Dick Spring
Ceist:10 Mr. Spring asked the Minister for Agriculture and Food the steps he intends to take to encourage exports of Irish beef to continental Europe.
Ceisteanna—Questions. Oral Answers. - Beef Exports and Production.
Dick Spring
Ceist:23 Mr. Spring asked the Minister for Agriculture and Food the steps he intends to take to halt the decline in Irish beef production.
I propose to take Questions Nos. 10 and 23 together. Cattle numbers have increased from 5.62 million in 1986 to 5.9 million in 1989. This is expected to lead to an increase in production for 1990 and subsequent years. The increase in numbers has been a policy priority for me since 1987 and the success of this policy is an important base for the expansion of our beef exports to Europe and elsewhere.
Under the Common Agricultural Policy Irish beef has free access to community markets. It is essential that producers and processors exploit the potential of these markets to the fullest. To compete effectively, we must maintain the high quality of our meat and develop the high value products which the European consumer wants. We are fortunate that Córas Beostoic Feola, as the statutory body responsible for the promotion of beef exports, have built up impressive marketing expertise in this area. Exports to member states on the Continent were higher in 1989 than in any year since 1986 and chilled boneless exports in vacpac form were higher in 1989 than in any of the previous three years. Nevertheless, there are a number of factors, for instance seasonality, which militate against our maximising our potential for beef sales within the Community. I am having these studied as part of the major policy review which I have initiated with a view to developing more effective long term strategies.
I welcome the fact that the Minister is reviewing the matter as he is not satisfied with the current position. Is there a time scale on the review? When might the Minister be able to report back to the House?
I can put no time scale on it. In regard to when I will report back to the House, as in every enterprise the industry itself will have the primary responsibility. I do not want to suggest that any Government, here or elsewhere, can insist that industry will seek market outlets based on added value and vacpac. We will give every incentive. I would expect that the review which is being done in consultation with the industry would conclude within the next few months, and then we will have an opportunity for full consultations with all concerned including the farmers who must produce beef for the market and process it in a fashion that will be acceptable to the consumer. Those are the main priorities.
Given that the Minister will not be making anybody do anything, does he not see his role as a facilitator, as the catalyst, and the Department under his guidance carrying that out?
I would like to assure the Deputy that that is the case, but he will appreciate that when it comes to patterns of production it is a matter for the producer. I will certainly make representations to facilitate a reduction of the seasonality problem but, at the end of the day, it is the producer and the processor who guarantee whether their production and processing patterns can reduce that problem.
The Minister must now understand that winter beef fatteners have never had it so bad for so long and that is the reason they are getting out of production. Is there any possibility that at the next price fixing review things will be so organised that farmers will get whatever extra benefit is available for winter feeding their cattle? Are newspaper reports right or wrong when they indicate that it might be possible to negotiate the payment for intervention beef on a 30 day basis rather than the present 120 days? Will that be passed on via the factories to cattle producers?
As a consequence of a specific commitment I got from the Council of Ministers arising from the unique importance of our beef industry, every means available will be canvassed by me to relieve short term problems. The Deputy will recall that last year we introduced a carcass intervention scheme which was successful.
The farmers never lost more.
The Deputy should ask the producers concerned whether or not that scheme was a help to them. If the Deputy is telling me it was not, then he is ignoring the facts. I want to assure the Deputy that every opportunity available under EC schemes will be pursued by me.
Does the Minister accept that an anomaly exists which stems from over capacity in the slaughtering area whereby small processors are discriminated against and seriously disadvantaged by virtue of the fact that they cannot qualify for any grant aid to update and extend their facilities and that this curtails the potential of those small firms to compete on the export market and open up new export markets?
There is nothing in the regulations to indicate that small processors cannot qualify. It may be that the standards required are such that small processors are not able to meet them, but they are not excluded. I am anxious to ensure that we have a measured approach in relation to all and that small processors would be able to concentrate on, for instance, added value, vacpac and matters of that kind.
Is the Minister aware that in his absence the food industry suffered an extremely severe setback. I refer to the collapse of Ballybay Meats and the ensuing wild allegations and insinuations reported widely internationally. The Department never took any steps to deal with those allegations and put people's minds at rest, and as a result the food industry got a very bad press internationally. It would not have been so bad if this had been confined within our shores. The damage that was done is unbelievable and the Minister must take responsibility for that. He should have dealt with it firmly and quickly but he failed to do so.
I am not looking for any understanding of my personal position but, as the Deputy will know, I was not in a position to deal with anything. Having said that, let me say that I and my Department regret the collapse of Ballybay Meats as much as anybody else in the country. Equally I repudiate any suggestion that it is the responsibility of the Minister to get involved in explaining away allegations to the world at large. That is not the function of my Department.
There should be an inquiry about these allegations to establish the facts.
As a consequence of an internal inquiry which I established I will have a report soon, but until we know all the facts it would be prudent not to make general sweeping statements.