farmers outside the factory gates. Eventually, in response to this, the Minister set up the beef forum. A year on, to use an appropriate metaphor considering the Minister is in Africa, the beef forum has turned out to be a toothless tiger. It has had no significant effect on the massive problems that beset the beef trade.

Significant allegations were made by a significant farming organisation during the week. It believes there is a conscious policy by one of the major meat groups that operates not only in this country but also in Britain to try to block the sale of young cattle for finishing in Britain by saying they could not be marketed in Britain as British and would, therefore, have to be significantly discounted. When we look at the price comparisons between this year and last year, it is significant that the price of beef has increased by approximately 70 cent per kilo while the equivalent Irish price has only increased by approximately 10 cent to 15 cent. Last autumn, the price differential was 70 cent. This year it is 110 cent.

The second part to this matter is the total failure of the Department to deal with the price issue relating to vegetables. I thought the Minister of State with responsibility for horticulture, a colleague of the Minister of State, Deputy Coffey, would be here today. I have been calling on him to stop standing back and allowing the supermarkets force the horticulture industry into a precarious situation. The supermarkets are, effectively, dumping food onto the market by selling it at absolutely ridiculous prices, prices at which no farmer can produce the produce. This happened in 2013.

There was some co-operation by the Minister's party and the Government last year to try to persuade the various parties that it should not happen again. Will the Minister of State make a public statement today that the Government believes it is unacceptable for any supermarket chain to engage in a similar practice again this year? Will the Government state that the horticulture industry is in important one not only to those involved in it but to Irish people in general because they want an Irish horticulture industry? Will the Government state that it believes it would be wrong of the supermarkets to try to destroy the industry through totally uneconomic pricing?

Will the Minister of State address these issues? I thank the Leas-Cheann Comhairle for affording me the opportunity to speak on them today.

I apologise on behalf of both Ministers who, unfortunately, are unavailable as they are away on State business. As a former Minister, Deputy Ó Cuív will understand there are times when they cannot be here personally. However, I am here to take the Topical Issue and am happy to do so on their behalf.

As Deputy Ó Cuív is well aware, beef prices are matters to be determined between the purchasers and sellers of cattle. Prices are determined by supply and demand dynamics and by a range of different factors, such as consumer preferences, distance to market, consumer confidence, retail promotions, competition with other meats and the overall macroeconomic situation. The Minister, Deputy Coveney, like any other agriculture Minister in the EU, can have no role in influencing commodity prices paid to farmers. I note, however, that 2015 has been a relatively positive year for beef prices in Ireland with the yearly average to date up 8% on last year. Irish beef prices are also 105% of the EU15 average price for 2015.

The divergence in price between Ireland and Britain is a result of the exceptionally strong sterling exchange rates that have been in place for most of the year. It should be noted that, in sterling terms, prices paid to British farmers so far this year are broadly the same as previous years. In other words, British beef farmers are not gaining any more for their output than last year. However, as already noted, Irish farmers are receiving prices on average 8% higher than last year and, therefore, the price difference has narrowed and not widened, if one removes the influence of currency fluctuations.

It must always be remembered that comparisons between Irish and British beef prices have to take into account that we are both primarily selling into the British market where there is a consumer preference for their own British product. This preference for local product is true of almost every beef market in the world. This also means that there is pressure from the British beef sector on retailers to prioritise its produce over imports from abroad, including our Irish beef. This is a significant competitiveness challenge for Irish beef which cannot be overlooked when comparing prices.

Notwithstanding these challenges, the most up-to-date figures from the CSO show that this year, we have exported more than €100 million more beef to Great Britain compared to the same period last year. This is a prime example of the high esteem that Irish beef is held in and I would be confident that in the coming weeks, considering the seasonal trend, we will see sustained trade of beef to Britain.

This has also been a good year for the mart trade as prices for calves are up 20% in the year compared to 2014. Beef breed calves are up 15% alone on 2014 prices and, again, this is a result of Northern Irish buyers using the strong exchange rate to purchase stock from the Republic.

