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Dáil Éireann díospóireacht -
Thursday, 10 Apr 1924

Vol. 6 No. 39

SLAUGHTER OF CATTLE IN BRITISH LAIRAGES.

Debate resumed on Motion by Mr. P. McKenna:—
That the Minister for Agriculture be directed to take action in the matter of the conditions obtaining with regard to the importation of Irish cattle into Great Britain on the lines suggested by the Irish Cattle Exporters Association at their meeting on the 12th March, 1924, viz., that the Free State and Northern Ireland Governments hold themselves responsible for payment of compensation for live stock compulsorily slaughtered in British Lairages until the usual detention period of ten hours expires, and after that that representations be made to the British Government to accept liability for payment when proof is established that the disease was contracted in Great Britain.

I moved the adjournment of this debate last week because I was impressed by the appeals of the Minister for Agriculture that he should receive enlightenment from every Party. He now, apparently, anticipates receiving that enlightenment from every Party in the Dáil— and there are more than there were—within the space of ten or fifteen minutes. I fear he will be disappointed, but I will not take very long. I venture to think that the Minister's diagnosis of the injury caused to agriculture when he spoke last week, was not an entirely correct one. He spoke of an injury amounting to £5,000 in a year inflicted on a few individuals, but that loss, which is no doubt the net loss, is not inflicted, as a general rule, on the farmer. The farmer has sold his cattle before they are shipped to England, so that the loss on the cattle slaughtered in England during the period of detention, does not fall on the farmer. It falls on the dealer. But the dealer, not being in business for his health, safeguards himself by giving the farmer a lower price when he buys his cattle, in order to provide for this possible contingency, so that the real loss to the farmer, what I might call the gross loss, is a great deal more than £5,000 a year. It means, perhaps, a shilling, or possibly even five shillings—I do not know the standards that the trade adopts—off the price of every bullock sold in Ireland. The Minister dissents. Does he think that the dealer does not safeguard himself against possible loss? If so, the Minister has less experience of selling cattle than I have. It does, and must, affect the farmer in the long run, because the farmer is the producer of the raw material. I agree with the Minister that it would be very unwise if we were to admit any liability in this matter of foot and mouth disease, if we were to admit that foot and mouth disease could possibly be developed here, because under existing conditions, almost by a miracle, we are free from it.

I think that the Minister's Department is entitled to very great credit for that, that the arrangements made for disinfection, and so on, have worked satisfactorily, and although England has been a hotbed of foot and mouth disease, we have so far escaped, and we ought not to put ourselves in a position of admitting any liability for it. But I venture to think that, taking a wide view, there is some cause for what Deputy McKenna asks, that a man should not suffer merely because his cattle happen to have been shipped across the water. I do not say that the whole of Deputy McKenna's motion is a possible one. To begin with, it involves the concurrence of the Government of Northern Ireland, and we here have no power to bind that Government, for the time being. In addition, there is a very different case; there is the case of cattle bought at fairs in the Saorstát and shipped from ports in Northern Ireland. If Deputy McKenna's motion was adopted, I am not clear who would be liable for compensation in such cases. Would it be the Government from whose ports they were shipped or the country of origin? The bulk of the cattle bought in Sligo are shipped either from Belfast or Derry. I would imagine that the bulk of the cattle from Tirconaill are shipped through Derry, so that in the doubtful and disputed cases each Government would deny liability, creating friction between them. That is quite a different case, and it is not met by the motion on the Paper. I would like to suggest—it is only a suggestion; it would require much more than my resources to say whether it is entirely a practical suggestion — a general scheme of insurance for cattle under the auspices of the trade; insurance against foot and mouth disease as long as these cattle are in Irish hands and belong to Irish proprietors. The adoption of that would relieve the State of liability in cases where cattle are slaughtered for foot and mouth disease in Ireland. In return for being relieved of that liability legislation would be necessary. The usual barrier—the Minister for Finance—would probably not be set up in this case, because it would relieve him of a very considerable contingent liability. If the State were relieved from that liability it might reasonably be expected to guarantee the financial soundness of the scheme, and to facilitate the trade in organising it by every means in their power. Of course, actuaries would be required. It would be necessary to have calculations made, for no private individual has the means of making them—probably even the trade itself has not the means of making them. That does seem to be a way out of it, and under such a scheme the farmer would know for a certainty that his cattle were covered by insurance against the possibility of foot and mouth disease as long as they were in Irish hands. I think there is something to be said for that, and I hope that the Minister will take it into consideration.

