Carol Nolan urges Government to seek derogation to save agri jobs
Deputy Carol Nolan warned that new EU rules would restrict veterinary prescriptions to vets and demanded the Government seek an available derogation to protect agricultural merchants. She argued the change would cost thousands of rural jobs and urged immediate ministerial action.
What the proposed EU regulation would change
The Deputy outlined that European legislation from 2004 made veterinary medicines for food-producing animals prescription-only, while a 2006 EU directive allowed an exemption for licensed or agricultural merchants - the so-called responsible persons. She said an EU regulation planned for January 2022 would remove that exemption and restrict prescribing to vets unless a derogation is adopted.
Projected jobs and rural impact
The Deputy warned the change would be detrimental to rural economies, saying at least 3,000 jobs in the agricultural and merchant sector would be lost and noting the sector supports roughly 10,000 jobs directly and indirectly. She singled out potential harm to rural counties like Leash and Offaly and described the loss as unnecessary and avoidable.
Claims from agricultural merchants and stakeholders
She cited concerns from organisations including the Independent Licensed Merchants Association (ILMA) and individuals such as Ollie Ryan of Midland Veterinary, saying the rule could create anti-competitive effects, possibly form a cartel, increase costs and hassle for farming families, and raise traceability issues with different systems in the north of Ireland. She also argued that trained agri-merchants have dispensed these drugs since 2006 with no evidence of problems.
Government response and next steps
The Taoiseach responded that he would discuss the matter with the Minister for Agriculture and facilitate further input through the Oireachtas Agricultural Committee. He acknowledged ongoing negotiations and said a stakeholders forum has met twice, with engagement intended to seek a compromise and consider the application of the derogation. The Deputy urged the Government to act quickly to seek the derogation and save rural jobs.
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In 2004, European legislation established a requirement that all veterinary medicinal products that are intended for use in food-producing animals should be subject to a veterinary prescription. However, a 2006 EU directive allowed for an exemption and the maintenance of non-prescription status for a certain number of these products, which did not represent a risk to human or animal health. This meant that the rights of what are termed responsible persons were protected, and since then they have been able to continue to prescribe and dispense veterinary medicines when classified as licensed or agricultural merchants. That exemption is now under threat following EU plans to introduce new regulations in January 2022. This regulation, if it is implemented, will mean that only vets will be allowed to prescribe these products, and this will have a detrimental impact, as at least 3,000 jobs in the agricultural and merchant sector will be lost. And this will be another blow to rural counties like Leash and Offaly. There is absolutely no reason why this should be allowed to happen. The EU justification for the new rules is that only vets have enough knowledge and skill to prescribe certain antimicrobial drugs, but this is patent nonsense. Thousands of highly trained and skilled agricultural merchants have been dispensing these drugs since 2006, and there is no solid evidence, or indeed no problems, to suggest why this needs to change. Fortunately, there is an additional derogation clause that would permit responsible persons to continue issuing a veterinary prescription when the regulation comes into force in 2022. Today, I want to ask you if you will instruct the Minister for Agriculture and the Department to urgently adopt this derogation, and thereby save thousands of jobs and job losses in the rural economy, and in a sector that employs and creates 10,000 jobs both directly and indirectly. Organisations like the Independent Licensed Merchants Association, ILMA, and indeed Ollie Ryan of Midland Veterinary in Tullamore, have already said that if this EU regulation is signed into legislation, it will lead to job losses, possibly create a cartel, and would be extremely anti-competitive and would create another burden for farming families who would also be subjected to a lot of hassle in getting their medicines. It would also bring up issues around traceability, as farmers would be able to buy these products in the north of Ireland, given that they will operate a different system to us. Taoiseach, we have an opportunity here to save thousands of rural jobs if we act quickly, and indeed if this Government acts on this issue and seeks the derogation. I hope that you and your Government will commit to doing that here today and signalling your intention to adopt the derogation that is already provided for an EU law. And I understand the agri-merchants have received letters stating that the derogation is there to be applied for by Government. Thank you very much. First of all, I want to thank the Deputy for raising the issue. And you're indicating that the Directive hasn't yet been finalised, so there's still work to be done on the Directive, and negotiations are, I presume, still underway. I will talk to the Minister for Agriculture, and my understanding is that the Chairperson of the Agricultural Committee will be facilitating a discussion at the Oireachtas Agricultural Committee on this, where I think inputs can be made by yourself and other deputies and Senators, to examine this in greater detail, and particularly the issue of the application or not of the additional derogation clause that is there. You can take it that nobody overnight wants to create any situation where people are rendered unemployed as a result of an application of this Directive. So I will discuss this with the Minister of Agriculture. I take from your contribution the significance of what's envisaged and its potential implications for many in that particular sector. Obviously, safety and protecting health is always paramount, but you have indicated that this has been ongoing since 2006 under previous regulatory frameworks. There's an updating on the way, close to finalisation, for application in 2022. And as a Member of State of Ireland, we'll be involved with other European colleagues in finalising that. But also, I think here we should facilitate inputs, and I will come back to the Deputy in relation to that, in terms of my engagement with the Minister. Taoiseach, I thank you for your constructive response, and indeed your recognition that this will lead to job losses if it's not rectified. I also want to point out that agricultural merchants, they want to work collaboratively on this issue and constructively. I have spoken to the owners of many agri-merchants, including Ollie Ryan of Midland Veterinary and Grenans, who are based in Kilcormack and Wrath. And they certainly want to work constructively and collaboratively, but they feel there's no way forward other than this derogation to be sought and that to be finalised. Because this is a case where we can actually prevent jobs being lost in rural Ireland. We can actually help to protect the fragile rural economy. I do understand that many issues are beyond government's reach, such as job losses due to the pandemic, or job losses due to Brexit. But this is certainly one that is within the control of government, and it can be very simply solved by seeking the derogation. And I would urge you, as you have said, to speak to the Minister for Agriculture and indeed the Department on the issue. Thank you, Jeff. My understanding is that a stakeholders forum has been established in relation to this issue, that the Minister for Agriculture is engaging with that forum. The forum has met twice, and I think efforts will be sought to come up with a compromise and resolution of this issue. I will take your concerns to the Minister for Agriculture, discuss them with him, ask him to engage with you, and the Chairperson of the Agriculture Committee, Jackie Cahill, has said that there will be further discussion facilitated at the ROCTAS Committee as well. Well in advance to get a reasonable resolution of this issue for all concerned.
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