I propose to answer Questions Nos. 14 and 107 together.
The package which was proposed by the Commission to the Council of Ministers included proposals for a new permanent beef regime, New Zealand butter imports, Mulder applicants and other issues. A package containing six measures, but excluding New Zealand butter, was finally passed on a Presidency proposal adopted by the Commission by a qualified majority of the Council after lengthy negotiations over four months on the morning of 24 January. Ireland, the United Kingdom and the Netherlands voted against the proposals.
While I voted against the final proposals, a number of significant improvements on the original beef proposals had been introduced at my request because of the unique importance of the beef sector in our economy. These included:
1. The increase of the 200,000 tonnes general intervention ceiling to 220,000 tonnes at an extra Community cost of £37 million in the event of activation;
2. Two additional safety net clauses to take account of the price levels and trade patterns in Ireland. Together with the original general safety net proposal, the new regime will now operate on the basis of safety nets with specific safeguards where only one general provision existed previously. Purchases under these provisions will not reckon against the 220,000 tonnes ceiling;
3. Producer premium payments in Ireland will increase by £7.5 million to a total of £48 million;
4. A specific commitment by the EC Commission by way of formal declaration that the special dependence of Irish agriculture on beef production will be borne in mind in the various EC support arrangements in the beef sector;
5. A general undertaking by the EC Commission to operate the new system to maintain prices above the trigger levels and
6. A review of the new system after two years as distinct from the permanent régime originally proposed. Under an earlier agreement of the Council of Ministers the adoption of the beef proposals will automatically involve a Green Pound devaluation next month with the abolition of Irish MCA's and an increase of institutional prices by about 1.5 per cent.
Together with the premia increases this will involve an extra £25 million benefit per annum to Irish producers.
On New Zealand butter imports the Council did not consider this issue on 23/24 January in view of the decision taken at the Council in December 1988 to extend existing arrangements for imports of New Zealand butter for a three month period after 1 January 1989. The import arrangement to apply after 1 April 1989 will be considered further by the Council at a later stage.
On Mulder applicants the agreement in principle reached at the Council on 23/24 January 1989 for SLOM producers provided for the allocation of quotas of 60 per cent of the eligible amount to applicants from an increase in the Community reserve of 600,000 tonnes. This increase will be allocated through national reserves without any obligation from existing national reserves. The main elements of the agreement are as follows: —applicants' non-marketing period must have ended after 31 December 1983 generally but because of our particular pattern of milk production, I obtained Council agreement to a date of 1 October 1983 specifically for Ireland; applicants must have complied with all requirements of the non-marketing schemes and applications must be submitted within three months of publication of the regulation; any allocations under existing arrangements will be deducted from quotas granted; applicants must satisfy conditions that their holdings can produce the total quantities of milk allocated and allocations may be withdrawn if 80 per cent of the quota is not produced in the second year; quotas will be granted on an ad personam basis and while they may not be disposed of, they may be transferred by inheritance; producers will not be liable for super levy payments for quantities up to the level of quotas allocated and will be refunded such payments as they may have paid since 1984; the milk co-responsibility levy for producers who delivered less than 60,000 kilogrammes in 1987/88 will be reduced by 0.5 per cent and the intervention price for butter will be reduced by 2 per cent from the beginning of the next marketing year.
In my view, the agreement reached represents a reasonable compromise between the rights of SLOM producers and the protection of existing producers.
The House will also wish to know that the package agreed included an outline of income aid measures to assist Community producers to adopt to reforms of the CAP. Under the arrangements envisaged, a Community contribution of 70 per cent will be payable in Ireland in respect of part of the aid proposed. The devaluation of the green rate which I secured for the pigmeat sector will abolish MCAs from 30 January next.