asked the Minister for Agriculture the nature and purpose of the new EEC aid to the formation of producer groups and associations thereof in Italy, Belgium and certain areas of France; the manner in which it was decided that these areas rather than other parts of the Community should benefit; and if he has sought to have the scheme extended immediately to Ireland.
Ceisteanna—Questions . Oral Answers . - Producer Group Aids .
21.
: The aim of this regulation on producer groups recently adopted by the Council of Ministers is to encourage the formation of such groups in those regions of the Community where there is serious structural deficiency in the supply and marketing of certain specified agricultural products.
The regulation provides for the grant of aids for the formation of such groups and associations thereof over an initial three-year period based on the value of the group's turnover and subject to certain prescribed ceilings. It also provides for a contribution from Community funds towards the cost of these aids.
The measure applies to Italy, Belgium and parts of France where it is considered that the marketing structure for certain products could be improved by the formation of such groups. There is provision in the regulation for extending its application to other groups in the Community should the need arise.
: Would the Minister not agree that it is discriminatory that aid of this sort to producer groups should be available in France, Italy and Belgium and not in Ireland?
: No, I do not think it is discriminatory. We are in the happy position of having a thriving co-operative system. Co-operatives, in this sense, could be looked on as very efficient producing groups. There are other areas in the Community that do not have this advantage, in those such as I have mentioned. I do not think it is discriminatory. It is quite the contrary. The farmers in these areas of the Community should have assistance to get to the same situation as we are in now for some of our main products, mainly dairy products.
: Would the Minister not agree that to maintain the whole idea of fair competition within the Community what is being given in one part of the Community should be given in others and that we should not now be penalised in comparison with these other countries because we happen to have made an effort over the last 50 years to develop our co-operative movement? Is the Minister aware that there is need for this sort of development in regard to the marketing of horticultural products generally, and potatoes, in this country? Would he not agree that such aid should be available in that field?
: Beginning with the Deputy's second question, if such aids are necessary there is provision for the assistance of the development of such producer groups in Ireland, for people who produce vegetable or other commodities, where the need arises.
Reverting to the Deputy's first question, it is not discriminatory. There are certain areas in the agricultural Community in which we will need discrimination, in the sense that it will recognise special deficiencies and aids for our country as distinct from others, such as the one we have just been talking about on an earlier question; the substantial aids we are getting for the west because of the special situation there. If this aid for producer groups in other areas of the Community is discriminatory, then the aid for the west is discriminatory too, because in each case groups who require assistance are being assisted within the Community.
: Why is there a special régime being introduced for producer groups in those countries and not in this country, given that there is a need for the development of producer groups here?
: The preparation of the new régime for producer groups has been under way for many years. The development of producer groups was initiated because there was felt to be a need for them in many parts of the Community where the marketing arrangements are unsatisfactory at present.