Vol. 420 No. 5
3 Mr. Ferris asked the Minister for Agriculture and Food if he will outline the full implications for Irish farmers of the results to date of his Council of Ministers meeting on the review of the Common Agricultural Policy; if he will address in particular the changes in the milk, beef and cereals sectors; and if he will make a statement on the matter.
50 Mr. Sherlock asked the Minister for Agriculture and Food if he will make a statement on the outcome of the EC Farm Ministers talks on reform of the Common Agricultural Policy; and if he will outline the likely impact on consumers.
I propose to take Questions Nos. 3 and 50 together.
The Common Agricultural Policy Reform negotiations which were concluded at the Council of Agriculture Ministers on 21 May were without doubt the most important development in the field of agriculture and food sector of the Irish economy since our accession to the Community.
On a point of order, if the Minister has a very lengthy reply it may use up the rest of priority time. I believe that all Deputies would appreciate if the Minister could abbreviate his reply as much as possible.
I have a very fulsome reply because I have a very good story to tell. Nevertheless, I can reduce it somewhat.
The Minister can tell us the story in the bar.
I want to make it crystal clear that I am happy with the outcome of the negotiations. I am also very glad that most farm leaders on reflection, mature and otherwise, are extremely happy with the outcome of the negotiations.
I never thought I would see Tom O'Dwyer happy.
He is coming round.
We are wasting time.
The conclusion of the negotiations eliminates the uncertainty surrounding this matter. The alternative to the reform proposals would be severe price cuts without compensation. I have just come from the inaugural meeting in the Department of the group set up to examine the food processing industry. They have been asked to respond adequately to the new situation in which we find ourselves. Last night a number of speakers, including Deputy Deasy, queried whether we were professional enough to take advantage of the market. I want the best and most professional people available to draw up a programme for me so that the Department can implement it next year. I will leave the details of the implications of the Common Agricultural Policy reform for Irish farmers for further discussion.
I was hoping to get some details but I accept that we got a lot of information yesterday evening. As there will be no change in the milk quota, there will be no compensation. However, there is a proposal to reduce the milk quota. Will this reduction give a new level of compensation in the area of milk production?
I am happy to confirm that there will be no quota cut and no price cut in milk in the current year. In the following year it is proposed that there will be a 1 per cent quota cut and a 2.5 per cent price cut in butter. That will come only about following a submission by the Commission to the Council of Ministers in the light of market trends at that time. I will have to wait until the matter comes before the Council of Ministers before I can give any further elucidation on that question.
If there is a price cut in butter or a quota cut in milk would the Minister guarantee that compensation will be paid to producers?
I am sorry I cannot give any guarantee on the matter because it has not come before the Council of Ministers yet.
Would it not be natural that that would happen?
Milk prices are very buoyant this year. Milk and dairy farmers will benefit from the lower cereal and concentrated feeding costs. We have succeeded in having the co-responsibility levy dropped. Therefore, the outlook for milk and dairy farmers is excellent this year.
