Charlie McConalogue (Donegal, Fianna Fail)
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8. To ask the Minister for Agriculture, Food and the Marine the details of new rules for the movement of cattle being purchased in marts for live export to Northern Ireland; if his attention has been drawn to the fact that these changes are affecting the trade in live cattle to Northern Ireland; if he will review the restrictions; and if he will make a statement on the matter. [21037/17]

Charlie McConalogue (Donegal, Fianna Fail)
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This question concerns the more restrictive animal movement rules introduced by the Department of Agriculture, Food and the Marine for the purposes of cattle going for live export into Northern Ireland. Can the Minister update the House on those increased restrictions? Does the Minister accept that it has been having an impact on live exports of cattle to Northern Ireland, particularly in border marts? Can the Minister update us on whether or not the Department has resolved IT issues which meant that the data on display in marts did not properly reflect whether or not an animal had been at a mart within the previous 29 days and therefore was ineligible for live export to Northern Ireland?

Michael Creed (Cork North West, Fine Gael)
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I am sure the Ceann Comhairle will indulge me-----

Seán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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I have been indulging the Deputy up until this.

Michael Creed (Cork North West, Fine Gael)
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-----if I acknowledge the outgoing president and the president-elect of Macra na Feirme, Mr. James Healy, who is a Cork man and happens to be a consituent of mine. I would like to wish him well during his presidency.

It is a requirement under EU law that cattle exported from Ireland within the EU (including to Northern Ireland) must complete a residency period on a holding prior to export.  The animal must have been resident on this holding within 29 days of moving to an assembly centre for export.  Subsequent to moving from the holding, an animal may move one time through a mart and/or one time through a dealer’s holding, in that order.  No further moves are permitted.

The Department’s AIM computer system carries out verification checks on compliance with the residency requirement.  Cattle presented for export that do not meet the eligibility requirements are rejected by the system.  A small number of minor technical and other anomalies that were highlighted by exporters in relation to the operation of the AIM verification have been addressed, and the new arrangements are operating with minimal disruption.  

I called a meeting with live exporters last month at which I stressed that my Department considers the live export sector to be of great importance, particularly given Brexit and the expansion of the dairy herd. Earlier this year, I reduced the veterinary inspection fees payable on live exports of younger bovines in order to remove the disproportionate impact of these fees on exports of calves relative to older animals.   The ongoing search for new third country markets is a priority for my Department, and last month I outlined a plan to increase international market access for Irish food and drink exports. I welcome the fact that exports of live cattle to date in 2017 have increased by 40% compared to the same period last year.

Charlie McConalogue (Donegal, Fianna Fail)
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I thank the Minister for his response, and I join him in welcoming Mr. Healy here today with his colleagues and congratulate him on his election. It was a competitive election, fought by Ms Odile Evans as well. I wish Mr. Healy very well for his term ahead, and I have no doubt it will be successful. I also commend his predecessor, Mr. Seán Finan, for his term as well.

Can I ask the Minister to be absolutely clear as to whether the data on recent movements and whether an animal is eligible for live exports or not is available on mart boards from the Department? There has been an issue for farmers who were buying animals in marts after this restriction was brought in where the information available from the Department to the mart was not showing the fact that an animal may have been in another mart within the previous 30 days. It was only after those animals were bought and went through the veterinary checks that it was discovered that they were not eligible. That was creating a real difficulty. Can the Minister please clarify if that has now been resolved?

Michael Creed (Cork North West, Fine Gael)
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My information is that the new check on the residency requirement was implemented by the Department on the AIM system from 23 January and switched off on 27 January for a number of reasons, including the fact that some parties claimed they had insufficient notice and that some technical issues came to light. The issues were rectified and, following the issue of new trader notices, the check was switched on again on AIM on 3 April. Apart from some complaints in January, from some marts and some dealers and exporters about lack of notice, little feedback has been received from the industry regarding any negative effect of the new check on the 30-day requirements on exports to Northern Ireland since then.

Last month, I met people involved in live exports to Northern Ireland and further afield and we had a very useful and frank discussion. This issue came up and I understood that, while it had caused problems in the past, the issues were now substantially resolved and I have not had any further contact on the matter. The level of exports, and the substantial increase in exports of both calves and older animals, are to be welcomed.

Charlie McConalogue (Donegal, Fianna Fail)
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I concur with the Minister on the importance of live exports and it is incumbent on us to do everything we can to ensure services are in place to facilitate them. I welcome the fact that live exports are up this year and I welcome the reduction by the Minister of veterinary fees on calves. Given the success of that, I suggest the Minister look at removing the veterinary fee altogether as it is a barrier and an additional cost to live exports. It is important that live exports are there as an alternative and to ensure there is competition in the market and such a move would encourage it. It is in the Minister's power to do this.

As regards movements through marts, to qualify for the quality assurance bonus under the QPS system in factories, animals have had to spend a minimum of 70 days on the most recent farm and are restricted to a maximum of four movements. That has impacted on mart trade so could the Minister look at the issue? It is not a necessary requirement but it does make it more difficult for cattle going through marts, as well as ruling them out of the QPS bonus.

Michael Creed (Cork North West, Fine Gael)
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The restrictions on animal movement and the length of time spent on their last holding are demanded by retailers. A review has been carried out recently by Bord Bia of the eligibility criteria for quality assurance payments and this should make it administratively easier for farmers but a lot of quality assurance payments are driven by retail and consumer demands over food safety.

I do not have any plans to revisit the fees on exports. It is reasonable that the Department should seek to recover its veterinary costs by way of a fee. We have an avenue for consultation with live exporters and it is an industry in regard to which we are obliged, for many reasons such as animal welfare and market demands, to operate to the highest standards. I am pleased to say that those involved in the live export trade do not just meet EU requirements but EU-plus requirements.

Jackie Cahill (Tipperary, Fianna Fail)
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The Minister said a review of the quality assurance scheme was under way. We never needed the quality assurance scheme as much as we need it now. To encourage farmers to participate fully in the scheme, all animals which come from a quality assured farm should receive some level of bonus. At the moment the scheme is restricted to certain grades of animals that are slaughtered. McDonalds uses the quality assurance scheme to advertise its food and it creates a huge boost to its sales but the farmer who sells that quality assured beef receives no bonus. It is time all animals from a quality assured farm qualified for some bonus under the scheme.

Michael Creed (Cork North West, Fine Gael)
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This is an issue between the producer and the processor and is not an issue in which the Department is directly involved but I am aware that it is an issue in which farm organisations have been involved and that it has been the subject of negotiations between processors and Bord Bia, which facilitates the QPS scheme. I take note of what the Deputy says, however, and I will bear it in mind.