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Dáil Éireann debate -
Thursday, 15 May 1980

Vol. 320 No. 11

Ceisteanna—Questions. Oral Answers. - EEC Butter Sales to Russia.

17.

asked the Minister for Foreign Affairs if he has raised any objection or protest at the recent decision of the European Community Commission in Brussels to sell 20,000 tonnes of subsidised butter to Russia despite the Community trade ban imposed over the Afghanistan invasion, if his attention has been drawn to the clear objections made by the British Government to this decision, and if he did not object, why.

I am aware of this decision to accept tenders for the sale of 20,000 tonnes of butter from intervention stocks to the Soviet Union.

On 15 January the Council of Ministers adopted the principle that, while respecting traditional trade flows, Community exports of agricultural products to the USSR should not directly or indirectly replace United States exports affected by the embargo introduced by the United States Government. Butter is not a traditional United States export to the Soviet Union and the terms of the Council decision of 15 January 1980 did not mean that sales of butter to the Soviet Union should be halted. The Commission decided, nevertheless, to impose controls on butter exports to that market.

Ireland, while not objecting to the need for some control over trade in butter, objected to the restrictions to the extent that they blocked normal commercial trade because our sales of butter to the Soviet Union have always been from commercial stocks and not from intervention. We would not welcome a situation which would permit the export of intervention stocks to supplant commercial trade.

I am, of course, aware of British objections to sales of butter to the Soviet Union. However, as it is our aim and in the interest of the Irish dairy industry that normal commercial sales of butter should not be hindered, I am unable to support British objections in this matter. Our position on the Commission decision to which the Deputy refers in his question has been to object on the grounds that it does not allow for the sales of commercial butter as well.

Could the Minister indicate that the sale of commercial butter from the Irish market will continue to the Soviet Union in consequence of his intervention?

It is being considered at the moment by the management committee in Brussels who control this matter. As far as Ireland is concerned we have a positive and definitive Council of Ministers decision of last January to support our attitude in this respect. We stand very positively on that decision. All the United States Government sought of us—and we agreed unanimously as Continentals to support the US Government—was that any shortfall in regard to US agricultural exports to the USSR would not be met by the Community. We have honoured that. It applies particularly to grain exports; it does not apply to butter.

Could the Minister indicate the price per tonne and the percentage subsidy involved in such sales here?

I do not have it here but I shall take a note of it and supply the Deputy with that information.

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