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Seanad Éireann debate -
Thursday, 20 Dec 2012

Vol. 220 No. 2

Adjournment Matters

Live Exports

Cuirim fáilte roimh an Aire Stáit. Tá mé thar a bheith buíoch go bhfuil sé i láthair ar an lá gnóthach seo chun na ceiste seo a phlé.

I raise an issue in which many farmers are interested, namely, the Libyan and Egyptian live export market for beef. In April 2012 the Minister for Agriculture, Food and the Marine, Deputy Simon Coveney, issued a statement on the reopening of the Libyan market, in particular, which was valuable for live cattle exports in the past. In 1995 that market took 81,420 cattle valued at more than €70 million but the business came to an abrupt end in 1996 when Libya banned beef imports because of the outbreak of BSE. I understand some headway has been made on reopening those markets and that efforts are being made at diplomatic and technical levels but there have been no major announcements in the interim. This is an important market which would open up many doors and potential streams of income for farmers in the context of the suckler cow welfare scheme cutbacks and also the virtual monopoly where farmers are held to order by the factory system here which is able to keep prices low. Farmers' incomes would be increased dramatically if they had other markets into which they could sell, such as the Egyptian and Libyan markets.

I note that the Irish Farmers Association national livestock chairman, Mr. Henry Burns, said the live cattle market to Libya and other Middle East and north African countries was extremely important for Ireland's €2 billion livestock sector. If these markets are open, do we have the transport capability to take the livestock from Ireland to these countries?

Gabhaim buíochas libh as ucht an cuireadh teacht go dtí an Seanad. Ba mhaith liom Nollaig shona a ghuí oraibh go léir.

I am taking this Adjournment debate on behalf of my colleague, the Minister for Agriculture, Food and the Marine, Deputy Simon Coveney. I thank the Senator for raising the issue of markets abroad.

The priority of the Department of Agriculture, Food and the Marine and its agencies is to support the beef sector through its efforts to open new markets for Irish beef and to ease the conditions of import in markets which are already open. These efforts have yielded a number of positive results in countries such as South Africa, Tunisia, Russia, United Arab Emirates, Singapore and Egypt in the past year or so. In this context, the Senator will also be aware that market access for beef was at the heart of Minister's visits earlier this year to China and the United States and that the Department is proactively engaged with a range of third countries in an effort to open markets. That being said, the Department will continue to treat the question of market access, both for beef and for live animals, as a priority.

We will and are continuing to facilitate live exports which it is acknowledged offer cattle price competition and serve a real market demand. The live export trade provides alternative market outlets for cattle producers. There are two main components to the live export trade, namely, calf shipments to the Continent and the movement of forward stores and finished cattle to the United Kingdom. Data for the period from January to date in 2012 show that overall live exports reached some 155,000 head. Exports to Great Britain accounted for 70,094, while those to Italy, the Netherlands and Spain - the main continental markets - stand at 80,770. While the figures for the UK market represent an increase of 4%, the exports to continental EU countries are down some 40% on 2011. This is due simply to economic factors. The slower live export trade reflects the higher prices being paid by domestic beef producers.

The Senator raises the issue of live cattle to the Libyan and Egyptian markets. I am pleased to say these markets are open to Irish cattle insofar as the veterinary certification that is the fundamental prerequisite has been agreed. The question of when trade will begin is dependent on a number of factors, including commercial factors such as price and demand and the availability and cost of suitable sea transport. Other non-EU countries open to cattle from Ireland and to which trade is taking place are Kazakhstan, Morocco and Tunisia.

The Egyptian market is open to fattening cattle under 20 months and to slaughter cattle less than 30 months. I pay tribute to the efforts of Ambassador Moylan in securing this good outcome.

The Libyan market is currently open to fattening and slaughter male cattle under 24 months. However, the Department has been endeavouring to have this age limit increased to 30 months in response to requests from interested exporters, and has submitted a certificate to allow for this for counter signature to the Libyan authorities. We await final confirmation on this and our diplomatic services in Rome are doing everything they can to expedite the matter. Our ambassador in Rome met senior Ministers in Libya earlier this week and raised with them the outstanding responses regarding the health certificates in the cattle sector. They indicated that they saw no particular difficulty and undertook to respond within a short period. In terms of promoting trade with Libya, they stressed that this was now mainly in private hands and, of course, such trade is always commercial.

Even though the necessary veterinary certification is in place, there remains the question of suitable sea transport. The Department has made every effort to facilitate ship approval and is hopeful a ship will be approved early in the new year. Three potential boats have been applied for and one application is at a more advanced stage. The current plan is that the boat, currently in Istanbul, will arrive in Waterford for reinspection on or around mid-January.

Ireland has a strict system of transport rules in respect of both national and international journeys.

The current Irish regulations on the approval of ships for livestock transport set a high standard, higher than that which applies in other EU member states. These regulations were introduced in 1996, following a comprehensive review of this area, in response to a series of major difficulties that arose with livestock shipments from Ireland at that time. Our policy since has been that given the potential risks associated with live shipments from Ireland, it is necessary for Ireland to maintain these high standards. I reassure the House that the Department is continuing all its efforts to secure markets abroad for our valuable cattle industry, be it in live trade or beef. Live exports continue to be an important outlet for Irish cattle, providing an essential element of competition with the beef trade.

