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Dáil Éireann debate -
Thursday, 9 Nov 1978

Vol. 309 No. 4

Ceisteanna—Questions. Oral Answers. - Italian Import Levy Reduction.

5.

asked the Minister for Agriculture if it is proposed to agree to the proposal (COM (78) 266) whereby the Italian Republic may continue for 1978/1979 to reduce by three units of account per tonne the import levy on barley, oats, maize, sorghum and millet imported into Italy by sea; and if he is satisfied that this proposal will not give an unfair advantage to Italian livestock rearers over Irish rearers, particularly in regard to the feeding of calves.

This proposal was adopted by the Council of Ministers on 25 July to implement a decision agreed last May as part of this year's price package. The type of levy reduction involved was originally introduced in the 1967-68 marketing year and its continuation at reduced rates until 1977-78 was approved by the Council of Ministers in October 1975. I am satisfied that the continuation for 1978-79 does not have the effect mentioned by the Deputy.

Would the Minister agree that there are fiscal or other trade arrangements which have the effect of giving Italian rearers of calves an artificial advantage over competing rearers of the same calves in Ireland?

The three units of account per tonne subsidy in this case could not make any material difference to the general question of Italian cattle imports. It is part of the price package, and Ireland had no reason to be dissatisfied with the package secured on that occasion. Objections to this proposal would not be sufficient grounds for a general objection to the package.

I asked the Minister if there were fiscal or other trade arrangements which gave Italian rearers of calves an advantage over Irish rearers of calves.

There is a subsidy which is paid on Italian-born calves. It is a definite advantage for the substantial number of Italian calves.

Would the Minister consider the withholding of consent to this arrangement as a bargaining lever for securing the removal of the subsidy to which he referred?

That may be one approach but it must be considered in conjunction with all other aspects of the case, which is a complex one.

Has the Minister any plans to have the Italian calf subsidy removed?

This is a different matter. We are talking about the subsidisation of feeding stuffs for Italian cattle. We have now moved to Italian calf subsidies which are a different matter. If the Deputy has a specific question on the matter, he should put it down.

I did ask about the competitive advantage of the Italian calf producers. If the Minister has not got the information I will put down another question.

Does the Minister accept that this contributes in a big way to the export of our calves to Italy?

That is so. The Italian calf subsidy has been in operation since 1974 when Fianna Fiáil urged the Minister to do as the Italians did and take calf subsidies instead of slaughter subsidies. My recollection is that the Minister said it would not be suitable for this country.

Has the Minister any plans to do anything about this matter?

I am investigating the possibility of redressing the imbalance.

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