asked the Minister for Agriculture if he will explain the reduction in the payment of the sheep subsidy from £3.50 to 75p.
15.
Ceisteanna—Questions Oral Answers. - Sheep Subsidies.
14.
asked the Minister for Agriculture when he intends making payments under the ewe subsidy scheme; the amount of the grant; and if he will make a statement on the matter.
16.
asked the Minister for Agriculture if he is aware that the promised £7 per head subsidy for breeding ewes has not materialised and that farmers are dissatisfied; and if he will make a statement on the matter.
With the permission of the Ceann Comhairle I propose taking Questions Nos. 14, 15 and 16 together.
The ewe premium was designed to compensate producers for losses of income that would arise if as then expected market prices for lamb fell in a number of member states following the introduction in October last of the Community's sheepmeat regime. In fact market prices generally throughout the Community have been very buoyant since October and as a result a ewe premium in respect of the current marketing year will fall to be paid only in Ireland and the United Kingdom. However, because of the good market prices that have been obtaining for lamb the premium to be paid here will not now be as high as was originally estimated.
I am not yet in a position to say what the precise amount will be but I hope to be able to announce it soon.
Is the Minister aware that at every church gate in Donegal the Minister and his colleagues promised £7 per ewe? What has happened to that subsidy promised to the Donegal farmers? Did the Minister not know the small print that was in that agreement when speaking outside church gates in Donegal? Why not tell the people the truth? Why mislead the farmers as the Minister did?
On numerous occasions we made the position quite clear about the premium. In fact at the time when we chose that option we were being accused from many sources, particularly the Opposition, about what would happen the sheepmeat industry, that there would be no floor price. The reverse has happened and I am sure many producers are quite happy with that.
Is the Minister aware that he and all his colleagues promised £7 per ewe to the electors of Donegal. Why did you fool them at that time and why did you not tell them the truth?
That was on the basis of the estimated drop in sheepmeat prices at the time when the Common Organisation came into effect. Thankfully the sheepmeat prices have increased beyond all our expectations and therefore the £7 premium on an annual basis will be reduced somewhat. As I said in the reply I am not in a position to state what the amount will be.
Is it possible that there will be no subsidy?
No, I do not think that will be the case.
Is it possible that the subsidy may be as low as 50p?
No, the information at this stage would suggest that it would not.
While I appreciate the fluctuations in the sheepmeat market would the Minister not agree that while at the moment the price of carcase sheepmeat may be high by the time the lamb is fattened next June, July, August, September or October the market may again be depressed and that it is difficult for sheep breeders to accept the idea that they are going to get £7, then produce lambs and find at the end that they did not get the £7 and that the market is depressed? The system is open to many problems.
I accept what the Deputy says. I think that is the important point. The marketing year as such is only half a marketing year this year, from October until April. One can only get the discussion going about the £7 premium or what size the premium would be on an annualised basis when we see the progress of a full marketing year from October.
What criteria were used in the first instance to arrive at the figure of 7£?
As I said already it was expected that when the Common Organisation came into effect there would be a drop in the price of sheepmeat in certain member states including Ireland. To cushion the anticipated drop in sheep prices this mechanism was worked out and it gave a figure of £7 per ewe.
Was it just in Ireland or in all EEC countries?
In all member states.
How does that relate to the Irish prices?
There are market prices and guide prices in each member state.
But how does it relate——
I am calling Deputy Timmins.
People are very disturbed about these——
I have called Deputy Timmins.
If the Deputy puts down a question I will explain it in detail.
Was it not the original intention of the scheme to benefit first the primary producers? How can the Minister come along with a scheme now that determines the price of the subsidy based on the price of lamb at this time of the year in view of the fact that if he wants to benefit the primary producer, it is the price of sheep between August and November that should be taken into account? Does he not feel an obligation to get the Government to pay the subsidy for this year and to renegotiate the scheme he has now before us?
I am not yet in a postion to say what the amount of the subsidy would be. It is still being examined.
A final question from Deputy Collins.
Would the Minister not agree that complicated systems in relation to price support subsidies should be avoided? Would he not agree that our sheep population is falling and that the simplest thing to do in regard to a scheme like this is to declare say every October that £X will be paid in respect of each ewe that has a lamb? Would the Minister consider that kind of system?
The Common Organisation has been introduced since October. Happily, its effects have been favourable to us. We must wait to see how it develops. The mechanisms are there to protect the primary producers.
17.
andMr. D'Arcy asked the Minister for Agriculture when he will be in a position to complete payments due under the mountain lamb subsidy scheme; and if he will make a statement on the matter.
Payment of outstanding claims under the mountain lamb extension scheme should be completed within two months. Demand for this subsidy, which was doubled last September, was at an unprecedented level. All told almost £.5 million will be paid compared with £150,000 a year ago.
Could the Minister give some explanation as to why there is such delay in the payment of the subsidy?
There is absolutely no delay in payment of the subsidy. The subsidy was to be discontinued as a national aid on 20 October with the coming of the Common Organisation. I gave a commitment at that time that it would be carried on until 31 December and that was fulfilled. The claims as they come in are being paid.
My information is that the inspections were made about last July. Would the Minister tell us when the claims were made?
The expected total cost of the scheme which is operating only from September until December is about £.5 million and £256,000 of that has been paid.
When were the claims made by the farmers to the Minister's Department?
The Deputy may be getting confused and mixing up headage grants and the mountain lamb subsidy extension scheme. Headage grant inspections took place in July and payments are now almost all completed. The mountain lamb extension subsidy scheme came into operation in September and from then on the £3 per head was paid on lambs eligible under the grants headage scheme in July. Those claims, as they come in, are being processed and paid.