I am grateful for that reply from the Minister of State. It is welcome that the ship will be available in January to transport the cattle but what was the delay? The Minister made the announcement in April that the market was reopening. Why has it taken so long for the regulations to be put in place in order to make the ship available? I implore the Minister to ensure there will be no delay in making the ship available in the new year. This is a vital market for the beef industry.

I will bring the Senator's concerns to the Minister's attention. I will emphasise the point made by the Senator that the matter needs to be expedited.

Fee Paying Schools

I wish to raise the matter of the Minister's plans for fee-paying schools and their place in the future provision of education. Some 26,000 pupils are being educated in 55 fee-paying schools in the country. It was announced in the budget that the pupil-teacher ratio would be increased to 23:1 in fee-paying schools from next September. This follows on from last year's increase in the pupil-teacher ratio. It is estimated this measure will save the Department €2 million in 2013 and €6 million in 2014.

The cost to the State of educating a pupil in a fee-paying school is €4,500 per year, while the cost of educating a pupil in a non-fee-paying school is €8,000 per year. This means a saving to the State of €3,500 per pupil per year. Many parents, teachers and pupils are concerned about the future of their schools should this increase in the pupil-teacher ratio continue or if funding were not available. If even 10% of the 26,000 pupils were to leave the fee-paying schools this year and opt for places in the non-fee paying schools, it is estimated this would cost the State €9 million.

The issue of capacity in the free education system also arises. The Minister has stated schools may enter the free education system, but pupils will also leave fee-paying schools and look for places in non-fee-paying schools. I can foresee the issue of capacity arising in the schools in my own area should the fee-paying schools no longer be available. I hope it will not get to that point.

I am articulating the concerns of these schools. Does the Minister foresee them continuing in existence? In many cases, parents have opted for a fee-paying school in order to have their children educated in a certain religious ethos. These parents are taxpayers and this is how they have chosen to spend their after-tax income. The figures do not bear out the argument that the system is unfair. In fact, the figures show that the fee-paying schools are saving the State. At a time when the Minister wants to reduce the departmental budget, it would be a retrograde step not to continue to support the fee-paying schools sector.

Parents need to have certainty with regard to the future of fee-paying schools when they are considering the long-term educational needs of their children. It is certain that the increase in the pupil-ratio will result in higher fees.

I thank the Senator for raising this issue. It affords me the opportunity to outline to the House the policy of the Minister for Education and Skills, Deputy Ruairí Quinn, on fee-paying schools.

The Government has protected front-line services in schools to the greatest extent possible in the recent budget. There will no reduction in teacher numbers in primary schools and in free second level schools for the 2013 to 2014 school year as a result of the recent budget. The DEIS scheme for disadvantaged schools is also fully protected, with no overall changes to staffing levels or funding as a result of the budget.

The Department's current expenditure budget for 2013 is €8.514 billion. Savings of some €90 million are needed for next year. This is made up of €77 million of savings announced under last year's comprehensive expenditure review, together with a further €13 million in order to meet upward pressures mainly associated with the pay costs for teachers and special needs assistants.

Given that €4 out of every €5 in the gross current budget is spent on pay and pensions, it has not been an easy task to identify the savings of €90 million needed. However, the Minister has sought, in so far as possible, to meet the programme for Government commitment to prioritise education and protect front-line services.

In order to promote fairness in funding second level schools, a two point increase in the pupil teacher ratio in fee-charging second level schools will be introduced in September 2013. There are currently 55 schools out of 723 post-primary schools charging fees ranging from €2,550 to €10,065 for day pupils. The State pays the salaries of one teacher for every 21 pupils in these schools, compared with one teacher for every 19 pupils in schools in the free education scheme. A ratio of 18.25 pupils to one teacher applies in DEIS schools. This will rise to 23:1 in fee-charging schools. However, these schools have the resources, through fees charged, to employ teachers privately, an option not available to schools in the free education scheme. A report on the analysis of the tuition income of fee-charging schools carried out by the Department will be published in the new year. This report is expected to show that fee-charging schools have considerable discretionary income and are best placed to manage with reduced public funding.

I am aware of some concerns within the Protestant community about the recent budget measure. I assure the House that the Government recognises the importance of ensuring students from a Protestant or Reformed church background can attend a school that reflects their denominational ethos, while at the same time ensuring funding arrangements are in accordance with the provisions of the Constitution.

With regard to the fee-charging Protestant schools, there is an arrangement whereby funding is provided by the Department for the secondary education committee, SEC, an organisation run by the churches involved in managing the Protestant secondary schools. This committee disburses funds to the Protestant fee-charging schools on behalf of pupils who would otherwise have difficulty with the cost of fees and who, in the absence of such financial support, would be unable to attend a second level school of a Reformed church or Protestant ethos. Funding amounts to €6.5 million annually. This fund ensures necessitous Protestant children can attend a school of their choice. I thank the Senator for providing the opportunity to outline the position to the House.

I thank the Minister of State. I acknowledge the support for the Protestant schools. The joint committee has had discussions with these schools. I refer also to Catholic fee-paying schools which need to be considered because parents chose to send their children to those schools for that specific type of religious education.

I will convey the Senator's comments about the Catholic fee-paying schools to the Minister for Education and Skills. In reply to her question as to whether there is a future for fee-paying schools, I certainly believe they have a future.

The Seanad adjourned at 6.10 p.m. until 2.30 p.m. on Tuesday, 22 January 2013.
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