Written answers

Tuesday, 27 January 2009

Department of Agriculture and Food

Pigmeat Sector

9:00 pm

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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Question 1159: To ask the Minister for Agriculture, Fisheries and Food if he will explain his meaning of the term contingent liability used in relation to his response to the recall of pork products; and if he will make a statement on the matter. [48012/08]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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The term contingent liability used in the context of the eligibility of products the subject of the Pigmeat Recall Scheme, referred to any pigmeat product other than eligible product directly provided for in the Scheme that might be assisted at the Department's sole discretion where it regards it as justifiable to do so having regard to all the circumstances and in particular to the Department being satisfied that a legal liability reasonably arises. This was an issue that was provided for in the agreement between the Department and the pigmeat processing sector at the request of the sector representatives.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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Question 1160: To ask the Minister for Agriculture, Fisheries and Food the details of the compensation package agreed with pig producers following negotiations to return pork products for sale and supply; and if he will make a statement on the matter. [48014/08]

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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Question 1163: To ask the Minister for Agriculture, Fisheries and Food the way the figure of €180 million in compensation following the withdrawal of pork products from the market will be distributed; and if he will make a statement on the matter. [48017/08]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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I propose to take Questions Nos. 1160 and 1163 together.

The amount of €180 million represents a facility rather than a target amount. The facility made available by the Government for the purpose of the Product Recall Scheme will be available to primary and secondary processors that comply with the eligibility conditions of the scheme. The purpose of the scheme is to provide assistance in respect of eligible product subject to recall from the market and eligible product in storage. The amount to be made available to primary and secondary processors will depend on the amount of product under the scheme that is eligible and verified by my Department. Terms and conditions, including product eligibility and payment arrangements are set out in the scheme details as published on the Departments website. €36million approximately has already been paid to primary and secondary processors as an interim payment.

As regards pig producers, I have established a framework for determining applications for and the mode of assessment and payment of ex-gratia compensation that may be paid as a result of the slaughter of pigs deemed to be unfit for the food chain due to having been exposed to or suspected of having been exposed to contaminated feed. The framework broadly provides for compensation to be paid at market value rates and in excess of 100,000 pigs have been slaughtered to-date at agreed rates. The balance are expected to be slaughtered in the next few weeks.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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Question 1161: To ask the Minister for Agriculture, Fisheries and Food the persons who were the chief negotiators representing the pig producers during the negotiations to return pork products to the market; and if he will make a statement on the matter. [48015/08]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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The Irish Association of Pigmeat Processors was represented at the negotiations by a number of its members at chief executive and other senior executive levels and they represented both primary and secondary processors. IBEC was also represented.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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Question 1162: To ask the Minister for Agriculture, Fisheries and Food the way the figure of €180 million was arrived at in the calculation of compensation to pig producers on foot of the recent crisis; and if he will make a statement on the matter. [48016/08]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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In very detailed and complex negotiations, conducted over a period of three days, processors presented information on the volume and value of product in storage and product already consigned to markets, at home and internationally that was manufactured from animals slaughtered in Ireland in the period 1st September 2008 to 6th December 2008. Certain assumptions were made on the extent to which product in free market circulation would be subject to recall and prove eligible under the Product Recall Scheme. The amount of €180 million is a facility to enable processors to claim assistance in respect of eligible product rather than a target amount.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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Question 1164: To ask the Minister for Agriculture, Fisheries and Food the timeline for payment of €180 million in compensation to pig producers; if workers at processing plants will be compensated; and if he will make a statement on the matter. [48018/08]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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My Department has paid €36million in December and further payments will be made in the light of conditions set down by my Department. While the facility agreed with pig processors does not cover workers directly, a primary objective of the agreement was to secure the return to full scale processing as quickly as possible thereby securing the jobs of workers in the processing sector and the livelihoods of pig producers. I am glad that this objective was achieved.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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Question 1165: To ask the Minister for Agriculture, Fisheries and Food if, in the course of negotiations to return Irish pork products to the market and compensate the pig producing sector, provision was made to compensate those workers in the industry who are at a financial loss as a result of the recent crisis; and if he will make a statement on the matter. [48019/08]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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The facility agreed with pig processors as part of securing the return to full scale processing was aimed at putting Irish pork and bacon products back into the domestic and international markets as quickly as possible and to secure the jobs of workers in the processing sector and the livelihoods of pig producers. The facility will provide assistance to processors for eligible product recalled from the market and for eligible product in stock. Though the funding does not cover workers directly, as a result of the agreement between my Department and the processing sector, employment in processing facilities was secured, as was the earliest possible date for a return to work.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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Question 1166: To ask the Minister for Agriculture, Fisheries and Food the marketing initiatives being prepared to restore consumer confidence in Irish pork and beef produce both at home and abroad on foot of the recent crisis in the sector; and if he will make a statement on the matter. [48020/08]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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Bord Bia plans a number of relevant marketing and promotion initiatives. On the Irish market a series of promotional campaigns are planned. These will commence in February and will focus on building awareness and loyalty to the Bord Bia Quality Mark. These will underline the quality of Irish pigmeat and will communicate its origin.

A customer reassurance programme will be carried out in export markets. This will entail continued direct Bord Bia contact with customers, placing key information about the Irish pigmeat industry in context and demonstrating the integrity of Irish health controls, a trade communications programme designed to position the capability of the Irish pigmeat sector and the safety and quality measures in place to influence key decision makers in the retail, foodservice and manufacturing sectors and a programme to maximise international market access for Irish pigmeat products. This will involve communications activities designed to build confidence among national authorities and opinion formers in markets based around Ireland's health controls.

As regards beef Bord Bia's activities will continue to focus on building loyalty among key international customers and promoting Ireland as source of high quality beef and beef products. My Department will work closely with Bord Bia and the Department of Foreign Affairs to eliminate any remaining market access issues as a result of the dioxin issue.

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