I move:
That Seanad Éireann condemns the Government's neglect of the cattle and beef industry; calls on the Minister for Agriculture, Food and Forestry to secure the restoration in full of export refunds; and calls on him to fulfil his long standing commitment to institute a package of measures to sustain the sector in the face of the deepening crisis in the beef sector.
I appeal to the House to adopt this motion and to reject amendment No. 1 in the name of the Leader of the House which reads:
To delete all words after "That" and substitute the following: "Seanad Éireann endorses the measures which have already been taken by the Minister for Agriculture, Food and Forestry to address the difficulties being experienced by beef producers, commends efforts by the Minister to secure a full restoration of export refunds and welcomes the measures contained in the Structural Fund Food Sub-Programme and in the recent budget to improve the competitiveness of the beef industry."
Is the other side of the House serious about this? A headline in the Farmers' Journal of 6 February 1996 referred to “special breed premium shocks”, another headline on 24 February spoke of a “crunch approaching on beef” and a further headline of 10 March refers to the “beef crisis deepening”. As these matters are very serious for the beef industry, I fail to see how the other side expects its amendment to be accepted.
Since last autumn export funds have been cut by 35 per cent with devastating results for cattle farmers. Cattle bought last September at 106p and 107p per lb. are being sold at 98p per lb. After months of winter feeding this represents a loss of up to £70 per head of cattle. Figures from Teagasc show that a price of 105p or 106p is required to break even. To make a profit of £30 per head, farmers would need to get approximately 109p per lb. As late as last Monday I took bullocks to Galtee Meats in Charleville and was told I would get only 98p per lb. I was very bitter about this. I am sure that many farmers who have suffered losses of this kind are nearly suicidal. To spread this loss over the spring at £70 per head on 460,000 steers would amount to £32 million, a staggering figure, and this assumes that situation does not get worse.
There is no prospect of matters getting any better, indeed they will probably get worse. Farmers have held back stock hoping that matters will improve, and there is now a glut of cattle that will have to be sent to mart. With lower export funds in operation and no competition from the live trade, there are realistic fears that prices will fall even further.
The Minister has political responsibility for this calamity. He is out of touch with what is happening in Brussels and out of tune with how business is done there. His eye is off the ball. He was repeatedly warned of the effect the successive reductions in export refunds would have on the price of cattle but he ignored it. According to the Farmers' Journal of 28 January 1995, bullocks were quoted at 107p per lb. They are now quoted at 98p per lb. A bullock at 107p per lb. last year would have made £900, whereas now a similar bullock at 98p per lb. will only make £824. This represents a loss of £1,520 on 20 cattle and a loss of £3,040 on 40 cattle.
This illustrates what farmers have lost to date. Would any other section of the community lose such money? Yet we are now expected to pay levies for the beef industry. This is a burden on the farmers. The Government could make other sections liable, but it is the farmers who will be made to pay. The Minister is responsible for this.
This year prices came down. In January prices were 100p per lb.; they are now 98p per lb. In March 1995 prices were 109p per lb. A bullock sold at 109p per lb. would have made £900 last year; this year the same bullock will make £809, a loss of £91, or £1,820 on 20 cattle or £3,040 on 40 cattle. These are the kind of losses farmers are enduring during the Minister's stewardship.
Under parliamentary privilege, the Minister launched an attack in the Dáil on the largest participant in the Irish beef industry. This attack, which the Minister was not prepared to repeat outside the House and which he has been unable to support, is outrageous. In attacking Mr. Goodman, he has deliberately and unnecessarily undermined the entire beef sector.
The attack by the Minister on Mr. Goodman was, perhaps, most notable for its timing. It coincided with a period of growing embarrassment over the Minister's handling of the beef fine. From last autumn he repeatedly made it known that the fine could be negotiated downwards to £50 million. It has become apparent that this is not possible. The Minister's deteriorating relationship with the EU Agriculture Commissioner and with other officials has placed him in a dilemma. If it was possible to reduce the fine, as he claimed months ago, this is not the position now.
There are serious political questions to be answered by the Minister as to how and why relations with the EU Commission on this and other issues have deteriorated. Clearly his relations with the Commission have not been helped by the series of attacks he has made on it over the last few months on a number of issues — once on the Agriculture Commissioner at the Berlin Food Fair. This attack, with other comments he made, have been badly received by the Commission. If the Minister is in a hole it is one of his own making.
Given this, it is possible to see the context of the Minister's attack on Mr. Goodman. It reveals that the Minister is unable to handle his own business and is searching desperately for a scapegoat. The farming organisations are disappointed with the Minister's attack on Mr. Goodman. My colleague, Senator Quinn, who is not in the House, said last week when speaking on the bovine disease legislation:
I would like to address directly a remark made in the other House last week by the Minister for Agriculture, Food and Forestry when he said he would shed no tears if Larry Goodman left the industry.
Senator Quinn, who is very much involved in the retail business, said
Let me speak from the experience of a major buyer of Irish beef. As one who is part of a European group and who has introduced supermarket groups right across Europe to Irish suppliers of beef in both those capacities, I would be very sorry indeed to see Larry Goodman leave the Irish beef industry.
He said that in his experience and in the experience of his European colleagues, Mr. Goodman's company provides a level of professionalism and an ability to address the concerns of the customer that is quite exceptional in industry. He said that nobody likes irregularities. I will not condone irregularities or what happened in Rathkeale, the plant nearest to me; but we had the beef tribunal and nobody has been charged. People just want a scapegoat. There are irregularities in other countries in the EU, I understand, and there are irregularities in other areas of life. We do not tackle social welfare irregularities, on which the Government loses a lot more finance, as vigorously as we tackled these irregularities.