Mr. John Bryan:

I thank the Chairman and members for inviting the IFA here today to address this issue. When I was here with the committee last October, I outlined the findings of an IFA-commissioned report carried out by Professor Alan Renwick from UCD which quantifies the huge contribution the cattle and sheep sectors make to the Irish economy, particularly the local rural economy. Professor Renwick showed that the livestock sector generates €2.3 billion worth of output at the farm gate which equates to total output of €5.7 billion for the national economy. The sectors support 100,000 farmers and over 50,000 jobs in the wider economy. The cattle and sheep sectors deliver a real return in every rural parish, generating economic activity and providing employment across the country. Combined, the sectors have an unparalleled reach in terms of their contribution to the rural and wider economy. Professor Renwick's figures also showed that every €1 of direct payment invested in the cattle and sheep sector underpins over €4 in the economy. There is no doubt that the cattle and sheep sectors are hugely important to the Irish economy and particularly the rural economy.

The live export trade is a critically important part of the livestock sector in this country. On an annual basis, Ireland exports between 150,000 and 300,000 head of animals. These include calves, weanlings, forward store cattle and 30,000 to 80,000 head of sheep. The importance of the live trade cannot be underestimated in terms of its role in creating price competition. It is important to point out that the live export trade is heavily regulated by the Department of Agriculture, Food and the Marine and operates to the highest international and EU standards in terms of animal welfare. Previous UCD studies from Dr. John O'Connell indicate that the live trade provides price competition in the region of up to €76 per head on cattle. On the sheep side, with the opening up of the live trade to Libya for the very first time this year, the IFA estimated the live trade was worth an extra €6 to €8 per head on the price of lamb during the peak selling months of June, July and August. So again, the live export is vital to cattle and sheep price competition.

Against this background, the recent announcement that TLT International has been placed into receivership by its main bank HSBC is bad news. TLT has been the dominant Irish exporter of weanlings to the Italian market, shipping up to 21,000 cattle annually in recent years and several tens of thousands of sheep to EU markets. In total, Ireland exported 37,855 cattle to Italy in 2012, back from 53,678 in 2011. Total Irish live cattle exports to all markets in 2012 were 160,407 head and total sheep live exports were about 40,000 head. Total live exports to Italy to date in 2013 are at about 23,000. This is back from 33,000 during the same period in 2012. TLT had exported just over 11,500 of these animals to Italy. It also exported live cattle to Greece, Tunisia and Libya this year.

When news of the TLT receivership broke on Friday, 8 November, the IFA 's solicitors were in direct contact with the receiver, Gearóid Costello of Grant Thornton. The IFA arranged a meeting with Mr. Costello along with the ICOS marts committee representatives. The IFA made it very clear that payment to farmers and marts for livestock must be prioritised. The IFA also highlighted to the receiver that farmers and marts would be claiming retention of title on any livestock recently purchased and not yet gone for export. On 12 November, the IFA met with the directors of TLT, Mr. Paulo Garavelli and Mr. Davide Garavelli, at their export premises in Mullingar accompanied by ICOS. Again, the IFA made it clear that payment to farmers and marts must be prioritised. Later on that Tuesday evening, the IFA and ICOS organised a meeting in the Sheraton Hotel in Athlone attended by 70 mart managers and farmers. At all stages, the IFA has made it very clear to both the receiver, the directors of TLT and the bank that payment for livestock must be prioritised. The key component to finding any type of acceptable resolution to this situation is that farmers and marts are paid for the livestock supplied. The IFA has also been in contact with HSBC, which appointed the receiver. The specific details in respect of the full extent of the liabilities and creditors of TLT are still not available either from the receiver or TLT's directors. Mr. O'Donohoe mentioned one of the reasons why clarity has not arisen and all the individual farmers have not yet come to discuss it. There is an urgent need for clarity on the extent of the creditors and debtors in respect of TLT and the IFA has called on the receiver to make this information available.

What is known and already outlined in the media is that HSBC is owed in the region of €3 million and AIB is owed in the region of €750,000. We also know that up to 30 marts are owed millions of euro and a relatively small number of farmers are also owed an unknown amount of money at this stage.

It appears that the company has very few tangible fixed assets and it has been reported that the Mullingar export layerage and the trucks were leased to the company. The main company assets appear to be trading debts due from customers in Italy.

The directors of TLT must take full responsibility for their position and work to ensure all farmers and marts are paid in full for their livestock purchases. The IFA has made it clear to the receiver that payments for farmers and marts must be prioritised. The goodwill of farmers and marts is a crucial aspect of the business but it will only remain if farmers and marts are prioritised. The receiver, the bank, the current directors of TLT and potential buyers and debtors will be aware that the farmer and mart, as creditors, are essential to the business. A satisfactory resolution to these aspects will have to be found before progress can be made. The IFA will continue to work with everyone involved to progress matters but our priority is achieving payment for farmers and marts. Our policy on payments to farmers for livestock has always been to insist on payment on the day and we encourage farmers to sell through the marts because they have an excellent record of payment. Farmers expect that payment is guaranteed when they sell an animal in a mart.