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JOINT COMMITTEE ON AGRICULTURE AND FOOD debate -
Wednesday, 11 Dec 2002

Vol. 1 No. 2

Bovine Diseases (Levies) Regulations, 2002: Motion.

The draft Bovine Diseases (Levies) Regulations, 2002, have been referred to the joint committee for consideration in accordance with paragraph (1)(a)(iii) of the Orders of Reference of the committee. The order of referral by Dáil Éireann states that the joint committee should consider the draft regulations and report back no later than 17 December 2002.

I welcome the Minister for Agriculture and Food, Deputy Walsh, and his officials to the meeting and ask the Minister to introduce the discussion on this matter.

I congratulate the Chairman on his appointment and wish him well in his term in office. My officials and I will be glad to assist the committee in any way we can.

The proposed regulations would be made under the Bovine Diseases (Levies) Acts, 1979 to 1996 and their purpose is to fix the rates of disease levies under the Bovine Disease (Levies) Act, 1979 from 1 January 2003 as follows: one cent per gallon of milk received for processing and €5.08 per animal slaughtered or exported live. The 1979 Act provides for disease levies to be applied to milk deliveries for processing and cattle slaughtered or exported to facilitate the eradication of TB and brucellosis in cattle. The Act also provides that, where rates of levies are being prescribed, a draft of the regulations must be laid before each House of the Oireachtas and that the regulations may not be made until a resolution approving of the draft has been passed by each House.

In practice, the rates of levies have varied over the years. The current rates, operative since 1 July 1998, are €2.54 per animal and 0.5 cent per gallon and they contribute some €10 million a year. In the years leading up to 1996, when rates were at £7.30 per animal and 1.3p per gallon, levy receipts brought in some £30 million or €38 million. The Estimates provision for the Department provides for a doubling of the disease levies from 2003. The resolution and the draft regulations seek the required approval for this.

In the context of protecting public health, improving animal health and meeting EU trading and legislative requirements, we operate programmes aimed at controlling and eradicating TB and brucellosis from the cattle herd. The programmes in place are comprehensive and costly to both the Exchequer and farmers. While the various schemes that have operated in recent years have not eradicated these diseases, they have succeeded in maintaining 99.5% of cattle free of TB and 99.9% of cattle free from brucellosis. They have also been approved for EU funding and have facilitated continued access for our livestock and livestock products to EU and third country markets.

As regards trade, under EU trading rules annual testing is required to maintain the "officially TB free" status of herds unless in the two preceding years less than 1% of herds are infected. A country or region can be declared "officially TB free" where the percentage of herds with TB has not exceeded 0.1 % of all herds for six years and 99.9% of herds have "officially TB free" status for the same period. For a variety of reasons including trading considerations, Ireland is required to have all animals tested each year and in addition must undertake additional testing where disease is identified. Likewise for trading and other reasons, we have to implement measures to control and eradicate brucellosis.

As regards costs, for 2002 expenditure on these schemes by the Department will exceed €72 million. Farmers will contribute some €10 million through the levy system and the State has also received EU contributions in recent years towards the costs of some elements of the schemes - for 2003, these have been fixed at a total of €6.8 million. For 2003, the Estimates provide €67 million for the schemes and also provide for an increase from €10 million to €20 million in receipts under disease levies.

As regards TB, the incidence increased here, as it did in Northern Ireland and in Britain, in 1998 and 1999 when some 45,000 reactors were removed. Since then, there has been a steady decline in the number of reactors and for 2002 it is expected that reactor numbers will be about 30,000. In the past, sustained progress in reducing TB levels has not been achieved due to a variety of factors including some deficiencies in available and approved technology, and particularly because of infected wildlife. I will deal with the latter issue later.

Brucellosis levels also increased from 1996 onwards and in recent times peaked in 1998. In that year, there were some 1,081 new breakdowns and 6,417 laboratory positive animals were identified. From 1996 onwards, I introduced a range of additional measures to address the deteriorating situation. The current range of measures include the following: annual blood testing of all eligible animals; monthly testing of milk from dairy suppliers; the cow monitoring scheme at meat plants; pre-movement testing with a "one-sale" provision; selective use of skin tests; upgraded testing at laboratories; treatment of slurry; an aggressive depopulation policy; and extended rest periods before repopulation in selected cases. More generally, we also have available a good traceability system, mapping facilities for identifying contiguous holdings and registration of dealers, all of which contribute to disease containment. I also expect that the new IT system for the disease eradication - the ARCS - will become operational during 2003.

