Minutes of Proceedings

(Closed Session)

Item 1 - Apologies

None. All members attended at least part of the meeting.

Item 2 - Any Other Business

Dr Paisley sought the Committee's agreement to the issue of a short press release on the French Government's refusal to lift their beef ban.

Agreed: That the press release should issue immediately as drafted.

Mr Douglas raised the issue of the proposed closure of the market yard in Limavady.

Agreed: That the Committee felt it important to retain facilities for producers and that no decisions on closure should be made in haste. A letter would issue from the Committee to the Town Clerk saying that it hoped a market yard facility could be maintained in the Limavady Borough Council area.

The Chairman referred to the statement by Agriculture Secretary, Nick Brown, concerning the funding of the Rural Development Regulation.

Agreed: That the Committee, while welcoming new money earmarked for rural areas, was alarmed that this involved the reduction of direct subsidies to farmers and that a press release should issue immediately making these points.

The Chairman declared the session open to the public.

UFU representatives, Mr D Rowe (Deputy President) and Mr A Maclaughlin (Director General) made a presentation to the Committee, provided a short note on Debt in Agriculture to members and answered members' questions. They felt it would be useful for the Committee to seek information on the 'hidden' agriculture debt i.e. amounts owed to HP, Leasing and Finance Houses.

The UFU also felt a letter from the Committee to the Retailers seeking information on their policies on procuring NI produce for markets at home and abroad, specifically whether the prices paid to producers were covering production costs.

The UFU raised two other areas of concern, namely the potatoes industry (brown rot and imports) and the Beef Special Premium. The UFU agreed to provide memoranda on these for further consideration by the Committee.

Item 4 - Discussions with Representatives of the Northern Ireland Agricultural Producers Association (NIAPA)

NIAPA representatives (Mr M McCoy (Chairman), Mr J Carmichael (Development Officer), Mr W Mitchell (Secretary), Mr S Clarke (Vice President) and Mr N McLaughlin (Vice President) made a presentation to the Department, provided copies of a briefing paper "Northern Ireland - the Case for 'Low Incidence' BSE status" and answered members' questions. NIAPA felt that it was necessary for the industry to get back into the export market and for real opportunities to be made available for off-farm diversification. They also hoped that the new Assembly could lobby MAFF more strongly in future, galvanised with the support of the Scottish and Welsh devolved administrations.

Item 5 - Discussions with representatives of the Northern Ireland Grain Trade Association (NIGTA)

NIGTA representatives (Mr M Moreland (President), Mr M McAree (Vice President), Mr J McAuley and Mr O Brennan) made a presentation, answered members' questions and provided copies of their slides to members. NIGTA had submitted a paper to members (in advance of the meeting) regarding the crisis in the livestock sectors.

NIGTA's greatest concern was of debts in the pig sector. Traders had thus far managed to sustain high levels of farmers' debt but this could not continue indefinitely. They felt that some restructuring was essential with a new partnership approach (farmers, producers, compounders) to enable the sector to survive.

The Chairman closed the session to the public.

NIBA representatives were Mr G McGinn (Chairman), Mr H McDaid (Head of Lending, Bank of Ireland Group), Mr L Cunningham (Manager, Bank of Ireland Group), Mr T Reid (Director of Group Risk, Ulster Bank Group), Ms K Reid (pa, Director of Group Risk), Mr S Smith (Agricultural Advisor, Ulster Bank Group), Mr J Magee (Director, Corporate and Commercial Banking, First Trust Bank), Mr M McNulty (Agricultural Advisor, First Trust Bank), Mr T Reid (Head of Regional Custom Business Credit Bureau, Northern Bank) and Mr R Caldwell (Agricultural Manager, Northern Bank).

NIBA made a presentation, in which they outlined the current position and offered suggestions for the Committee's consideration, and answered questions from members. They provided copies of slides used in the presentation. Their main concern was also the pigs sector and although banks had made every effort to assist farmers (e.g. through capital moratoria and loan restructuring) they argued that they could not continue to support a sector which could not sustain itself.

Following a short adjournment for lunch the Chairman opened the session to the public.

NIFPO representatives were: Mr D James (Chief Executive), Mr P Reeman (Chairman), Mr L Girvan, Mr M Murphy, Mr M Palmer and Mr M Walters.

NIFPO tabled an information pack which gave details on the Fisherman's Handbook, Scallop fishing and quotas, along with technical data on Irish Sea Herring and answered members' questions.

NIFPO felt that the Committee could be of assistance in ensuring that Northern Ireland's position was given the strongest backing at the forthcoming Fisheries Council Meeting in Brussels (16/17 December 1999). It also sought the Committee's help in asking the Department to waive legal costs of £30,000. The costs arose from NIFPO's European Court action (following a successful judicial review in the High Court) challenging the 'Hague Convention'.

Finally NIFPO sought the Committee's help in securing available EU funds in support of scallop fishermen who were unable to fish at the present time due to unforeseen biological circumstances.

Item 8 - Discussions with a representative of the Anglo-North Irish Fisheries Producers Organisation Ltd. (ANIFPO)

ANIFPO's Chief Executive, Mr A McCullough read a statement to the Committee in which debt within the fisheries sector was estimated at £10 - 15m. He provided a copy of his statement for members and a summary of fisheries measures proposed for inclusion in the NI Single Programming document 2000 -2006.

He felt that the current debt position was serviceable but that this would be threatened if there was a poor outcome from the Fisheries Council meeting.

The Chairman closed the session to the public

The Committee discussed all the presentations and information it had received and the following were agreed:

• That the position was indeed critical and demanded urgent attention through a formal Committee Inquiry.

• That the Committee was concerned that debt to HP and leasing companies may as much as double the debt figure estimated by the banks. On receipt of the list of companies from the UFU, the Committee should write seeking information from each on an estimated figure for current borrowings.

• That the Committee Chairman and Deputy Chairman would seek a meeting with the Department in advance of the Brussels Fisheries Council meeting in order to emphasise the importance of the outcome for the whole industry.

• That the Committee would seek information from the Department on the £30k court costs being sought from NIFPO and seek to have these met from the Department's funds if it felt the Department's actions were unfair.

• That the Committee would consider writing to Retailers regarding their procurement policy and payments to producers.

The Clerk distributed draft Terms of Reference for an Inquiry and a draft press release which would seek written submissions from individuals and organisations.

Agreed: That the terms of reference should include an examination of the Department's handling of the BSE and Pigs crises and that the press release should issue. In addition a number of organisations would be targeted with invitations to provide memoranda - members to advise the Clerk of any nominations they may have for such an invitation.

It was subsequently agreed that, in order to assist organisations prepare their memoranda, the draft Terms of Reference should be included on the press release and letters of invitation, pending their formal adoption at the meeting on 17 December 1999.

Dr Ian RK Paisley MP MEP MLA