MINUTES OF PROCEEDINGS OF THE COMMITTEE FOR AGRICULTURE AND RURAL DEVELOPMENT
FRIDAY 1 FEBRUARY 2002
HELD IN ROOM 135 PARLIAMENT BUILDINGS
Present: Dr IRK Paisley MP MEP(Chairman)
Mr G Savage (Deputy Chairman)
Mr B Armstrong
Mr B Douglas
Mr D Ford
Mr G Kane
Mr I Paisley Jnr
Apologies: Mr J Dallat
Mr G McHugh
In attendance: Mr P Moore
Mr B Kennedy
Mr J McCourt
Miss R Foster
The Chairman declared the meeting open in private session at 10.12am.
1. Committee Business.
1.1 At the Chairman’s request, the Clerk briefed members in relation to papers for consideration in the day’s business, and advised that DARD officials are to meet the Committee next week to give a progress report on the Rural Development Programme. Members deliberated.
Mr Armstrong attended the meeting at 10.15am.
1.2 Resolved: that the oral session with officials on 8 February 2002 would be considered an evidence session of the Committee’s Inquiry into the Department’s Rural Development Programme and would be covered by Hansard.
Mr Ford attended the meeting at 10.17am, at which point the Chairman declared the meeting open to the public.
2. Minutes of proceedings on 25 January 2002.
2.1 Members noted that at paragraph 9 of the minutes the title of the legislation should read "Potatoes Originating in Germany (Notification) Order (Northern Ireland) 2002".
Resolved: that the draft Minutes of Proceedings of 25 January 2002 were approved as amended.
3. Minutes of proceedings on 28 January 2002.
Resolved: that the draft Minutes of Proceedings of 28 January 2002 were approved.
4. Committee Inquiry into the 2001 Foot and Mouth Disease Outbreak.
4.1 Members considered draft Terms of Reference and proposed methodology for the Committee’s Inquiry into the 2001 Foot and Mouth Disease outbreak. Members also deliberated on the implications for DARD officials who might be called to give evidence to the Inquiry.
Resolved: that the draft Terms of Reference were approved.
Resolved: that the proposed methodology for the conduct of the Inquiry was approved.
Resolved: that a Press Notice would be issued, detailing the Inquiry’s Terms of Reference.
Resolved: that a further press notice and a public notice would be issued at a later date.
Resolved: that the Clerk was instructed to prepare advice on the Committee’s powers in relation to calling DARD staff witnesses, and the possible implications thereof.
5. Matters arising from the meeting on 25 January 2002.
5.1 Correspondence. The Committee noted that copies of letters to the Minister and to DARD had been e-mailed to members.
5.2 Farm Quality Assurance Scheme. Members noted that an extensive reply had been received from the Livestock and Meat Commission (LMC) to Committee correspondence about the implementation of this scheme. A member raised a number of further concerns. Members deliberated.
Resolved: that members would consider a response to the LMC’s letter at the Committee meeting on 8 February 2002.
5.3 Adjacent Waters Boundaries (Northern Ireland) Order 2002. Members noted a map showing the "Northern Ireland Zone" that had now been supplied by the Department.
6. Potato Industry.
6.1 The Chairman welcomed representatives from the Ulster Farmers’ Union (UFU) to the meeting at 10.39am. They were Mr Douglas Rowe (President) and Potato Committee Chairman Mr Willie Murphy, Vice-Chairman Mr Ian Hill and Secretary Dr Alex McGarel.
6.2 Mr Rowe made a statement covering potato industry concerns about price differential between farm gate and shop; surplus of poor quality potatoes; DARD’s potato sector review; the future of seed potato levy; certification fees; and refund of certification fees for pre-basic seed potatoes believed to have been collected erroneously.
6.3 The Chairman advised the delegation that the Committee had just received a lengthy response from the Minister on the potato sector. Members deliberated.
Resolved: that the Minister’s response was copied to the delegation.
6.4 The UFU delegation then answered questions from members and tabled papers illustrating price differentials. Mr Murphy expressed appreciation for the Committee’s action in securing the annulment of fees regulations last year and asked for the Committee to take similar action to avoid an increase in fees this year.
The Chairman left the meeting at 10.59 am, returning at 11.10am. The Deputy Chairman took the chair in his absence.
6.5 Further discussion related to issues including competition; the influence of major retailers and packers; the importing of seed potatoes; the need for total checks on potato imports to guard against ‘brown rot’; the school meals movement to discourage children from eating chips, without corresponding promotion of the food value of potatoes in other forms; and the unsatisfactory response from DARD to attempts to get refund of certification fees for pre-basic seed potatoes, collection of which was believed to have been without statutory authority. Members deliberated.
Resolved: that the Committee would consider, at its meeting on 8 February 2002, a further letter to DARD, and a letter to the main potato packers, covering the issues raised.
6.6 The Chairman thanked the Potato Committee representatives and they left the meeting at 11.32am.
7. Dairy export Refunds.
7.1 The Chairman welcomed a joint delegation from the Ulster Farmers’ Union, United Dairy Farmers (UDF) and the Northern Ireland Dairy Association (NIDA) who joined Mr Rowe at the table at 11.33am. They were Mr Joe McDonald (Secretary, UFU Milk Committee); Messrs Harold Hamilton (Chairman) and David Dobbin (Chief Executive) of the UDF; Messrs Paul Archer (NIDA Executive Secretary) and Brian Moffatt (NIDA and General Manager of Halib Foods International).
