Dáil Éireann díospóireacht -
Tuesday, 17 Dec 2002

Vol. 559 No. 5

Written Answers. - Beef Industry.

Pat Rabbitte

Ceist:

112 Mr. Rabbitte asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the Government approved programme for the rationalisation through factory closure of the beef industry; if such a programme has been assessed from the point of view of its implications for competition and competition law; if such a programme has been referred to the relevant European Commission authorities from the point of view of State aids clearance; and if she will make a statement on the matter. [26742/02]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

I understand that my colleague, the Minister for Agriculture and Food, Deputy Walsh, has received a similar question and that he will be responding in so far as his Department is concerned. I am aware of reports of a recent initiative by interests in the beef industry to promote the rationalisation of that industry. This initiative, in which Enterprise Ireland has a facilitating role, is intended to implement the recommendations of the McKinsey report, 1998, and the beef industry task force report, 1999.

The initiative, as reported, raises implications concerning competition law particularly the notion of competitors funding an exit mechanism for firms wishing to leave the industry. The matter is under review at present by the Competition Authority and I understand that pending the outcome of that review no step to implement the initiative will be taken by any of the parties involved. No referral to the European Commission for State aids approval has taken place and it is not clear at present that any reason for such a referral will arise.