I have some brief remarks to make on these two regulations introduced by the Minister today which propose a reduction of inspection fees from 75p per pig to 50p. This goes some way towards easing the difficulties currently being experienced in the pig and bacon industry both at primary production level and at processing level.
There is a great need to rationalise the entire bacon and pig industry at this time and reference to this was made by the Minister. It is true that the producers at their level have responded quite remarkably to achieving greater efficiency and they must be helped further to achieve even greater efficiency by feed rations being made available to them at more competitive prices. Obviously in pig production feed ration prices are a major element of cost and would significantly affect the lack of margin that may exist in a pig enterprise. In recent times pig producers have been going through a difficult time and the margins have been pretty slender. This has been an area of agricultural activity where only absolute efficiency has enabled people to survive.
An important aspect in the pig industry, as in the case of the whole agricultural spectrum, is improvement in quality. At present, approximately 80 per cent of our pigmeat is consumed on the home market and by and large any expansion or development would have to come from the export side. Therefore, we must ensure that we produce to the requirement of that export market wherever it might be. We have to find that market and produce to the requirement of that market. Regardless of what we might think of the product we produce, if housewives in the United Kingdom or in any European country want a particular type of rasher, they are entitled to it. We must produce to meet that sort of need as well as keeping an eye on the home market to ensure that we develop even further the potential that exists there. Essentially, we are relying on massive development of the pig industry on the international scene. Therefore, we look to the United States and other countries and we have to produce to meet their requirements. We are not producing the products required by the United States market. I know the Minister and others concerned hope that we will work to that end and produce precisely to those market requirements.
In recent years there has been a dramatic change in the pig producing sector. Pig production is now becoming more than a large operation carried out by far fewer people than heretofore. In relation to the margins I referred to there is no way the person keeping a few pigs, as was traditional in times gone by could survive now from an economic point of view. Therefore, we are talking about pretty efficient operations at production level. A high level of efficiency has been achieved by the limited number of persons who are in pig production in a serious manner. It is incumbent upon us to ensure that at processing level — bacon factory level, processing factory level and so on — efficiency matches the efficiency of the primary producer and efficiency in marketing is also brought up to the proper level.
There are quite a number of imports into this country at present. People get quite excited about such things from time to time. The only way to counteract and to combat that situation with regard to pig meat is to make sure that we are producing the sort of commodity the Irish housewife wants. That is one way of ensuring that imports do not become a major source of concern to us.
In the broader sense there is, of course, a continuing urgency for us to be more aware of the need to produce a better standard of food. The purity of Irish foodstuffs is not exploited and we should develop that as we have many advantages in this area at present. Because of the non-use of antibiotics and the low level of pollution in Ireland we should be able to sell our message and promote our Irish food industry in a better way, not just from an export point of view but also from an import point of view.
As has been repeatedly said by many people, a high proportion of the foodstuffs we are importing could be substituted by home produced foods. This applies right across the spectrum and one is talking about perhaps a couple of hundred million pounds out of a total food import bill of £900 million. Much could be done to help our balance of payments and also to create employment. There is a massive area which must be examined in greater depth. I know the Minister of State who has responsibility for the food industry has bent his efforts in recent times in this direction. It is a very vital area and the progress he has made so far is very encouraging.
There is a long way to go. We must raise our standards to the requirements of the United States and other valuable markets. We must be very conscious of the necessity, not just the desirability, of doing that. It is absolutely essential. There are a number of definite possibilities in the pipeline which will materialise, I hope, in 1987 in the whole area of new market potential and so on.
There is still a substantial amount of money outstanding which has not been paid for veterinary inspections. This is a major weakness in so far as those who are paying the levy of 50p, as proposed in these regulations, are concerned. This is something that needs to be corrected because, so far as I can recollect, £1.3 million has not been collected. There are arrears of that amount. That is quite serious. The figure was much higher before the levy was reduced from £1.10 per pig to 75p per pig. That helped to rectify the problem to a large degree but a number of people in the business are not paying this levy. I urge the Minister to make sure that the appropriate legislation is introduced at the earliest stage possible so that the levy now set at the level of 50p per pig will apply right across the board. If it does not, it loses its meaning and cause much friction and frustration on the part of those persons who pay it.
I compliment the Minister on taking steps to bring down the inspection costs from the 75p to 50p. This is very much needed in the industry. It is the type of thing that is badly needed in the overall farming scene as well but particularly so in the pig industry. It is worthy of the full support of this House.