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Dáil Éireann debate -
Wednesday, 21 Mar 1990

Vol. 397 No. 3

Written Answers. - Lamb and Sheepmeat Exports and Imports.

Michael Bell

Question:

22 Mr. Bell asked the Minister for Agriculture and Food if he will outline the estimated exports of sheep and lambs to countries outside the EC in 1990; whether he has any plans to find new markets for Irish sheep and lambs in 1990; and if he will make a statement on the matter.

Michael Bell

Question:

26 Mr. Bell asked the Minister for Agriculture and Food is he has any plans to introduce any price support mechanisms in respect of the export of Irish sheep and lambs to countries outside the EC in 1990; and if he will make a statement on the matter.

P. J. Sheehan

Question:

62 Mr. Sheehan asked the Minister for Agriculture and Food the reason New Zealand was allowed to export 450 tons of lamb and mutton to Ireland in 1989 and 540 tons of lamb and mutton this year; if he opposed this agreement; if the EC Commissioner for Agriculture opposed the agreement; the effect which this decision by the European Council of Ministers has had on the price being paid for Irish lamb and mutton in 1989; and if it is responsible for the serious drop in Irish lamb and mutton prices already this year.

I propose to take Questions Nos. 22, 26 and 62 together.

The European Community is 80 per cent self sufficient in sheep meat. The 20 per cent shortfall is made up from imports from third countries. These imports are regulated under voluntary restraint agreements and are also subject to the general agreement on tariffs and trade. Lamb and sheep meat exports from all member states of the Community to third countries, amount to 8,000 tonnes per annum or 1 per cent of Community production.

The revised regime for the sheep meat sector provides for the application of export refunds. The Commission, has not yet considered it appropriate to fix export refunds due to the small volume of trade and the potential financial implications for the Community budget.

Under GATT arrangements third country suppliers of sheep meat have free access to the Community market subject to a 20 per cent duty. On the setting up of the market organisation on sheep meat in 1980 the Community negotiated agreements, with all the main suppliers, including New Zealand under which they agreed to limit their supplies in return for a reduction in the duty to 10 per cent. The agreement concluded on 25 September 1989 between the Community and New Zealand was a re-negotiation of that agreement and was the culmination of protracted negotiations which has an impact on other commodities and has implications under GATT arrangements. During these negotiations I was successful in ensuring maximum protection for the Irish producer while at the same time respecting our international obligations. Under the terms of the voluntary restraint agreement with New Zealand, Ireland and France have been designated sensitive zones whereby quantitative restrictions apply. Under these arrangements New Zealand may issue voluntary restraint agreement export certificates up to a maximum of the agreed quantities. In 1989 the total volume of New Zealand imports into Ireland amounted to 30 tonnes. As Ireland's production of sheep meat in 1989 exceeded 58,000 tonnes, the limited quantity of imports from New Zealand did not affect price levels here.
In the overall Community context, New Zealand agreed to reduce its annual quota by 40,500 tonnes to 205,000 tonnes and within that quantity, for the first time accepted a ceiling on fresh meat exports. In return, the Community agreed to reduce the import levy from 10 per cent to zero. The drop in Irish lamb prices experienced earlier this year has fortunately stopped, and significant upward swing on market quotations has been recorded during the past two weeks.
I would like to point that as a result of changes in payment procedures for the ewe premium, advances totalling 60 per cent of 1990 premium will be paid this year in the whole country. This is in addition to the balance of 1989 premium which will be paid in disadvantaged areas and the full 1989 premium in non-disadvantaged areas. The overall value of these payments is estimated to amount to over IR£110 million.
CBF will continue its vigorous efforts to promote the consumption of Irish lamb on domestic and European markets. Efforts will continue to ensure that the considerable marketing achievements in securing a top quality profile for Irish lamb on continental markets are maintained.
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