As a result of these measures, the situation has improved very significantly in recent years. For example, the number of new restrictions to 1 November this year was 385, with 1,383 laboratory positive animals. Although there is still a significant residual level of disease throughout the country, I am cautiously optimistic that the improvement since 1999 can be maintained and that, with the co-operation of all concerned and good husbandry practices, the goal of eradication is achievable in the foreseeable future.

Revised arrangements for the TB and brucellosis eradication schemes were introduced from April 1996 following agreement with the farming bodies. Under the new arrangements, responsibility for arranging and paying for the first clear herd test was devolved to farmers. In recognition of this, the disease levies were reduced from £7.30 to £2.50 per animal and from 1.3p to 0.5p per gallon of milk. It was agreed that the levies would contribute some £10 million a year or 50% of compensation costs over the 1996 to 1999 period.

For a variety of reasons, the levies contribution fell short of the 50% target. Compensation payments totalled some £120 million over the four years while levy receipts reached only £45 million for the same period. The main reason for the imbalance was that compensation costs increased in 1998 and 1999, due to higher reactor numbers and depopulations, without any increase in levy rates. Disease levies were reduced again to £2 per animal and to 0.4p per gallon of milk on 1 July 1998 to help offset the costs to farmers of the mandatory brucellosis pre-movement blood test which was introduced from February 1998. It was agreed at the time that the lower receipts in 1998 and 1999 would not be taken into account in calculating the farmer contribution over the 1996 to 1999 period. While there was no formal agreement as regards the ratio between levies and compensation after 1999, levy receipts accounted for some 25% of compensation payments to farmers for the 2000 to 2002 period.

In relation to disease eradication, the Programme for Prosperity and Fairness included commitments as regards additional resources to deal with wildlife and the introduction of an on-farm market valuation system for reactors. Most of the additional staff resources committed to in the PPF have been put in place and a significantly increased effort on wildlife will be made as these resources become effective. In addition research is under way in a number of areas to address the problems that have been experienced with TB infection. There are however no short-term solutions available under these headings although I believe further progress can be made on TB levels with a more pro-active regime on wildlife. This is based on the results to date from the east Offaly project, from the ongoing projects in four other areas and from other areas where actions have been taken on wildlife. There are obvious limitations on what can be achieved in relation to wildlife in present circumstances. Vaccination of wildlife is a potential solution and my Department is currently engaged in progressing the development of a suitable vaccine for this purpose. Results to date are encouraging.

The on-farm market valuation scheme became fully operational from early 2002 and replaced the former reactor grant scheme. Expenditure under the valuation scheme and the other elements of the compensation area generally - depopulation grants, hardship grants, reactor grants and income supplement - was €44.1 million by comparison with a final out-turn of €40.8 million for 2001. It is expected that the final out-turn for 2002 for all compensation measures will amount to €45 million, an increase of 10% on the equivalent figure for 2001 even though the numbers of animals removed as reactors and in depopulations will be down by some 8,000. Therefore, the on-farm market valuation scheme is more costly than the former reactor grant scheme.

I am well aware of the concerns which farmers have in relation to the increases in levies. However, these must be viewed against the background of the current overall budgetary situation, the Exchequer costs of the schemes and the fact that a major part of the expenditure relates to compensation. While the unit cost of the reactors has increased under the on-farm evaluation system, the costs of these schemes will fall if we can sustain the reduction of disease levels achieved over recent years, when total numbers of animals removed under these schemes has fallen from 76,000 in 1999 to an estimated 50,000 in 2002.

Rates of levies will continue to be kept under review on an ongoing basis in the light of compensation costs and the overall budgetary situation. Any significant reduction in compensation costs will obviously facilitate a reduction in rates. I hope the committee can accept this motion.

I thank the Minister for his very comprehensive reply, which will require some study at a later date. I do not want to be overly political but the Minister, in his response today to a Dáil question refers to the overall budgetary situation. I can understand that his Department has been asked to come up with certain funding but I have a certain difficulty with this. I am very conscious of the point the Minister made about people badmouthing the industry. I agree with him 100% and do not want to over-elaborate on the negative aspects. It is a bad time, however, to be putting an increased levy on farmers. It is particularly bad that it is being done in the context of the overall budgetary situation. We are putting this levy on farmers to make up for a shortfall in the Exchequer.

