asked the Minister for Agriculture and Food if his attention has been drawn to the serious problems facing grain growers as a result of the price proposals; and the plans he and the Council of Ministers have to change EC cereal policies to ensure a livelihood for our grain growers.
Ceisteanna—Questions. Oral Answers. - EC Cereal Policies.
13.
I am aware that the price proposals for 1989-90 as put forward by the Commission would reduce the intervention support available to cereal growers. I have recently had discussions with grower and grain trade representatives on the situation in the cereals sector. During Council discussions over the coming months, I will, of course, do my utmost to ensure that the interests of Irish cereal producers are taken into account when decisions are made.
The proposed green rate devaluation of 1.511 per cent at 1 July 1989 would help to offset the effects of the price proposals. Of course, the refund of the co-responsibility levies to small scale producers will continue to mitigate their position.
Our present low inflation and interest rates serve to keep input costs under control. It is now clear that maintaining cereal growers' incomes will depend largely on producing crops to meet the demands of the marketplace. This would mean developing the already valuable malting barley export trade and expanding the production of quality milling wheat.
All cereal growers will receive a refund of IR£2.09 per tonne because the guaranteed threshold of 160 million tonnes was not exceeded by 3 per cent, while up to 90 per cent of growers in Ireland will receive the full refund of £8.95 per tonne on the first 25 tonnes of grain sold under the scheme of aid for small producers of cereals.
I am glad that the Minister appears to be fully rested after what must have been a difficult week. The importation of cereal substitutes appears to be the single largest problem facing our producers who are not subject to quota or co-responsibility. Has the Minister made any proposals to the EC delegation negotiating at the GATT talks to alleviate the great problems cereal substitutes are causing Irish cereal growers?
While it is a separate matter I do acknowledge that it is one of the major issues that arises constantly in the course of the régime for cereals within the EC. I want to assure the Deputy that I have been active, with some colleagues, in constantly raising this issue. However, the Deputy will appreciate also that there are implications for the GATT negotiations in that issue and that we have brought to the attention of the Commissioners most directly concerned the need to achieve a proper balance between our obligations under the GATT and to protect — within the obligations of trade — the interests of our cereal producers. The Deputy will have noted the exceptional arrangements I negotiated last year for Irish producers, which were that 90 per cent of our growers are accepted as small producers for refund purposes which, to say the least, has mitigated the impact.
Could the Minister indicate to the House the cost of cereal substitutes, the cost to the Common Agricultural Policy budget?
That is a separate question — I was not asked that detail — but it has no cost for the Common Agricultural Policy. It may be a problem for producers——
Intervention storage for EC cereal growers?
It does not have any impact on the Common Agricultural Policy in terms of cost.
I am calling Question No. 14.