Liz McManus (Wicklow, Labour)
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Question 52: To ask the Minister for Agriculture and Food the action she is taking to address the apparently widening gap between the beef price here and that of British beef, which is higher; the reason for this gap; and if she will make a statement on the matter. [9096/07]

Mary Coughlan (Donegal South West, Fianna Fail)
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The gap between the British and Irish price for beef has, over recent weeks, narrowed since its peak in the first week of December 2006. A number of factors contributed to the differential in prices including lower prime cattle supplies within the UK, lower prices on the continental market and higher supplies here.

To support the beef sector in responding to the very real challenges it faces on an on-going basis I announced, last year, two new initiatives that will assist the beef sector in cementing the achievements already made and to better equip it to face the ongoing challenges of a competitive marketplace. These complement and underpin the existing Quality Assurance Scheme.

Proposals for the introduction of an Animal Welfare, Recording and Breeding Scheme for Suckler Herds were submitted to the European Commission in December 2006. The scheme, which is subject to EU approval, is designed to encourage suckler farmers to achieve higher standards in animal welfare and husbandry and to record data for breed improvement purposes in order to assist both quality and productivity. A budget of €250 million is being provided over the duration of the scheme.

A Capital Investment Support Scheme for the beef and sheepmeat primary processing sectors was announced in November 2006. The rationale for this scheme is to assist the industry in facing the challenges of the future, through increasing competitiveness and efficiency. Some €50 million has been committed for this package, and it is envisaged that this will generate further investment, bringing the value of the overall plan to some €120 million. The aid scheme, funded by the Department, will be managed by Enterprise Ireland, the state agency responsible for implementing such state aid packages.

I believe these measures, combined with our high levels of food safety standards, will support the Irish beef sector in positioning itself to face the challenges of the marketplace.