Vol. 507 No. 4
1 Mr. Connaughton asked the Minister for Agriculture and Food the reason the export of live cattle has slowed down; the efforts he has made to keep open the existing live trade with Spain; if the Libyan, Egyptian or any other markets for live cattle will re-open in autumn 1999; and his views on the low prices farmers are taking for store cattle. [16916/99]
With regard to the live trade so far this year, total exports have amounted to 182,528, a threefold increase compared to the same period in 1998. Indeed, when compared with 1997 when only 22,000 cattle were exported in the first six months of that year, the scale of the increase is enormous.
The trade to the EU continent has underpinned weanling market prices over the past year while exports to the Lebanon, which have amounted to some 36,800 head so far this year, have impacted positively at the finishing end of the market. It is quite clear therefore that there is a massive increase in the level of the live trade this year. The trade continues to remain strong and the most recent returns for the week ending 21 June show that a total of 7,192 cattle were exported, at a time of the year when the trade usually eases.
Looking at the individual markets in turn, the Spanish Ministry for Health recently introduced a unilateral decree applying specific conditions to imported beef and live animals from a number of countries which have had native cases of BSE, including Ireland. So far as live animals are concerned, the decree lays down specified risk material rules beyond those which are currently required in the other member states, apart from the United Kingdom, and are not in line with Ireland's SRM rules.
Since the introduction of the decree, I have taken action on a number of fronts to resolve the matter. I raised the issue directly with the Spanish Minister for Agriculture on two occasions and I have formally written to him and to the Spanish Health Minister outlining the potential difficulties and suggesting alternative approaches. Contact is being maintained on a continuing basis with the Spanish authorities to bring about a resolution of this matter in a way which would not adversely affect Irish trade.
Agreement was reached with a Libyan Government delegation last July providing for the re-opening of the Libyan market for Irish cattle and beef on the basis of agreed veterinary health conditions and terms of contracts. This agreement was the culmination of extensive contacts with the Libyan authorities since early 1997. The Libyan Government, through the general peoples committees, formally cleared the agreement before the end of September and written confirmation to this effect was received.
Although the Libyan authorities indicated their wishes to have the agreement implemented immediately, there had been delays in the conclusion of contracts for Irish cattle. These delays are of serious concern to myself and the Government. Ongoing contact is being maintained with the Libyan authorities through every appropriate channel with a view to ensuring that the July agreement is implemented in practice.
The Minister's time of two minutes has concluded. The remainder of his reply will appear in the Official Report.
It is unfortunate that I am constrained to this extent in giving factual information and constructive replies to Deputies' questions.
Question No. 2 also refers to the Spanish live cattle trade. Could Questions Nos. 1 and 2 be taken together? That might save time.
I have no objection to that.
We will deal with Question No. 1, in accordance with Standing Orders, and follow with Question No. 2.
The rules regarding questions do not suit our purpose. I would have preferred to hear what the Minister had to say.
Additional information to Question No. 1.
The Libyan authorities have indicated the current economic conditions in that country have resulted in the postponement of the implementation of the agreement but pointed out that they had never failed in the past to honour any agreement reached with another state. I am hopeful, therefore, that the agreement will be honoured and will take every appropriate step to ensure this outcome.
The only other traditional third country market for live cattle is Egypt and while it is my objective that all markets should be open to Irish cattle, it should be noted that the nature of that market has changed for Ireland. Egypt has now become the largest market for Irish beef, importing 120,000 tonnes of beef in 1998, the equivalent of 350,000 head of cattle.
The price of store cattle, particularly of finished cattle, is generally a function of market forces – supply and demand. Poorer grass growth in spring, in conjunction with the fodder scarcity carried over from last year and the lower prices for finished cattle, has impacted on the demand for store animals. Since the beginning of the year, store cattle prices have improved considerably. Although still down on this time last year, the trend has been in the right direction and there is some movement towards paying better differentials for quality cattle.
Farmers are extraordinarily annoyed at what has been happening in Spain for the past three weeks. Some people have a sneaking suspicion that, because of the success of the live trade, vested interests here think we are exporting too many cattle. I hope the Minister will allay that suspicion. The export of live cattle is our only hope in a year when there is no other market for cattle.
