asked the Minister for Agriculture and Food if he will make a statement on the effectiveness of the recent intervention measures to help winter fatteners.
15.
Written Answers. - Intervention Measures.
14.
asked the Minister for Agriculture and Food the measures, if any, he proposes to take either at national or European level to ensure continuity of beef supplies for the food processing industry with particular reference to the elimination of seasonal fluctuation; and if he will make a statement on the matter.
I propose to take Questions Nos. 14 and 15 together.
As a consequence of my request to the EC Commission to introduce measures to help Irish winter feeders, intervention for carcases was introduced for two weeks in March of this year. This had the effect of creating a strong demand for cattle — approximately 45,000 steers were slaughtered in the two weeks — and resulted in an increase of 9p/kg for steers. This price increase alleviated the problems of the vast bulk of winter feeders. Another effect of the carcase intervention was that it facilitated a smooth run-in to the new intervention system which began on 3 April.
The prices package agreed last week included a 2 per cent green pound devaluation in the beef sector. The result of this is that the trigger for intervention, in terms of Irish pounds, has been restored to the levels which preceded the introduction of the new intervention régime. The elimination of MCAs in the cattle and beef sector, of course, increases the competitiveness of the industry.
Most importantly, for the longer term I have obtained the agreement of the EC Commission to my proposal that a joint study group, comprised of officials from the Commission and my Department, be set up to examine the whole question of the impact of seasonality on the industry. This is a significant achievement in that after years of talking about the problems of seasonality the EC Commission have been persuaded to examine the matter as a priority issue.
Over the past few years, I have succeeded in obtaining special sales of intervention beef for Irish processors. This enabled them to purchase their raw materials at competitive prices. The elimination of monetary compensatory amounts in the beef sector also alleviated the supply problems. I am, however, keeping up pressure on the EC Commission to sell intervention beef to our processors at competitive prices.
I am very conscious of the importance of the cattle and beef sector to the overall economy in the country. In fact, it represents 3.9 per cent of gross domestic product in Ireland compared to 0.5 per cent for the Community as a whole. It is encouraging to note the improved confidence in the future of the industry. This is reflected in the 1988 December livestock enumeration figures which showed an increase of 114,000 beef cows compared to the position in December 1987.