Dáil Éireann díospóireacht -
Thursday, 25 Mar 1993

Vol. 428 No. 3

Adjournment Debates. - EC Restrictions on Intervention Beef.

Mr. Dukes

The reduction in the weight limit of beef carcases going into intervention, which is about to be implemented, will deal a crippling blow to Irish beef producers and the beef industry in general. Coming on top of other restrictions under the Common Agriculture Policy and restrictions which are part of the GATT process, either in the pipeline or already in effect, this measure promises very bleak times ahead for beef producers. It means that up to 60 per cent of our beef and up to two-thirds of qualifying carcases which are currently eligible will no longer qualify for intervention. While we clearly need to avoid excessive reliance on intervention, this restriction on weight limits takes away yet another plank from the floor which the intervention system had put under the market heretofore.

We have not heard much from the Minister on this issue and I am delighted he is here. The Minister's performance on this issue has been nothing short of abysmal. He has complained of not getting enough support from other member states in this matter. He should have learnt by now that on an issue of this kind one cannot wait for support to come, one must go out and build it. He should be building it among other member states and the Minister has clearly failed to do so. On Tuesday night of last week I attended a very large meeting of beef producers in Enfield, County Meath which was also attended by the Minister of State at the Minister's Department, Deputy Hyland. I could not make up my mind whether I should laugh or weep as I heard the Minister of State say, on the one hand, that there is no chance of negotiating this measure and, on the other, say that the doors of the Minister and the Minister of State are always open. The audience clearly got the meassage; he has nothing to offer but bluff. The truth is that this measure could have been specifically designed to undermine Irish beef production and that the Minister has failed to take any action to head it off.

It is not that there has not been good advice available. TEAGASC, for example, has pointed out other ways to further reduce quantities being taken into intervention, if that indeed is what must be done, and how that could be done in a way that would not discriminate uniquely against Irish beef producers. These could be based on fat classes or on confirmation or could simply take the form of limiting the proportion of a plant's qualifying output that could be taken into intervention.

There is no evidence so far that the Minister has listened to that advice or that if he listened to it he understood it or that if he understood it he took any action on it. All we have had from the Minister has been his now habitual genial bumbling with vague assurances that everything would be all right on the day, the kind of assurances he has given so often since he was appointed about the carcase weight limitations, the prompt payment of premiums and about disadvantaged areas. The Minister's response at the end of a meeting if he has no good news to give to anybody is to wink, nod and smile and say that it will be all right on the day.

On this occasion we know it is not going to be all right on the day because this measure is going to cut the tripe out of our beef industry. We need to know if the Minister is going to wake up, and what he is going to do.

Minister for Agriculture, Food and Forestry (Mr. J. Walsh)

In December 1992, the EC Commission without any prior consultation with the member states placed a proposal before the beef management committee to exclude from intervention all animals over 325 kgs, with effect from 1 January 1993. Following strong opposition, particularly from the Irish delegation, within the beef management committee, the Commission changed the proposed limit to 340 kgs.

Subsequently, at the December meeting of the Council of Ministers, I strenuously objected to the Commission's proposal. I pointed out that, since it would render ineligible for intervention more than 60 per cent of our eligible steers, it would affect Ireland disproportionately. As a result of my pressure, and that of some other Ministers in the Council, the Commission decided to postpone the implementation of the 340 kg weight limit until 1 March 1993.

In the first week of the new Commissioner's term of office, I went to Brussels to dissuade Mr. Steichen from proceeding with the 340 kgs limit. I also made my views known to the new Irish Commissioner, Mr. Flynn.

The case I presented both to the two Commissioners and at the December Council was that the proposed limit would be discriminatory as between member states and particularly so in Ireland's case; undermine the economics of extensive production and disrupt the market, not just in Ireland but in other member states.

While accepting that some measures were necessary to respect the annual limits on intervention in-take decided by the Council of Ministers last year as part of Common Agricultural Policy reform, I made it clear that such measures must not discriminate against any member state; must not render extensive production less economic and must not disrupt the market.

I urged that the Commission should enter into consultation with the member states in order to arrive at an alternative proposal that would meet these criteria.

The week following my meeting with Commissioner Steichen, the Commission responded by modifying their proposal substantially. The modified proposal was to phase-in the 340 kgs limit over the period to 1 July 1994 by introducing two intermediate steps — a limit of 380 kgs on 1 July 1993 and a limit of 360 kgs on 1 January 1994.

Notwithstanding this substantial change in the Commission's position, I have continued to oppose their proposal. I raised it at each subsequent meeting of the Council of Ministers, in January, in February and again in March. I have also raised it with Commissioner Steichen at a further bilateral meeting last week.

At this point, I should make it clear that there is a substantial majority of the member states in favour of a weight restriction along the lines proposed by the Commission. Nevertheless, because of the opposition maintained by those few member states who are against the proposal, the Commission postponed the final adoption of the proposal until Wednesday of this week. Even then, the Commission, in adopting the proposal, decided that a report should be prepared on the beef market including the intervention system and the operation of the 380 kgs limit before the end of the year, that is, before the second phase comes into effect. This decision to consider a report on the matter before the second phase was due to further intensive pressure which I brought to bear.

Notwithstanding the final adoption of the proposal by the Commission and the possible outcome of the report due before the second phase, I intend to raise the issue again most forcefully at the next meeting of the Council of Ministers. I regard this important issue far from closed.