No subject that has arisen for a long time in the Dáil requires more looking into and more attention than this question of the cattle trade. I want to appeal to the Ministry, particularly on behalf of a body of very hard-working, industrious men—the smaller cattle dealers, men whom I have known all my life, men whose whole savings, in some of these cases, have been swept away at one sweep in Glasgow when their cattle were destroyed and when they got on an average 20 per cent. of their value. I would like the Minister to remember that he is not dealing in this case with fat cattle, because, as we all know, when fat cattle are slaughtered on the threat of foot-and-mouth disease in the neighbourhood the loss is very little, if any. The fat beast brings practically its full value, the carcase value, as we call it. But the majority of the trade, particularly in the district I speak of, is in store cattle—the poor man's cattle. He is not a big, strong farmer, as we call him in the midlands and the south, and it is for him that I make this appeal to the Minister. He told us recently that £5,000 was not much of a turnover on £26,000,000 or £25,000,000, and I quite agree with him. He also told us that he would not object to finding the money, and the only reason why he was not prepared to pay this £5,000 in compensation to these men who are hard hit was because it might raise a question in future negotiations with Great Britain on the subject. I am afraid I cannot see—I may be wrong, of course—how this is going to imperil these negotiations. A certain number of cattle arrived in Glasgow, free from disease, on the 27th October. After about eight hours of the ten an outbreak occurred at Paisley, and the cattle were not allowed to be removed. They were kept there for eighteen days, and eventually they were all destroyed. During that time none of them contracted the disease. The Minister has told us time and again, I have constantly checked his figures, that the value of the agricultural industry varies from 70 to 80 per cent. of the total industry of the country. I think that the cattle export trade is a very large proportion of the agricultural industry, and if we are going to lose this trade, and I am afraid we are, I do not see what is the good of trying to carry on in this country. If £5,000 will recompense these men, and if some scheme on behalf of the Ministry of Agriculture will put them into a position in the future so that they can carry on their trade, and not always be in fear and terror of this outbreak, it would save the situation. What happens when there is the slightest chance of an outbreak? It is not alone the cattle dealer who suffers; in every fair you go to there is a rumour started, probably in some cases by blackguards——

By cattle dealers.

To lower the prices of cattle, and the result is in most fairs at present no one will get the value of his cattle. That is not due to the cattle dealers, but the effect is that the cattle dealers and the farmers are hit, and through them everybody else in the country. It has been going on for some time, and I think it is time some scheme was devised. I have not heard that any approach has been made to the Ministry on the other side. Has the Minister ever asked England to pay, and has the question been gone into at any time since the Treaty was signed? Before the Treaty we were not in this position. I submit, with all respect to the Ministry, that the question should have been looked into long before now as to whether we were not entitled to some of the arrears that accrued from our money previous to the Treaty, when a sum of money was set aside by the then United Kingdom to pay for foot and mouth disease. Another item that I find in the Appropriation Accounts is "General Cattle Diseases Fund," in which a certain amount of provision was made for diseases of animals. I find from that that there was a certain amount of money spent for swine fever, and for foot and mouth disease nil. That is because we had no foot and mouth disease, but the amount of money that was spent on swine fever in this country would have paid the unfortunate men who had been caught in the first rush of this disease on the other side.

I draw the Minister's attention to the case of another Ministry of this State which—it was last year, I think —expended a considerable amount to relieve an almost similar case in the fishing industry, when the transit was broken down in the South of Ireland. The Ministry of Fisheries spent several thousands of pounds, and chartered boats to carry fish to the English markets, and when the accounts were presented to the Dáil I do not think one word was said in condemnation of their action—quite the reverse. I submit the Minister for Agriculture has a very good precedent to go on, and if he carries it out, and compensates these people, he will at least have the satisfaction of knowing that he has saved some men from absolute poverty. I think in dealing with the largest industry we have, that those who suffer in times of almost national calamity, should be compensated, and receive the sympathetic consideration of the Department.