The Minister, Deputy Coveney, has also made provision for a package of support measures for the beef sector in 2015 worth more than €70 million. This includes the beef data and genomics programme which forms part of Ireland's draft rural development programme. The proposed programme will have a budget of €300 million over a period of six years and is intended to deliver an accelerated improvement in the environmental sustainability of the herd through the application of genomic technology. It will also position Ireland at the global forefront in the application of genomics technology and cement our place as one of the most important export-focused beef producing nations in the world.

As Ireland exports 90% of the beef that it produces, it is vital that we have many diverse markets to sell our product into in order to ensure primary producers here receive the best prices available.

The Department engages on an ongoing basis with many third countries, in collaboration with Bord Bia, the Department of Foreign Affairs and Trade, Irish embassy staff, the meat industry and the European Commission on various market access issues. In fact, the Minister is not present today because he is in Ghana at a promotion event for Irish beef as we speak.

I ask the Minister of State to also explain the absence of the Ministers of State at the Department of Agriculture, Food and the Marine. It is extraordinary that they would plan their diaries so that they would all be away when the Dáil is sitting.

I do not even know where to start in response to the reply given by the Minister of State because not taking currency fluctuations into account is ridiculous. We know when a currency loses value, as the euro has done, that should be to the advantage of exporters. Therefore, comparing both prices in either euro or sterling shows exactly what I have said, namely, that the differential has widened from 70 cent last year to 110 cent this year. There is a constant mantra from this Government, which I know is right-wing and laissez-faire, that we cannot interfere. In Britain, there is a grocery code adjudicator in place. Will the Minister of State outline to the House the regulations that the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, intends to introduce in that regard?

It is very interesting to note that the EU Commissioner, Mr. Phil Hogan, a former Fine Gael Deputy who served in the Department to which Deputy Coffey is now attached, does not think the EU should stand back and allow a small number of supermarkets to rule the roost. He is keen on European intervention and regulation, if necessary, to bring the supermarkets to heel. This brings me to my next point. I am flabbergasted the Minister of State made no mention of the horticulture industry in his reply. I call on the Government to urge the supermarkets not to repeat what happened in 2013 and to ensure that both green grocers and those in the horticulture industry are not decimated by the reckless practices and overweening dominance of the supermarket chains. If the Minister of State is worried about the lawfulness of this, he should refer to Article 45 of the Constitution which requires the Government to ensure that big business does not abuse dominance in the market to the detriment of the common good.

Regarding the Deputy's queries on horticulture, the Topical Issue tabled by Deputy Ó Cuív makes no mention of horticulture.

The Deputy is just raising it now.

The Topical Issue I tabled mentioned horticulture.

Deputy, the Minister of State has the floor.

Somebody obviously cut it down. I will read out the Topical Issue, as originally tabled.

It read as follows: "... the need for the Minister for Agriculture, Food and the Marine to protect farmers, to address the increased price differential between Irish beef and British beef in British supermarkets, contrary to the single market and the steps he is taking to ensure that horticulture farmers get a fair price for their produce this Christmas". That is what I submitted.

That is not what is in front of me or the Minister of State.

I assure the Deputy that neither I nor the Minister for Agriculture, Food and the Marine cut down the Topical Issue.

I am sure the Minister will be more than happy, through direct correspondence, to address the concerns of the Deputy. I undertake to pass on those concerns to the Minister.

I ask the Acting Chairman-----

I want to let the Minister of State finish and then I will allow the Deputy to come back in.

Would it be possible for the Acting Chairman to inquire if the Ceann Comhairle's office cut down the Topical Issue? Certainly no one contacted me about it.

The allegation has been made by the Minister of State that-----

With all due respect to the Deputy, I have the floor.

With all due respect, no allegation was made. I have reassured the Deputy that horticulture is being given the highest priority by this Government and the Minister for Agriculture, Food and the Marine. As I have just said, the Minister would be more than happy to respond in more detail to the Deputy with regard to the concerns he raises relating to horticulture. I am making no allegations but am simply reassuring the Deputy that horticulture is an issue of high priority.

