Dáil Éireann debate -
Thursday, 25 Jul 1996

Vol. 468 No. 4

Written Answers. - BSE Rescue Package and Slaughter Premia.

Ned O'Keeffe

Question:

854 Mr. E. O'Keeffe asked the Minister for Agriculture, Food and Forestry if he will pay premia and concessions to farmers and cattle dealers as agreed at the Council of Ministers meeting on the BSE rescue package to both farmers and cattle dealers; his views on whether it would be fair to exclude dealers who purchase cattle from farmers for export (details supplied); and if he will make a statement on the matter. [15290/96]

Noel Treacy

Question:

871 Mr. N. Treacy asked the Minister for Agriculture, Food and Forestry if he will ensure that a £51 beef slaughter premium is made available for all animals exported out of this country as and from 1 September 1996; if he will secure EU funding in this respect; the cost of implementing this scheme; if his attention has been drawn to the urgency of this matter; and if he will make a statement on the matter. [15559/96]

Minister for Agriculture, Food and Forestry (Mr. Yates)

I recently announced arrangements for the payment of the BSE compensation package which was agreed by the Council of Agriculture Ministers at the end of last month. The package which is worth a total of some £70 million to Irish producers involves a top-up of £22.40 in the 1995 suckler cow premium and £19.08 in the 1995 special beef premium. These payments will be subsequently adjusted upwards or downwards to take account of actual numbers qualifying under the 1996 schemes.

In addition, the package includes a special allocation of £13.3 million to compensate those producers who have suffered most severely because of the BSE crisis. Following an analysis of losses incurred in the various sectors and having given careful consideration to the views and recommendations of the farming organisations, I have now decided on the following approach for the payment of this allocation.

A flat rate payment of £50 per head will be paid on steers and young bulls slaughtered in licensed export premises and steers exported to non-EU countries between 25 March and 9 June, subject to meeting the conditions of the scheme. In the case of live exports the compensation will be limited to 90 steers per applicant in order to target those who have suffered losses and minimise the possibility of paying compensation to dealers.

A flat rate payment of £50 will also be paid on heifers slaughtered in licensed export premises and local abattoirs during the period 25 March — 29 June. The slaughter period has been extended by three weeks for this category due to a backlog of heifers overhanging the market in June. Herdowners who submit applications for compensation for more than 40 heifers slaughtered in domestic abattoirs must provide evidence of ownership before 25 March. As in the case of live exports the purpose of this condition is to avoid dealers getting windfall gains from the compensation package.

I believe that the approach being adopted in the payment of the compensation package is balanced and is designed to assist those most affected by the crisis. Payment of this package will commence in September and must be completed by 15 October, the end of the current EU financial year. The EU Commission have indicated that the compensation package has been designed to cover losses for this year and accordingly, there is no provision for additional payments later this year. However I have secured the continuation of the deseasonalisation premium for 1977. This premium will be payable on steers slaughtered at export plants in the first half of 1997.