With regard to the point, that only a loss of £5,000 would be incurred, I wish to point out that if you were to do as the Minister for Agriculture told us last year, that those cattle arriving at this no man's land on the other side should be insured, the amount of money which would be necessary to cover shipments of cattle—and you would have to cover the whole of them to be safe— would be far in excess of the amount the insurance company would have paid out. That is the point. If you are going to cover the loss, you must look at it, not from the point of view of the actual loss incurred, but from the point of view of the probable loss that could occur, and, therefore, that insurance would be an almost impossible scheme. I want also to emphasise the point made by Deputy Gorey, that these cattle are slaughtered in the interests of the people of Britain, and not in the interests of the Irish farmer. I fail to see why representations should not be made to the British Government pointing out that they are destroying cattle in their own interests, and, therefore, that they should pay compensation to the people who are losing them. That is the point of view I want to emphasise, although it is not quite in accordance with the motion. But, at the same time, it could be used in connection with this motion. It is not a question of the dealer so much as a question of the farmer. We know perfectly well that the dealer will always have this margin of profit, while he points out to the farmer that he is in danger of incurring a loss through this foot and mouth disease, and whether or not the disease will occur he will always ensure that he will make no loss. There may be individual instances where dealers lose, but on the whole they make themselves secure, and every man who is selling his beast is losing. As I have said, we quite understand there may be individual cases of dealers losing, but on every batch of cattle bought this fetish of a probable loss owing to cattle being held up in England is made use of, and bad prices are obtained as a consequence. These are points we would like the Minister to look into.

One point I would like to draw attention to is the implications and the deductions to be drawn from the arguments of Deputy Cooper and Deputy Wilson. I was rather curious to know whether Deputy McKenna would agree with the statements made by Deputy Cooper and Deputy Wilson, that in the purchasing of cattle in the market the buyer does in fact take account of the risk, and pays a smaller sum for the cattle than if there were no such risk, and if he were not aware of that risk. Does Deputy McKenna, I wonder, accept that view? He does not answer, but I think it is true.

On a point of explanation, I think it was I brought out that point. Most of these men were hit before the disease became rampant, and since that they have been very careful.

I quite accept the proposition that there is, as a matter of fact, account taken of these risks, and when the risk is greater and more obvious the greater account is taken in the purchasing, but in such a case does it not appear that the insurance premium ought then to be paid by these people and should not be placed upon the State directly, or upon the farmer again if it has already been taken from the farmer in purchasing? I suggest that the reasonable course to be adopted in such cases is to apply to this trade, what has been applied to other trades even though it only begin now, namely, a compulsory insurance on every head of cattle exported. That insurance might well be under the control of, say, a combination of dealers farmers, and, perhaps, the State represented by the Minister for Agriculture, so that when a risk has been taken and has to be met, a loss having been made, there is a fund available. Though the amount may be £5,000 this year, bear in mind that according to the law, as expounded by the Minister for Agriculture, if there were an outbreak in Ireland there would need to be an immense fund available to meet this compensation.

I seriously suggest that the principle of insurance should be adopted, and that it might even be retrospective, so far as the losses are concerned that are due to this latest outbreak, but that it would have to continue for quite a long time, and a big fund should accumulate, and also that such a proposal might well be considered by the organisations connected with the cattle trade in conjunction with the Minister for Agriculture. If it were known quite clearly that the risk was covered by a certain sum there could be no excuse in the mouths of dealers that they had to take off so much and so much because they did not know whether their cattle would be slaughtered in England. I think something of that kind might be considered, and it would probably meet immediate cases as well as future risks.

