The Minister of State at the Department of Agriculture and Food, Deputy Treacy and his officials have arrived to make a presentation on the Bovine Diseases (Levies) Regulations 2003. I welcome the Minister of State.
Bovine Diseases (Levies) Regulations: Ministerial Presentation.
It is a great honour to be present.
It is a great honour to have the Minister of State in attendance. The Bovine Diseases (Levies) Regulations 2003 have been referred by both Dáil Éireann and Seanad Éireann to the Joint Committee on Agriculture and Food for consideration in accordance with paragraph 2 of the orders of reference of the committee which, not later than 18 December 2003, shall send a message to Dáil Éireann and to Seanad Éireann that it has considered the regulations. I would like to welcome the Minister of State at the Department of Agriculture and Food, Deputy Treacy, to the meeting and ask him to make his opening remarks.
A Chathaoirligh is a chomhtheachtaí, is cúis mór áthas dom a bheith anseo in bhur measc chun freastail ar an rún an-tábhachtach seo. Táim an-sásta go bhfuil mé féin agus ár n-oifigí sinsear anseo le chéile chun freastail ar an gcoiste an-tábhachtach talmhaíochta seo.
Chairman and colleagues, the measure before us relates to the approval by both Houses of the Oireachtas of draft regulations entitled the Bovine Diseases (Levies) Regulations 2003, copies of which were laid before the Dáil and Seanad Éireann on 9 December 2003.
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 2004, as follows: 0.75 cent per gallon of milk received for processing; and €3.80 per animal slaughtered, or exported live.
These amounts represent reductions of 25% under both headings. 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 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 they may not be made until a resolution approving the draft has been passed by both Houses of Oireachtas Éireann.
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 have succeeded in maintaining 99.5% of cattle free of TB and 99.9% free from brucellosis. On trade, the position is that 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 - the testing regime may be reduced where the herd incidence is below that level. As the incidence of TB here is above that level, Ireland is required by European law 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 also various measures to control and eradicate brucellosis.
On bovine 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 from different farms. Since then, there has been a steady decline in the number of reactors and this year it is expected that reactor numbers will be less than 29,000 animals. 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.
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. From 1996 onwards, a range of additional measures was introduced to address the deteriorating situation. Apart from this, we have available also a good traceability system, mapping facilities for identifying contiguous holdings and for the registration of dealers, all of which contribute to disease containment.
As a result of the foregoing, the situation has improved very significantly in recent years. For example, the number of new restrictions to 1 November this year was 270, with 821 laboratory positive animals. This represents a significant improvement on the recent past. 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, provided all stakeholders work closely and vigilantly together.
Revised arrangements for the TB and brucellosis eradication schemes were introduced from 1996, following agreement with the farming bodies. Under the new arrangements, responsibility for arranging and paying for the first clear herd test each year was devolved to farmers. In recognition of this, the disease levies were reduced and it was agreed that the levies would contribute some €10 million a year, or 50% of compensation costs during the 1996 to 1999 period. For a variety of reasons, the levies contributions fell short of the 50% target. The main reason for the imbalance was that compensation costs increased in 1998 and 1999, due to higher reactor numbers and repopulations, without an increase in levy rates. While there was no formal agreement, as regards the ratio between levies and compensation after 1999, levy receipts accounted for some 25 per cent of compensation payments to farmers for the 2000 to 2002 period. It will be recalled that disease levies were doubled last year, in the context of higher costs and on the recommendation of the Estimates Review Committee. This increase was the subject of detailed discussions in the negotiations on Sustaining Progress and the agreement that followed contained commitments the Government would continue measures to reduce disease levels and to review rates, from 1 January 2004. We have undertaken a review of rates, in light of the on-going improvements in TB-brucellosis levels and the consequential reduced costs of the schemes. In light of this, it is now proposed to reduce rates by 25% from 1 January 2004, which will be worth a saving of €5 million to farmers in a full year.
