I move:
That Seanad Éireann takes note of Report No. 22 of the Joint Committee on the Secondary Legislation of the European Communities: The Use of Hormones as Growth Promoters.
I would like to compliment the Joint Committee on the production of this report on the use of hormones as growth promoters. As I said earlier, it might be a little out of date but I do not think that is important because the question of hormones is still very topical. We know the situation as it now exists but for a few moments perhaps we could usefully reflect on what has happened.
This report deals with the use as growth promoters of the natural hormones as they occur in nature as distinct from synthetically produced hormones. We talk about oestradiol 17B, testosterone and progesterone and the artificial hormone trunbolone and zeranol. There is, and the report makes it clear, a precise distinction between the two types of hormones, the natural hormones and the synthetic ones. It is true that hormones have had a rather checkered history since 1980. At that time the EC Commission proposed a ban on all hormone substances. However, some member states called for the substances to be authorised and in 1981 a scientific committee or group was established to report on the matter. In the meantime, member states were allowed to retain their existing national measures while waiting on the report of the scientific group. The scientific group reported that the natural hormones would not present any harmful effects to consumer health when used under appropriate conditions and that further investigation was needed on the artificial hormones and strict controls were essential. In other words the scientific group stated positively that the natural hormones would not present any harmful effects to consumer health when used under appropriate conditions but that further investigation was needed with regard to the synthetic or artificially produced products.
In June 1984, based on this scientific evidence, the Commission proposed that the natural hormones be allowed and that the artificial or synthetic hormones or substances be banned pending further information. However, consumer pressure against the use of hormones mounted and in October 1985 the European Parliament passed a resolution that they be banned and on 30 October the Commission, in spite of the evidence of its scientific committees, which it had accepted as valid, reverted to its previous position and proposed a total ban.
Approximately 2.5 million hormones implants are administered each year in this country. They increase the weight of the animal; they improve the fat-lean ratio of the meat and the animals feed efficiency, in other words the animal eats a greater amount of food and utilises that food more efficiently and, therefore, there is a greater output of beef or whatever.
It is now estimated that the value of the implants to the beef industry is approximately £40 million per annum. Some people would suggest that the figure is significantly higher, that it could be as much as double that figure but it is in any event at least £40 million annually. That is a very sizeable and significant slice of any sort of industry's margin. Profits in the beef industry these days are fairly minimal. A more appropriate word to use is a fair slice of the margins that exist and this margin in beef is narrowing very rapidly.
Regardless of the economic or scientific arguments, consumer concern with regard to the use of hormones has grown very substantially in recent times and, indeed, continues to grow. The Joint Committee have put forward the view that a controlled use of natural hormones will be in the best interest of the consumers and fears that a total ban will lead to widespread blackmarketeering as has been the experience of a number of European countries. In other words, if one was to ban hormones in toto, it would lead to a very serious abuse, mischievous and indeed possibly dangerous abuse of the system. With regard to that, the committee welcomed the recent introduction of certain measures that were envisaged in connection with the usage of hormones.
Looking at the whole matter objectively, the Joint Committee feel that as a major beef exporter we have got to take account of the requirements of our customers. We have stated this earlier in the previous discussion which we have had in relation to our processing market generally. The Joint Committee are consistent in putting forward that point of view very positively and firmly in this report.
Therefore, to be objective about it, a total ban is indeed now a very real possibility. It was some time ago a real possibility. It is only the United Kingdom that is opposing the measures in the Council of Ministers.
If and when the ban is introduced there are certain long term advantages which might apply. For example — this is important — Irish meat could build on its present quality image a market for a non-hormone treated product. No beef would be hormone-free. It is important that we turn to our advantage the fact that we do not have the availability of hormones for use and that we make a virtue of the fact that we cannot use hormones and that we sell our product as a non-treated product. Linking this very clearly and closely with the whole concept of green Ireland and "food from Ireland", et cetera we could give a great boost to our promotional efforts not alone in Europe but elsewhere where a consciousness and awareness of this very important subject is very strong.
There is also the situation where a reduced use of hormones throughout the EC would have an effect on supplies and would reduce supplies and would bring a better market balance. Hopefully, this would lead to higher prices for our beef and live animals.
When the ban is introduced, it is vital that it be stringently enforced throughout the community. I do not mean throughout this community of ours in Ireland but throughout the entire EC community. It should apply to imports from third countries. If we do not approach it on that basis we will come badly out of the situation. People could argue and debate this matter interminably but there is evidence which was submitted to the EC by a committee that was asked to investigate the matter that, administered under appropriate conditions, hormones were not injurious. We have to face reality and recognise that the anti-hormone lobby throughout Europe and elsewhere has succeeded in their opposition to the use of hormones. At the same time, we must be aware that there is a very significant amount that must now be made up in some other way to beef producers to counteract the massive losses that there are. Greater efficiency through better breeds, better and greater margins hopefully in the whole industry will be essential because the sort of money that we are talking about, whether it is £40 million or £50 million, is very substantial. There is no way that the beef industry at present can sustain that kind of loss unless there are compensating factors.
It would be remiss of any of us not in the first instance to very warmly congratulate the Joint Committee on such an excellent, in-depth document as they have produced here, and, indeed, also the various contributors to the Joint Committee who were very much appreciated by the committee. The sub-committee had written an oral submission from the ICOS, ACOT the IFA and the Federation of Irish Chemical Industries. Written submissions were received from the Department of Agriculture, the Consumers Association of Ireland and the Irish Organic Farmers' and Growers' Association. There was also a submission from the ICMSA. The committee expressed their appreciation to these bodies.
