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Dáil Éireann díospóireacht -
Wednesday, 27 Jan 2010

Vol. 700 No. 2

Other Questions.

Animal Identification Scheme.

Shane McEntee

Ceist:

93 Deputy Shane McEntee asked the Minister for Agriculture, Fisheries and Food his position on the introduction of electronic tagging; the impact this will have on traceability; and if he will make a statement on the matter. [3787/10]

The introduction of EID for sheep was agreed at EU level in late 2003. At that time, it was agreed to defer the implementation date until January 2008. The Council of Agriculture Ministers revisited this issue in December 2007 when it was agreed that the deadline for the compulsory introduction of EID should be set for 31 December 2009, six years after the original decision was taken. I have always expressed major concerns with the mandatory introduction of EID for a sheep sector that is clearly under pressure. My consistent view has been that the introduction of EID for sheep should only be on a voluntary basis and I most recently articulated this position to the European Commission, the Commissioner and fellow Ministers at the Agriculture Council of Ministers meetings, most recently on 20 November 2009.

It is to be regretted that there is not sufficient support among other member states and none from the European Commission for any further rollback in regard to the date for the mandatory introduction of EID or for a voluntary scheme. The prevailing view at EU level is that member states should proceed with implementation and other member states have proceeded with implementation on a mandatory basis. I, therefore, have no discretion as regards the date of implementation and there can be no question of deferring its introduction for a further period. In these circumstances, we are now obliged to proceed with its introduction.

Over the period of debate at EU level, I placed a strong emphasis in pressing our case for a voluntary scheme and in this regard I have secured major concessions on EID in discussions with the European Commission at official level and with the Commissioner. These concessions include a slaughter derogation, which means all lambs intended for slaughter and under 12 months old can now be exempted from EID. This will result in EID being largely confined to replacement breeding stock that are born after 31 December 2009. This means the vast majority of Irish sheep will be excluded from EID requirements, which will minimise costs for producers. Furthermore, where lambs identified under the slaughter derogation are subsequently retained for breeding purposes they can then be tagged with an EID device at the second holding. This is a major breakthrough in facilitating existing trade practice in the sector and addresses concerns raised by Irish farming organisations and Members of the Oireachtas that the new EID system would eliminate the sale of breeding sheep at marts, which would have an adverse effect on competitiveness in the industry.

The Department of Agriculture, Fisheries and Food has circulated a technical document outlining the proposed changes to the national sheep identification system to farm organisations and other stakeholders for comments. This is part of a consultative process which has been ongoing for some time. The stakeholders have been asked to examine this document carefully and engage with my officials so that whatever revisions are made to the NSIS best suit Irish conditions and minimise the burden on farmers within the parameters of the new legislation. I urge the various organisations to contribute specific input at this stage to the proposed scheme.

It is clear that nobody is listening to the Minister. Given that Britain has accepted a 20% error rate as the norm in the new electronic scheme and the NSIS currently in place in this country has a higher compliance rate than that, but is the single biggest factor for queries and hold-ups in single farm payments, how does the Minister think this will work with regard to single farm payment processing this time next year when all of the errors start to appear? The accepted error rate is 20% before the scheme starts. Did the other countries involved in this scheme already have a similar scheme to the NSIS in place?

In regard to Britain, Northern Ireland has not applied for the derogations we received and it is intended to implement the mandatory scheme, as it is outlined by the European Commission. I mentioned earlier — maybe nobody was listening, as Deputy Doyle said — that the Department——

I meant nobody in the Minister's party.

——is involved in consultations with all the farm organisations and all stakeholders in regard to the practical implementation of the scheme. I have consistently outlined, at meetings of the Joint Committee on Agriculture, Fisheries and Food and in this House, that we totally opposed the mandatory introduction of the EID, that we had no support around the table of the Council of Ministers, except for one or two other countries, and that there was opposition to anybody getting a derogation. The European Commission and the Commissioner for Health, Androulla Vassiliou were adamant that the scheme would be implemented. Indeed, they bemoaned the fact that it was not implemented six years ago when it should have been. In regard to the error rate, it is an issue of which we are conscious. That is why Department officials are involved in detailed discussions with farmer organisations or representatives to ensure we minimise the difficulties for the primary producers and people do not lose out in terms of cross-compliance requirements for their single payments. Those issues are currently under discussion.

