I move:
That Dáil Éireann approves the payment of temporary financial assistance to the Irish rendering industry to ensure the continuation of its operations until 21 May, 1996.
As Members are aware, in accordance with the principles of Government accounting, legal authority for a new service, in the form of Dáil approval, must be obtained before any expenditure is incurred. I have, therefore, come before the House at the earliest possible opportunity to move a motion in respect of a new service to provide temporary financial assistance to the rendering industry.
Deputies will recall the stark situation which livestock producers, slaughterhouses and renderers faced immediately before Easter. Commercial outlets, either domestic or external, were not available for the meat and bonemeal being produced by the rendering industry. In the absence of alternatives and any form of cash flow from the sale of meat and bonemeal the rendering industry would have been forced to close its doors after Easter. It was announced that as and from Easter Tuesday it would not take any more offal for rendering. This would have resulted in the closure of all abattoirs, slaughterhouses and meat processing premises as national hygiene rules dictate that raw offal cannot be allowed to build up in such premises. I contrast this with the current situation. Last week 39,000 animals were slaughtered, a record for any one week in the last ten years in the meat processing industry.
I met the Federation of Irish Renderers and agreed to provide a breathing space for that industry to enable it to continue to accept offal and maintain its activities on behalf of all sectors of the livestock industry. The details of the scheme are as follows: it will run for a period of six weeks from 10 April to 21 May, inclusive; a fixed storage amount of £1.50 per tonne per week is payable in respect of stocks produced before 10 April, the maximum eligible amount is 10,000 tonnes — I was told at the time that there were stockpiles at this level for which there was no market; a fixed production amount of £150 is payable per verifiable tonne of meat and bonemeal produced in the period between 10 April and 21 May — this production assistance is limited to a maximum figure of 15,000 tonnes and this tonnage will also be eligible for storage assistance; in the event of any future disposal of meat and bonemeal produced in the six week period, any amounts received by the renderers up to £150 per tonne will be refunded to my Department; the maximum cost to the Exchequer of the scheme over the six week period should not exceed £2.5 million.
I stress particularly the temporary nature of the scheme. I do not want to leave anybody in any doubt about that. The general taxpayer should not be expected to continue to pick up the financial costs of arrangements for collection, treatment and disposal of offal. Clearly, these costs are a matter for discussion and agreement between the commercial parties directly involved as part of normal commercial business. What I have done is to make the services of my Department available as facilitator to those parties by establishing a framework for discussion. I have assigned an assistant secretary to chair meetings. Two such meetings have been held and further discussions are scheduled. I urge the various interests to make the best use of the opportunity presented and have a resolution in place by 21 May. The scheme will not run beyond that date.
While I do not wish to anticipate the outcome, in the prevailing circumstances, if the fifth quarter, as it is commonly known, has diminished in value or certain offals have a nil value, that should be reflected commercially between renderers, meat processors and producers. The two segments of the industry are linked and have close commercial contacts and it should not be an impossibility for them to resolve the matter between them, especially when a framework for discussion has been established. Whatever system is introduced it will not involve any statutory levies.
Commercial outlets for meat and bonemeal are restricted, but the rendering industry is a commercial sector producing a quality feeding stuff for commercial disposal. It withstood serious difficulties in 1990 and went on to develop export markets for its product. It has also embarked on a programme of modernisation to ensure full compliance with new EU directives. The disposal of livestock offal in the first instance can be considered an environmental issue. I see the destruction of meat and bonemeal as a last option and know that this view is shared by the different elements of the livestock industry. However, technical consideration is being given by a number of Departments and agencies to various non-commercial uses for meat and bonemeal in the event that such a situation has to be dealt with. I am determined that we should be in a position to deal with all eventualities, including incineration or land disposal.
It is also important to clarify the legal position as regards meat and bonemeal. There has been a prohibition on the feeding of ruminant meat and bonemeal to ruminants since 1990 in this country and, more recently, across the European Union. In the United Kingdom, as part of the measures taken on 20 March, a ban on the use of mammalian meat and bonemeal in feed for all farm animals, including pigs and poultry, was introduced. The UK authorities have explained this was for control reasons rather than scientific considerations. This measure has not been adopted by the European Union nor are individual member states, including Ireland, being encouraged to take unilateral actions. In those circumstances the United Kingdom is the only member state with such a broad based ban. Our inquiries indicate that the rendering industries in continental member states are continuing to produce meat and bonemeal for the pigs and poultry sectors.
Scientific discussions at which my Department is represented are ongoing through the EU Scientific Veterinary Committee on the various processes recognised as giving the best possible guarantees as regards killing BSE and sheep scrapie. We are making every possible effort to encourage clear-cut scientific guidelines to produce the framework for the continued commercial use of meat and bonemeal by non-ruminants, subject to production at the correct temperatures and in approved and validated premises. This will provide the basis for the continued commercial use of meat and bonemeal.
On the general BSE issue, it is clear that further work needs to be done to defuse the situation in the United Kingdom. The discussion at the Council of Ministers in Luxembourg this week represented a step forward, but the widely held view is that further amendments to the UK controls are needed to provide the required reassurances for member states. It is also clear that recovery in beef consumption will be slow and much effort will be required to restore consumer confidence. In that context the domestic market has fared better than most and some EU markets are showing small signs of recovery.
The flexible intervention arrangements have been critical in removing the backlog of fat cattle. Last week's kill was the highest in over a decade. I have also secured an undertaking that the Commission will review the situation before the next Council in the context of income losses suffered by producers. A further 50,000 tonnes will be placed in intervention this month. Up to 70 per cent of Irish cattle will be eligible.
Our efforts to secure the reopening of markets continue. I will travel to Libya in the middle of this month in relation to the live trade and an Iranian veterinary delegation is scheduled to come here soon after an exchange of veterinary letters at the highest level. Every conceivable effort is being made to get these markets reopened. I am in constant touch with ambassadors, both at home and abroad.
The subsidy for the rendering industry is an important element of our strategy to deal with the crisis. It has already proved its value in allowing the industry to continue to function normally at a very sensitive time.
I recommend the motion to the House and thank it for facilitating me at short notice. I understand the motion is not being opposed.