andMr. Fahey asked the Minister for Agriculture and Fisheries if he will explain why the reference price for Irish cattle is consistently the lowest in the European Community and in particular why this is so in relation to the UK price (excluding the Six Counties), where a separate and lower variable premium has been introduced.
Ceisteanna—Questions. Oral Answers. - Cattle Industry.
18.
Unlike other Community countries, over four-fifths of Ireland's production of beef has to be exported in one form or another. This involves substantial transport and marketing costs which are reflected in a lower market price here.
I might, indeed, say that the difference between the Irish and UK prices is somewhat greater than is indicated by the reference prices as the quoted UK figure does not include the slaughter and variable premia.
The level of price for cattle here is, of course, one of the matters being looked into by the review body on intervention. An interim report has recently been furnished by that body and is at present being examined by my Department.
Is the Minister not aware that reference prices in the United Kingdom and in Ireland tend to be much lower than on the Continent? In England, Wales and Scotland the United Kingdom farmers have the advantage of the variable premium payment which makes up the difference between the actual market price and the level to which it would need to be compensated in order to bring it to the guide price but farmers here and in the North of Ireland have no such advantage. In the case of the variable premium for the North of Ireland and for the south, the British Government have recently made changes that have been to our detriment.
I wonder if it is to our detriment that it is somewhat higher in the North of Ireland?
The Minister misunderstands me. If he looks at the most recent arrangements made by the United Kingdom Government he will see that the farmers in the North of Ireland have had some of the advantages of the variable premium taken from them while their colleagues in the rest of the United Kingdom still have the benefit of them.
The Deputy must not lose sight of the fact that our cattle going into the United Kingdom get a subsidy of 6 per cent——
From a different source.
Of course, but, nevertheless, it is there and it must be reckoned with.
The Minister should not attempt to obscure the question by bringing in the export refund that arises from the different devaluation of the green £ that operates in the United Kingdom and the south of Ireland. I am talking about the difference in the level of the variable premium that has been introduced by the United Kingdom for the whole of Ireland.
We get the same level of variable premium as the British farmers.
That is not so.
19.
asked the Minister for Agriculture and Fisheries if, in view of (a) the rapid strides being made in Great Britain towards greater self-sufficiency in beef and the consequent likelihood of a smaller market there for Irish cattle and beef and (b) the increasing monetary taxes on Irish beef and cattle going to the Continent, he will indicate the prospects for Irish cattle producers.
I am fully aware of the trend towards increased beef production in the United Kingdom and of the problems which monetary compensatory amounts create for our cattle and beef industry. I am, nevertheless, convinced that the long-term prospects for our cattle producers are good. A recent study forecasts that the EEC will in 1980 have an export surplus of only 29,000 metric tons of beef despite an increase over 1975 estimated production of 385,000 metric tons, including an extra 60,000 tons in Ireland.
I have repeatedly sought to have the disadvantages of the MCA system for this country eased and my efforts have met with success.
Will the Minister not agree that the Irish beef industry will need to look more closely at continental markets and sell more actively? Would it not be better for the Government to induce the Irish fresh meat industry to sell on the Continent and, if necessary, to spend some of the enormous profits made last year rather than have that industry taxed in order to subsidise the cost of living for the benefit of other members of the community? Would it not be better to invest their earnings in a sales campaign on the Continent?
I agree with the Deputy on the need for a greater effort to sell on the Continent but the prospects now are much better since we got the devaluation in the representative rate of the Irish pound and because of the improvement in sterling. We are now in a much better position to compete on the Continent and I hope our people will take advantage of that.
Did the Minister refer to 1980?
I was speaking about 1980 in relation to the prospects for selling cattle.
What confidence does the Minister place in those forecasts seeing that they were proved so wrong last year? Forecasts have been notoriously wrong and to be speaking about 1980 will not give any confidence to the farmers.
It is true that forecasts in the EEC have been hopelessly wrong but they now have better machinery and more expert opinion.