My other question concerned whether other countries have a similar scheme. Will we have two schemes in place over the next 12 months? Will the NSIS be phased out?

There will be a requirement regarding the new numbering system. It will have a different number of characters. Some years ago the 13 digit sheep tag system was introduced. That will be incompatible, but there will be a period where there will be a crossover. The new 12 digit number will be introduced with the country code. A 12 digit code containing much of the elements of the whole numbering structure is proposed as a new tag numbering system. The structure of the new numbering system will be similar to the existing structure and will continue to comprise a flock designator unique to every keeper, followed by an individual number for the animals in question and will be issued in sequential order.

A key point is that conventional electronic tags will continue to have the country identifier, the 12 digit sequence and the check letter printed on them. They will continue to be readable to the eye, thus avoiding the need for farmers to have readers. We want to ensure that, in dealing with flock owners, we minimise the disruption during the transition period.

Grant Payments.

Mary White

Ceist:

94 Deputy Mary Alexandra White asked the Minister for Agriculture, Fisheries and Food if, in view of the announcement of the grant aid scheme for horticulture growers, the scheme will provide real benefits to primary producers and enhance the sector’s capacity for import substitution; and if he will make a statement on the matter. [3550/10]

My Department has contributed significantly to the support of the horticulture industry through its grant aid scheme of investment aid for the development of the commercial horticulture sector under the National Development Plan 2007-2013. The scheme assists capital investment on farms to promote the specialisation and diversification of on-farm activities, improve the quality of products, facilitate environmentally friendly practices and improve working conditions on farms. It has made an immense contribution to the growth and development of the horticulture sector across all areas, including protected crops, field vegetables, nursery crops, mushrooms, soft fruit, apples and beekeeping.

Under the first two rounds of the current scheme, a total of €8 million was paid out to 220 producers in 2008 and 2009, supporting investment of some €20 million. This year I am providing a further grant package of €4 million which will fund projects to the investment value of some €10 million. Under the previous scheme which was operated under the national development plan for 2000-06, grant aid amounting to €18.5 million was paid to 656 producers which supported investment of €53 million.

Does that include the Dublin-Meath growers?

It includes the whole country.

The Minister of State will continue without being sidetracked by interventions.

I thank the Leas-Cheann Comhairle for his reminder.

Producers concentrate for the most part on supplying the home market. The EU prohibits supports which are targeted at import substitution. It should also be noted that two sectors of Irish horticulture, in particular, are important sources of foreign revenue. The vast bulk of mushroom production is exported to the UK and almost all non-food horticultural products, for example, nursery stock, cut foliage, bulbs, flowers and Christmas trees are also exported, mainly to the United Kingdom and Northern Ireland. Further aid for the sector is also available under the capital investment scheme for the marketing and processing of agricultural products and, in addition, producers can also benefit from EU aid under the producer organisation scheme.

It is very important to develop other routes to market for horticultural growers. We depend to an excessive degree on a small number of multinational retailers which can determine the price they want to pay for produce.

Is it possible to take additional measures to address the issue? Proposals have been made to introduce a code of practice or establish a retail ombudsman. I suggest we develop a culture of thriving retail markets. In the past ten or 20 years, retail markets have been essentially killed off. As a councillor in the inner city, I witnessed the closure of the Iveagh Market and the demise of the fish market.

The Deputy is supposed to ask questions rather than answer them.

Can anything be done to help horticulture growers? While I would like to see the development of a thriving market culture, perhaps a code of practice and retail ombudsman would be helpful.

The Green Party is talking to itself.

The Government has held discussions with the Department of Enterprise, Trade and Employment on the introduction of a code of practice, an issue we discussed in the House on previous occasions. Progress is being made in this regard. Following a period of consultation, the Tánaiste has indicated that she will introduce a voluntary code which will be followed by a statutory code. We all hope progress will be made in this matter to ensure farmers obtain a fair price for their produce.