Whether it is car tax, levies on houses or cut-backs in local government funds, the Government would be more honest if it was up-front about its taxation proposals rather than implementing measures by the back door. I am fundamentally opposed to this levy increase, while in a contradictory sense I also appreciate that farmers have to buy into the project. I take it that this motion will be laid before the Houses for ratification but do not know if a debate will actually be allowed. I therefore wish to put a couple of points to the Minister. This eradication scheme has been going on for years and hundreds of millions have been spent on it. If one looked back to the records 20 years ago, one would probably find similar hopeful sentiments being expressed back then by Ministers that the situation would improve. I am concerned by that.

I would like the Minister to elaborate on the Offaly project which deals with the culling of badgers. I do not wish to offend the sensibilities of anybody present but I often think that if St. Patrick were around today he would find it hard to get rid of the snakes because there would be so many people out to protect them. I am not saying the Minister should become St. Joe Walsh and get rid of all the badgers but they are rather expensive pets to have around. I know some people will argue here that the badger is not solely to blame which is true. Deer are also responsible and there are also other aspects to the problem. If my memory serves me correctly, the Minister also mentioned something about a vaccination scheme. I do not know if this has been put into practice and would like the Minister to elaborate on this. Farmers bought into a deal in 1996 whereby levies were reduced. Would the Minister be concerned, therefore, that he is sending out a wrong signal by increasing this levy again to earn €10 million?

I thank the Minister for his detailed presentation on the levies which sets out the background to and reasons for the increases. I understand these, although I still have to disagree with the policy. There were a number of compliments on the Minister's management of the foot and mouth disease crisis, and rightly so. I would suggest that the same level of commitment and effort go into the eradication of TB and, in particular, of brucellosis. I ask the Minister about the distribution of brucellosis nationally. Are there pockets of the country where brucellosis occurs and are there areas that would be considered clean? Could we not tackle the problem in a very targeted way and see if a very proactive stance can be taken to eliminate the disease entirely?

I appreciate that there may be different concerns and difficulties in relation to TB but I would like to hear more about the proposed vaccination programme suggested here and whether any potentially negative consequences could arise from it. How will the vaccine be delivered and monitored and what safeguards will be in place?

I welcome the Minister and the report he has brought before us. I am delighted that the on-farm market evaluation scheme seems to have gone well because there were some doubts about it at the outset. What proportion of the €260 million cost is paid by farmers? How much compensation has been paid to farmers in regard to TB and brucellosis in recent years compared with the levy payments? How has the brucellosis situation evolved in recent years? What is the total annual amount of disease compensation paid to farmers?

I thank the Minister for his report. I would like to get a reaction from him in regard to the eradication of TB because I do not think it is possible, given the wild animals that are present in the countryside. I know that some years ago in Donegal there was a system designed to eradicate badgers, but I do not think it is possible to do so and would like the Minister to comment. Is it his view that it is impossible, with such animals carrying the disease, to eradicate TB?

There is no denying that the increase in the levy is a further hardship upon farmers. The Minister did not say much about the area of research in vaccination, whether of cattle or badgers. I know there are other animals involved as well but the badger seems to be the focus of attention. In relation to the various schemes like the one in east Offaly, I ask the Minister whether any regard is given to the humanitarian aspect of the objectives being set. I understand from talking to people in Offaly that 72 officials have recently been appointed to set wire snares. With the Christmas break approaching, I wonder whether it is taken into account that any animal - it does not have to be a badger - could be caught in a wire snare for a number of days, and whether any regard is given to the method as well as to the objective of the scheme. There should be an urgency about bringing forward vaccination because the barbarity of the scheme is not defensible if there is an alternative.

I apologise to the Minister and the committee for being a little late. My first point is that the proposed increases will hit an industry that has become more and more vulnerable, particularly its smaller sections, something with which I have a difficulty.

