Dáil debates

Thursday, 12 December 2013

10:10 am

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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7. To ask the Minister for Agriculture, Food and the Marine the steps he has taken to ensure that live exports of cattle continue in view of the demise of TLT; the steps taken by him in the past two months to open the British market to Irish live exports of cattle; and if he will make a statement on the matter. [53073/13]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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As the Minister will be aware, there is considerable concern about the lack of competition in the cattle and sheep sectors, the effect that the absence of a sufficient quantity of live exports is having on trade, and the grip that factories seem to have on prices. I ask him what he is doing about it.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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Deputy Ó Cuív's question pertained to TLT in particular. While TLT has been a significant player in the export of live cattle to the Continent, accounting for 20% of total exports, the export of live cattle from Ireland to Italy had declined significantly in recent years prior to TLT going into receivership. The decrease in live exports was mainly due to higher cattle prices in Ireland, which meant our cattle were less price competitive on the live export markets, including in Italy. The economic recession in Italy also impacted negatively on consumer demand for beef in that market and led to reduced demand for imports of live cattle into Italy.

Live cattle exports from Ireland amounted to 160,000 head in 2012 and were worth €143 million. To date this year, shipments have reached 202,000 head, which represents a very substantial increase on 2012 levels despite that cattle prices increased this year. Factors affecting volume from year to year include the number of calf births, stock carryover from previous years, the price competitiveness of domestic cattle, the euro-sterling exchange rate and transport costs.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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In case those who are listening to Question Time think my question solely concerned TLT, the question asked what steps the Minister had taken in the past two months to open the British market to live exports of cattle. I will ask him my specific questions again. What is he doing to retain the Italian market for weanlings? As he knows, we had approximately 50% of that lucrative market. There is a considerable differential between prices here and in Britain. What is the Minister doing, particularly at the intergovernmental and EU level, to ensure free trade for our live animals with our nearest neighbours?

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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On the Deputy's first question, part of the problem in Italy is the level of demand and the price purchasers are willing to pay compared with the prices prevailing in the domestic market in Ireland. In terms of the UK, it is important that people examine the reasons behind the problems in live cattle exports to the UK. Roll on-roll off ferry services do not want to take live cattle.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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They take them through Larne.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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They do not take them because of previous experiences of protests against live cattle exports on roll on-roll off ferries. A technical labelling issue also arises in respect of country of origin labelling of Irish originating and UK finished beef, which I will address in more detail in the context of Deputy Naughten's question on this topic. Factories do not want live cattle coming from Ireland. They want Irish produced and processed beef. That is a huge and successful market for us but it give rise to issues with the labelling of British beef which has been produced in Ireland but finished in the UK. I respectfully suggest that the Deputy should study the details of that issue because it is a genuine problem and will not be easy to overcome from an Irish domestic policy perspective.

10:20 am

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I am glad the Minister raised the issue of country of origin because I understand it is now being discussed at EU level. Will the Minister be ensuring that all cattle raised and slaughtered on this island will, under European law, be allowed to be labelled with Ireland as the country of origin, thus facilitating competition between all of the meat factors north and south of the Border? Can he confirm that if we do not achieve that status, cattle raised and bred here but slaughtered in factories in the North of Ireland would effectively have no country of origin?

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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That is a valid question and is an issue we are working on currently. I have spoken to my Northern Ireland counterpart, the Minister for Agriculture and Rural Development, Michelle O'Neill, who is also anxious to progress this issue. A technical discussion has commenced at a very senior level in both Departments to determine how we can facilitate this. However, it is not as simple as one might think. There are potential problems with us supporting Northern Ireland in putting an Irish label on the food it produces because I, as an Irish Minister, must stand over Irish food in terms of its integrity, safety and so forth. If we have a food safety problem that emanates in Northern Ireland, over which I have absolutely no control in terms of supervision, veterinary standards and so on, the Irish food industry could be significantly damaged. This is a genuine problem but we are working to solve it so that food produced in Northern Ireland can be labelled as Irish. Currently such food can be labelled as coming from the island of Ireland, but producers in Northern Ireland want to be able to label it as Irish. They also want to be able to label it as British, depending on the market they are supplying. It is a bit of a having-one's-cake-and-eating-it situation but having said that-----

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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That stems from the Good Friday Agreement.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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Having said that, I am supportive of-----

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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It is based on the concept of dual identity.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I am supportive of trying to facilitate a situation whereby food producers in Northern Ireland, who are Irish people and are producing Irish produce, can label it as Irish. However, protocols must be in place to allow my Department and its inspection teams to be part of the rigours of the necessary inspection process in Northern Ireland, with all of the checks and balances that we insist upon for Irish-produced goods, so that we can stand over produce from Northern Ireland which is labelled as Irish.