Michael Creed (Cork North West, Fine Gael) | Oireachtas source

That is my understanding of it.

Reference was made to temporary veterinary inspectors. The increase in the allocation is €2.75 million. Members will be aware that there was a situation, which was highly unsatisfactory, where we had industrial action. That has been resolved and the allocation is up from €18.2 million to €21 million, an increase of €2.75 million in the 2019 allocation.

Deputy Cahill spoke about the cattle grading grid. Different people want the grid to be revisited for different reasons. I know the background that Deputy Cahill has come from in making this point. While some farming organisations have a particular view of the world, other farming organisations have an entirely different view of the world but want the same thing to achieve different outcomes. I have made the point that the grid is not a Department of Agriculture, Food and the Marine grid. The grid was facilitated by the Department through the loaning of expertise. The grid and the payment from the grid is an arrangement between farm organisations and the meat industry. If our expertise is requested again we would be quite willing but there is no agreed position on this matter between farm organisations as I understand it.

Deputy Cahill also spoke about live exports and I am glad that he did. We have different views of the world. I take the view that live exports are important. The surest way to guarantee that live exports continue is by absolute vigilance on the welfare issues around live exports. We are adamant and insistent on that. In 2018, Ireland exported 246,000 head of cattle, of which approximately 160,000 were calves. To facilitate the calf exports we reduced the levy from €4.80 to €1.20 per calf exported. In so doing we also brought in the calf exporters and said that they were the beneficiaries to the tune of almost €750,000 just on the levy alone. I engaged directly with them last July - if my recollection is correct - and there has been ongoing engagement with them by the Department since then and before that. I have also engaged directly with them every year since I was appointed. In the middle of year I met them because we knew the issue of additional calves in the system was coming down the track in the spring of 2019. We asked the exporters to work together and with their contracting lairage providers in France to make sure the issue could be dealt with. I regret to say this did not happen. We are, however, committed to live exports. I was in Turkey recently on a short mission in respect of live exports. That is an important market and I will also be going to some north African markets later in the year. We see them as hugely important, and not just for the calves. Obviously calves hedge off a problem later but there is also the export of weanlings. We certainly remain committed to that.

On the pork issue, it has been a horrendous 12 to 18 months for those in the pig sector. On the basis of every cloud having a silver lining, farmers may be pinning their hopes on the incidence of African swine fever, which may mean a rise in prices internationally. Deputy Cahill referred to the market in China and I am aware of the difficulties happening there with African swine fever. I hope this happens but I am not in the business of predicting what will happen with prices. I hope that what the Deputy referred to may happen.

As for beef in the context of Brexit, the Dutch and the Danes in particular, the Deputy's point is true and undoubtedly the case. In volume of exports to the UK market the Dutch would be really up there. I believe that 11% of the Netherlands' total agrifood export offering goes to the UK, while it is 40% of ours. In value terms, however, it is about the same. Ireland certainly will not be the only ones looking for support but given the volume of product we put into the UK market, one of our arguments to the Commission has been that we need to contain the issue in the UK market or the contagion would spread into all other European Union markets. We would look for supports for our industry to keep their products in the UK market until such a time as we negotiate a comprehensive free trade agreement, which we will. Hopefully this will be by the short route rather than the long, circuitous route of a crash-out and the carnage that goes with it.

Certainly in the event of a crash-out and a package being offered, we will not be the only ones looking for support and nor will beef be the only sector looking for support. We have laid a very solid foundation in this regard, however.