Deputy Cuffe referred specifically to horticulture and noted a trend which is of major concern to me, namely, the loss of growers to the system arising from their inability to compete and satisfy the supermarkets owing to the scale of their operations. Rather than engage in direct sales or another form of retail, these growers are leaving the sector. My focus, therefore, has been to encourage other routes to market. I have, for instance, introduced a standard for farmers' markets to ensure members of the public can have a credible expectation that farmers will be involved in the markets and they will be local in nature. This matter is being progressed.

Has the Minister of State had an opportunity to address the broader crisis in the horticulture sector? The potato harvest has been virtually wiped out. This is a critical time for those contemplating setting produce for 2010. Are efforts being made to meet representatives of the sector to discuss establishing a rescue package, whether an Exchequer funded or European Union funded scheme, following the virtual wipe-out of a crop?

While the Minister of State will be most familiar with the problem in the potato sector, it is not the only sector affected. The Minister, Deputy Smith, met representatives of the potato sector recently. We are well past crisis point because the industry will close down if the Department does not introduce an initiative to address the problem.

While I appreciate that much of the media coverage has focused on the potato crop, I am aware that growers of other crops, including carrot producers, have also been affected. As Deputy Creed noted, the Minister, Deputy Brendan Smith, met a delegation from the Irish Farmers' Association, while I have met individual growers. Both of us are giving serious consideration to the submissions farmers have made and are sympathetic to their case. As of today, a decision has not been reached on the matter but I expect one to be made shortly given that the timeframe is tight.

Since 1980, if not before then, there has been ongoing erosion of the number of growers. This trend has not been helped by the weather, pressures on retail and the sterling differential. The fact that the acreage used for horticulture has not changed belies the reality. I seek to maximise the number of growers as well as the acreage in horticulture.

Deputy Cuffe asked a question on the possibility of establishing a code of practice or ombudsman. The second proposal is the wrong approach. Does the Minister of State agree that a code of practice would not be worth the paper it was written on until such time as a legislative mechanism is put in place to ensure primary producers of animals and vegetables are given a fair crack of the whip in terms of securing a fair percentage of the market price for their products?

The Minister of State indicated that 200 producers enjoyed a share of the €8 million provided in grant aid. Will he provide a breakdown of the figure? Do potato growers feature among this coterie of beneficiaries?

Some €23 million was allocated under the pork recall scheme for producers of pork meat that was not of Irish origin. Moreover, some of the initial allocation for the scheme has not been spent. Given that horticulture is also a source of food and is under severe pressure, will the Minister consider diverting this money to the sector?

On a second point——

The Deputy must ask a question.

There is no point referring to an enhanced scheme if the pressure on producers will result in the contraction rather than expansion of horticulture. Market led responses will not resolve the problem.

I concur with Deputy Sherlock that there is no point in introducing an unenforceable code. The Tánaiste has assured us that while the submissions under consideration will initially result in a voluntary code, it will be placed on a statutory footing. We are moving as quickly as possible towards the position the Deputy advocates. We all wish progress could be made more quickly. The Tánaiste indicated she would like to introduce a code within 24 hours. Unfortunately, this is not practically possible.

A Fine Gael Party Bill is available to the Minister.

Is Deputy Cuffe satisfied with the Minister of State's response?

Potatoes have been included in the grants provided in the past. Under the most recent round of funding, considerable investment was made in storage facilities. This has enabled us to ensure we can maintain an Irish element to potato retail for longer than was previously the case. The grant schemes are highly competitive. Applicants must have a business plan for at least two years, must comply with health and safety and environmental standards and are subject to an inspection by the Department.

The Minister of State did not answer my question on moneys from the pork recall scheme.

Pigmeat Sector.