Deputy Johnson seems to lose sight of the fact that the people of this country in paying for the protection of English interests ought not to be penalised either by insurance or State contributions. That is a different point altogether from his. It does not matter in what way we deal with this question, there is a loss that ought not to be borne by any citizen of this State inasmuch as the slaughter is done to protect English interests on English soil. It would be just as reasonable to say, if England were shipping cattle here and we killed cattle, say, at the North Wall, in order to protect our own interests, that the English farmer, dealer, or English Exchequer should suffer accordingly. I think it would be unreasonable if we took up that attitude, and I think it is unreasonable for England to take up the same attitude towards us. This is an English debt, and should be paid by England.

Deputy Gorey should arrange that purchase would be made in this country only by English interests, and he would then be quite secure.

I wish Deputy Johnson joy of his interpretation, but I do not see his point.

I think the deductions of Deputy Johnson are not correct. The difficulty about an insurance is that the premiums paid will in all probability be in excess of the amount returned in cases of slaughter, and it will undoubtedly have the effect of lowering the price of cattle by the amount of the premium, and probably by a larger amount. It is well known that such obstructions give an opportunity to people to lower the price of our cattle by a still larger amount. Deputy Johnson referred to the fact that in the event of an outbreak of foot and mouth disease, the amount paid by the State will be in excess of the premiums paid to the insurance companies. My answer to that is that in the event of an outbreak of foot and mouth disease in England, the cattle trade would be stopped altogether, and the liability for compensation would not arise in England.

I take it that the Minister for Agriculture is getting leave to speak a second time before Deputy McKenna concludes.

We are only dealing with one risk here. There are so many questions connected with the Diseases of Animals Act that if we wander over the whole field we will get nowhere. There is one point which is probably the most contentious of all which arise in connection with the administration of this Act, and it is the one upon which I would like to concentrate. The only risk Deputy McKenna wishes to safeguard against is the risk of Irish cattle being slaughtered at English landing places, where no compensation is paid by anybody. That is only one of the risks. Deputy Cooper, as well as other Deputies, referred to the fact that cattle are automatically made cheaper by the operations of dealers and other people who take advantage of the fact that foot and mouth disease exists in England, and they do their best to buy cattle at a price which will leave them well insured against any risk they may take. From the point of view of this resolution, the question is not so much how far they take into account the various risks incidental to an outbreak of foot and mouth disease in England, but how far they take into account this particular risk, and in my opinion the dealer and farmer generally take that into account. This is not the reason that cattle are cheap at Irish fairs—because of an outbreak of foot and mouth disease in England. The dealers and farmers know that the chances of cattle being slaughtered at landing places are extremely few. A dealer buys cattle, and though the ports may be closed here, he can ship them. It may be possible to get them into Cheshire or Sussex, and these are the risks the dealers have to protect themselves against. I do not believe that that risk affects the price of cattle one iota. The effect on the price of cattle of this particular risk is as nothing compared with the other risks incidental to an outbreak of foot and mouth disease in England. We should not go into the question as to whether cattle slaughtered in Ireland should be paid for through an insurance scheme. The State pays for that, and in my opinion that is a farce. It is also not the most efficient way of doing it, because as Deputy Heffernan points out, insurance is wasteful, and the farmer would pay far more money than he would pay, say, in taxes. If it were to be done by insurance, I expect the State would do it, but in any event, I would prefer to see the charge spread over the ratepayers, because there are individuals in the State who get more profit out of cattle than the farmers themselves.

