asked the Minister for Agriculture and Fisheries the effect of EEC membership on price supports and marketing aids on (a) dairy products, (b) beef, mutton and lamb, (c) bacon and pork, (d) oats and (e) wheat.
40.
Ceisteanna—Questions. Oral Answers. - EEC Agricultural Policy.
39.
asked the Minister for Agriculture and Fisheries the probable effect of EEC membership on production incentives paid direct to producers in respect of (a) beef cattle incentive grants, (b) sheep grants, (c) farrowed sows grants and (d) small farm incentive bonuses.
41.
asked the Minister for Agriculture and Fisheries the effect of EEC membership on payments to reduce the cost of lime and fertiliser subsidies.
42.
asked the Minister for Agriculture and Fisheries if he will make a statement on how this country's entry into EEC will affect the farmers' subsidies and particularly the small farmers in the west; and whether the land project, lime subsidy, manure subsidy, beef incentive scheme and lamb subsidy scheme will be discontinued.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 39, 40, 41 and 42 together.
I would refer the Deputies to the paragraphs 196, 197 and 198 of the recently issued White Paper on EEC membership. The question of State aids to agriculture is dealt with in more detail in chapter 13 of my Department's study "Irish Agriculture and Fisheries in the EEC". I would like to add, however, that the Accession Treaty provides specificially for the continuation during the transitional period, on a gradually declining basis, of our support payments on beef exports to the UK and our consumer subsidy on butter, and also makes provision for support for seed production.
43.
asked the Minister for Agriculture and Fisheries if the present system and scale of agricultural subsidies is under active consideration in his Department in view of EEC membership; and if he will state in general the present policy on the matter.
Agricultural subsidies and development aids are being kept under review in the light of changing circumstances and of prospective EEC membership. For example, as I announced in the course of the debate on the Estimate for Agriculture, the creamery milk pricing system has been restructured on lines that will be appropriate in an EEC context and the grant that may be earned by new participants under the small farm incentive bonus scheme has been increased. More recently I announced the Government's decision to raise the price level on the basis of which support payments are calculated for exports of good quality carcase beef to Britain.
44.
asked the Minister for Agriculture and Fisheries what effect EEC membership is likely to have on the price of milk for liquid consumption.
No specific price levels are prescribed in the EEC for milk sold for liquid consumption but the liquid price is, of course, influenced by the support given through intervention prices for butter and skim milk powder towards the realisation of the Community's target price for milk. The liquid price here would similarly be influenced by the movement in creamery milk prices after Ireland's accession.
Can the Minister say what percentage increase there would be on liquid milk prices within the EEC as against here?
I could not. As I said in my original reply, there is a relativity between the price of milk used in manufacturing processes and milk for liquid consumption. I would expect this to remain at a constant level.
Is it not the case that at the end of the five-year transitional period, the butter fat content standard of our liquid milk would have to be somewhat higher than now? Is the Minister satisfied that adequate means are available to raise our butter fat content levels at the end of that transitional period to the Community level?
I understand that within the existing regulations of the EEC, the butter fat content for full milk is 3.7 per cent.
A very high percentage in so far as Friesian cows are concerned.
There are also intermediate degrees in the levels obtaining.
What steps are being taken to assist farmers in reaching this high level during the transitional period?
As the Deputy is probably aware, the question of butter fat content is largely one of nutrition and stock management.
There is more involved in so far as Friesian cows are concerned.
With respect, it is nonsense.
Question No. 45.
For years past the Department have been of the opinion that feed had no influence on butter fat content.
When I speak of stock management, surely the Deputy is aware that there arises the general question of stock breeding and that certain breeds would produce higher butter fat content than others. If one is working towards an end product with a rather high butter fat content, good stock management will secure that end.
45.
asked the Minister for Agriculture and Fisheries if, under the negotiated terms of entry to the EEC, Irish lamb and mutton, livestock and carcase, will have free access to all the EEC markets; and if he will make a statement on the matter.
There is as yet no common organisation of the market for mutton and lamb in the EEC. During the transitional period customs duties on these products will be eliminated as between the member States in five equal steps. As regards quantitative or other restrictions, the Treaty of Accession provides that in respect of an agricultural product not covered on the date of accession by a common organisation of the market, a member State may continue to apply, during the transitional period, such restrictions on imports of that product, even from another member State, provided that these restrictions formed part of the member State's national market organisation for the product at the date of accession.
So far as our exports of lamb to the present member States of the EEC are concerned our main interest is the French market. France has been pressing the Community, even as recently as last week, to introduce a common organisation of the market for mutton and lamb, and we would, of course, welcome and support such a development. During the transitional period imports of lamb into the UK market from New Zealand and other third countries will, in any event, become subject to the Community's common customs tariff and this will operate to strengthen prices in that market to which we already have free access.
Is the Minister aware of the concern within farming circles regarding the future of the lamb industry? Is he aware that those involved in the industry are not satisfied with the situation as negotiated and that there have been criticisms also in relation to the marketing of lamb carcase?
I am aware that up to recent times, especially in the earlier part of last year, the prices we got for our lamb were relatively unsatisfactory. The reason for this was the circumstance to which I referred in my reply, that is, the difficulty of access to the Paris market. If not the only factor in the procurement of prices last year that were unsatisfactory, this was probably the predominant one. However, I am aware also that current prices for mutton and lamb are very satisfactory. In saying this, I am not suggesting for a moment that all is well with the sheep industry. That is not so. I met a representative of the sheep producers yesterday and went into this whole question with him in great detail. I would remind the House that during the past year supports of one kind or another to the sheep industry totalled about £2.6 million and that the value of our exports, at the same time, was £3.5 million. Therefore, it cannot be contended that the sheep industry is being neglected totally.
Is the Minister saying that during the transitional period we will not have guaranteed access to the French market.
That is right, unless in the intervening period a common policy is worked out between the existing members of the EEC in which case we would be consulted as to what are our views on the matter of the formulation of a common policy.
Is the Minister saying that the prospects facing the people are that there will be less New Zealand lamb and, therefore, a better market in Britain?
The Deputy is aware that New Zealand lamb will have to come into the UK market over an ascending levy.
Is the Minister not aware——
I am calling Question No. 46.
——that the unfair position in relation to access to the French market is causing grave concern to those involved in the industry and that the industry is threatened in relation to exports?
I think that the situation should improve for marketing generally. There is no reason to assume that access to the French market will improve but the conditions governing imports from third countries will improve. Therefore, so far as markets are concerned the prospects for the sheep industry generally should improve progressively.
May I ask the Minister——
We must move on. There are 250 questions to be answered yet or is it the wish of the House that we remain on this question all evening?
It is very important.
Can the Minister say whether the Government intend to press for the early adoption of a common policy in respect of mutton and lamb?
Yes.
Could the Minister indicate the level of ascending tariff against third country suppliers in respect of mutton and lamb?
It ascends to 20 per cent over five years.
Have we the same access to the French market as have the British?
Yes.
Why, then, since the British are exporting thousands of lambs to the French market, we do not seem to be able to get a hold there?
We have sold a considerable amount of lamb on the French market but not as much as we would have liked. There is no question of any preferential treatment of the British lamb producers as against ours.
Perhaps they get more subsidies in relation to price supports.
Probably.