Seymour Crawford

Ceist:

95 Deputy Seymour Crawford asked the Minister for Agriculture, Fisheries and Food the number of farmers involved in pig production on a county basis; his views on whether there is an opportunity to expand this industry; if so, the way he will encourage such expansion; his further views on whether some of those already in production are experiencing difficulty with the banking structures; and if he will make a statement on the matter. [3546/10]

A total of 2,465 farmers are involved in pig production. Details of the number of farmers on a county by county basis are set out in the table.

The pig sector accounts for approximately 6% of gross agricultural output. It is a significant employer both directly and indirectly, accounting for more than 7,000 jobs, many of which are in rural areas and small towns. The sector has the potential to develop further and make an even greater contribution to the national economy, export generation and job creation.

A development strategy for the pig sector, drawn up by Teagasc following consultations with a broad range of stakeholders, was published in January 2008. The document contains a comprehensive summary of the issues facing the Irish pig sector and proposes measures that need to be taken to position it for a successful future. Compliance with environmental protection legislation, increasing production efficiencies, pig health matters and research and technology transfer were all identified as areas in need of attention.

The objective is to have an industry that produces meat to the highest standards of quality and safety and would be internationally competitive, while having due regard for animal health and welfare and environment protection considerations. A steering group has been progressing the various recommendations of the development strategy. Following delivery of an interim report to my Department last week, I met the group to discuss its contents. Many of the recommendations are outside the direct remit of my Department and we will consult other relevant Departments and agencies about the recommendations made by the steering group.

The Government is conscious of the difficulties different sectors of the economy have in obtaining credit. It has taken a number of steps, including the guarantee scheme, recapitalisation of AIB and Bank of Ireland, nationalisation of Anglo Irish Bank and the establishment of the National Assets Management Agency, to ensure banks are in a position to lend to the real economy. I have been in contact with the banks about this matter on an ongoing basis and will continue to discuss with them how the position can be improved for various segments of the agri-food sector.

County

Number of Pig farmers

County

Number of Pig farmers

Carlow

48

Longford

30

Cavan

136

Louth

19

Clare

94

Mayo

180

Cork

444

Meath

80

Donegal

82

Monaghan

61

Dublin

17

Offaly

37

Galway

106

Roscommon

60

Kerry

132

Sligo

64

Kildare

71

Tipperary

193

Kilkenny

72

Waterford

69

Laois

56

Westmeath

61

Leitrim

35

Wexford

114

Limerick

123

Wicklow

81

I thank the Minister for his comprehensive answer. Coming from one of the major pig-producing counties, Cavan, he will be aware there are serious problems in the industry.

On the issue of banking, did the Minister's meetings with the banks include the ACC and NIB? These are important banks for that area.

Does he accept that individual farmers in the business are under serious pressure at present? Would he advise any young person to start into the business as things currently stand? I appreciate that the Russian market has been opened up which may improve prices but what is the situation regarding compound feeds? What is the Minister's attitude towards the GM issue? Our farmers have to compete against others who use genetically modified crops.

I thank Deputy Crawford for his comments on the re-opening of the Russian market. We hope that will help to improve prices and grow the market. The Russian market available to our exporters is of substantial importance overall.

Regarding young persons, as Deputy Crawford will be aware, some months ago I launched a Teagasc pig husbandry scheme in Ballyhaise agricultural college. The course was over-subscribed and the participating cohort was very young. I understand that in Clonakilty where a similar course is being held it, too, is very well subscribed to by a young age group.

Regarding the banking sector, Deputy Crawford may be aware that on a number of occasions I have met with pig producers and millers from the northern half of the country, along with their advisers. The group explained to me that over the years millers acted as bankers to individual pig-farmers. Now millers are under pressure, credit-wise, and because pig-farmers are also under pressure there is delay in payment reaching the millers. I got that group of millers and farmers together to formulate a specific proposal. At those two meetings, individual pig producers and millers commented that as a general rule in the past neither group would sit in the same room as the other because they would not have shared the same viewpoint. However they shared the same viewpoint at those meetings. I met a large number of processors, millers and farmers at that meeting. Afterwards I met the Irish Banking Federation and put to it the proposal that had been given to me at the meeting and which we had discussed. Subsequently, my Department wrote to the IBF supporting the proposals that had been put forward by the group. My recollection of the meeting with the IBF is that all the major banks were represented by their chief agri-advisers and they included the two banks mentioned by Deputy Crawford.

