asked the Minister for Agriculture and Fisheries if he will make a statement on current proposals being considered by the EEC Commission for the removal of monetary compensatory payments.
Ceisteanna—Questions. Oral Answers. - Monetary Compensatory Payments.
32.
In its recently published document on the stocktaking of the common agricultural policy the Commission indicates that it cannot accept the application of MCAs in so far as they disrupt market unity or distort competition but makes it clear that, in its view, MCAs should continue to be used to prevent short term movements in exchange rates from instantaneously affecting the common price arrangements. To ensure that MCAs fulfil the latter role within acceptable limits, the Commission proposes that "the rules and procedures by which appropriate changes in these amounts are determined should be laid down." There are, however, no specific current Commission proposals. I will naturally support any efforts to have the MCA system operate in a more rational manner. I am fully aware of the problems which the monetary compensatory amounts system is causing and, as the Deputy knows, I have already succeeded in having changes made which have been very beneficial for this country.
Having regard to the Minister's admonition to the meat trade to get out and sell, could he tell the House how they are to accomplish this very praiseworthy advice in the presence of MCAs which are still in the area of about £1.35 per live hundredweight and its equivalent in dead weight? In my view it cannot be done.
I have said I am not satisfied with the MCA system. As the Deputy knows, we succeeded in getting our representative rate reduced by 11 per cent last October and by more than 4 per cent at the last meeting. That totals more than 15 per cent. Of course, sterling is slipping all the time and we must deal with that unfortunate aspect. We also have agreement to have 1.25 percentage points of the MCA's ignored and in further supplementation, the Commission now have authority where prices for a time are below intervention level, to intervene and use their discretion to ignore a further number of percentage points. I regret that so far the Commission have not used that power. We are trying—not without hope—to get them to use it. I expect they may now decide to give us certain concessions in that area. I hope they do.
Will the Minister agree that the initial devaluation of the green £ last October was almost cancelled out and rendered void by mid-January this year when the MCA on live exports stood at about £2.70 per hundredweight? The net benefit of the devaluation is almost totally dependent on the 4.8 per cent agreed at a more recent Council meeting. Would he also agree that this further benefit is being constantly eroded by the slipping value of the £ sterling?
I do not agree with everything the Deputy says. When we got the initial reduction the MCA was 15.1 per cent. We got that reduced to 3.1 per cent and it is now 6.9 per cent. That is a long way from 15.1 per cent.
I am talking about the actual MCA which must be paid in hard cash on exports. In January and April last the MCA——
I must remind the House that this is Question Time. We must proceed by way of brief and relevant questions.
I am trying to help the Minister. I would like him to tell the House by what means and with what assistance from him should the meat trade go into the markets on the mainland of Europe to sell carcase beef.
Is this strictly relevant?
This is not part of the question. To be fair to the meat trade, I appreciate that this is probably not possible in present circumstances. The point I was trying to make and the message I was trying to get across was that it would be better to take, perhaps, a lesser price for portion of the meat at the present time in order to get a higher price when the bulk of the supplies will be coming on the market later in the year. I am very concerned and anxious to preserve the intervention system, and I know it is in danger. For that reason only I want to get the maximum return for our cattle.
Surely the Minister will agree——
I am sorry, Deputy Gibbons, but we must make some progress. We cannot remain too long on any one question. I am calling Question No. 33.
I think the Deputy will accept that I got more favourable adjustments in the MCA system than even the farmers ever hoped to get.
I wish to raise the subject matter of Questions Nos. 33 and 34 on yesterday's Order Paper on the Adjournment today.
I will communicate with the Deputy. Question No. 33.