In any case that does not arise. We have enough of contention. The State has to pay for cattle slaughtered in Ireland, and we can leave it at that. The suggestion here is that we should offer to the English Government that we would pay for all Irish cattle slaughtered at the landing places within a minimum period of 10 hours. That is Deputy McKenna's suggestion. Deputy Gorey is different. His position is mine in the matter. That is to say, we should not admit liability for any cattle slaughtered in England. It would be an extremely dangerous precedent to make, and we might well put up a proposition to pay for cattle slaughtered in ten hours, and then it is open to the English to answer ten weeks. At any rate, it would be a dangerous thing to do. I am told this particular difficulty is there since 1922, and, in fact, one Deputy seems to think it is there since the signing of the Treaty. The Treaty made no difference whatever to the legal aspect of this question. It was not until 1922 that the Act which admitted Canadian cattle was passed, and it was that Act which changed the law. That Act put Irish cattle and Canadian cattle in the same category as far as this liability is concerned. It is a difficulty that has been there, I admit, for over a year. It has been a difficulty of ours for over a year. It has been a difficulty of the Northern Government for over a year, and the Northern Government, if anything, have a far greater grievance than we have, because they have no control whatever in the administration of the Diseases of Animals Act. It is a reserved service, and the veterinary surgeons in the North are English officials. When cattle are slaughtered in the Northern landing places they get exactly the same treatment as our cattle. We put up this problem in connection with the passing of the 1922 Act. We put it up since, and the Northern Government have been doing the same thing. Our position is that we will not pay for cattle slaughtered in England, whether they are slaughtered within ten hours or ten weeks. That is our simple position in the matter.

I do not know what the ultimate solution of this problem will be, but I do know that we should not prejudice it by anything which we might do at this stage. It would be very short-sighted, to my mind, for the Farmers' Party or any other party in the Dáil to let it be understood that we were in any circumstances in favour of paying for Irish cattle slaughtered in England. I know that is not the view of the trade. In negotiations various offers may be made and we may have to accept them, but my one point is that at this stage we should not attempt to admit any liability, and we are admitting no liability. There is no reason, because, after all, all that is involved is £5,000. That is the maximum. It is the amount of liability during the worst outbreak that ever occurred in England, and if the figures for the last thirty years are examined it will be found that a sum of about £7,000 would be a sufficient fund completely to cover this risk for a period of about thirty years. For the sake of that £7,000 should we make admissions which would lead us into a liability perhaps of £700,000? The cattle trade should not force me to make an immature offer. There is time to agree and time to differ. If we get a decent offer we will accept it, but it is a sorry state of affairs if a trade which controls twenty to twentyfive millions, for the sake of £7,000, forces me to make a proposal before the time is ripe for a proposal. That is the position, and, with all respect to the Farmers' Party, there is no answer to it, and I think the trade themselves realise that. I am not saying now for a moment that we will get all we want. I may have to come here after conference with the British and Northern Governments and admit that I did not do as well as I thought. At least our hands should not be weakened beforehand, and if it is a fact, as it is, that there are three or four small farmers who have lost five or six thousand pounds worth of cattle, probably all the cattle they had, we are not to blame. Arrangements at least should have been made by the trade to meet such a contingency three or four years ago. I admit with Deputy Wilson that insurance is not the way. It ought to be easy for the trade to collect five or six thousand pounds out of a yearly trade of twenty-four or twenty-five millions. That would give people time to consider the matter. If it comes to dealing with it ourselves, I would be against the State paying and against insurance against a risk like this that is so casual. Foot and mouth disease may break out this year, may not occur again for ten years, then may come on again, and during all those outbreaks there may be no cattle slaughtered at the ports. Insurance is not the way to deal with that. The way to deal with it is to raise a fund of £5,000, put 2d. a head on all the cattle going out of Ireland and ask a man, say, shipping sixty cattle to give you 10s.

How will you collect it?

Mr. HOGAN

If the State has to try to collect it, we will try to make arrangements. I do not want that to happen.

You have insurance right away then.

Mr. HOGAN

You are getting near it, and it would be a poor compliment to the cattle trade if they were not able to make arrangements for this. Twopence a head would cover it for thirty years, yet I am being asked to make an offer to the English Government which the Northern Government are too wise to make, and which, if there was no arrangement entered into, could be covered six months ago.

Would the Minister give an undertaking that in the event of his failing in the negotiations, compensation will be made to these poor men?

Mr. HOGAN

If we cannot get any good out of the English, a new situation will then arise, and I may have to come along here.

