Mary Coughlan (Donegal South West, Fianna Fail)

Irish beef exports in 2005 stood at 487,000 tonnes. All these exports went to the UK and continental Europe except for 35,000 tonnes which went to third countries, mainly Russia. While the beef industry has in recent years become less reliant on third countries, these markets are important for specific cuts at particular times of the year. Third country beef exports attract export refunds.

At the Council of Agriculture Ministers on the 20 of March, the Commissioner for Agriculture and Rural Development, Ms Fischer Boel, announced her intention to abolish pre-financing of export refunds on the basis of criticisms levelled at the system in a 2003 report by the Court of Auditors which stated that the controls were complex and unevenly applied across member states. The pre-financing regime allows for the payment of refunds at the time beef is put under customs control and for the meat to remain in storage for up to four months. The regime is of benefit to exporters in that it assists them with cash flow and provides time for the exporter to build up an exportable quantity of stock and to find a suitable market.

At the Council of Ministers, I strongly opposed the removal of pre-financing and argued that its abolition was not justified. Pre-financing is being used by most of our exporters of beef to third countries and is an important part of their operation. The system was streamlined in 2003 and the controls are now working well.

An internal impact study by the Commission shows that the main advantage of the scheme was in the administration of beef exports rather the financial element. The Commission proposed new beef control measures to replace the present scheme and my Department and I will be examining the proposals to ensure, as far as possible, that whatever is put in place by the Commission to replace the existing system best suits the needs of the Irish beef sector.

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