The public had been caught in "the loop of confusion" in regard to the ban on British beef products, the Minister for Agriculture and Food said.

During statements on the BSE scare, Mr Yates said the full resources of the diplomatic service and An Bord Bia were being devoted to reassuring the authorities in countries outside the EU and protecting our market position there.

Veterinary officers were on their way to the Middle East and arrangements were being made for other countries to be visited in the next few days. Resolving the problems in Egypt and Libya was an urgent priority and he was contacting the Iranian authorities himself to give them the necessary assurances.

Preventing illegal cattle movements across the Border and protecting the integrity of our own product was important. Garda and Customs activity had been increased. Two seizures of suspected illegally imported cattle had been made and arrangements were being made for their slaughter and removal from the food chain.

"This is not just an issue for the control authorities alone the entire industry will have to close ranks and ensure that such cattle will be neither purchased or processed."

Mr Yates reminded the House of the "totally different level" of BSE in Ireland compared to that in Britain. Since 1989 there had been a total of 124 cases in Ireland in a cattle population of over seven million. There had been almost 160,000 cases in Britain which had a cattle population of 12 million.

He outlined the control measures put in place to safeguard our trade and said questions had been raised about one element of them what happened to the meat from depopulated herds. The original decision to depopulate herds was taken for trade and certification reasons. It was not taken for veterinary or scientific reasons because BSE was a disease of individual animals it was not a viral or herd disease. In recent weeks the policy on depopulation had been reviewed and it was decided to condemn meat from herds with any diseased animals.

The ban on imports by EU countries applied to the UK. "Ireland is not included in that ban and this is clearly a very important consideration."

His policy in regard to Irish cattle and the beef sector was designed to ensure the highest possible standards of public and animal health and provide the strongest guarantees to consumers. If further steps were recommended at national scientific or EU levels in regard to banning specified offals he would be open to them.

He disagreed with setting up a separate food department. Food and agriculture needed to be integrated, Mr Yates said.

The Fianna Fail leader, Mr Bertie Ahern, said it was clear that integration with the rest of UK agriculture, at present, was a disaster for Northern farmers. If the approach in the framework document on animal health was in place, then Northern farmers would be in a strong position to seek an exemption from the ban on the rest of the UK.

The present situation presented both challenges and opportunities, he said. A major vigorous diplomatic effort, led by the Taoiseach, would be required to ensure that the lucrative Middle East market remained open to Ireland.

"As of now, there is a great danger that the markets, which we made strenuous efforts to reopen, with eventual success, will be closed again with a depressing effect on Irish cattle prices. We must ensure that all continental markets are fully aware of the difference between Irish and British beef.

The Fianna Fail spokesman on agriculture, Mr Brian Cowen, also called for an international political initiative by the Minister.

Mr Des O'Malley (PD, Limerick East) suggested the setting up of a national agency, independent of the Department of Agriculture, to oversee food hygiene and food quality. The retail trade and consumer interests should be represented on its board. "The consumer is supposed to be sovereign in a market economy. If that is the case, then it should be reflected in our policies for policing the food industry."

The Minister of State for Agriculture, Mr Jimmy Deenihan, said this unfortunate situation could become an opportunity on which we could capitalise but we must convince the markets that we had a credible product we could stand over.

Mr Noel Davern (FF, Tipperary South) said the rural community was frightened about the effects on farmers and towns which depended on meat factories, but there was very little action by the Government. The Taoiseach was promising to make a phone call to Egypt but he should be out there and in the other Arab countries making contact at the highest level.

Mr Yates, replying to Mr Des O'Malley (PD), said there was no risk from the meat destroyed which came from herds in which one or more animals were identified as having BSE since 1989. The cost to the exchequer of compensating farmers for the 16,485 cattle slaughtered was £11.5 million. The meat factories paid the "salvage value" of the cattle, totalling £3.6 million, and the meat went abroad, mainly to France.

Replying to questions from other deputies, he said he was acutely concerned about cattle on their way to Egypt. Efforts were under way to make contact "at the highest level". The Egyptian importers were "sympathetic" and anxious to facilitate unloading but the authorities had so far made no statement. Regarding Libya, he said agreement on unloading had been reached.