Regarding brucellosis, I particularly want to refer to the Border area. I am aware, having been contacted by people in the Six Counties and in the Twenty-six Counties just this side of the Border, that there is concern regarding the spread of brucellosis because of farms straddling the Border. I recently brought to the attention of the Department of Foreign Affairs incursions into the South by the RUC or PSNI as it is now called, the British Army as well as dogs which have apparently been walking through affected areas. This is an ongoing problem. In fairness, the Department came back to me on this issue and I provided it with details. How does the Minister propose to deal with it? Will he reconsider the doubling of the cost factors, given the ongoing crisis facing the farming community, particularly in recent years?

I thank the Minister for his presentation and the clear way in which he set out the challenges we face. None of us is jumping for joy at the prospect of imposing additional levies on the farming community. However, we must be realistic and accept the inevitability of the situation in the current economic climate.

I have one or two questions. The Minister pointed to major improvements in recent years, particularly since 1999, in reducing the incidence of brucellosis and TB. Has there been a change in the operation of the eradication schemes on the ground that the Minister believes has given rise to these improvements? Is there a realistic time frame within which we could aspire to the total eradication of these diseases?

Much has been made of the possible influence of the badger population on the spread of TB. I speak as the owner of a herd in which there has been no incidence of TB in more than 40 years, despite the fact that during the whole of that period there has been a badger sett on our farm holding. Should we not invest more time and energy in examining other approaches such as vaccination or the identification of animals within the badger and deer populations that suffer from this disease? If they have the disease, they are doomed to death anyway. Would it not be a realistic proposition to identify and take them out and vaccinate the remaining animals? Would it be cost effective? It does not seem desirable to continue to impose costly levies on the entire farm population in order to deal with a tiny percentage of farms where these diseases recur.

I thank the Minister for appearing before the committee. While he answered me in the Dáil today, I again plead with him to find some way of exempting those in financial difficulty from having to pay the disease levy. With the drop in farm incomes and the doubling of the levy, farmers are finding it extremely difficult to pay. I ask the Minister to examine this possibility.

The figures show that 99.5% of cattle are free of TB while 99.9% are free of brucellosis. For as long as I can remember, farmers have been testing for TB. Is there a less costly way of testing, perhaps more spot checking rather than what is in place? The annual test is a severe cost on farmers every year. I do not think it would be possible to achieve a disease free status of 100% because, to be honest, there are many other reasons which will not be stated publicly for continuing to test. My question is whether the current regime could be relaxed in some way because it imposes a huge burden on farmers.

I, too, welcome the Minister and the statement he made. Nobody takes pleasure in imposing charges, but reality is reality. The Minister is endeavouring to institute an all-Ireland approach to the control of animal diseases. Will he inform us very briefly what progress has been made in encouraging a more positive outlook towards an all-Ireland approach to the control of animal diseases? Deputy Ferris referred to the cross-Border movement of animals and people, which is a fact of life. Against this background it is important to progress an all-Ireland approach as far as possible. I know the Department is heavily involved in the effort. I would, therefore, like to know how far we have progressed because it is critical that we do this.

I, too, welcome the Minister and his officials. It is good to read that since 1999 there has been a slight decline in the incidence of the diseases that have plagued us for so long. We are not yet 100% disease free. Like one of the previous speakers, I wonder where disease comes from because we have had badgers in our place for many years and have no TB. I do not wish to be repetitive, but is there another approach to the question of eliminating disease? Is vaccination the answer?

I welcome the Minister and his officials to the committee and thank him for his very thorough response. Annual herd testing, particularly for TB, has been part of Irish agriculture for a long time. Have we been using the same technology and the same substances for testing animals since the 1950s right through to the present day? These measures may have contained the disease, but in order to eliminate TB completely is it necessary to look at new or alternative ways of testing?

I apologise for being late. I did not hear the Minister's speech. I understand he is raising extra funds through increased levies. In that context I would like an assurance from him about the animals removed from farmers right across the country but especially in counties Cavan and Monaghan and down into County Meath. The Chairman will be interested in this. These animals were taken by Department officials to companies such as Henshaws Meats which subsequently went into liquidation. Many farmers did not have a clue where these animals were going. They had complete trust in the Minister and his Department that they would be paid. Some of them sold under the valuation scheme on the understanding that, regardless of what they made in the factory, they were guaranteed a certain amount in pounds as it was then.