I am addressing the beef related issues raised in the Deputy's Topical Issue which is before me. Irish beef is now listed with more than 75 high-end retail chains across the EU. This wide portfolio of customers has contributed significantly to higher returns for Irish beef in recent years and reflects the success of Bord Bia's differentiation strategy, which focuses on the main attributes of Irish beef, namely, environmental sustainability, grass-based production systems, full traceability, quality assurance at all stages and superior eating quality.

Since taking office, the Minister for Agriculture, Food and the Marine has led trade missions to a wide variety of destinations including China, the United States, Algeria, Japan, the Gulf States and west Africa, where he is today, to promote Irish food and beverages, including meat exports. These initiatives have led to several notable successes in securing agreement to export Irish beef to Japan, Singapore, Egypt, Iran, the US, Canada and Oman. The ban in China on boneless beef from Ireland has been lifted for animals under 30 months, thus making Ireland the first and only EU member state to reach this stage. Further work is required before trade will commence and the Department is currently engaging with the Chinese authorities on the technical details.

The beef market in the US was opened in January 2015 and as of the start of November 2015, an estimated 1,300 tonnes valued at €9 million has already been exported. This is a strong start to this trade considering that the first exports only began in March 2015 and some of the plants were only approved for export as recently as September. Ireland has now become the second largest supplier of beef to the Philippines and supplied around 20% of its beef imports during the first quarter of 2015.

The Minister has invited stakeholders to the next round table which will take place on 16 December. The Minister established the round table last year for the purpose of bringing all sectoral stakeholders together and facilitating open discussion between industry, farming organisations and others on the strategic path forward for the beef sector. There have been a number of notable successes from the round table already and the next meeting will see further progress including on establishing producer organisations in the beef sector for the first time.

General Practitioner Services Provision

I am disappointed the Minister for Health is not in the House to take this Topical Issue. I know he is not abroad because he was in the House earlier today. While I welcome my colleague from Waterford, Deputy Coffey, this is not his area of responsibility.

On 25 September 2014, the National Association of General Practitioners, NAGP, took to the streets outside this House to protest over cutbacks that have closed rural GP practices and forced newly qualified GPs to go abroad to work. In the intervening period, nothing has changed. In fact, the situation is much worse. Rural GPs, who have already experienced a 40% cut to their income as a result of cuts to fees and allowances introduced under the Financial Emergency Measures in the Public Interest Act 2009, are still expected to operate without the guaranteed provision of a rural practice allowance and this is patently unfair.

The Minister for Health was urged in 2014 to redirect just 2% of the health budget to general practitioner services every year for the next three years to try to reintroduce parity of esteem for general practitioners. The NAGP has confirmed that up to 32 rural GP posts remain unfilled. Government policies are posing a serious threat to the health of people in rural areas and its unwillingness to fund the rural practice allowance has prevented doctors who would like to practice in rural areas from doing so. It was understood for decades by various Governments and the Department of Health that rural GPs need modest support structures in order to be able to function properly and remain viable and that is still true today.

In the case of Bansha, the incumbent, Dr. Madigan, is a wonderful doctor who has given sterling service, with her staff, the district nurses and health service staff. She has looked after the community very well. She is ill and has announced her intention to retire. I wish her well. However, we will not get a rural GP because people have been blindfolded and have their hands tied behind their backs.

The rural practice allowance is vital. There is no point in the Minister of State, Deputy Tom Hayes, coming to Bansha to reassure a public meeting that the Minister, Deputy Leo Varadkar, has promised to restore the general practice allowance in Bansha when there are 31 other posts to be filled, including in Clogheen in my own back yard, where a wonderful doctor, Dr. O'Reilly, who has been there 18 months cannot receive the allowance and is struggling to remain in place. When I had a parliamentary question answered by the Minister yesterday, he said it was a matter for the HSE. Someone is codding someone. Either the Minister is telling us fibs or the HSE is. The fact remains that Bansha general practice is in a serious position. Its GP is entitled to retire, but we are demanding that the post be readvertised and that the general practice allowance be included because it is needed.

