Vol. 410 No. 4
5 Mr. Deasy asked the Minister for Agriculture and Food the estimated cost to this country of EC Commissioner MacSharry's recent proposals on the reform of the common agricultural policy; and if he will make a statement on the matter.
9 Mr. Connor asked the Minister for Agriculture and Food if he has sought or received guarantees from the EC Agricultural and Rural Affairs Commissioner in relation to the re-orientation of the CAP that the value of the transfer lost on the price guarantee side will be fully compensated for on income supports or other aids to the structures of Irish agriculture.
13 Mr. Barry asked the Minister for Agriculture and Food if he will issue a White Paper on the effects on the Irish economy of the proposals for the reform of the CAP.
27 Tomás Mac Giolla asked the Minister for Agriculture and Food if he will outline the implications for Irish agriculture of the MacSharry farm package; the steps being taken to protect smaller farmers from its impact; and if he will make a statement on the matter.
I propose to take Questions Nos. 5, 9, 13 and 27 together.
The EC Commission is expected to consider proposals on the adjustment of the Common Agricultural Policy at its meeting on 10 July. If adopted, the proposals will be presented to the Agriculture Council at its meeting on 15-16 July. Negotiations on the proposals are likely to continue through much of the second half of the year. Until the detail of the proposals is available the implications for Irish agriculture and for the Irish economy cannot, of course, be accurately assessed.
The general thrust of the Commission's approach has of course been known for some time. This involves price reductions in many sectors together with some restriction on output and a significant package of structural measures. The other element in the proposals would be a series of compensatory measures, biased in favour of small to medium sized producers.
When this general orientation of the Commission's thinking on CAP reform was given at the January and February Councils, I set out the Irish position clearly and unambiguously. In particular I stressed that any adjustments to existing market mechanisms must be limited to what is strictly warranted by market or budgetary requirements and that the revised policy must continue to respect the provisions of Article 39 of the Rome Treaty which lays down the principles on which the CAP is funded, respect Ireland's vital agricultural interests and afford the fullest safeguards for the future of all categories of family farmers.
An essential point for me will be the provision of adequate Community-funded compensation for producers and regions adversely affected by support reductions flowing from the CAP reorientation. I have left nobody in any doubt about my commitment to this vital element and I can assure Deputies that I shall be vigorously promoting this stance throughout the forthcoming reform negotiations.
As I explained during Question Time in this House in April, the Government will be giving the most detailed consideration to the reform proposals that emerge from the Commission. This will include close and ongoing consultations with the various organisations on the approach to be adopted throughout the negotiations as provided in the Programme for Economic and Social Progress. Such consultations will — again in line with the Government's commitment in the Programme for Economic and Social Progress— involve the presentation of an assessment of the consequences of the reform proposals for Ireland.
The matter of CAP reform has already been debated in both Dáil and Seanad and a further opportunity is being provided by the Government for an exchange of views in the Dáil on 10 July, that is next week. Against this background I do not believe that the production of a White Paper on CAP reform is warranted now.
A brief question. The time for priority questions is quite exhausted.
Can the Minister give us an estimate of what the proposals will cost this country if implemented in full? The figures which came out of Brussels last week were quite specific so surely the economists in the Department of Agriculture and Food should be able to give us a figure.
The economists in the Department of Agriculture and Food have been assessing the impact, but I think the Deputy will appreciate that until we get clear, more detailed indications, which will be within the next week, it would be foolish to anticipate the actual cost. We will get information next week which will put us in a better position. I am nor sure, Sir, that when I address the House on Wednesday morning that even by then I will have that information because the Commission will be meeting on Wednesday. They have not themselves yet confirmed these proposals. As soon as we have final confirmation from the Commission of course we will put a full assessment. I hope the Deputy will appreciate that it would be entirely premature now to speculate on what the cost will be until we know the full details.
