Éamon Ó Cuív (Galway West, Fianna Fail)
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1. To ask the Minister for Agriculture, Food and the Marine the progress made to date by him in tackling the crisis in the beef industry; and if he will make a statement on the matter. [26238/14]

Éamon Ó Cuív (Galway West, Fianna Fail)
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I am a little disappointed the senior Minister is not here. As the Minister of State knows, this year has been disastrous for beef producers, particularly bull beef producers. This is putting many farmers over the edge. It is not without significance that there have been two demonstrations this week outside the Minister's office, one on Tuesday in regard to the beef crisis and another today by hill farmers. People are losing confidence in him. What is the Minister going to do about the beef crisis, other than talk about it?

Tom Hayes (Tipperary South, Fine Gael)
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I wish to apologise for the absence of the Minister, Deputy Coveney, who is doing important work with Tom Vilsack, US Secretary of Agriculture. What the Minister is doing is trying to gain access for Irish beef to the American market. On Tuesday, we had a Chinese delegation here and the Minister's meeting on Tuesday and today's meeting with Tom Vilsack are significant for the beef sector.

I am acutely aware of the importance of the beef sector and sensitive to the concerns of farmers at this time. The current downward pressure on Irish beef prices is replicated in the UK, which is our main export market, and in other key EU markets. Against the background of the current concerns, the Minister met separately with representatives of the farm organisations, IFA, ICMSA, ICSA, and meat factories in February and March this year. More recently, he invited key stakeholders, including farm organisations, beef processors and relevant State agencies, to a round table discussion on the future development of the beef sector on 17 April and chaired a second meeting on 3 June.

There have already been a number of initiatives in the wake of this forum. These include the beef round table discussions, which will reconvene quarterly to exchange intelligence on market developments and forecasts particularly in regard to supply, demand, prices, product specifications and retail changes. The Minister has committed to launching a beef pricewatch online tool to make price information more accessible and free of charge to farmers. Work has commenced and already, as an initial step, the Department has improved its website in order to make price information more user friendly for farmers. The Department is examining the possibility of legislating for therecognition of producer organisations in the beef sector and will shortly be launching a consultation with key stakeholder groups in this regard. This initiative could provide a vehicle for collective action by farmers in a way that can give them the advantages of scale and market presence, as well as a useful vehicle for transferring technology and expertise to improve profitability at farm level.

Additional information not given on the floor of the House

The Department will prioritise its targeted on-farm capital investments for suckler farmers through the new rural development programme. In addition, Bord Bia has allocated €500,000 to expand and target promotion of Irish beef through its campaigns in the UK and in certain continental markets.

During the first beef forum, the Minister requested Mr. Michael Dowling, chairman of the beef 2020 activation group, to review the implementation of the group’s report, after intensive consultation with all stakeholders. That report has been delivered, and the Minister has asked round table participants to reflect on its recommendations.

On questions of price, these are matters for the market, and for negotiation between the contracting parties. It was recognised in the Dowling report, however, that there was a need for improvement in communications between processors and farmers on questions of price and market specification. In addition, the report recommended a simple and transparent system of price recognition for animals within market specification, based on the application of the quality payments system, with a bonus to incentivise production to optimal market specification.

Beef farms are the bedrock infrastructure of a critically important Irish industry and while suppliers are subject to the same market realities as others, it is important that their vulnerability to sharp changes in market conditions is recognised, and that the relationship between parties along the beef supply chain is carefully managed by the relevant commercial operators with this in mind. This is critical if supply is to be maintained and the beef sector is to perform to its potential in the future.

The key objective of the beef forum was to provide a vehicle, but not the only vehicle, to facilitate positive engagement between stakeholders in the beef sector, including processors and farmers. At this juncture, I would urge the stakeholders to reflect carefully on the proceedings at the first two meetings of the beef forum, and on the Dowling report, and to take time to engage with each other on its recommendations in order to find mutually satisfactory solutions to the current issues. It is clearly the case that the best interests of the industry will be served by honest engagement, transparency and clear communications, and by a recognition of the legitimate concerns of each of the parties.

As stakeholders are aware, the Minister has already committed to facilitating further engagement between stakeholders on the development of the industry, but it is neither appropriate nor legally possible for me to intervene on the question of price. In the meantime, there has already been a significant commitment by Government to investment in the beef sector through a revised Common Agricultural Policy negotiated during the Irish Presidency of the EU in 2013, including a single farm payment worth €1.2 billion to Irish farmers annually, through the Rural Development Programme 2014-2020, €295 million for beef data and genomics, and, in 2014, through the beef data, genomics and technology adoption programmes which will result in investment of some €40 million in the sector.