I would also like to reflect, through the committee, our warm appreciation for the valuable input, which is outlined in the document, from these various organisations. I do not propose to go through them except to mention one or two views of the joint committee which are worthy of reference.
As I said — and the committee state it here in their document — the hormones question has proved a very contentious issue and provoked strong reaction among producers and consumers. In their consideration of this matter the Joint Committee felt that the protection of the consumer must be the first priority. The question arises, however, as to how the interests of the consumer are best served.
Reference is made to the question of natural hormones. The committee could not accept that there was any valid argument for the banning of these substances. In fact, they occurred naturally in the animals and they were produced daily by the human body — as is shown in tables set out in the report — and are consumed daily in a variety of foodstuffs. In fact, it is ironic that consumers in Germany, where the demand has been strong for a total ban on the use of hormones, actually have a higher intake of hormones than have their Irish counterparts. This is explained by the fact that in Germany there is only 2 per cent approximately of the beef animals implanted with hormones. It is mostly bull beef that is consumed in Germany. That explains why the human consumption of hormones is so much higher than it would be in a country like Ireland where we would have treated beef.
Reference is made to appendix 2 which states that unimplanted bull beef, which is mainly consumed in Germany, can actually have a higher level of hormones than implanted steer beef which is the main category of beef eaten in Ireland. Bull beef in Germany has a higher hormonal content than the implanted steer in Ireland. The artificial hormones are a diferent kettle of fish. Reference is made to them by the committee. They say that as regards artificial hormones, An Foras Talúntais have informed the committee that the available toxicological data indicates that they are of equivalent or less toxicity than the naturally occurring steroid hormones. However, as long as the slightest doubt as to their absolute safety remains the joint committee felt that the substances should not be used. This is a very responsible attitude to them. Once the slightest doubt at all is there, they felt that the substances should not be used.
It has been argued that no evidence has been produced to show that the substances, when properly used, are harmful and, therefore, a ban is premature considering the low risk as against the economic benefits which can be obtained. The Joint Committee, however, would agree with the retort to this proposition that, as it is the consumer who takes the risk and the producer who obtains the benefit, it is not acceptable. That is being very logical about it. The committee's view is worthy of further mention. They felt that the question of control is a key to the whole issue. In that regard the committee welcomed the introduction of different regulations with regard to control. There are many other views expressed by the committee, but I do not intend to delay on them.
The committee notwithstanding these various other arguments, points and positions held with regard to hormones, readily accept that in the final analysis the consumer will have the last word. No matter what scientific or economic arguments are advanced, if the consumer demands unimplanted meat, this wish must be catered for. The strength of this consumer demand is obvious when one considers the resolutions which are set out here and the fact that the Commission moved from a position of allowing restricted use of natural hormones in June 1984, to proposing a complete ban on them in October 1985 in spite of the evidence of scientific committees which they had accepted as valid. A total ban is a real possibility in the near future. The committee said that the Minister for Agriculture had stated that he is prepared to accept the ban if that is the wish of his colleagues in the Council. I will quote from a parliamentary reply from the Minister to a question raised in the Dáil on 26 November 1985, Volume 362, which stated:
Ideally, any decision in this matter should be based on a scientific asessment of the effects of the use of the hormones. However, this country as a major beef exporter must also take account of the views and requirements of our customers abroad if we wish to continue to export to them. In this connection it has been recognised that consumers in some member states have become increasingly concerned about the use of hormone implants in livestock production and that certain member states have in fact already prohibited their use. This has serious implications for our trade with those countries even though there is at the present time no scientific evidence that the five types of hormones in use, particularly the three natural ones, have harmful effects on human health.
The only country that stands against that position is the United Kingdom. I believe that all the evidence— and there is another lengthy document prepared by An Foras Talúntais and its Grange Dunsinea Research Centre on the subject under discussion — reiterates and reaffirms much of what I have mentioned and what is contained in the report. Basically, it states that there is a massive amount of gain to the beef producer by the use of hormones. This is very noticeable from the various trials that have been carried out on farms and in research conditions. It also makes the point quite validly and clearly about the human preference. One could speak at great length on the economic advantages of using hormones but it is futile and irrelevant to do so at this time, apart from establishing clearly that producers of beef are going to be at a significant a loss by not being able to resort to hormonal use in the future. There will be certain provision for therapeutic use of hormones and that will have limited value from a beef-producing point of view. The consumers of Ireland, who are very important to us in the beef-producing world and the consumers in Britain and elsewhere, will in the future have beef that is not treated with hormones. Coupling that with the whole environmental aspect of this country and purity of our product, we can be extremely competitive. On the Dublin market, on the London market, on the Tokyo market or any other market one likes to think about, we can justifably say that we have a product that is inferior to none. We would have a very superior product. One has to be responsible and state that the withdrawal of the use of natural hormones will mean a greater proportion of fat to lean in the meat. It is going to change the fat-lean meat ratio. That is the choice and, as a nation, we are correct in giving the consumers what they want. I would envisage a situation where, when society and the market are more enlightened, there could well be a tolerance of the use in the future of natural hormones. It is evident that in the foreseeable future, the consumer wants beef that is not treated with hormones, either natural or synthetic. That is the beef we must supply to those markets.