I am well aware of the concerns that farming bodies have regarding the rates of disease levies. However they have to be viewed against the background of the overall budgetary situation, the Exchequer costs of the schemes, the fact that a major part of expenditure relates to compensation and that the yield from the proposed rates will represent approximately 50% of projected costs of compensation payments in 2004. Costs of these schemes will fall, if we can sustain the reduction in disease levels achieved during recent years, when total numbers of animals removed under these schemes have fallen from 76,000 animals in 1999 to an estimated 45,000 animals this year.
Rates of levies will continue to be kept under review on an on-going basis, in light of overall compensation costs and the budgetary situation. Any significant reduction in compensation costs would obviously facilitate a reduction in rates. Based on the foregoing, I hope the committee can accept the motion before it and allow the Department of Agriculture and Food to proceed with the proposed reductions, as and from 1 January 2004.
I thank the Minister and his officials for appearing before the committee, however, he will be aware that the doubling of the levies last year was very contentious and moreover what it signalled caused great difficulties in farming circles. In the overall scheme of things it is not much. Since the Estimates were published we had an additional €200 million tax take from the consumer and an enhanced return of another €200 million from the National Treasury Agency. I regret that the Government did not see fit to reverse what was a bad decision. I will oppose this motion, as it does not go far enough. The charge on the gallon of milk should be 50 cent and on the slaughtered or export animal should be in the region of €2.54, approximately the levy before it was doubled.
I regret the Minister did not go far enough. Farmers believe that the commitment given has not been adhered to. Will the Minister confirm the commitment given in Sustaining Progress? The Fine Gael Party is not in a position to call a vote on this issue today, but when it comes before the Dáil, we will oppose the motion on the basis that it does not go far enough
I thank the Minister for presenting this information today. I have a number of queries. I agree with Deputy Timmins, as my understanding from last year was that the levies would, in fact, be removed. I am intrigued by the comment that " . . . it is now proposed to reduce rates by 25% . . . which will be worth some €5 million for farmers . . . " That is a very effective way of putting a negative statement. It is measuring the reduction and calling it an addition as far as farmers are concerned, which is a clever way of setting out that levies will still be costing them a significant amount of money. In the overall, it would have cost very little extra to remove the levies. I too will be opposing this motion.
I agree with the other speakers and I will be opposing this motion in the Chamber. I think the levies should be set at what they were prior to being doubled.
I welcome the Minister to the committee. I welcome the reduction in the levies, although we all wish that levies would be wiped out altogether. There are positive points in the Minister's statement, especially the reduction in the incidence of disease. It is essential to protect the cattle industry. I am delighted with the reduced number of diseased animals and that we are going in the right direction. I hope that we will be able to get rid of levies in the coming years.
Levies are an added cost to farmers but the protection of the cattle industry is of vital importance, and there is no doubt but that we are moving in the right direction. I welcome the measures being taken and I congratulate the Minister on this report.
I concur with my colleague, Deputy Wilkinson.
I thank all members for their contributions. This is a good news story and in this season of goodwill, I expected it to receive a warm welcome. Sustaining Progress states:
"Continuing measures to reduce disease levels in the national herd.
Value for money reviews of expenditure will be carried out during 2003 with a view to identifying savings while protecting consumer health, animal health and animal welfare and complying with statutory requirements. In light of these efficiencies, disease levies will be reviewed from 1 January 2004. Programmes will be pursued to eradicate brucellosis, to further reduce the incidence of bovine tuberculosis and to apply all control measures fully and effectively to further reduce the incidence of BSE."
This significant industry is worth €14 billion to the economy. Ireland exports to 60 countries and it must be ensured all the stakeholders make a contribution. The Department has an outstanding, professional operation and we are European leaders in the management of eradication programmes. We are proud of the progress that has been made. It is in everybody's interest that we should work together to ensure there is a positive, continuous progress with a goal of complete eradication some day if we reach Utopia.
We look forward to others supporting us.
I extend good wishes to the Chairman, members and the committee staff. I thank everybody for their co-operation during the past year. The Minister, the Minister of State, Deputy Aylward, myself and our teams look forward to working with the committee in the year ahead.