asked the Minister for Agriculture and Food his views on the prospect of greatly reduced prices for our major agricultural commodities following the Geneva Resolution of GATT to establish a fair and market oriented agricultural trading system.
Ceisteanna — Questions. Oral Answers. - Agricultural Prices.
3.
The agreement reached at the Trade Negotiating Committee meeting on 5 to 8 April last includes commitments for the short term and a framework for negotiations for the long term in relation to agricultural support and protection. For the short term, contracting parties undertook to ensure that, within the framework of their existing legislation and their GATT rights and obligations, current domestic and export support and protection levels in the agricultural sector will not be exceeded up to December 1990 and to reduce support and protection in 1990. For the long term, participants agreed to undertake negotiations on all aspects of support and protection to ensure that agricultural policies will be more responsive to international market signals and that support and protection will be provided in a less trade-distorting manner. Participants also agreed that credit will be given for measures implemented since 1986 which contribute positively to the reform process and that commitments may be made by reference to an aggregate measure of support.
I have previously indicated that I am prepared to participate in negotiations leading to a mutually advantageous basis to greater freedom of trade. This would imply that all the major contracting parties participate in the process, that the fundamental principles of the CAP are safeguarded, that the reform process is gradual and that credit is secured for past reform measures. The agreement reached earlier this month provides reasonable assurances on these aspects. In particular, in view of the actions taken in recent years, the Community does not anticipate that it will be required to adopt further restrictive measures to meet commitments to freeze and/or reduce support in the short term. In the longer term, however, it is likely that the capacity of all contracting parties to support and protect their agricultural sectors will be constrained. In that event producers' incomes will be influenced to a greater extent than heretofore by market returns. I am hopeful that the final agreement will ensure greater price and supply stability on international markets and I am confident that our producers, processors and traders have the ability to exploit the opportunities which will be available in a more liberalised and stable international trading system. I will of course ensure that all those involved are kept fully informed of developments in the negotiations through the special group I established last year for this purpose.
There is a national interest involved here and I am conscious that we do not do justice to such an important topic with a few supplementaries. May I ask the Minister for Agriculture and Food if he accepts that Irish farmers will clearly lose out from any move to reduce agricultural support and if he could indicate to the House what compensatory spending from EC level there will be to offset the adverse effect of the lower agricultural price support that will result?
I have insisted, particularly with my French colleague at the Council of Ministers, that we would take a common position for the first time at the Council of Agriculture Ministers. That has been done and has been very successful. There is now a solidarity within the European Community which would not have been there if that meeting did not take place. Secondly, I want to indicate that both Commissioner MacSharry and Vice President Andriessen, who is responsible for external trade, are fully aware of the priorities I have indicated. I am satisfied, in view of the satisfactory result of the discussions which have recently taken place, that they will protect those interests. As to Ireland's position let me assure the Deputy that in view of the capacity which we have been demonstrating over the last two years in the international markets I am not only satisfied but confident that when we get into a liberalised trade environment throughout the world we will be out there beating the best of them. Subject to that I will be looking for the appropriate guarantees I have indicated.
The International Monetary Fund disagrees and thinks that Irish farmers have everything to lose whereas all the other farmers have everything to gain.
That is a statement Deputy. Let us have a reply to Question No. 4.
Would the Minister agree with that? It is in the report of February.
As an example, could I indicate——
I called for a reply to No. 4. Time is fast passing away.
In the two main areas of our agricultural production, namely, beef and dairy, we are now among the biggest, if not the biggest, in the world——
A Deputy
Fourth.
——proportionately speaking, and I am quite satisfied that we can continue to demonstrate our progress in that area.
I am afraid we shall not be able to do much more if we do not proceed to No. 4.