Tim Lombard (Fine Gael) | Oireachtas source

I welcome the contribution by the IFA. I also welcome its statement and proposal. It is a unique proposal to impose a levy on the industry. The IFA is not reinventing the wheel. This has happened in other industries, particularly in the insurance industry. Over a period, we have seen different levies put on the insurance industry to help it get over issues and, in time, the industry financed itself.

We are talking in a vacuum here, and it is awkward to do so. There is media speculation this afternoon that there is potential for a 10% cut in the pig herd but we are unsure if that is true or untrue. We are hampered in our negotiations by being in that vacuum. It is 2 p.m. and we were hoping to have that information but we do not and that is unfortunate. Within that vacuum, I want to mention the idea of destocking. We have a scenario where stock is unfortunately being slaughtered. In my part of the world sows are being slaughtered on a continuous basis, particularly in the past ten days, because there is a fear that is the only way pig farmers can deal with the issue. If there was to be a destocking would that not dramatically suppress the price going forward anyway? Would it be counterproductive in how the industry can try to sustain itself going forward?

I mention the scale of losses and Mr. Cullinan mentioned in excess of €150 million in losses. We are proposing to put €13 million plus €7 million onto that. It is a drop in the ocean in the context of where this industry is. The one thing I have learned about this debate is that not alone will the pig industry be under exceptional pressure, the milling industry will also be under pressure. One could argue the point that more millers than farmers were at the protests in recent weeks because of the potential liability that will be out there among several milling platforms, including those owned by co-operatives and the privately owned mills. There is significant pressure on their books regarding how much money is out there. I am very fearful of how the milling industry could survive this crisis, how the pig industry will survive it and how the production industry from that side of the world could survive a crisis in that issue.

I appreciate that I am talking in a vacuum without the information being brought forward. Hopefully the Chairman will have the information from the Minister before the end of the meeting on the proposals and he might be able to clarify what those proposals are. If they are to involve what we are talking about, namely, a €13 million package and a BEAM-style proposal to take 10% off the herd then I would be very fearful of what that will do to the industry. It must be taken into consideration that a completely different funding stream is not being proposed and that the insurance industry has done this before. How bad does Mr. Cullinan think the proposal that is out there at the moment would be? Does he honestly think we will have 300 pig farmers left? What will we be left with after this?