asked the Minister for Agriculture and Fisheries if he anticipates any consultations with the British Government during the Summer Recess concerning the future of the Irish butter quota on the UK market.
Ceisteanna—Questions. Oral Answers. - Irish Butter Quota.
10.
No consultations with the British Government about the Irish butter quota in 1970-71 are pending at present. Such consultations usually take place at a much later stage when more information is available about the probable level of supplies in the following year.
In view of the very close inter-relationship between EEC and the United Kingdom butter markets and in view of the statement by the commission's vice-President, Dr. Mansholt, that there is apparently in the community's markets a surplus of some 330,000 tons of butter and also in view of the clearcut proposal of the commission to slash the intervention prices of butter from around 1,700 dollars down to about 1,100 dollars per metric ton, would the Minister consider that there is a good case to be made, notwithstanding the customary annual reviews, for discussions with his counterpart in Britain at this point in time arising from the major switch intended in butter production in the country?
We cannot have a speech on the matter.
We shall have these discussions, as the House is aware, but at a later stage in the year when not only our supply position but also the requirements of the British market will be more clearly seen. As far as discussions related to the surplus now being carried by EEC countries are concerned, I do not see where this would get us at this time. It is mainly their problem at the moment. We have a quota which we shall fulfil during the current year and our real discussion will take place about what amount may be available to us by way of quota in the coming year. I do not see the relevance of discussing the problems of the EEC butter surplus at the moment because our quota goes in and our job will be to renew and extend it if possible in relation to next year. This we shall try to do but somewhat later in the year.
May I inquire from the Minister if he envisages intense pressure from the British market to have the Irish butter quota reduced in view of the massive EEC surplus now available and which will inevitably have a major impact on British quota decisions?
No. The pressure on us from the point of view of any reduction of quota arose last year from the carry-through of rather unusually heavy stocks of butter in Britain itself. In fact, total imports of butter being arranged for this year to the British market have been reduced to about 65,000 tons, roughly 14 per cent or 15 per cent of the previous year's UK imports. As a result of our discussions in the past year we succeeded in retaining our quota without any reduction whereas every other supplying country had its quota reduced and the total reduction between them amounted to 64,970 tons.