Vol. 272 No. 13
asked the Minister for Industry and Commerce why the IDA are prepared to consider grant-aiding the provision of up to one million cubic feet of storage for intervention beef in view of the fact that grant applications from storage companies are not normally considered.
22.
asked the Minister for Industry and Commerce if he will prevent the expenditure of public moneys by the IDA on grants for storage space and blast freezers for intervention beef; and if he considers that the provision of such facilities, by keeping beef off the market, is inconsistent with the Government's policy of restraining food price increases.
With the permission of the Ceann Comhairle, I propose to take Questions Nos. 21 and 22 together.
The IDA decision to grant-aid the provision of up to 1 million cubic feet of storage for intervention beef was taken in consultation with the Department of Agriculture and Fisheries. Apart from the fact that the right to sell to intervention is an element of the Common Agricultural Policy of the EEC it is essential for the continued viability of the Irish meat processing industry that the companies in the industry should have this right when market prices are unfavourable. Because of the present market situation more beef is now being sold to ‘intervention' than had originally been anticipated and this has resulted in considerable pressure on existing storage facilities. I am not therefore prepared to ask the Industrial Development Authority to alter their decision. The Government's policy of restraining price increases must be operated in such a way that it will not cause a decline in economic activity by preventing producers from being compensated for increased costs.
I have a question down to the Minister for Agriculture and Fisheries on this matter also which may not be reached today. Would the Minister indicate what is likely to be the position of farmers and meat factories who offer beef through intervention and for which there is no storage at all?
The question I have been asked relates to a decision by the IDA to grant-aid storage space. I have indicated that I think this is a correct decision and a helpful one in very difficult circumstances. It is helpful precisely in relation to the problems Deputy Gibbons has raised in his supplementary question. The question he seeks to have answered does not arise on the original questions, Nos. 21 and 22, and is not the responsibility of my Department.
Before any additional intervention storage space is provided by the assistance of the Government or from the resources of the meat factories we will have a very critical oversupply of intervention beef that we will not be able to handle.
Could we avoid a statement?
Would the Minister say how he proposes to alleviate that situation in the meat industry?
I should be happy to endeavour to answer the Deputy's question if he puts it down to me and if it is relevant to the responsibility of my Department. He is probably aware that intervention meat is the property of the Commission and not the property of any Irish agency.
Is the implication correct in Deputy Flanagan's question— unfortunately he is not here at the moment—that this decision by the IDA is a change of policy?
I understand that until this difficulty arose it was not the policy of the IDA to entertain requests for grants for this sort of storage facility. My own belief is that in the changed circumstances it is a contribution towards solving a problem. It is a change of policy and I think it is correct in the circumstances.
