Vol. 313 No. 10
asked the Minister for Agriculture if he considers that aids provided from public funds in this country, either directly for agriculture or the processing industries, are protected from the strict application of Articles 92 and 93 of the EEC Treaty by Protocol 30 to the Act of Accession.
13.
asked the Minister for Agriculture if in connection with the review being carried out by the Commission of the European Communities of national aids for agriculture and the formulation by it of criteria for the application of Articles 92 and 93 of the EEC Treaty thereto he has drawn the attention of the Commission to the protection afforded the aids given in this country by Protocol 30 to the Act of Accession and, if so, the aids he has specified as so protected.
14.
asked the Minister for Agriculture if in the formulation by the Commission of the European Communities of criteria for the application of Articles 92 and 93 of the EEC Treaty to national aids in the agricultural sector he is satisfied that due regard is being paid to the provisions of Protocol 30 to the Act of Accession.
15.
asked the Minister for Agriculture the aids in this country affected if the criteria, proposed by the Commission of the European Communities for the application of Articles 92 and 93 of the EEC Treaty to national aids for agriculture, are implemented and if it is proposed to invoke the protection of Protocol 30 to the Act of Accession in respect of any of these aids and, if so, which aids.
With the permission of the Ceann Comhairle, I propose to take Question Nos. 12 to 15 together.
Under the Treaty of Rome the determination of whether a particular state aid is compatible with the common market is a function of the Commission, but where a member state fails to comply with a decision of the Commission in this connection, the matter may be referred to the Court of Justice. Clearly, in the consideration of an Irish State aid by the Community institutions the provisions of Protocol 30 to the Act of Accession have to be taken into account. I can assure the Deputy that in the implementation of EEC policy on state aids for agriculture, my Department, wherever appropriate, has invoked and will continue to invoke the special considerations provided for Ireland in that Protocol.
The current review of these aids referred to by the Deputy has not yet reached the point where it would be possible to say precisely how particular aids in this country would be affected by the criteria being proposed by the Commission.
Has Protocol 30 in this context any enforceable legal effect? Does the Minister believe that the fact that German farmers are receiving about five times as much State aid from their Governments as our farmers are receiving from this Government indicates that Protocol 30 is being honoured in the spirit by the European Community in this area?
The capacity of comparatively wealthy countries such as Germany and the hard currency countries generally to pay bigger State aids in a great many of the European Community schemes which are contributory, like the payments under the disadvantaged areas scheme creates a chronic situation. The advantages that fall to comparatively wealthy countries are great and it is within their national capacity to pay better incentives to their producers, but they must do it in such a way so as not to produce distortion within the Community market generally. If they did, it would be possible for the complaining state to bring its case to the Court of Justice.
In view of the fact that Protocol 30 is an annex to the Treaty and therefore is of considerable legal effect, has the Minister considered taking an action in this matter in the European Court to restrain other countries from giving aids which Ireland cannot afford to give?
The normal restraints that will be affected do not apply in disadvantaged areas such as the west of Ireland. Ireland has, by virtue of Protocol 30 secured an especially exempt position in this regard because of its comparatively early stage of development.
Would the Minister agree that Protocol 30 applies to all of Ireland and not just to the west and that therefore it should be used in the interests of the entire country?
There is no definition about the west of Ireland in Protocol 30; it applies to the country as a whole.
Therefore, the Minister should refer to the whole country in this context. Would the Minister agree that in the context of the milk market he should consider using Protocol 30 and its legal force to defend Ireland's interests from a threat to milk production here, which is the sole means of livelihood of some of our smaller farmers?
There is a misunderstanding here. There is no Community input into the purchase, for instance, by the Netherlands of supplies of soya. They can buy comparatively cheaply with their hard currency. That is not within the context of the Treaty or within the Community scheme. It is a problem that has been recognised by the Council of Ministers because I brought it to their attention. If there was a distortion of the dairy market as a result of this practice, certainly I would make representations about it.
Would the Minister not agree that Dutch farmers can get substantial State aid to modernise their holdings and thereby expand milk production, thus contributing to the surplus and reducing our prospects of selling our milk profitably? Does he not agree that he should use Protocol 30 in that context against countries that do not need to be in milk to help our country that needs to be in milk to survive?
Many of the farm development schemes within the Community are contributory schemes and theoretically at any rate it is open to any government to take their proportion of the grant. In our context, we are in the same capacity as a richer country and that is the truth of the matter.