I will continue to ensure that the beef sector is a priority in the development of a policy and support framework for agrifood in the period ahead.

Éamon Ó Cuív (Galway West, Fianna Fail)
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On the issue of the Minister not being here today, we had agreed to change the day for parliamentary questions. He must have known he was going to have this meeting. We have all been aware, for the past two weeks, that the US Secretary of Agriculture was coming to Ireland because we received an invitation to a reception this evening. Why, therefore, did the Minister not come into the Dáil and say that today did not suit and swap times with another Minister? We would have co-operated in that regard. No disrespect to the Minister of State, but in the middle of a crisis, the senior Minister should be here.

Since last autumn, I have been highlighting the issue of the beef crisis. Will the Minister of State answer the questions I am about to ask and it would be helpful if he can answer them in the order I ask them? My first question concerns the live trade to Britain. What has been done to remove the barriers to this trade and why is it possible to export cattle from Larne to Scotland, but the same companies will not take cattle from Dublin to Holyhead? Why is it possible to export from one part of the island but not the other? Second, the issue of labelling has become a significant issue in the past year. It is driving down prices, particularly by reducing the demand for cattle from Northern Ireland. Third, I welcome what the Minister of State said about legislation for producer organisations, but will he give me some indication of the timescale for this? Is this going to be a constant promise, once again, of something that might happen when it happens and so on? When are we going to get this legislation? Can the Minister of State give me a date for it?

Tom Hayes (Tipperary South, Fine Gael)
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In regard to the Minister's absence, it is hugely important for the Minister for Agriculture and Food to meet the most important man not only in America, but in the world. We are trying to get access to the US market for our beef. That is where the Minister, Deputy Coveney, is today and it is vital he is there. I am quite capable of answering any of the Deputy's questions. That is the reason we have a Minister of State and I will not shirk my responsibility in that regard.

On the Deputy's specific questions, most of the second question arises in the next question from Deputy Martin Ferris.

Up to this time last year, 120,000 cattle were exported. Today, the number is 146,000. There is a misconception out there that no live cattle are being exported. I can send the Deputy information about the countries-----

Éamon Ó Cuív (Galway West, Fianna Fail)
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To Great Britain. I have all that. It is in the The Irish FarmersJournal.

Tom Hayes (Tipperary South, Fine Gael)
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Why did the Deputy ask the question then? The reality is that live exports are taking place and the Government and Department will do everything they can to facilitate that and encourage the export of more cattle. This is why the Minister is constantly out of the country promoting live exports and Irish beef.

Éamon Ó Cuív (Galway West, Fianna Fail)
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I did not suggest that the Minister should not meet the US Secretary of Agriculture. It is typical of what is happening here where everything is twisted. What I did suggest is that we could have had parliamentary questions on another day. As the Minister of State knows, there is an arrangement to do that and we always accommodate the Government in that regard.

I asked about live exports to Great Britain and why it is not possible to get a lorry-load of cattle on a boat in Dublin when it is possible for the same company to get them on a boat in Northern Ireland to take them to Great Britain.

Could the Minister of State outline what real steps have been taken to resolve the issue of the sale of offal to the Russian market? Is he satisfied that the quality assurance scheme, which was designed to get premium prices for farmers, is not having the opposite effect and that the scheme and the forward movement rule are not being used by processors to discount the prices of cattle and to declare that the cattle are out of spec?

Is it intended to introduce a beef industry regulator? Normally when an industry is dominated by a very small number of private sector players, a regulator ensures that there is fair play. Is it intended to have an inquiry either in this country or to seek an EU inquiry into the operation of the entire beef industry, including retailers, processors and the relationship between them and producers?

Tom Hayes (Tipperary South, Fine Gael)
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In respect of grading, I accept that farmers are very concerned. I presume the Deputy was in Grange yesterday?

Éamon Ó Cuív (Galway West, Fianna Fail)
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The Minister of State was down at the ocean conference.

Tom Hayes (Tipperary South, Fine Gael)
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Thousands of farmers assembled in Grange yesterday where the topic was discussed. Certainly, it is something that will come up at the round table discussions. This is why these discussions were put in place. I know the Minister is extremely concerned about this. We will get that on the agenda to see what can be done in the future. People, particularly producers, want to produce a better type of animal and if they are doing so, they should be paid for that animal. This is something that can be dealt with in the future to the satisfaction of both producers and meat factories.