I am told that there is a further complicating factor, although I do not have 100% proof of this, namely, that the HSE intends to charge rent for use of the health centre. This will make it completely untenable for any GP to use it. As a result, GPs are not applying for these posts. The GP in Gortnahoe wants to retire and a total of 32 doctors throughout the country are in this position, including in the Taoiseach's constituency of Mayo.

It is time the Government woke up to this problem. Pumping money into the so-called centres in Tipperary town and other areas where there are large practices is fine, but it is not fair to have people affected by the closure of rural practices, in particular, given that rural transport services are also being taken away. The regular transport service is not enough and people will be unable to get to Tipperary town, Cahir or Cashel. In addition, they currently have the comfort of knowing their GP and the staff in his or her practice, as well as the nurses, all of whom know the needs of their patients.

For many families the GP is the first line of defence, as the Minister of State knows. Whether it is a parent worried about a son or a daughter or a child worried about an elderly parent, the GP is the first person to be asked whether the patient is presenting with symptoms of, for example, Alzheimer's disease. The GP is the first line of defence and, in many cases, the only line of defence people living in rural Ireland have. We lost the post office in Bansha and have lost many other things throughout rural Ireland. We cannot and will not lose the general practice, too.

The Minister for Health should be here to answer this question. There is no point in there being a nod and a wink. The rural practice allowance must be restored in Bansha.

I am taking this Topical Issue on behalf of the Minister for Health. I thank the Deputy for raising this important matter as it provides me with an opportunity to update the House on GP services. I acknowledge the contribution GPs and their staff have made both in urban and rural areas to the health and welfare of citizens. I assure the Deputy that the Government is strongly committed to the future of rural Ireland. Like him, I come from a rural constituency. We recognise the contribution rural communities have made to overall national economic development, as well as to the development of their local areas. Our vision is of vibrant, inclusive, economically thriving rural areas. The people living in these communities should experience a quality of life at least as high, if not better in several respects, as that experienced in urban areas.

The Government is committed to ensuring patients throughout the country will continue to have access to GP services, especially in remote rural areas, and that general practice will be sustainable in such areas into the future. The HSE, the Department of Health and the Irish Medical Organisation are engaged in a comprehensive review of the GMS and other publicly funded health sector GP contracts. Among the issues encompassed by the review process is support for general practice, especially in remote rural areas. I do not propose to comment on the detail of these ongoing negotiations. Under the current GMS contract, GPs who practise in remote rural areas of low population qualify for special rural practice concessions, including an annual allowance of just over €16,200 and more favourable subsidies towards the employment of staff, including practice nurses and secretarial support. More advantageous supports towards locum costs for leave are also payable.

The HSE has recently produced revised rural practice allowance guidelines for remote rural areas. The purpose of the new guidance is to ensure consistency, transparency and fairness in decision-making regarding relevant discretionary provisions of the GMS contract as they apply to rural GP practices. The guidance also provides for greater flexibility in considering applications from GPs than that provided for in the original governing circular, as well as providing additional options to support GPs. From time to time HSE local offices also offer other incentives to attract GPs into rural areas such as access to HSE facilities and the offer of additional contracts such as providing medical officer services for nursing homes.

I am aware that some isolated rural areas and deprived urban areas, very often with limited private practice opportunities, may find it difficult to attract GPs to fill vacant posts. However, I have been assured by the HSE that where a GMS GP vacancy arises, the executive takes the necessary steps to ensure continuity of service to GMS patients is maintained.

I thank the Minister of State, but this is more waffle from the HSE. The plain fact is that too many cuts have taken place. I salute a young man in Bansha, Mr. Andrew O'Halloran, and his team for raising this issue, organising a public meeting and bringing their concerns, through me, to the floor of Dáil Éireann. The HSE states it will advertise posts and do everything it can to ensure continuity of service. It is like the farmer going to the creamery without the bulk tank because he or she forgets to bring it. An appealing contract is what is needed. That is what we had for more than 40 years with the rural practice allowance, but it has been taken away with one swipe. To add insult to injury, rent is now being sought for use of the premises.