As this matter has been discussed at full length, I will not detain the time of the House very long. I brought this motion forward at the request of the members of the livestock trade for the purpose of bringing this matter to a head, because both the farmers and exporters of livestock considered, unfortunately, that the Government had been very dilatory up to the present in not announcing its intentions regarding the situation, which is a very unfortunate one for the men engaged in the livestock trade in this country. Deputy Myles struck the nail on the head when he said that up to the passing of the Free State Act no such thing as this could happen. People were safeguarded in exporting livestock from Ireland to Great Britain, but immediately after the passing of the Free State Act this situation arose. The Minister for Agriculture denies that.

Mr. HOGAN

It was the Act of 1922.

The Treaty was signed on the 6th December, 1921. The Importation of Animals Act removing the embargo on Canadian cattle was passed in 1922, but previous to the passing of these Acts the same regulations, so far as the removal of animals from Great Britain to Ireland, existed and applied to this country. After the passing of the Free State Act lairages and landing stages in Great Britain were looked upon as a "No Man's Land," so that the position to-day, that is the position of exporting of livestock to Great Britain is a very precarious one. As regards the feeling in the trade, the Minister says, and we, all of us, know that there is great difficulty ahead of us in this matter. I would be very sorry in anyway to do or say anything that would militate against the Minister in his dealings with England and the Northern Government in this matter. But I say that we never had a cleaner bill of health than we have at the present time. Sir Stewart Stockwell, the Chief Veterinary Inspector of the Board of Agriculture in England, said that his impression was this, that under present arrangements thousands of head of cattle were held up in Ireland at the ports, yet he was satisfied that the disease did not originate in Ireland. Since he was in the Ministry since 1905, only three cases, I think, were discovered in Ireland, and in one of these cases the origin of it was traced back to England, and he went on to say that the trade was worth £75,000,000. I suppose he meant the home and the export trade.

Now, the position is that here in this country we have one of the cleanest bills of health of any country in the world so far as livestock trade is concerned. Yet, we cannot get into a country at the present time which is plague-stricken. I say that our Department of Agriculture must stand up and must tell the English Board of Agriculture that we cannot stand this treatment from them. The trade do not object to compensating the owners. We are told to insure, but if we insure the tax is certain to fall upon the farmers. Deputy Johnson said that if insurance was put in force the tax would fall back upon the farmers and on the dealers. The dealer would take care to take the amount that he would have to pay into account when buying, and he is not going to pay the amount out of his own pocket, and thereby suffer a huge loss. The farmers and the dealers both say that it is the State that should compensate the same as formerly, and before the Act of 1922 was passed.

There is another matter that I think we should refer to in connection with this question. We all know that the pillars of the State were shaken and that it was very dangerous to try to develop a trade such as the huge live stock trade that existed, and we know that many engaged in that trade during the trouble took great risks and took their lives in their hands and risked their money, and we also know that if it were not for them things would be in a very much worse condition than they were. Instead of doing anything to antagonise these men the Government should try to secure their hearty co-operation. Whatever is going to be done should be done quickly, and I think the Minister for External Affairs, together with the Minister for Agriculture, should approach the British Government at once upon this matter. If you are going to have an outbreak of foot and mouth disease in this country it is going to put the tin hat on the people. I remember the outbreak of 1912, when we had three million pigs in this country, and we suffered huge losses. In the present instance the traders lost more than £100,000, though the Minister talks about £5,000. What about the cattle held up at the ports until they are examined for this disease?

Mr. HOGAN

I thought I made it clear that £5,000 was for loss in connection with this. There is another loss, a much bigger figure, caused by the holding up of cattle at the ports and failures to enter the counties and so on, as I pointed out.

If the figures could be got it would be found to be something like £100,000 of loss, and the English Board of Agriculture should not be allowed off of their responsibility in this matter. We know it is not an easy thing to go to these people and say these things are not managed as they ought to be. We know they are our masters in a sense—they are the buyers and we are the sellers; but where we have a trade like this, which is the principal industry in the country, some attention should be paid by the Government to have this matter settled once and for all. I desire to say that in view of the fact that the Minister has promised to do what he can, I do not intend to divide the House, and would ask leave to withdraw the motion.

Mr. HOGAN

I should like to make it clear that I expect the trade will also do what they can.

Motion, by leave, withdrawn.
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