Vol. 397 No. 3
6 Mr. Sherlock asked the Minister for Agriculture and Food if he will outline the Government's attitude to the EC agricultural price proposals for 1990-91; if what is proposed is an effective price freeze; if he considers this satisfactory; and if he will make a statement on the matter.
24 Mr. M. Higgins asked the Minister for Agriculture and Food if final agreement on the farm price package will be reached at the next meeting of Farm Ministers in Luxembourg; and if he will make a statement on the matter.
I propose to take Questions Nos. 6 and 24 together.
The Commission's proposals on agricultural prices for 1990-91, in general, represent a continuation of the restrictive price policy which has applied since 1984. However, in the case of a number of member states, price increases are proposed because of "green" currency adjustments — in our case this would amount to 2 per cent for products other than beef, the maximum available to us. The corresponding increase for beef was obtained last year. Furthermore, there should be additional benefits to Irish producers if the rural development measures which accompany the price proposals this year are adopted in a form which is suited to Irish circumstances. Included among these measures are proposals for the buying up and reallocation of milk quotas, extension of the suckler cow premium to smaller scale milk producers, a premium for small scale producers of cereals and a special ewe premium from 1991.
It is also worth noting that for the first time in recent years the Commission has not proposed an adjustment of intervention mechanisms, a device which in the past has served effectively to reduce support for products such as beef, cereals and milk. Nevertheless, I am conscious of the income difficulties facing many farmers and I intend to propose adjustments to the Commission proposals to help alleviate these problems. I would hope that agreement on the package can be reached at the next Council meeting beginning on 26 March.
It will be my objective to ensure that in spite of the proposed price arrangements, the overall result will be positive for Ireland and that taking account of "green" pound adjustments, the support levels in these sectors of main interest to us will effectively be increased in national currency terms. The already agreed stabiliser arrangements and the GATT negotiations currently under way are significant constraints in the price negotiations. In the interest of securing effective improvement in producer returns, however, I will also be seeking a reduction in the payment delay for products sold to intervention as well as alleviation of the basic co-responsibility levies in the milk and cereals sectors.
Finally, as regards the related rural development measures, it is my intention to strongly support the principle underlying the Commission's proposals, while seeking to have their operational details more closely tailored towards specific Irish conditions.
First, I take this opportunity of welcoming the Minister back to the House. Arising from the reply he has given, while we agree that any price increase to the farming community naturally affects price increases generally, there must be a balance. Therefore, we submit it is unreasonable that prices should be reduced by 4 per cent. Right across the board, in the livestock and sheep sectors, the dairying sector and more importantly, in the disadvantaged areas — whether severely disadvantaged or otherwise — such a decline in prices would have a detrimental effect on standards. Can the Minister say what measure he proposes to take to have the situation rectified?
The Deputy and the House will appreciate that the Presidency compromise which I propose to table at the next Council of Ministers meeting is not something I can disclose in detail now before unveiling it to the Council. To do so would be a total breach of the standard procedures. I have given to the Deputy and the House a general outline of the priorities I will apply in that issue. When the Deputy looks at my reply in detail he will see what I have in mind. Even as the proposals stand, the result would be a positive development for Ireland rather than a negative development as some have implied. It would take me a very long time to indicate how that is the case but that is the position.