I would like an assurance from the Minister that these farmers will be paid. Two Ministers of State at his Department assured me on two different occasions before this committee that it was morally necessary to pay them. I understand the Minister's argument that he is not in charge of the meat factories but his personnel organised the tenders for these cattle and took complete control of them from the minute they left farms. I know of cases where they were the last animals ever to leave elderly people's homes. Those people still have the cheque and nothing else. I came across the case of a dealer who is owed £15,000.

I understand the amount owed to all the people affected is about £203,000. I beg the Minister in the supposed goodwill of the Christmas season to ensure that these people receive their money, even if it is some 18 months late. It is my belief that, under the law, they must receive it. It is not in the interests of disease eradication for the Minister and his Department to drag this group through the courts, spending much more money than the £203,000 I understand it would take to deal with this issue. It is a breach of faith with these people. I understand that the Chairman knows of some people in this predicament and he is on record as supporting my stance. I trust he will support me again now because it has gone on too long and is beyond a joke. There are enough tribunals and enough people who have bled the system. Let us deal with this issue once and for all.

I support Deputy Crawford's comments.

Will the Minister comment on how we compare with other European countries in terms of TB and brucellosis? What practices have been applied in those countries that are brucellosis free and can we learn anything from them?

I support Deputy Crawford's comments. This is something for which I fought very hard on the outgoing committee because I am aware of farmers in such a position. A farmer telephoned me the other night who has been in contact with me over the 12 months since this happened. He lost more than £8,000 and he cannot afford that. He was told that the cattle were going to Newgrange Meats but Henshaws, which subsequently went into liquidation, was to pay for them. Is there anything that can be done to allow the Department to reach some resolution with these unfortunate farmers? As Deputy Crawford said, there are not that many of them and it would not break the Department. I appeal to the Minister and his officials to try to resolve this problem.

On TB eradication, none of us wants to see increases in charges, but if the amount of money spent since I was a schoolboy on the eradication of animal diseases had been ploughed back into agriculture and farmers, it would have been money well spent and better spent than what has happened down the years. How much money is spent annually on eradication? Perhaps the Minister mentioned it in his speech but I was not able to follow the full statement.

Does the Minister believe the restriction of movement of cattle at cattle marts will have a significant impact on eradicating disease? Have he and his Department taken any further action on blood sampling in terms of a similar system as that which operates for TB? I know they were examining it but I do not know what progress was made.

I thank the Chairman and members for their observations and consideration of the matter of TB and bovine brucellosis eradication and the efforts over the years. In some ways it has been an unhappy experience because we have sought for five decades to eradicate tuberculosis and brucellosis from the animal herd and have still not achieved our target of full eradication.

On the other hand, we have reduced the incidence to 0.1% and 0.5%, which is critically important to Ireland because we are a major exporting nation and export food to more than 60 countries worldwide. That low incidence allows us to continue to trade with and access some of the most sensitive markets worldwide.

We are staying within the limits under EU regulations and directives, but it is a costly scheme. It costs €67 million per annum, but if other diseases, especially BSE, are taken into account, along with the collection of fallen and casualty animals, the rendering of risk material and the disposal of meat and bonemeal, the cost of containing animal diseases rockets to €216 million. Last year was a special year and was particularly difficult because we were obliged to establish a destruct scheme which cost a couple of hundred million euro.

There has been considerable Exchequer support, and an extra €10 million is being sought today. That is a relatively small percentage of the €216 million, but it is a burden on farmers. Compensation costs alone are about €45 million and they increased sharply following the introduction of on-farm valuation. Many farmers complained that the reactor grant was inadequate, so we introduced on-farm valuation and compensation costs increased enormously as a result. Some people would not consider it unreasonable that farmers would sign up to this scheme and make a reasonable contribution to it.

The Chairman referred to marts and some of the restrictions we instituted because of the phenomenon of cattle doing a bed and breakfast at three, four or five marts. There was no need for that and, if there is a small margin on cattle, as we are told, or sheep for that matter, I do not know how there is a margin for five or six people from the same animal. I accept Deputy Upton's comment that if society and farmers in particular attached the same degree of seriousness to bio-security in their farm operations as they did to foot and mouth disease, then with a more determined effort over a short sharp period, we probably would have better results.