I want to include a supplementary question from Deputy Sherlock.

Does the Minister acknowledge that some of the problems encountered by the pig and food industries are due partly to the fact that legislation on packaging has not been amended and that the issue of substantial transformation still impacts on the comparative advantage Irish producers might enjoy if the issue were to be sorted out?

As the Deputy will be aware, some considerable time ago we put forward a proposal to the European Commission in respect of country of origin labelling for pigmeat, sheepmeat and poultrymeat. Unfortunately, the European Commission rejected our proposals and we were not allowed to proceed with them. Now the issue of adequate labelling is again under discussion in the Commission and we have put forward a very strong proposal in that regard.

Regarding the domestic market, which is important in the context of pork products, the Bord Bia quality assurance scheme is of huge importance to the sector and is very well supported by many of the producers and individual primary producers who want to see more use made of it.

I welcome the Minister's comment about the banking situation. I hope he will make some moves regarding the GM situation too because our food compounders must be able to compete with others at the best possible price. I would not be as confident as the Minister that young people will rush into this business. My information is that only the very big producers are expanding at present. The smaller ones cannot afford to do so. That situation must be looked at.

Regarding Deputy Crawford's point and speaking of individual producers and about the industry in general, there are now much better on-farm facilities for pig production. Some years ago the sow-housing scheme was introduced and has been very successful. The farm waste management scheme was made applicable to the pig industry for the first time. During the course of the coming year we will introduce a new scheme with regard to loose housing for sows and that, too, will be an important investment scheme. There is considerable cost involved for the individual but in recent years grant schemes were put in place for the first time and have been important.

As to age groups, I speak to different groups of farmers from all sectors but I always remark that when I speak at an event related solely to pig production by and large a younger age group tends to be present than at meetings relevant to other sectors.

Biotechnological Inventions.

Brian O'Shea

Ceist:

96 Deputy Brian O’Shea asked the Minister for Agriculture, Fisheries and Food if his attention has been drawn to the potential of miscanthus to meet fuel needs for domestic and commercial users. [3872/10]

I am aware of the potential to use miscanthus to generate heat and power in the bioenergy sector. The Department has been grant aiding farmers to plant miscanthus since 2007 under the bioenergy scheme. The scheme was launched on a pilot basis to provide farmers with an establishment grant to cover 50% of the costs of establishment up to a maximum payment of €1,450 per hectare. Eligible costs include those associated with ground preparation, fencing, vegetation control, the purchase of planting stock and planting. Up to 2,500 hectares of miscanthus were grant aided to the end of 2009.

As with any emerging sector, markets for miscanthus cannot be developed in isolation and require close collaboration between all partners in the supply chain from producer to processor. The initial target market should be end users with a high continuous heat demand. These markets should be local and of sufficient size and dependability to reduce transport costs. I understand that new markets are being developed in the fire log, pellet and briquette sectors to meet the growing demand for biomass in domestic and commercial stoves, open fires and boilers. The use of miscanthus as a co-fuel with peat is also being developed with trials ongoing at the peat-burning power stations. Eventually it will be possible to convert crops like miscanthus into liquid biofuel through the use of emerging second-generation technologies. It will be a number of years, however, before these technologies reach commercial viability.

Ireland's climatic and soil conditions are very suitable for growing miscanthus and the sector has the potential to offer a new rural activity for farmers. Miscanthus can also deliver positive outcomes in terms of reduced CO2 emissions and can contribute an increased supply of biomass to meet Government targets on bioenergy.

My Department is currently reviewing the operation of the pilot bioenergy scheme to assess the need for a new scheme from 2010 onwards and an announcement will be made shortly.

In that review I ask the Minister of State to recognise that €1,450 is too modest a grant sum because the input cost is high enough for individual farmers who might wish to move into growing miscanthus. If the sum were to be increased it would encourage more growers.

