Michael Colreavy (Sligo-North Leitrim, Sinn Fein)
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Question 5: To ask the Minister for Agriculture; Fisheries and Food if he has any proposals to cap the fees paid by farmers to veterinarians; and if he will make a statement on the matter. [28144/11]

Simon Coveney (Cork South Central, Fine Gael)
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Fees paid by farmers to private veterinary practitioners are a private contractual matter between the two parties concerned and I have no statutory function in this area. In line with the position more broadly in the economy - for professions and other service providers - veterinary fees and charges are set in accordance with general market principles. It would not be appropriate for me to impose a cap on the level of fees charged by veterinary practitioners. I encourage farmers to shop around to obtain best value from their local veterinary service providers. In this regard, it is interesting to note that the Competition Authority concluded in its report on the veterinary profession in 2008 that there are wide variations in the fees charged by veterinarians and in their charging methods. Fees charged by veterinarians also take into account of daytime and night-time calls, distance travelled, and so on. In addition, a survey of fees charged by veterinarians in respect of TB and brucellosis testing, which was conducted by the Irish Farmers' Journal last year, shows that fees charged for this service vary considerably, indicating that competition exists in the market place and that farmers can achieve value for money if they shop around.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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Last year, the IFA estimated in 2009 the overall cost to farmers of medicines alone was €117 million. It also estimated that the cost of veterinary fees was approximately €2,000 per farm. It is disturbing that there is a variation in prices with regard to compulsory testing. The latter is supposed to benefit the State and all the people who live in it, as well as eradicating any type of disease which might be there. I wonder whether it might be possible to fix the price in this regard.

A survey carried out by the IFA in 2009 shows that some products, including antibiotics, were being sold for three times the amount for which they could be purchased at the lower end of the price scale. It would be of assistance if a mechanism relating to fixing the price of medicines in order to do away with the variations relating thereto could be put in place. Farm incomes tend to ebb and flow. They are quite good at present but three or four years ago they were quite low. While there are variations, the cost of medicines and the amounts charged in fees have remained virtually the same during the intervening period. It is costing farmers who are trying to survive and remain in the industry a great deal of money to cater for their livestock, and so on. A mechanism should be put in place so that a standard charge would apply in respect of compulsory testing or so forth.

Simon Coveney (Cork South Central, Fine Gael)
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It is fair to state that the cost of veterinary fees represents a significant portion of the costs incurred by those who own livestock farms. Compulsory testing has become part and parcel of farming. The standards we impose on farmers are expensive. That is one of the reasons I make no apologies to anyone who may be critical of the single farm payment system or the other systems of financial support for farmers. It costs more to produce food in the European Union than is the case in other parts of the world and European consumers must pay for that because it is they who demand higher standards. That is what is involved in the support systems to which we refer and in respect of which I am obliged, in the context of the CAP, to negotiate on a weekly basis. The implications of compulsory testing and the other matters I have outlined are increased costs for farmers.

All of the evidence suggests that there is a significant difference between what some farmers pay to veterinarians and what others pay. The evidence also shows that, potentially, there is a big difference with regard to what they pay for medicines. There is no doubt that some veterinarians charge a great deal more than others. The first thing we should do is encourage farmers to shop around. If there is evidence of cartels operating in different regions or counties, I need to know about it so that we can investigate. I would be slow to go down the road of introducing a cap in respect of the amount veterinarians can charge for services provided. Once a cap was introduced on one service, there would be immediate calls for similar caps to be put in place in respect of others.

Veterinary inspections are part of farming now. It is the responsibility of farmers, as business people, to shop around to try to obtain the services and products they require at the best possible price. They should consider entering into partnerships so that they might share the cost of paying veterinary bills, and so on to try to drive prices down. A cap in respect of the charges veterinarians can impose would probably be too blunt a tool. There are other ways in which farmers can help themselves in this regard.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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I raise the issue of the obligation relating to compulsory testing - I am fully in favour of this because it is necessary - because in the case of influenza injections and so forth, people pay a standard price. Why is it not possible to charge a set amount in respect of each head of cattle?

That would be the standard price and it would create much security for some farmers. These tests must be done and the farmer can be held to ransom.

Simon Coveney (Cork South Central, Fine Gael)
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I will look into it.