We are not going to get any qualified GP to come to a rural area in these circumstances. We are, therefore, shutting the door on rural Ireland. The Minister of State is a rural Deputy from my neighbouring constituency and should know this because it is plain and simple. Bansha was home to the late, great Canon Hayes who founded Muintir na Tíre. He always said it was better to light a candle than to curse the dark, but the Government is quenching the candle. It is extinguishing life in rural Ireland. It is taking sustenance from rural families, particularly the elderly and the vulnerable who want to meet their GP in their own area. People can walk or get a lift or a taxi to their local village. They do not want to be forced to travel ten or 12 miles to a doctor's surgery that is already full. A GP from Tipperary town said last week that he could not take any more patients because his practice was already overflowing.

It is a sad day when we allow the HSE to dictate to the Government and close down the rural practice in Bansha by stealth. It is making it uninviting or unappealing for any GP to work there because there is too much red tape and so little support. Shame on the Minister for allowing this to happen and shame on the Government for putting up the gates and quenching the lights in rural Ireland, especially in Bansha, which the late Canon Hayes ensured would be one of the first places to benefit from rural electrification in the 1950s. It is an insult to the people living there and the Government has done the same in many areas. Its view is to hell with the people. Cromwell said, "To hell or to Connacht." The Government is almost as bad. It is not good enough. I ask it to stand up to the HSE and ensure the rural practice allowance is reinstated. There are 32 communities which are affected, including Bansha.

While I understand the concerns of the Deputy, I assure him the Government has no intention of closing GP practices.

It is happening.

In fact, we have committed substantial resources and funding to ensure they will remain open and be supported as much as possible. The Deputy is concerned about the practice in Bansha, on which I will comment. However, there is a reason there is a vacancy there and it is not Government-created. It is, unfortunately, that its GP is on sick leave. That is the genuine reason there is a vacancy and the HSE informs us that it will be advertised. It will become vacant from 17 January 2016, according to the information I have received. The post is being covered by a locum, as I am sure the Deputy is aware, which means that all patients have access to GP services in Bansha.

It is important that is noted here because if one were to listen to the Deputy, one would swear the Government had closed the GP practice and disregarded the needs of the patients. That is not correct.

There are 32 vacancies.

With due respect, that is not correct. A locum is covering the practice and all patients have access to GP services. HSE South-East has advertised the post, but, unfortunately, there have been no applicants to date. However, the filling of the Bansha post is under consideration by the HSE. This consideration includes whether supports may be necessary in order to attract a suitable applicant to take on the post. For the information of the Deputy, there are no other GP vacancies in either south or north Tipperary and the next retirement in north Tipperary is not due until 2017. Therefore, the situation is not as bad as the Deputy has outlined. He is correct to raise concerns, but the HSE is responding and the service is being retained for the patients.

On 1 November, there were just 20 GMS lists, out of a national total of over 2,400, without a permanent GP in place. That is far from the accusation made by the Deputy in regard to the Government closing GP practices. That accusation is simply not true. Eight of the 20 vacancies are in rural areas with less than 1,500 people. However, the full range of GP services to patients continues to be provided for the patients concerned, through either a locum GP or a neighbouring GP. This will continue.

Codswallop. There are 32 vacancies.

Child Care Services Provision

I thank the Office of the Ceann Comhairle for including this issue for debate. Like most Members, I welcome the initiatives taken by the Minister for Children and Youth Affairs, Deputy Reilly, in the recent budget in regard to child care. Any improvements in the child care sector must be welcomed. As Members are aware, there are shortcomings in the sector, principally due to the fact that child care is so expensive in this jurisdiction. Child care costs here are probably the most expensive in Europe. In some European countries child care is provided for as little as €150 a month and in France subsidised child care is provided. In Ireland, particularly in large urban centres, child care costs can be as high as €1,000 a month per child. Costs are lower in rural areas, but in general the cost is prohibitive. Repeatedly, people say the cost of child care is the equivalent of having an additional mortgage. This is true for many families.

While we welcome the improvements announced in the budget, the additional places, etc. many of us have pointed out some of the shortcomings in regard to the initiatives. My concern is about the findings of the survey conducted by Early Childhood Ireland which was published yesterday. Some issues raised in the survey are of concern. The survey highlighted that 62% of respondents said they did not plan to expand their child care service as a result of the budget proposals, while 27% said they were not sure whether they would. The big issue in terms of the challenge to expand to meet the needs of the proposed scheme is capitation. Child care providers say capitation is too low. Another issue is the lack of space and funding to expand their facilities.

