Vol. 108 No. 14
I move:
That Seanad Éireann approves the following Regulations in draft:
Pigs and Bacon Act, 1935 (Part II) (No. 11) Regulations, 1985, and
Agricultural Produce (Fresh Meat) Act, 1930 (Exporters Licences) (Fees) Regulations, 1985,
copies of which were laid in draft before the Seanad on the 26th day of June, 1985.
These regulations would reduce from £1.10 to 75p fees payable in respect of pigs presented for veterinary inspection under the Fresh Meat Acts and the Pigs and Bacon Acts. With the approval of this House it is intended to have the remission of these fees made effective from 1 April 1985. The regulations were approved in draft form by Dáil Éireann on 2 July 1985.
On 1 January 1984 the existing veterinary inspection fee of £1.10 per pig was introduced. Since May 1982, however, the bacon curers have been refusing to pay veterinary inspection fees on pigs. Their refusal to pay was largely on the grounds that they held there was an anomaly between themselves and local pork slaughterers who did not have to observe the same hygiene standards and costs in relation to their premises and products.
The Government, therefore, authorised, in December last, the drafting of a Bill which would provide for standards of veterinary control and hygiene at slaughtering premises catering solely for the home market to be brought into line with those applying at export premises, and for veterinary inspection fees to be correspondingly brought into line. This legislation is now well advanced and I hope it will be brought before the Dáil as soon as possible.
As well as complaining of the anomaly vis-a-vis local pork slaughterers, the bacon curers also claimed that the level of veterinary inspection fee being charged was too high, particularly when compared with the fees which our main competitors on export markets were charging. There was, therefore, a case for the level of the fee to be reduced in order to improve the industry's competitiveness on export markets, especially in the light of the difficulties the industry has experienced in recent times.
The Government, therefore, decided, for all of these reasons, to reduce the current level of inspection fees and to make an arrangement in respect of the arrears of fees due.
Following lengthy negotiations, an agreement was reached recently with the industry whereby, effective from 1 April 1985 payment of veterinary inspection fees for pigs would be resumed at the reduced rate of 75p. Furthermore, a sum of 15p per pig will be payable towards arrears when the legislation harmonising inspection standards and costs between bacon curers and local pork slaughterers is enacted and implemented. These financial arrangements will, of course, be subject to review on an ongoing basis.
I am aware that the revenue from these arrangements will fall short of what was estimated would have been received had current fees been paid. I am also aware, however, that if we had to go along the road of full recovery of fees this could result in serious difficulties in the industry. Many factories could have been faced with intolerable bills, which in addition to the other problems now being faced by the industry, may have proved much too high and might have resulted in closures.
It is vital that the industry should now organise itself to meet the challenges that lie ahead on both the export and home markets. If we are to continue to have an export industry it is essential that we have improved efficiency in both marketing and processing. On the home market we are soon to be faced with the challenge presented by the removal under EC law of our import derogations. It is vital that the industry can compete with possible imports. A much greater emphasis will have to be placed on product quality and product diversification. Plant modernisation is an integral part of this. Significant amounts of both national and EC aid have been made available for this purpose and are available to suitable applicants.
I trust that all sides of the House will give support to the proposed regulations now before it in draft form and that Senators will join me in urging the pigmeat industry to begin the job of overcoming the challenges it now faces. A readiness has been shown by us to assist the industry in overcoming its difficulties and we will, of course, continue to help whenever possible.
I will be extremely brief except to state that the Minister deserves our full support for this legislation in regulation form. Anything that we can do at this time of serious competitiveness in any of our industries, be it agricultural or otherwise, has to be welcomed. The Minister and his Department are to be complimented for bringing in this regulation which will streamline and improve the whole area of hygiene, marketing and processing. Above all, it will bring an element of greater harmony and greater efficiency consequently into the whole area of pig production, processing and marketing in the industry. The adjustments which the Minister has outlined are to be welcomed. The Minister deserves the full support of this House.
I welcome the reduction in fees from £1.10 to 75p. I do not think that this legislation is all that fair because about one-third of pigs being slaughtered at present are being slaughtered in unlicensed premises. We were promised legislation for the last 12 months in respect of pork butchers' premises. I would like the Minister to have this speeded up. It will be the pig producers who have to pay this in the final analysis. If the producers of one-third of the pigs being killed are not paying the levy of 75p, it is very unfair to the producers. Pig producers are at an unfair advantage in this country. The levy inspection fee in Northern Ireland is only about 2p or 4p per pig. As pig processors and exporters, we cannot be competitive if we are paying more than our competitors in the North of Ireland. The only point I would like to make is to have the Minister speed up this legislation as soon as possible.
This will be the case. That Bill is well on the way and we hope to have it before both Houses shortly.
