Dáil Éireann Debate, Wednesday - 26 March 2014
6. Deputy Martin Ferris asked the Minister for Agriculture, Food and the Marine if he will review his Department's ruling in January 2014 which restricts knackeries from bringing fallen animals aged more than 48 months to a rendering plant outside a 125 km zone. [13208/14]
Amharc ar fhreagraI presume the Minister is aware of the 125 km zone and the effect it is having on farmers with fallen animals. I ask the Minister to revisit the directive and revert to the previous situation because it is causing undue hardship.
The TSE fallen animal subsidy scheme ensures primarily that fallen bovine animals over 48 months, which must be BSE-tested in accordance with EU legislation, are disposed of in accordance with all animal, public health and environmental regulations. As the Deputy will be aware the scheme is an integral part of the infrastructure underpinning Ireland’s successful livestock and meat processing industries, which had an estimated combined export value of almost €3 billion in 2012.
The operation of the subsidy scheme has been examined in my Department and a number of changes have been introduced. These include enhanced compliance provisions and putting some limits on the distance material can be carried while maintaining choice. This examination took into account a number of factors, including budgetary considerations; TSE testing requirements; animal by-product regulations; the need to maintain competition; and the need for an adequate collection and disposal infrastructure. The importance of having adequate rendering capacity especially in the event of a serious class A disease outbreak was given high priority in the examination of the scheme.
It is important to note that the rates payable under the scheme have not changed. The rendering and disposal costs of fallen cattle over 48 months in category 1 plants are fully covered by the scheme and the collection charge to the farmer is still capped at €54.03, including VAT. Bovines under 48 months are outside the remit of the subsidy scheme, and their collection and rendering is a matter for commercial arrangement.
I have 25 seconds left and am determined to start complying with the rules. There is a problem and the Deputy is right to raise it, as have farm organisations. Since we introduced these changes farmers are telling me they are being charged more for the rendering of their animals. If the changes we made for all the right reasons are being abused by organisations operating rendering systems by increasing their charges, that is not acceptable and we will considering changing again and reverting to the previous system, which would not be good in terms of overall competition and availability for farmers.
The Minister should look at it again. Restricting fallen cattle aged more than 48 months to a 125 km zone is resulting in collaboration between knackeries in the area to fix the price due to a lack of competition. Those living in Border areas used to be able to take their fallen animals across the Border and it was far cheaper for them. I will ask the farming organisation that contacted me to supply the Minister with the information he requires.
I have spoken to them about this and we have made it clear why we made the changes we did. We had good reason to do that. There was concern that there would be a significant reduction in the number of rendering facilities which would not have been good for Ireland particularly if that location was not even in the State. Of course we want competition but we also want to ensure there are plenty of players in the system so that if we had a significant outbreak, we would have multiple options in terms of rendering facilities. We introduced the distance limits primarily for biosecurity reasons, but we ensured that within that every farmer would have at least two options in terms of competition on price. If there is evidence that that competition is not functioning and the opposite is happening, we need to review that. I have sent a very clear signal to the organisations concerned that it is not acceptable to have a significant price increase as a result of the changes here. We will review it unless that changes.
