Dáil Éireann debate -
Thursday, 4 Jul 1991

Vol. 410 No. 4

Written Answers. - Intervention Costs.

Eamon Gilmore

Question:

48 Mr. Gilmore asked the Minister for Agriculture and Food the total monthly cost of chartering two ships, now in Cork harbour, to store intervention products; the proportion of this cost which will be paid by (a) the EC and (b) the Irish Exchequer; if, in view of the figures published by the EC on 28 May 1991, showing a huge increase in Irish butter and beef going into intervention, he intends to consider any possible alternatives for these products either in regard to famine relief or assistance for those in need in Ireland; and if he will make a statement on the matter.

Minister for Agriculture and Food (Mr. O'Kennedy)

Storage rates are negotiated on a commercial basis and consequently it would not be appropriate to state publicly the specific costs of chartering the two ships located in Cork Harbour. The individual rates of recoupment from the EC are not published for commercial reasons. The total Exchequer costs of intervention and recoupment from the EC are published annually in the Appropriation Accounts. In 1989 total Exchequer costs for intervention activities was £62.5 million of which £48.2 million was recouped from the EC. The cost of storing on ships is approximately three times greater than land based storage.

It can be expected that the objective of improved market balance will be given particular emphasis in the CAP reform proposals which are due to be presented to the EC Council within the next week. This should ultimately influence the quantities of product which will be taken into intervention in the future as Community support for agriculture is orientated more towards direct aid to producers. In addition most State assistance to the industry is geared towards encouraging the development of nonintervention market led products.

Intervention stocks are already being utilised as part of the Community's food aid regime. In addition, substantial quantities of food are also provided by the EC in emergency situations such as that which arose recently in Iraqi Kurdistan. At home, welfare recipients are assisted through such initiatives as the social butter scheme and the EC free beef scheme each winter.

I am very conscious of the importance of making maximum use of Community food stocks to help the needy both within the Community and outside and indeed I brought this point to the attention of my fellow Ministers and the Commissioner at the Agriculture Council on 22-23 April.