Tom Hayes (Tipperary South, Fine Gael) | Oireachtas source

I thank Deputy Penrose for raising this issue.

The fallen animal collection system is an essential element of the infrastructure underpinning Ireland's successful livestock and meat processing industries, which had an estimated combined export value of almost €3 billion in 2012. The TSE fallen animal subsidy scheme ensures that fallen bovine animals over 48 months are disposed of in compliance with all animal and public health and environmental regulations.

The original scheme was initiated at a time when there was a serious crisis of confidence in the European beef market, in which Ireland is a major player, as a result of the emergence of BSE in some member states where it had previously not been confirmed. The burial of animals on farm was prohibited by the EU from 2001 onwards, except in remote areas, which meant that farmers would have to arrange for the collection and disposal of all fallen animals. The introduction of the scheme was seen as an urgent necessity at a time when the market was unable to deal properly with the disposal of fallen stock. The scheme has been modified over the years, but implicit in the objective of the scheme as it now stands is the protection of the environment and the maintenance of Ireland's favourable BSE status.

The current scheme provides for the collection and rendering of over 48 month old fallen bovines required to be TSE tested under EU regulations. The scheme subsidises the collection by animal collectors of fallen cattle over 48 months old from farms and their transportation to Category 1 rendering plants. The rendering and disposal costs of over 48 month old fallen cattle in Category 1 plants are fully covered by the scheme. The subsidy has two components - €30 paid to animal collectors and €58 paid to Category 1 renderers in respect of each animal, excluding VAT. The collection charge to the farmer is capped at €54.03, including VAT. In 2012, there were 53,903 over 48 month old bovines TSE tested in accordance with EU regulations and fully disposed off, at a cost to the Exchequer of €5.78 million. The projected number of animals for the entire year for 2013 is estimated at 75,000, with a cost to the Exchequer of €7.49 million.

The operation of the TSE subsidy scheme has been examined in my Department and a number of changes have been introduced on a best practice basis. These include enhanced compliance provisions and putting some limits on the distance material can be carried while maintaining choice. This examination took into account a number of considerations, including TSE testing requirements, animal by-product regulations, the need to maintain competition and the need for an adequate collection and disposal infrastructure. Under the new arrangements each animal collector will be able to choose from at least two rendering companies. Each animal collector licensed by my Department and each rendering company on the island of Ireland has been invited to express an interest in being included in panels to operate the revised scheme, which it is envisaged will be in operation from 30 November 2013. There are 39 animal collectors who can potentially operate within the scheme and five category 1 rendering plants potentially eligible to provide a service under the terms of the scheme.

It is important to note that these revised terms and conditions only apply to material collected and disposed of under the TSE subsidy scheme, which my Department operates to facilitate the TSE testing of over 48 month old bovines as required by EU legislation. Any animal collector who wishes to opt out of this scheme will, subject to compliance with animal by-product regulatory requirements, not be bound by the revised scheme rules. The new arrangements will be reviewed after six months in light of experience and my officials are open to have discussions with stakeholders. They will talk to the various people mentioned by the Deputy.

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