John McGuinness (Carlow-Kilkenny, Fianna Fail)
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To ask the Minister for Agriculture, Food and the Marine arising from the pig meat recall scheme, if he will confirm the amount, if any, of pig meat destroyed in Russia; the total cost to the Exchequer; the total cost paid to the owners of the pig meat in Russia for the destroyed product; the difference between the invoice value of this product and the amount of compensation paid; and if he will make a statement on the matter. [7183/13]

Simon Coveney (Cork South Central, Fine Gael)
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In accordance with EU legislation, the responsibility to place safe food on the market rests with the food business operator and, therefore, the consequences of a failure to meet that requirement also rest with the food business operator. The Pigmeat Recall Scheme (PRS), which was approved by the European Commission, provided for a facility of up to €180 million from the public finances to assist processors in funding the recall and destruction of certain pork products. The objective of and rationale for the PRS was to ensure the survival of the pigmeat sector at a time of immediate crisis. It was not intended to compensate for all third party losses incurred at that time. It was, and is, a matter for the Irish pigmeat processing sector to settle and resolve other losses incurred with its customers as considered necessary.

The ex-gratia aid paid as a contribution towards the costs incurred by processors as a result of the recall was subject to State Aid approval as well as the provision of adequate supporting documentary evidence and without any admission of liability whatsoever by the State.

With regard to the operation of the PRS, product in Ireland was destroyed in one of four category 1 rendering plants. Product in overseas markets was either destroyed overseas or returned to Ireland for destruction. Approximately €102 million was eventually paid to processors for product destroyed in Ireland and in overseas markets.

Product exported by Irish primary processors and destroyed under the terms of the scheme was valued at the wholesale market price and paid on that basis. Valuations could not exceed the wholesale market price for the product as recorded and verified by the processor, and had to be net of VAT and any discounts applied. Copies of invoices had to be submitted with claims. Where identical products were marketed and priced at differing values, a weighted average value was calculated and used for all such products.

Some 211,365 kg of Irish products, valued at €440,060, was destroyed in Russia, while 1,157,258 kg of Irish products valued at €2,530,402 was returned from Russia to Ireland for destruction. My Department also processed associated costs claims from processors totalling €954,856 to cover transport to destruction, overseas storage and destruction costs and non-refundable import duties in Russia. These claims were settled at a cost of €627,911. Thus, the total paid under the PRS in respect of product destined for Russia was €3,598,373.

All of the above costs were paid to Irish processors who were obliged under the terms of the agreement with the industry to pass on the appropriate costs to their customers.