Michael Creed
Ceist:94 Mr. Creed asked the Minister for Agriculture and Food the way in which individual farmers with a verified fodder shortage can secure financial assistance under the recently announced fodder aid scheme. [18454/98]
Written Answers. - Agricultural Schemes.
Last week I announced that the Government had agreed to make £10 million available to deal with winter fodder difficulties. In addition I announced that I had sought EU Commission approval to continue the sheep headage top up equivalent to £2.75 million.
The sheep headage top up will be paid on the basis of the normal applications already on hand in my Department. The details on how the £10 million fund will be allocated are being finalised at present and will be submitted to the EU Commission for approval as a matter of urgency. It is intended that the measure will be geared towards farms in the areas identified as worst affected by the weather.
Bernard J. Durkan
Ceist:95 Mr. Durkan asked the Minister for Agriculture and Food his proposals to maintain and expand the agriculture industry; his views on whether measures taken to date are inadequate to deal with the situation, whether falling prices in the meat area are likely to cause serious hardship in the coming months, whether failure to address these issues will have a permanently damaging effect on the agricultural and associated sectors in terms of employment and trade, whether the urgent need for a comprehensive review of the entire sector with a view to identifying and putting in place the necessary measures to ensure that this productive element of the Irish economy can operate, compete and expand in the future; and if he will make a statement on the matter. [18450/98]
Ivor Callely
Ceist:229 Mr. Callely asked the Minister for Agriculture and Food his views on the likely impact on farmers' income in view of the current difficulties in farming; and if he will make a statement on the matter. [18750/98]
Bernard J. Durkan
Ceist:242 Mr. Durkan asked the Minister for Agriculture and Food the plans, if any, he has to address the issues outlined in a recent submission he received from the IFA; if his attention has been drawn to the urgency of the matters involved; and if he will make a statement on the matter. [18784/98]
I propose to take Questions Nos. 95, 229 and 242 together.
I am well aware that some farmers are currently experiencing difficult times and every effort is being made to alleviate these difficulties. Many of the difficulties now being faced by some of the farming sectors arise from developments on the Russian market and the difficult weather of 1998. I have been extremely active in trying to alleviate these difficulties and a range of measures have already been taken by me.
These include speeding up direct payments to farmers; an increased advance in suckler cow and special beef premium payments from 60 per cent to 80 per cent which will release an additional £45 million in November and December; pigmeat export refunds have been increased in May and August and now an attractive scheme of aid to private storage for 70,000 tonnes has been introduced; more rapid payment of REPS where such payments are falling due; payment of outstanding top up of £6 million to certain beef producers in early October; arrangements for Teagasc to hold special free advisory clinics on fodder in the areas affected; promoting live exports and reopening trade with Libya; increased beef export refunds — equivalent to 5p per lb. of beef — which was agreed by the Commission on 25 September 1998; ensuring that appropriate transport facilities are available for live exports of cattle and sheep; providing assistance towards the winter fodder shortage.
The Government has introduced a new scheme and made £10 million available to deal with fodder difficulties and I expect that details of the new scheme will be available very shortly. In relation to the beef market, I am continuing to make every effort to ensure unhindered access for Irish beef to markets world wide. In that regard, I will be in Iran this week to discuss the reopening of beef trade there. I will meet with my Iranian counterpart as well as with other senior ministers of the Iranian Government.
In addition, and in relation to the sheep sector, the second instalment of the ewe premium has now been fixed at £5.33 and a scheme of aid to private storage has been announced to alleviate the difficulties in this sector.
While I accept that the current difficulties are severe, a comprehensive payments system is now in place and I believe that the industry has the capacity to overcome this current downturn in the market.
Michael Creed
Ceist:96 Mr. Creed asked the Minister for Agriculture and Food the steps, if any, he will take to ensure that cattle prices improve immediately. [18455/98]
Liz McManus
Ceist:102 Ms McManus asked the Minister for Agriculture and Food the proposals, if any, the Government has for additional measures to assist farmers facing problems in view of the fodder crisis and the collapse of the Russian market; and if he will make a statement on the matter. [18413/98]
Willie Penrose
Ceist:232 Mr. Penrose asked the Minister for Agriculture and Food if he will provide an interest subsidy to buyers of store cattle who will not benefit from the proposed aid package to encourage the purchase of store cattle winter feeding, thereby improving the prices to those producers selling young cattle; and if he will make a statement on the matter. [18772/98]
Bernard J. Durkan
Ceist:243 Mr. Durkan asked the Minister for Agriculture and Food if his attention has been drawn to the problems likely to arise for the agricultural sector in early 1999 arising from feed shortages and beef and live cattle prices; and if he will make a statement on the matter. [18785/98]
I propose to take Questions Nos. 96, 102, 232 and 243 together.
I am very conscious of the difficulties faced by Irish farmers arising from market difficulties and fodder shortages. As far as cattle prices are concerned, the difficult situation stems almost entirely from the loss of the Russian market which accounted for approximately 25 per cent of our beef exports in 1997. I made very strong representations to Commissioner Fischler about the situation and impressed on him the need for urgent action to provide relief to the market, in particular by way of an increase in export refunds.
I am pleased that the Commission has responded to these representations by increasing export refunds on live cattle by 8 per cent and on boneless beef by 12 per cent. The increase in the refunds on boneless beef is worth 5p/lb. This increase will improve the competitiveness of Irish cattle and beef exports on third country markets and should enable our processors to pay higher prices for cattle to producers. I also submitted a number of proposals to the Commission which include the need for an EU export credit facitity to trade with Russia and also a loosening of the intervention criteria.
The importance of competition in the market place in maintaining cattle prices at reasonable levels is also recognised and in view of this special attention has been devoted to the live trade. I am pleased that these efforts have been successful in securing the re-opening of the Libyan market for Irish cattle and shipping is expected to begin shortly. Considerable progress has been made in securing shipping facilities and large numbers of weanlings have been exported to the Continent. I will be in Iran this week to discuss the possible re-opening of that market which has been closed to us since 1996 for BSE reasons.
I should also point out that, in the context of the negotiations on the prices package earlier this year, the continuation of the deseasonalisation slaughter premium was secured. This is a very important benefit to winter finishers. The European Commission has also been persuaded to increase the rate of advance of the cattle premiums from 60 per cent to 80 per cent. Payment of the advances at this high rate will enable my Department to pay an additional £45 million in premiums to cattle farmers this year and thereby improve the cash flow of all farmers. In these circumstances, I do not think that an interest subsidy scheme is justified.
As regards the fodder situation, last week I announced that the Government had agreed to make £10 million available to deal with winter fodder difficulties. In addition, I announced that I had sought EU Commission approval to continue the sheep headage top up equivalent to £2.75 million. The sheep headage top up will be paid on the basis of the normal applications already on hand in my Department. The details on how the £10 million fund will be allocated are being finalised and the approval of the EU Commission will be sought as a matter of urgency. The measure will be geared towards certain farms in the areas identified as worst affected by the weather.