7.2 The Chairman informed the Committee and the delegation that he had arranged to meet Lord Whitty (Parliamentary Under-Secretary of State) at Westminster and, with the other Northern Ireland MEPs, to meet with EC Commissioner Fischler next week to discuss dairy export refunds.
7.3 Messrs Armstrong, Douglas, Kane and Savage declared an interest.
7.4 At the Chairman’s invitation, Mr Dobbin made an opening statement, referring to the paper he had submitted to the Committee, illustrating the decline in market prices and the reduction in export refunds.
7.5 In the subsequent question and answer session between members and the delegation, a number of issues were explored including world markets; competition; Northern Ireland’s position as the major UK producer of whole milk powder, with consequential current dependence on export refunds; the undesirability of intervention funding as a long-term measure; the need to bring export refunds back up to earlier levels and beyond to preserve the dairy industry while investment in the development of cultured dairy products can be encouraged and effected with a view to reducing or eliminating the need for subsidy.
During discussions, the Chairman left the meeting at 11.55am and the Deputy Chairman took the chair. Mr Kane left the meeting at 12.09pm.
7.6 Members deliberated.
Resolved: that the Committee would write a letter to Commissioner Fischler, to be delivered by the Chairman (as MEP) at their meeting, emphasising the unique Northern Ireland dairy industry position within the UK and seeking his help in securing increased levels of export refunds, of the order of €300 per tonne, for the industry.
7.7 The Deputy Chairman thanked the members of the joint delegation and they left the meeting at 12.28pm.
8. Milk Quotas: Dairy Produce Quotas Regulations (Northern Ireland) 2002.
8.1 The Deputy Chairman welcomed DARD officials Messrs Liam McKibben, Daniel Glenn and Peter Scott to the meeting at 12.31pm. Messrs Armstrong, Douglas and Savage declared an interest.
8.2 Following Mr McKibben’s opening statement covering the proposals and the general support from the industry for these, members questioned the officials. Mr McKibben clarified the situation in relation to penalties, explaining that they would not be applied in cases of genuine error and other similar circumstances. Members noted that the draft regulations were not available for scrutiny, but accepted Mr McKibben’s assurance that their provisions would be in accordance with the Explanatory Memorandum before the Committee and that day’s discussions with members. Members deliberated.
Resolved: that the Committee was content for DARD to proceed to make this Rule in accordance with assurances given by Mr McKibben.
9. Agricultural Processing and Marketing Grant Regulations (Northern Ireland) 2001 and Marketing of Quality Agricultural Products Grant Regulations (Northern Ireland) 2001.
9.1 DARD officials Messrs Liam McKibben, Daniel Glenn and Peter Scott remained at the table to discuss these proposed regulations. Messrs Armstrong, Douglas and Savage declared an interest.
9.2 Mr McKibben explained the purpose of the proposed regulations, referring to recommendations of the Committee’s Inquiry Report "A Fair Deal for the Farmer" that were being addressed in the proposed rules.
9.3 Members then questioned the officials on issues including the intention to encourage a number of producers to come together as a group to access grants, and the local constitution and independence of the project selection panel. Officials accepted that there should be sufficient flexibility in the system to allow for individuals serving a niche market to benefit from the available grants, and agreed to incorporate information to that effect in leaflets and guidance materials. Mr McKibben also gave an undertaking to consider seeking the agreement of the monitoring committee to a reduction from 40% to 20% in the requirement for individuals to source raw materials from other producers and to confirm to the Committee in writing. Members deliberated.
Resolved: that the Committee was content for DARD to proceed to make these regulations subject to the undertaking given by officials in relation to niche market producers and the percentage sourcing of raw materials from other producers.
9.4 The Deputy Chairman thanked the officials and they left the meeting at 1.06pm.
10. Pesticides (Maximum Residue Levels in Crops, Food and Feeding Stuffs) (Amendment) Regulations (Northern Ireland) 2002.
10.1 Members considered these proposed regulations and noted that they were most unusual in that they amend regulations that have been considered by the Committee but not yet made – the Pesticides (Maximum Residue Levels in Crops, Food and Feeding Stuffs) Regulations (Northern Ireland) 2002. Members accepted the DARD written explanations of the need for this approach in view of the highly technical nature of the Rules and the number of EC Directives from which they flow. Members deliberated.
Resolved: that the Committee was content for DARD to proceed to make these regulations, but that the Committee’s formal response to DARD should refer to the unusual situation regarding amendment of regulations not yet made.
11. Fourth Report of the Examiner of Statutory Rules.
11.1 Members noted that that the Examiner’s Fourth Report did not draw any matters of special attention to the Committee and that SR437/2001 – Plant Health (Amendment) Order (Northern Ireland) 2001- is listed with no comment.
12. Any Other Business.
12.1 A member raised the question of the Minister’s absence from the launch of the ‘Good Farming Practice’ document. Other members agreed that her absence from this important event was disappointing. Members deliberated.
Resolved: that the Committee would consider, on 8 February 2002, a letter to the Minister about this matter.
13. Date of Next Meeting.
13.1 Resolved: that the next meeting of the Committee will be held on Friday 8 February 2002 at 10.00am in room 135 Parliament Buildings.
The Deputy Chairman brought the meeting to a close at 1.10pm.
Ian R K Paisley
Chairman