There is no doubt about the potential of miscanthus especially for the manufacture of pellets and firelogs, as the Minister of State outlined. Demand is growing exponentially and on an almost weekly basis. The delay does not relate to miscanthus being brought to market but rather it revolves around trying to encourage more farmers to grow it. The only way to achieve the latter is to provide a greater incentive at the start-up point. I, therefore, ask that the Minister of State consider increasing the start-up grant.

I will put the Deputy's suggestion regarding an increased start-up grant to the officials in my Department. As he stated, when it comes to pellets, briquettes, whole-bale boilers, co-firing, and so on, the potential of miscanthus is significant. As with any new activity, however, a certain amount of lead-in time is required. The methods relating to growing miscanthus are not unlike those which obtain in respect of growing wheat. Given that it is not a food crop, however, growing it does not come naturally to those involved in farming who have grown food all their lives. That said, increasing numbers of farmers are considering growing miscanthus. We will take account of the Deputy's comments in carrying out our review.

One of the observations made by those in the industry in respect of microgeneration is that the price being paid for the electricity being sold into the national grid is too low, in relative terms, when compared to the price that obtains in the UK and Northern Ireland. If we are to get a return on the investment we are giving to primary producers, we need to increase the price paid for microgeneration, for biomass energy production and so on.

I understand the Minister for Communications, Energy and Natural Resources is reviewing this whole issue. Investment in the sector has stalled because of the price differential. Will the Minister of State use his good offices to convey the concerns of the House to the Minister, Deputy Ryan on this specific issue, with a view to at least meeting the price that is being paid for microgeneration into the national grid?

We are getting great value in the House today, particularly when one considers that I am replying to questions that are proper to the Departments of Enterprise, Trade and Employment and Communications, Energy and Natural Resources.

The Minister of State did not answer the question I asked him earlier.

I will certainly pass on to the Minister for Communications, Energy and Natural Resources the Deputy's comments regarding the cost of feeding energy into the national grid. The review to which I referred will take on board the experience of farmers and the difficulties they face to date.

The Minister of State does not appear to be very familiar with miscanthus, which has proven to have great potential in the context of the production of firelogs, and so on. In addition, miscanthus is a quick earner for farmers. I do not want this matter to be dragged out for two or three years. A decision must be made immediately. The Minister of State referred to two other Departments which have an interest in this matter. However, he must accept the necessity of ensuring progress is made as quickly as possible.

I have no doubt that, notwithstanding the implications in respect of energy and other matters, responsibility for miscanthus comes within the remit of the Department of Agriculture, Fisheries and Food. I accept that it is a quick earner for farmers. However, the market relating to it must still be developed. A product development project — in the context of mixing wood and miscanthus on a 50-50 basis — in respect of peat-fired generating stations is in train. I am sure this will help the market to grow. Ultimately, the market will determine the success of the sector. The start-up grant will obviously play its part but more will be required in the context of good market development.

I accept that a marketing exercise will have to be undertaken. However, a great deal of micromarketing is taking place in various regions — Limerick and east Cork are two examples of which I am aware — in respect of certain sectors. Those involved in the industry have informed me that if the start-up grant paid to farmers is increased, and if a proper education process to accompany this is put in place, this will be of major assistance to local or micromarketing initiatives.

With respect, we should not discuss this matter in an aspirational way. Let us put our money where our mouth is and invest in the industry. Miscanthus is both a carbon offset plant and a fuel source and it offers massive potential. We should display a great deal more urgency in the context of how we promote the growing of this plant.

A significant level of urgency has been afforded to this matter and a considerable amount of money has already been invested. Between 2005 and 2007, €6 million was spent, under the research stimulus fund programme, on 13 projects. There has been a great deal of investment in Oak Park and other centres. This matter is being treated with urgency. The review to which I referred earlier will provide a reality check on where we stand. While we may start off with the best of intentions, there is always need to tweak and change things to make them better. That is what is happening in this instance. This important part of Government policy is being refined and developed.

Written Answers follow Adjournment debate.

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