Is the Spanish policy with regard to veterinary restrictions different from that of other countries? Are the Spanish authorities allowed to impose such restrictions? What does free trade mean if a country can unilaterally impose an unreasonable restriction on the importation of Irish cattle?
Does the Minister intend to go to Spain? If this question is not solved, huge problems will arise in a couple of weeks.
I totally support the live trade, as the figures for the past two and a half years show. There has been an eightfold increase in the trade since I returned to office. I have facilitated the trade in every possible way. When I came into office there was no ferry for cattle transportation and the Government allocated £500,000 to put the M.V. Purbeck on the high seas. Since then I have approved 16 vessels.
There is a difficulty in Spain. I met the Spanish Minister on two occasions regarding this matter. Officials and veterinary personnel from the Department of Agriculture and Food, through our embassy in Madrid, are in constant contact with the Spanish authorities. The very difficult situation in Belgium brought down the Government and created chaos for their agriculture and food industry. At about the same time and although not related the Ministry of Health in Spain introduced the new regulation. The Spanish Minister for Agriculture has told me that there is an internal Spanish difficulty between the Ministries of Health and Agriculture. His advice is that the matter would be more easily solved by adopting a diplomatic approach rather than by adding to the controversy. I would go to Spain if I thought such a visit would be helpful. We have a considerable market for calves and weanlings in Spain. It is terribly important to us and I want to ensure it is maintained. In addition, I have been informed that there is a slaughter house strike in Spain and that major pressure is being placed on the Spanish Ministry of Health to find a resolution. Given the sensitivity of food safety throughout Europe and the world, it is an extremely delicate matter. However, I wish to assure the House and the industry that every appropriate step is being taken and every possible avenue is being pursued to ensure the matter is resolved satisfactorily and in the interests of the continuation of the trade.
2 Mr. Penrose asked the Minister for Agriculture and Food the steps, if any, taken by his Department to remove new unilateral restrictions imposed by the Spanish authorities in relation to Irish cattle; if these restrictions will be removed in the near future; and if he will make a statement on the matter. [16981/99]
The Spanish Ministry for Health recently introduced a unilateral decree applying specific conditions to imported beef and live animals from a number of countries who have had native cases of BSE. In so far as live animals are concerned, the decree lays down specified risk material – SRM – rules beyond those which are currently required in the other member states, apart from the United Kingdom, and are not in line with Ireland's SRM rules.
Since the introduction of the decree I have taken action on a number of fronts to resolve the matter. I raised the issue directly with the Spanish Minister for Agriculture on two occasions and have formally written both to him and the Spanish health minister outlining the potential alternative approaches.
I am continuing to give this matter my full attention and contact is being maintained on a continuing basis with the Spanish authorities to bring about a resolution in a way which would not adversely affect what is a very important trade for Ireland.
I feel that commonality and a level playing pitch is only an aspiration in European terms. We seem to be the most compliant in terms of EU regulations. Despite exhortations from this side of the House we rarely if ever implement unilateral action to protect our trade at any level. We implement EU regulations fulsomely without equivocation. We should take note of what is happening in Spain in relation to our industries.
What impact does the restriction by the Spanish authorities on the slaughter of imported cattle have on us? Does it go beyond the regulations imposed on other EU member states? Last year 75,000 young cattle were exported by Ireland: how will that trade be affected? Did the Minister contact the EU Commission to seek the removal of these restrictions because of the manner in which they have been imposed? Is the action by the Spanish Government unworkable in any way? We know the restriction is health based, but surely our product is clearly defined and there is no connection with Belgium in terms of our weanling trade. Will the Minister seek an assurance at EU Commission level that the level playing pitch will be preserved as an integral and fundamental part of EU free trade?
I believe the Spanish approach is excessive and goes beyond what the Irish authorities feel is required. Nonetheless in my dis cussions with the Spanish authorities it was pointed out that Spain has the right to introduce these measures in the interests of public and animal health. The trade is important, Ireland having exported 18,000 calves and 66,000 weanlings to Spain in 1998. Up to mid-May 1999 Ireland exported 30,000 calves and 41,000 weanlings to Spain. The trade is continuing and further contact is taking place. Later this afternoon another meeting will take place in the embassy in Madrid.
We have received some support from France as it is in a similar situation. I wish to put on record my assurance that everything which can be done is being done in order to resolve this matter satisfactorily from our trade point of view.