That said, brucellosis is an extremely infectious and contagious disease, as is TB. There is always a significant amount to be learned about them. We all know people in our localities who have had breakdowns despite the fact that they neither bought animals nor traded in them. Yet, they have had a breakdown. Experts have focused, not alone in Ireland but in other EU countries, on wildlife and the extent to which wildlife contributes to the problem. Badgers have been focused on and, when they have been tested, the average level of TB among badgers in Ireland was found to be 20%. That is a huge level of infectivity in any species and is a problem for this species. Badgers with TB have a lingering, slow death as a result. I realise there are concerns about taking out some badgers, the assessment of the extent of the problem, and about animal welfare. However, this is an animal welfare issue because of the level of infectivity and the need to capture the animals. Wire snares are not used; instead, the most humane loop system is used in harmony with the Bern convention. No matter what method is used, these animals must be caught, but it is a humane system. The loops are checked morning and evening and are taken down at weekends so that an animal would not be tied up over an extended period.

However, it is necessary to have this kind of research carried out and the example of east County Offaly has been cited. There were dramatic improvements in the situation in that area where a large number of badgers were taken out. It is traumatic for farmers who have been farming their herds diligently when they abruptly have a breakdown in their herd and that can be traced to a badger sett on the farm or on a neighbouring farm, or perhaps to deer coming in from a wildlife area.

There are many aspects to this and we must be serious about it or it will take a great deal longer to tackle. I introduced a number of measures in 1998 and 1999, such as a pre-movement test. Those additional measures were not warmly welcomed and were barely accepted by the farming community because it was additional pressure and, as it is sometimes called, additional bureaucracy. However, it is showing results and there has been a significant reduction in the number of outbreaks among animals. I hope that continuing with this aggressive attitude to both diseases will see considerable progress. I do not know whether total eradication can be achieved. As Deputy Timmins mentioned, we might have heard the same sort of thing 20 years ago at a meeting such as this. We are going in the right direction and the figures show that we have made considerable progress over recent years. Foot and mouth disease inculcated a more serious approach to animal disease and imposed considerable restrictions on the movement of animals, and those two results have helped us considerably. Members will know that the marts system has tightened up considerably also.

Deputy Michael Moynihan asked whether the technology had changed since the 1950s and whether the vaccine had changed. The vaccine changed about 1988 from Rotterdam tuberculin to Lillstadt tuberculin and this is tested for potency each year. The expert advice to me is that this is the best available and adequate for our requirements.

On the operation of the schemes, Deputy Tom Hayes asked about measures regarding brucellosis and tuberculosis. We have tightened up the existing programme, including on pre-movement for marts. The badger programme is in place and I mentioned the vaccine in that regard. Our experts are working on the vaccine and it will be of considerable benefit to badgers. If we can reduce the 20% figure for infected badgers it would reduce the suffering in the badger population and it would reduce the potential for infectivity in the bovine herd. With regard to deer, there is a much lower level of infectivity and I am told that it is less than 3% for wild deer. That is a significant level but much lower than the badger problem.

Deputy Ferris and Senator Callanan asked about our efforts with regard to Northern Ireland. There is regular liaison, especially regarding animal health. Liaison on that subject is not seen as a predatory activity and there is considerable goodwill with regard to tackling animal disease, and a possibility of having an all-Ireland attitude to that. We are making considerable progress in this regard and there are working groups in operation. There is a commitment that various diseases, including TB and brucellosis, will be addressed on an all-island basis. This was helped, paradoxically, by the foot and mouth disease outbreak and there has been a close working relationship between the two jurisdictions. There was success in avoiding the worst aspects of the disease on the island of Ireland compared to the situation in Britain.

There is no evidence of a spread of disease across the Border or, at the least, my Department can find no such evidence. There is very little brucellosis in counties Louth, Monaghan and Donegal while outbreaks in Cavan and Leitrim have been traced to local incidents and bed and breakfast type operations. TB levels are falling in counties Cavan, Monaghan, Louth and Donegal but we are not complacent. The Border is porous in many ways and we must stick to an all-island strategy to deal with animal health. This will mean that Northern Ireland will have to secure access through the ports and airports there. That creates difficulties because it is helpful to Northern Ireland to be one trading area for beef because there is such demand for it in Britain.

