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Dáil Éireann díospóireacht -
Wednesday, 27 Oct 1993

Vol. 435 No. 1

Written Answers. - Beef Industry Restrictions.

Peadar Clohessy

Ceist:

30 Mr. Clohessy asked the Minister for Agriculture, Food and Forestry the steps, if any, he has taken to date to ease the effect of EC carcass weight restrictions on our beef industry; and if he will make a statement on the future operation of this EC scheme.

As the Deputy may be aware I have vigorously opposed by all means at my disposal the Commission Regulation imposing a weight limit on carcasses which may be sold into intervention. The Government have decided to challenge this measure in the European Court of Justice and a case was lodged accordingly with the court on 4 June, 1993. The Government also applied to the Court on 13 June for interim measures whereby the implementation of the weight limit of 380 kgs as from date of the first tender in July 1993 would be suspended but the court did not grant this suspension. However, the court decision does not prejudice the outcome of our substantive case against the Commission Regulation.

Intervention is much less important in Ireland this year because of better and more consistent marketing by the beef industry, reduced beef production in the European Community, the re-opening of certain third country markets which had recently been closed to Irish beef and increased live exports. Accordingly, the effect of the 380 kg weight limit has been considerably reduced and, indeed, this year steer prices have been consistently above last year's levels. Despite the absence of any price reduction the direct compensatory payments under the premium schemes have been substantially increased.

The Commission regulation provides for the weight limits to be reduced to 360 kgs from 1 January 1994 and to 340 kgs from 1 July 1994. However, the Commission has undertaken to submit a report to the Council before the end of November on the implementation of the weight limit and this will give the council an opportunity to evaluate its impact. I have, however, raised the issue of the weight limit at the meeting of the council on 18/19 October in order to restate my strong objections to the measure and to alert the Commission to the possibility that it might be necessary to re-introduce intervention for heavy carcases in the event of a heavy glut of cattle coming onto the market over a short period. The conclusion of contracts for the supply of over 16,000 tonnes of beef to Iran before the end of the year has stabilised the market and it is likely that the beef industry will be able to secure markets for all of the heavy cattle coming on the market during the remainder of the year. I will, of course, continue to monitor market developments very carefully.
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