The survey also highlighted that in response to the question of whether the changes in the budget were good for child care providers, 23% said "No", while 49% said they were not sure yet. These are serious issues if we are to improve child care services. The Minister acknowledged when the budget was announced that we are on a new journey in terms of bringing about improvements in child care. If the results of the Early Childhood Ireland survey are true, we face serious issues in regard to improving child care in the future, which is why I have raised this issue.

I thank the Deputy for raising this important issue. I am taking this debate on behalf of the Minister for Children and Youth Affairs. I am pleased to outline the Government's position on recent measures introduced in budget 2016.

Budget 2016 implemented a key recommendation of both the expert advisory group on the early years strategy and of the interdepartmental group on future investment in child care, by providing for an entitlement to free preschool for all children, from age three until they start school, and by funding a new model of support to ensure children with disabilities can participate in free preschool alongside their peers. The value of these measures is underpinned by the findings of extensive consultation during the course of the interdepartmental group's work. These were key priorities for parents, preschool providers and experts on the early years.

The expansion of the free preschool programme, which will take effect from September 2016, means that the number of children benefitting from the free preschool provision is expected to rise from around 67,000 to 127,000 in a given year. The decision to implement this new entitlement from September 2016 was made to allow the early years sector time to build capacity and adjust to the new parameters of the programme. Accommodating change can be challenging, but as demand is not expected to peak until January and April 2017, this should provide the necessary time to make any infrastructural and-or service changes, and to put in place additional staff to meet the increased demand.

A number of factors indicate that the additional required capacity in the preschool sector will be realised. The annual survey of early years' services, conducted in December 2014, estimated that there were more than 24,000 vacancies in early years services across the country and that almost 13,000 of these vacancies were in sessional services. It is also the case that a significant number of services apply to be providers of the free preschool programme every year. This increased demand for and additional investment in free preschool is likely to encourage a greater number of applicants.

I thank the Minister of State for that reply. I have mentioned the high cost of child care in Ireland. It is worth mentioning that for many low income families, child care costs are so high that parents have little choice but to leave the workforce. Those of us with constituency clinics are aware of many examples of people who are working in low paid jobs who cannot afford to continue to work because of the high costs of child care. We must be conscious of this and must try to follow the European model of investing in child care and allowing families avail of child care facilities.

Another issue which was a criticism I raised when the budget for child care services was announced is that a significant omission was a provision to deal with how overworked and badly paid those who worked in the child care sector were.

It causes all sorts of problems in terms of qualifications, etc. It tends to be a sector in which the workforce is, in many cases, in transit. The level of wages is so low. It is hard work and badly paid. That was one of my criticisms at the time it was announced during the budget. I hope the Minister will address the matter in the very near future, as other jurisdictions have, particularly in respect of qualifications of those working in the child care sector. There should be some kind of scheme that will give them a living wage in order that they will not be on the sort of wages most of them receive.

I note the Deputy's genuine concerns about staffing, recruitment and training and retention of staff in the sector. He makes a very important and valuable point which I will pass on to the Minister.

The restoration of capitation rates to pre-2012 levels from September 2016 and the introduction of additional capitation payments under the new model of support to ensure children with disabilities can participate in free preschool facilities should also encourage a greater number of new applicants and encourage existing preschool providers to expand. It is clear that more capacity will be required and January and April enrolments may pose a challenge. However, officials in the Department of Children and Youth Affairs are committed to assisting with these challenges. They are undertaking a mapping exercise to identify where the additional capacity will be required. They are working closely with all of the city and county child care committees and voluntary child care organisations on a range of measures which will assist preschool providers to meet the increased demand for free preschool provision. That engagement is very important and timely. Further information on these measures will also be made available very shortly.

The Dáil adjourned at 2.55 p.m. until 2 p.m. on Tuesday, 8 December 2015.
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