With regard to disease measures put in place in the late 1990s, the pre-movement test was introduced for brucellosis as well as the annual blood testing of all eligible animals, and monthly testing for milk and dairy suppliers. There was a monitoring scheme at meat plants, selective use of skin tests and a more aggressive depopulation policy. The rest period before repopulation was also extended in selected areas. We hope information technology and computerised systems will also be helpful. There is now a good traceability system and that is more advanced, and similar to having passports for animals when they are born. There is now a payment system on premia and we want to marry the two systems with the district veterinary office because the premia payment and the passport system are on one tier while the district veterinary offices are on another. We have a system in place that will be introduced in the first half of next year. At the moment one must go around looking for files in the DVO office. If one has IT and modern technology it should be used to the fullest extent. I hope we can do that by the middle of 2003, but I am awaiting full co-operation from the veterinary profession.

Deputy Timmins and others referred to the fact that this is a bad year for farming, and so it is. It is not getting any better, it is getting colder and we have had an extraordinarily high level of rainfall. However, it is very difficult, if at all possible, to find a good time to introduce a levy. It does not give us any great pleasure to introduce a levy, but under the circumstances we do not have a choice. We spend a fair amount of time in Government looking at ways to ensure that the least well-off get a reasonably fair crack of the whip, having regard to the fact that revenues were down by €1.3 billion. We wanted to give the old age pensioners their €10 and wanted to be as helpful as possible to other sectors. I hope we were as fair as possible. This levy to raise an additional €10 million is reasonable under the circumstances.

Incomes are down this year, and there is no doubt it is a difficult year, but incomes were up in 2001 and the year before, by a total of 39% over the two years. In fairness to everybody, 2001 was an extremely difficult year for many sectors of the economy. Consider our tourism industry, which is important in rural areas as well as elsewhere. I went on many television stations, including Sky, CNN, BBC and ITV, and asked people from other countries not to come to Ireland. They were not welcome here because the risk of them bringing in some contamination was too great. Bed and breakfast establishments, farm guest houses, visitor centres and so on were in a desperate state. I recall Muckross House in Killarney, County Kerry and similar places, contacting me.

They nevertheless did their bit and put out the disinfectant mats and so on. They got no respite or compensation, whereas the farming community, despite all the problems, had a good year and was well supported. In the present situation, it is not unreasonable to ask for a further €10 million for disease containment, on which 90% of the money spent comes from the general tax take.

Deputy Upton asked about the distribution of brucellosis throughout the country. There are black spots in different areas and from time to time we get an upsurge in a particular area. Much of it can be traced to over-trafficking in animals through various marts, holding centres and that type of thing, where there is too much contact with animals and diseases spread. We are trying to eliminate that through the restrictions we have imposed following the foot and mouth disease crisis, and that has contributed to our relative success in recent years.

Deputy Sargent asked about research into vaccination. That is being undertaken and a new vaccine was introduced in 1988, which experts tell me is adequate. There is a substantial veterinary section in my Department and it conducts on-going research. I invite colleagues from time to time to meet these people, and any time anybody wants to visit the Department he or she will be very welcome. In fact, if colleagues visit next week we might have a little drop of something in a bottle as well for when they arrive.

Henshaws was raised and a very reasoned and impassioned case was made by Deputy Crawford and by the Chairman. I have said many times in public and in the Dáil that I do not favour the general taxpayer coming to the rescue of private operators who go into liquidation or go bankrupt because that would allow private operators to take risks way beyond the call of duty if they thought the good old taxpayers would come in and rescue them at any given time. I have great objection to all of this. However, the case of Henshaws is a little bit different to this. The background was that the cattle were brought in under the disease eradication programmes so I am sympathetic to the position of the farmers there. I do not want undue hardship to be caused to individual farmers. There is a legal problem, though, and I have asked for advice from the Attorney General's office. I am seeking to deal with the matter in a sympathetic way, and if I can find a formula that is not in conflict with the liquidation process and the law, I will try to be helpful.

The development of a vaccination for wildlife is on-going. My understanding is that delivery of this vaccine will be by way of bait, similar to the method that was used to eradicate rabies from wildlife in continental Europe. The relevant authorities have been consulted and we are awaiting advice from the various authorities in relation to the consequences.

