THE Irish beef processing industry has already lost £3 million as a result of the industrial action by Department of Agriculture meat inspectors, the Irish Meat Association claimed yesterday.
Mr John Smith, chief executive of the organisation, warned that layoffs at the State's 40 meat factories could begin later this week if meat inspectors continue to refuse to certify beef for EU intervention and for export refunds.
The dispute has already affected cattle markets, where there was no demand yesterday for bullocks. Both IMPACT and the factories confirmed that no bullocks were slaughtered at any meat plant yesterday. However, the factories are continuing to slaughter heifers and cows.
The meat inspectors, members of the IMPACT union, are seeking additional staff and pay for what they say are additional duties imposed on them due to changes introduced since the Tribunal of Inquiry into the Beef Processing Industry.
Mr Smith said that from today animals slaughtered during last week will no longer qualify for EU intervention payments, as EU rules specify the beef must be put into the system within six days. "Beef killed last week to fill the EU tender will no longer be eligible by tomorrow," Mr Smith said, and he accused IMPACT of being irresponsible.
IMPACT says it is prepared to process half of the 12,000 cattle slaughtered for intervention and export if the Department of Agriculture gives an indication that it "will work with us to get a satisfactory resolution" to the dispute. The offer was made yesterday by the union's assistant general secretary, Mr Paddy Keating.
Mr Keating criticised the Minister for Agriculture, Mr Yates, for his criticism of inspectors and carcass classification officers on Monday. Mr Yates had accused them of being opportunistic in taking industrial action during a peak slaughtering period.
"It will behoves any politician to make accusations of opportunism," Mr Keating said. "The Department has accepted that there are genuine issues of staffing training and grading to be addressed. But its decision to introduce secondary classification (to meet new EU requirements) without agreement has brought matters to a head."
Mr Keating also challenged Mr Yates's claim that there was an offer on the table. He said the offer had been withdrawn and the Department was unable to say when extra staff could be recruited.
Mr Yates is expected to discuss the issues with other Cabinet ministers today. It is understood the Department of Finance objected to settlement proposals discussed by Department and IMPACT negotiators last week and these may be looked at again.
Meanwhile, it emerged yesterday that the Department may not penalise meat factories by the EU Intervention Tender Securities which they must give to the Department before engaging in slaughter for the scheme.
Industry sources said they had been advised by the Department "that if they presented beef for intervention and the inspectors refused to process it, then their securities might not be lost.
A Department of Agriculture statement said that if the dispute is not resolved before September 27th the last date when beef can be accepted for this EU tender it would assess the regulations governing the securities.