asked the Minister for Agriculture and Food the implications for Irish agriculture of the implementation of the EC Commission proposals as outlined in its report on 1992; and his views on the proposed strategy to move common prices closer to underlying world market prices; and furthermore the consequences for our animal health status of the completion of the internal market.
Written Answers. - Internal Market Proposals.
64.
My reply of 25 May 1988 (Official Report, column 103, Volume 381, No 1) outlined the implications for Irish agriculture and the action which the Government will be undertaking in regard to the implementation of proposals leading to the completion of the single market in 1992.
Completion of the internal market does not imply that Community prices will be moved closer to world price levels. The strategy of allowing market signals to play a greater role in influencing producer decisions has, however, been adopted by the Commission and the Council in relation to agriculture in recent years. I am not opposed in principle to that strategy, but I would oppose any proposal to reduce Community prices to those prevailing on world markets for so long as prices on those markets remain distorted by the disproportionate effect of relatively small surpluses and consequently do not properly reflect production costs in many areas. The position could of course change if arrangements were put in place on a multilateral basis to ensure that world prices could be maintained at levels which are remunerative for our producers.
The Commission has not yet made detailed proposals in all cases for the harmonisation of veterinary controls and procedures. Our objective in the negotiations will be to ensure that our present high health standards are not eroded in the process of further harmonising intra-Community trade. I would point out that up to now Community measures have generally contained provisions to respect that requirement and I have no reason to believe that similar provisions will not be included in future Community action.