Deputy Upton asked me about the situation in the EU. It is difficult to obtain comparable data across the EU. Many of the northern European states eradicated TB many decades ago, before the advent of intensive farming and large scale movement. The foot and mouth disease problem showed us that - although we are told that many of these animals were almost worthless - they were travelling from Britain across to Northern Ireland, then into the Republic, then on to France and then on to maybe the Netherlands. There is a huge amount of trafficking in and movement of animals from one location to another and from one farmer to another. The whole operation is more intensive also. Southern member states have fairly significant levels of TB and brucellosis all the time. TB and brucellosis levels are higher in Northern Ireland than they are here. In Britain, reactor numbers and the number of areas involved are both increasing.

It is somewhat more difficult to obtain other comparable figures. New Zealand also has a problem with TB and wildlilfe. It has a high incidence of the disease and possums are posing a problem similar to that posed by badgers in Ireland. This problem relates to bovine herds internationally, apart from those in some northern hemisphere countries in which eradication had been successful prior to intensive farming.

I thank the Chairman and Members for their contributions to this meeting. I will be glad to facilitate any Member who may wish to speak to experts from my Department in greater detail on the more technical aspects with regard to vaccines and other relevant issues.

I thank the Minister. We will take some supplementaries.

The Minister said that 99.5% of cattle are free from TB. In view of the fact that TB infection can survive for a long period, as evidenced by research findings, is it impossible to achieve 100% eradication of TB? Many veterinary practitioners have said that it is an impossible and unattainable target. Is it, in fact, the aim of the Minister and his Department to achieve 100% eradication of the disease?

The Minister spoke of an all-Ireland approach to disease eradication. Is there not an all-Ireland structure in place? If not, would it not be of immense benefit to have such a structure to deal with this problem?

I thank the Minister for his positive comment on the Henshaw issue. However, we have been informed on previous occasions that the Attorney General is looking at the matter. The issue has long passed the "looking at" stage and action is now required.

As someone who has worked closely with Northern Ireland farming organisations and other personnel over many years - I appreciate that the Minister also endeavours to do so - I urge that the closest possible relationship should be maintained between the respective teams of veterinary personnel, especially those working directly on the Border. Any lack of co-ordination in that regard can cause problems.

On the question raised by Deputy Hayes, I have also heard the view expressed by veterinary practitioners that it is not possible to achieve complete eradication of the disease in the State. I would welcome the Minister's comments in that regard.

Before the Minister replies, I thank him for his response in relation to the Henshaw situation and I hope it can be resolved before the end of this year.

It is important to bear in mind that the incidence of bovine TB in this country is at a very low level, which allows us to trade normally. As to the possibility of achieving complete eradication, that will be extremely difficult. I suspect that if countries which have disease free status were, like Ireland, to test every animal in every herd at least once a year, they might also find some residue of the disease. We operate a comprehensive system of annual testing. If a herd goes down on that test, it is subject to ongoing re-testing.

Having regard to the wildlife problem, a high level of TB incidence in badgers means it will be extremely difficult to achieve 100% eradication of the disease. Furthermore, it is difficult to achieve 100% accuracy in any field test, having regard to limited facilities, such as cattle crushes, on many farms. However, while 100% success may be a very difficult target, we must seek to attain it. Perhaps a recent slogan, "A lot done, more to do", is applicable in this context.

That slogan will come back to haunt the Minister.

More levies.

The Minister without interruption, please.

With regard to an all-Ireland structure, good progress was being made in that regard under the Good Friday Agreement, but that is now somewhat in abeyance. The structure included a working group system and I met the then Minister for Agriculture in Northern Ireland, Ms Bríd Rodgers, on a regular basis. I hope that structure will be restored and that there will be regular meetings and ongoing interaction between senior officials of both Departments with a view to tackling similar problems on the island of Ireland

As Deputy Crawford will be aware, there is substantial cross-Border trade in agricultural produce, including milk supplies from Northern Ireland to Lakeland Dairies, Abbot Laboratories and the Town of Monaghan Co-op. There is also substantial cross-Border trade in cattle and animal feed supplies. There is great scope for making progress in that area.

I am trying to be helpful in regard to Henshaws and I hope I will be successful. However, it must not be seen as a precedent. I strongly disapprove of the use of taxpayers' money to bail out companies which have been careless, stupid or mercenary in their use of other people's money. While I cannot condone any such attitude, the Henshaw situation was somewhat different and I am trying to find a formula through which I can be helpful.

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