(Limerick West) asked the Minister for Agriculture the proposals now before the Council of Ministers in regard to changes in the support system for beef; and if he will make a statement on the matter.
Ceisteanna — Questions. Oral Answers. - Support System for Beef.
37.
The Deputy will by now be aware that the following arrangements were agreed on by the Council of Ministers on 16 December, to come into operation on 6 April 1987:
Intervention buying-in shall apply when simultaneously the average market price in the Community is less than 91 per cent of the intervention price and the market price in a member state or member states is less than 87 per cent of the intervention price; and it shall apply only in that member state or those member states.
The common buying-in price will be the weighted average of the market prices in the member states below 87 per cent, plus 2.5 per cent of the intervention price. However, the buying-in price will not be set below the level of the highest of the market prices in the member states concerned.
In addition the Commission may decide, in consultation with the beef management committee, to introduce intervention in any member state in order to stabilise the Community market, even where the conditions already mentioned are not satisfied.
The Commission will be making proposals to the beef management committee to harmonise the intervention prices for steers and young bulls.
The suckler cow premium continues to be payable, and at an increased rate. The calf premium scheme and the UK variable premium are also to be continued. Remember that we get considerable benefit from the UK variable premium. We get it paid on beef exported from this country to the UK.
A new premium of 25ECUs per head will be paid on the first 50 adult male cattle on a holding in member states where neither calf premium nor variable premium is payable. An exception has been made for Ireland where the premium will be paid at the rate of 18 ECUs (£14.72) per head. Ireland is thus the only member state to benefit from all four premia.
The original Commission proposals would have meant that intervention would practically cease. That has been averted. In addition the calf premium and the variable premium were to be abolished. They have been continued. The outcome of the negotiations is that we have retained access to intervention, have retained all the premia at existing or higher rates and now have an additional premium of 18ECUs payable on the first 50 adult male cattle on each holding. I am very satisfied with the outcome of these negotiations, conducted as they were on the basis of very severe proposals and against the background of a very difficult financial situation. We have come out of the negotiations better than any other member state.