I propose to take Questions Nos. 268 to 271, inclusive, together.
The calf processing scheme was originally introduced by the European Union as a part of the 1992 CAP reform package in an effort to reduce the number of calves available for beef production. This scheme, which was voluntary on member states, was implemented only by Portugal, the United Kingdom and France.
The fall in beef consumption in the EU in 1996 created a new surplus of beef in the EU and a need to reduce production. The measures adopted by the Council in October 1996 obliged member states to introduce an early marketing premium scheme for veal calves or the calf processing scheme. As Ireland has no veal industry we are obliged under Council Regulation (EC) No. 2222/96 to introduce the calf processing premium scheme.
Nine EU export licensed meat premises have been selected as processing centres. The centres are strategically located to minimise haulage distances for the calves. The transport of these calves is subject to the strict conditions set down under EU and national legislation. The processing centres are required to meet new and strict animal welfare requirements. The calf processing premium will be paid only on animals which are in a fit and healthy condition on presentation and are processed in conformity with the conditions applying under the scheme. I am, therefore, satisfied that the scheme as operated should not give rise to animal welfare problems.
The object of the calf processing premium scheme and the early marketing premium scheme for veal calves is to reduce by 1 million the number of calves available for beef production. This number is equivalent to about 350,000 tonnes of beef per annum within the EU. This measure will assist in bringing the market into balance, thereby assisting producer prices to recover to reasonable levels and orderly marketing to be restored within the EU and internationally.