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Dáil Éireann díospóireacht -
Wednesday, 4 Jul 1990

Vol. 401 No. 1

Adjournment Debate. - French Farmers Irish Lamb Blockade.

First, I should like to thank you, Sir, for having given me this opportunity to raise this vital matter with the Minister of State at the Department of Agriculture and Food. I will endeavour not to take the full ten minutes in order to expedite business.

On Sunday last three lorry loads of Irish lamb were blockaded at the ports of Le Havre and Cherbourg. Many of our farmers have turned to sheep production in recent years in order to supplement losses incurred in other areas, particularly with regard to milk quota cutbacks, super-levies and problems encountered in relation to cereal production. I might add that 90 per cent of our exports of lamb are to France. Therefore it is vital that there be no harassment of our exporters on the part of French farmers.

Within a couple of weeks this will have been the second time that a beef container will have been attacked with all of the beef destroyed. I appreciate the problems French farmers are encountering in regard to their incomes, particularly within the sheep industry. But rather than blame us and prevent the importation of our traditional exports to France they should look instead to their imports of more than 250,000 tonnes of lamb, the bulk of which is comprised of New Zealand sheepmeat, into the Community. The Community itself is self-sufficient to the extent of 85 per cent in this market. Twenty per cent of Community imports come mainly from New Zealand, causing a 5 per cent glut in our market, because of the derogation allowed, particularly to New Zealand. Our colleagues in Britain — because of the drop in sterling — enjoy an extra bonus by way of their exports to France while they themselves enjoy cheaper imports of New Zealand beef.

I am concerned about New Zealand imports here — for the second year running their frozen lamb has been allowed in — while they enjoy a hitherto unheard of export market of frozen meat here of 540 tonnes this year, affecting our home consumption. This meat is being bought mainly by the supermarkets who are not obliged to state clearly that it is New Zealand lamb they have an offer. They are not obliged to state that it is frozen New Zealand lamb that is being imported as against Irish fresh meat. In this way they are destroying the potential of their clientele within the communities which they purport so widely, by advertisement, to serve.

I am also concerned that the particular type of imports of New Zealand lamb which has aggravated the French and our markets has been comprised of prime cuts; it is not the whole carcase that is being imported, which is what must be done if we are to be competitive. For example, gigots or neck of lamb is not used but rather prime cuts in order to compete against our farmers in this area. Some identification procedure should be compulsory in all EC countries, stating clearly that these are foodstuffs from other countries.

I am particularly concerned at the attitude of the French. Indeed, many people outside this House would be concerned that, through our embassy, we have not brought the matter sufficiently to the attention of the French authorities on numerous occasions. The French have highlighted their position when, in regard to the Tour de France, they brought about a detour the other day. They also blockaded our trucks going into Le Havre and Cherbourg. This is particularly worrying at a time when the price of Irish lamb has never been as low in the marketplace. Indeed, I might add that the benefit to farmers would be even lower had it not been increased by our Minister for Agriculture and Food during our Presidency of the EC this year — when he got an extra £3 per head for lamb.

Our Department of Agriculture must now be seen to protest publicly to the French authorities in regard to this matter and also take the matter up directly with our ambassador in Paris and the French ambassador here. Indeed, I would recommend that they seriously consider — because of the crisis obtaining in Europe in the sheep industry — a suspension of all imports into the Community for a period, or devise a better price support mechanism for Irish and other Community-produced lamb. I warn the Minister that this will continue to be a problem while we allow greater imports than consumption within the Community overall. This arrangement formed part of the ridiculous GATT and 1976 agreements under which New Zealand and Australia were allowed exceptional latitude because of their former Commonwealth status.

I would ask the Minister of State to give the House an assurance that there will be no continued threat to our exports of lamb. Any perceived threat at present will merely cause panic in the market, bringing the price of lamb even lower than that obtaining at present. I should also like to see the Minister advance a case for the consumption of more lamb in this country while the present low price obtains. I would ask the Minister to recommend to the European Community the idea of a temporary suspension of importation of all New Zealand products.

I am glad to have this opportunity to reply to the motion put down by Deputy Davern regarding the blockade by French farmers of Irish lorries containing lamb.

The interruption or interference with exported Irish produce is viewed by the Government with great concern. All steps necessary to rectify such a situation and to protect our exports were taken immediately. In this particular case four lorries — three of Irish origin containing lamb, pigmeat and beef and one of British origin containing New Zealand lamb, were stopped in Cherbourg in what was an indiscriminate and illegal action by French farmers. The action by the farmers was apparently designed to exert pressure on the French Agriculture Minister given the current difficult market situation in France which is resulting in low prices for produce. The action was not specifically directed at sheep produce of Irish origin. In fact it is our understanding that the protest was directed at the New Zealand lamb contained in the British lorry. While all the Irish lorries were eventually allowed through, the British lorry with the New Zealand lamb had to return to Britian. The Irish lorries involved were not interfered with and the produce does not appear to have been affected as a result of the delay involved.

When the protest occurred the Department of Agriculture and Food contacted the Irish embassy in Paris who contacted the authorities in Cherbourg. We have been assured by them that everything will be done to ensure the Irish traders can go about their legitimate business. Some weeks ago a protest by French farmers involving sheepmeat from Ireland occurred. The Irish ambassador and the agriculture attache protested to the French Authorities arising out of which the Ambassador subsequently received a written assurance from the French Interior Minister which stated that all measures would be taken to ensure that Irish traders are not inconvenienced in any way.

The Department will, of course, be keeping the situation under review and will take appropriate action as circumstances require. In fact the current difficult market situation in the sheepmeat sector both in Ireland and France was raised by the French Minister and myself at the last Council meeting on 25-26 June. The Commission is fully aware of the problems being encountered by producers and it is intended to monitor the situation closely.

The current difficulty market situation is due to a number of factors, including the advantage to British lamb exports to the French market caused by the drop in the value of sterling vis-á-vis the French franc, the lower level of clawback on British lamb exports and increased slaughterings both here and in British leading to increased supplies on the market. The cumulative export slaughtering figure for Ireland for this year to the week ending 16 June is up 31 per cent in 1989 with the figure for May showing a 43 per cent increase on the same month last year.

Imports from New Zealand are governed by a Voluntary Restraint Agreement. This agreement provides for close monitoring of import prices to ensure that agreed benchmark levels are respected. In 1989, 30 tonnes of New Zealand lamb were imported into the Irish market out of a total produce here of 58,000 tonnes.

The 1990 ewe premium will help to compensate Irish producers for income loss sustained this year. Indeed in 1990, producers will receive a once-off additional payment arising from changes in payment procedures. The estimated total benefit of the ewe premium to Irish producers in 1990 will amount to some £130 million as compared to a normal annual figure of £70-£80 million. Headage payments will also amount to £14 million so sheep farmers this year will be compensated to the tune of £140 million. In addition, as part of the EC prices package, an additional payment of about £3.40 per ewe will be paid from 1991 onwards for all eligible ewes to beneficiaries in disadvantaged areas.

These substantial payments will be of considerable assistance to producers especially in the context of cash flow problems as a result of the current difficult market situation.

The Common Organisation of the Market for the sheepmeat sector provides for private storage did arrangements. Monthly tenders have been in operation since the beginning of this year for those regions of the Community including Ireland where prices fall below the 70 per cent benchmark level. The private storage arrangements provide a safety mechanism for the sector.

Again I want to thank Deputy Davern for bringing this matter to the attention of the House and to assure him that the Department of Agriculture and Food have been in contact with the French authorities and have received assurances that we will be able to export our sheep and lamb products to France without intimidation and without interference.

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