Mr. Cormac Healy:

Deputy Cahill raised this point and talked about our competitors, as we described them. In the first instance, our primary focus remains the European market. When we talk about immediate competitors, we note that our colleagues in England, Scotland, Wales and France have moved along the electronic identification route. Our first immediate competitor is probably UK lamb in continental markets. We are competing toe to toe with the UK in those markets. As major global suppliers of sheepmeat, Australia and New Zealand do not have a similarly elaborate traceability system. It is a frustration but the reality is that they had market access in Europe and many other international markets, in particular the USA, long before there was any discussion of tagging sheep, not to mention electronic tagging. Unfortunately, and perhaps the Department can elaborate on this point, getting into a market ahead of particular developments or rule changes is one thing, but trying to get market access after those developments have taken place is another. We are confronted with that fact and must demonstrate our bona fides on traceability.

Deputy Cahill also made a point as to whether an identification system delivered benefits for breeding. We understand from Sheep Ireland that there are benefits. There is individual identification of the animals. Breeding flocks and pedigree flocks have probably gone down this route already based on work we have done with them in providing data to Sheep Ireland. If the sheep sector is to get some of the breeding benefits seen in the dairy sector, which are now starting to come through in the beef sector, this system will be of assistance in providing accurate information.

Senator Mac Lochlainn mentioned other charges related to scrapie and so on. Those are completely unrelated to the topic under discussion. They are related to particular regulatory costs that apply. We have worked long and hard to have issues like scrapie testing and the requirements involved on foot of EU regulation changed and dropped. We are all spending money on legacy legislation going back to BSE times.