The main purpose of the Bill is to give legal effect to a decision taken last year to dissolve An Chomhairle Olla. The Bill also provides for the continued implementation by my Department of the statutory functions of the Wool Marketing Act, 1968, involving the registration and licensing of wool buyers' and wool exporters' premises, respectively.
The 1968 Act which provided for the establishment of An Chomhairle Olla came about as a direct result of the recommendations of the Committee on Wool Improvements who reported their findings in 1966.
An Chomhairle's main functions were to advise the Minister for Agriculture in relation to the fixing of grades of wool, apply standards in relation to the registration for the register of buyers of wool and, in consultation with the Minister, to fix a code of practice to be observed by wool exporters. An Chomhairle were funded by an annual grant-in-aid, provided by the Oireachtas, which in the last three years averaged £100,000 per annum. Membership comprised a chairman and 11 other members, representative of the trade and producers. An Chomhairle had a staff of five, four of whom were seconded from, and paid by, my Department. The remaining member, a specialist in wool grading, was employed directly by An Chomhairle on a daily fee paid basis.
Before An Chomhairle were established, no standard system, whereby wool was purchased on a graded basis, existed. Indeed, there were no set standards in respect of buyers' or exporters' premises where wool was stored prior to export. The image of Irish wool, especially on export markets, needed to be improved. The main provisions of the 1968 Act, together with the principal related functions of An Chomhairle, provided for the proper grading and presentation of wool for sale, the registration of wool buyers and the licensing of wool exporters. On the recommendations of An Chomhairle, regulations were made by the Minister for Agriculture setting out minimum standards in respect of these matters. These regulations are still in being and will continue to be enforced by my Department. The inspection of buyers' and exporters' premises heretofore carried out by officers of my Department on behalf of An Chomhairle to ensure that standards are maintained, will be continued on the same basis as heretofore.
As part of the measures taken to reduce Exchequer expenditure, the Government decided, in February 1983, to dissolve An Chomhairle. As I emphasised in the Dáil, and I repeat here today, this decision should not be interpreted as a reflection on An Chomhairle, the marketing of wool is now in a much healthier state. Irish wool enjoys a very high reputation on world markets and commands a higher price per lb. on these markets than comparable types of New Zealand and British wools.
This year, especially, is turning out to be a good one for producers. Because of the exceptionally fine weather, the quality of wool coming on the market is very high. In the lowland areas, producers have sold their wool earlier than in previous years and it is estimated that approximately 65 per cent of the lowland clip has been disposed of at prices which are 10p-12p per lb. higher than last year.
Export of wool has also continued at an accelerated rate.
Wool from the hill areas, particularly along the western seaboard, has just commenced to come on the market and again, because of the high prices prevailing, producers are disposing of their wool quickly. This, of course, should be the practice whenever possible. Wool not properly stored will deteriorate and since many producers do not have the facilities to store wool for any considerable time the aim should be to dispose of their wool as early as possible into merchant stores where suitable facilities are available.
Total wool production in this country amounts to 13 million lb. per annum made up to 5.2 million lb. Galway, 3.7 million lb. Blackface Mountain, 2.9 million lb. Cheviot and halfbred and 1.2 million lb. of other types. The value of the national clip to producers is estimated to be worth in excess of £11 million a year — a significant contribution to farm incomes. Over 70 per cent of the Irish clip is exported, 65 per cent of which goes to Great Britain. The percentage of wool exported to Great Britain has been declining over the years as new markets were opened up, particularly in Europe and Eastern bloc countries. Exports to France and Belgium have shown significant increases. Czechoslavakia and Poland have been the main outlets in Eastern Europe but exports to that area have declined in recent years.
The EEC is not self-sufficient in the production of sheep meat and with the application of the CAP to that commodity I anticipate a substantial increase in our national flock, with a consequential increase in wool production.
Taking everything into account, I am satisfied that the wool industry has been placed on a sound footing and I am confident that the 80 licensed exporters will continue to seek out new markets and that the 306 registered buyers can effectively handle any increase in production. I am also confident that producers will continue to provide the high quality product which the market place demands. However, continuation of the successes already achieved will, of course, depend on the willingness of both traders and producers to observe the statutory requirements. In this connection I am fully satisfied that in co-operation with my Department, traders and producers can maintain progress.
Nevertheless, whilst the budget for An Chomhairle was a relatively modest one, I feel that the Members of the House will appreciate that, in the current financial situation, any scope for cutting back on Exchequer expenditure cannot be overlooked. In recent years, a high proportion of An Chomhairle's grant was spent in highlighting the need for clean wool presentation by means of fleece displays; in conducting training courses in wool grading and sheep shearing and in subsidising sheep shearing competitions at shows throughout the country. Expenditure was also incurred on press advertisements and display posters and promoting wool end-products through fashion shows, etc. All of these activities, whilst useful, are minor in the context of the Wool Marketing Act. The main intentions of the Act and the corresponding principal functions of An Chomhairle, have long since been implemented, and expenditure on An Chomhairle's recent activities cannot be justified in present circumstances.
The monitoring of world trends is, no doubt, an essential service to the wool industry. It provides up-to-date information on trends and prices and guarantees a fair return to producers in line with world trends. The market intelligence service will, therefore, be continued on a regular basis by my Department — as, indeed, it has been since An Chomhairle ceased to function.
The four officers seconded from my Department have returned and three of them have been assigned to other duties. The fourth is engaged in sheep breeding duties and is also assisting in implementing the statutory functions of the Act. No additional expenditure has arisen for my Department. Indeed, staff savings have been achieved through the more effective use of the returned staff. The wool grader employed by An Chomhairle has been paid his statutory redundancy entitlements and I understand that further claims he has made are under negotiament tions. Also, I am informed that he has secured outside employment in the industry.
The Bill also contains safeguard clauses in regard to creditors and other claimants of An Chomhairle. These are included in Article 3 which provides, in general, that any outstanding debts will be discharged by the Minister for Agriculture, and that every contract entered into or in force between An Chomhairle and any person, shall continue in the name of the Minister.
Article 4 provides that a final account of all moneys received and expended by An Chomhairle from 1 January 1983 to the day on which the last liabilities are discharged, shall be prepared for audit by the Comptroller and Auditor General prior to its presentation to both Houses of the Oireachtas.
The Bill, therefore, is a relatively straightforward one. I commend it to the House and am confident it will secure approval.
