An increased offer from meat factory owners is expected to be put to farmer representatives this evening at talks aimed at ending the dispute over beef prices between the processors and their suppliers.
As farmers all over the State continued to blockade meat plants, despite a threat by the High Court to impose heavy fines if the blockades are not lifted, the Minister for Agriculture and Food, Mr Walsh, said an improved offer from the factories would be available.
Mr Walsh announced yesterday evening that after discussions with the Irish Meat Association he had invited the Irish Farmers' Association and Mr Tom Parlon and Mr Raymond O'Malley, for discussions to find a solution. Both sides agreed to attend.
He had earlier said he would be putting "an increased offer" to the IFA and Mr Parlon, the former president of the IFA, and Mr Ray O'Malley, the former chairman of IFA's beef committee.
Mr Parlon and Mr O'Malley, the key IFA negotiators in weekend talks with the meat processors, resigned on Monday night after the IFA's national committee decided to comply with a High Court order to stop picketing plants, pay £500,000 in fines and apologise to the court.
In the High Court yesterday Mr Justice O'Donovan said he was delighted to learn that "at long last" the court order of last Wednesday was going to be obeyed by the IFA.
Then judge accepted the IFA's apology but said: "Let it be known that any person identified to me and picketing contrary to the order, I will deal with very severely."
Last night Mr Parlon said he and Mr O'Malley had accepted the Minister's invitation to talks and said it would be possible to achieve the 90p per pound for cattle that was needed to end the dispute.
An Irish Meat Association spokesman said it had discussed the market situation with the Minister and that the factories could pass on efficiencies achieved in the meat inspection system.
"All that we can pass on is the return from the market to the producer. If there is improved returns in relation to efficiencies or in the markets, we will pass these back to the producer," he said.
Before the talks in Dublin this evening Mr Walsh will attend a full Cabinet meeting in Ballaghaderreen, Co Roscommon, where the meat dispute will be high on the agenda.
Ministers - generally sympathetic to farmers' allegations of price fixing by meat plants - will discuss whether they can take any action to encourage more price competition.
The Tanaiste, Ms Harney, is expected to outline the progress made by the Competition Authority which has been investigating such allegations since 1998.
Yesterday, Mr Walsh said it was "most unsatisfactory" that the Competition Authority had not made a finding on allegations of price fixing and cartels in the beef industry.
Government sources said last night they accepted that prices paid to farmers for beef were "poor and unfair".
The Competition Authority is understood to have found it difficult to prove allegations of anti-competitive practices in the industry, but its inquiry has not been completed. There is growing Government concern at the manner in which the dispute has escalated and been exploited by the Opposition parties. Last night Fine Gael said it would table a motion of no confidence in the Minister for Agriculture to be discussed when the Dail resumes next week.
Extra gardai are being drafted into the area around Ballaghaderreen in anticipation of any farmer protests surrounding today's Cabinet meeting. The additional Garda resources were being taken from the surrounding divisions in the Garda Western Region which covers Galway, Roscommon, Clare and Mayo.
The operation will be under the direction of the Regional Commander, Assistant Commissioner Eamon Keating, who was travelling to Ballaghaderreen last night. According to Garda sources little action can be taken against mass protests but small numbers or single protesters could face charges if they cause obstruction or damage to property.