Animal hide exports and processing
Unprocessed bovine hides accounted for 96 per cent of production in 1982, with no export subsidy. Members questioned why hides were exported instead of processed domestically, citing tannery closures, unemployment and the potential value of local processing. The Minister acknowledged difficulties in the sector, said he would look into the matter, and noted that an Agriculture Department official had joined the IDA board to support marketing; he placed processing initiatives primarily with private firms, the IDA and the Department of Industry and Energy.
asked the Minister for Agriculture the percentage of unprocessed animal hides exported at present; and the export subsidy paid on unprocessed animal hides.
Comment on this
Exports of unprocessed bovine hides in 1982 represented 96 per cent of total production. No export subsidy is payable.
Comment on this
Would the Minister agree that 96 per cent of the hides are exported?
Comment on this
I must say that the figure has startled me somewhat. I find it difficult to believe. I have raised all sorts of queries in my Department who tell me that in their opinion the question would be better related to the Department of Industry and Energy who have some information on this. That figure is very peculiar. I understand that part of the reason is that we import a sizeable number of hides and seemingly South American hides are considerably cheaper to import than our own are on the European market.
Comment on this
Is the Minister aware that almost ten years ago when a tannery in my constituency closed and we pursued the question at that time, the problem was that we were unable to compete due to the high export subsidy paid on hides? If an export subsidy is not paid now and we are not in a position to process those hides here, it is time there was a closer examination of the situation carried out to try to find what is wrong with our manufacturing process.
Comment on this
I am most concerned about the situation and I realise there was a tannery in Ballybay, the Deputy's constituency. The remaining tanneries are located in my constituency in County Waterford and they are experiencing considerable difficulty. I will look into the point further. Apparently, the market price in Europe for hides is extremely high and most countries can import them considerably cheaper from South America.
Comment on this
The Minister indicated that the question would be more relevant to the Department of Industry and Energy but will he accept that in his reply today he painted a picture of the Department of Agriculture being production-orientated only? Will the Minister accept that he should be organising with the Department of Industry and Energy a proper processing and marketing arrangement for our hides? If there is such a price available in Europe it means that European processors are making money. Why should we not be processing our own raw material rather than exporting it? It is amazing that the Minister, a representative from Waterford, did not know until the question was tabled that 96 per cent of our hides are being exported.
Comment on this
I doubt if any Members from Waterford were aware of that. The hide trade is not well publicised and we do not have much information about it. The Deputy referred to the marketing and development aspects of the Department and I should like to point out to him that in consultation with the Minister for Industry and Energy I have arranged for a senior official from my Department to be appointed to the board of the IDA to further the marketing end of the industry.
Comment on this
What about the processing side? Surely there is an initiative the Minister can take on that side? If the European processors are prepared to pay such high prices, surely it makes good economic and national sense at a time of high unemployment to have the processing of our own raw materials carried out here rather than export them.
Comment on this
Of course it does but it is a normal industrial commercial undertaking and it is up to individual firms to do that.
Comment on this
Surely the Minister, and the Government, have an important role to play in giving incentives to the private sector in this area?
Comment on this
The Minister is adopting a lay-back attitude to this matter although we have more than 200,000 people unemployed. It is typical. We have agricultural production and the Minister does not give a damn about marketing or processing.