asked the Minister for Agriculture the action, if any taken towards the removal of the calf birth premium and the discriminatory VAT regime operated in Italy which provides an artificial advantage to Italian calf rearers over their Irish competitors.
Ceisteanna—Questions. Oral Answers. - Calf Birth Premium.
45.
The EEC Commission's price proposals for 1980-81 do not envisage the extension of the Italian calf premium beyond the end of the current marketing year. The premium is not in any event payable on calves imported into Italy.
While VAT is not primarily a matter for my Department, I understand that such advantage as the Italian system confers on calf rearers was reduced some months ago.
May I ask the Minister, first of all, if he will state in what respect the advantage in relation to value-added tax was reduced some months ago and, secondly, if it is not the case that proposals have been made in practically every price review since this scheme was introduced to remove the calf birth premium but that, in the event, the Council, in the price package, inevitably agreed to its extension and if he has any assurance that the experience will be any better this year?
The answer to the first part of the question is from 18 per cent to 14 per cent. The answer to the second part is that negotiations are still going on and we shall have to await their outcome.
Does the Minister consider the reduction from 18 per cent to 14 per cent to be of sufficient significance to warrant the rather optimistic reply he gave to the original question?
It is significant.
Though it will not solve the problem.
Question No. 46 is postponed.