Vol. 429 No. 4
11 Mr. McGahon asked the Minister for Agriculture, Food and Forestry the effects, if any, the recent reductions in EC export refunds on dairy products will have on milk prices and on Irish exports; and if he will make a statement on the matter.
The recent reductions in export refunds for dairy products are unlikely to have any significant adverse effect on either milk prices in Ireland or on the level of Irish dairy exports. This is because about two thirds of our dairy exports go to other EC member states and are, therefore, unaffected by the changes in the levels of export refunds. Contracts for most of the remainder of this year's exports had already been concluded prior to the recent reductions and they will be eligible for the higher levels of refunds available until recently. The effect in regard to exports after that will depend on the development of world dairy prices.
I am astonished at the Minister's answer. Will the Minister give an instance of any third country market where he expects a reduction in export refunds to benefit Irish dairy exports?
That is not the point. The point is that the price has been prefixed. It will not affect the remainder of this year's exports as the contracts had already been concluded prior to the recent reductions.
I am appalled at the Minister taking such a relaxed attitude on this. If that is the way the Minister negotiates in Brussels, I am not surprised refunds have been reduced. Is the Minister not aware that at the end of the present contract period Irish dairy product exporters will have substantial difficulty in third country markets? Does the Minister not know that any difficulty that Irish dairy exporters or other EC dairy product exporters have in third country markets immediately falls back on the markets within the European Community? Will the Minister now bestir himself and take some interest in our exports to third countries because, without them, the markets in the EC will come under severe pressure?
I am very happy that milk prices are at their strongest level for a number of years. We have a very buoyant market in the dairy industry. I hope it will remain that way.
If the Minister keeps on letting them reduce the refunds it will not stay that way.
On the specific question, this decision was taken by the Milk Management Committee of which I am not a member. The Department was represented there, Ireland voted against the proposed reductions and will take part in their review. Two thirds of our exports go to the Community so they are unaffected. For the remainder, the prices have been pre-fixed and contracts entered into so the proposed reductions will not affect them.
Is the Minister not worried at the fact that Ireland is out-voted by the Milk Management Committee on export refunds, by the Beef Management Committee on criteria for intervention, and by the Council of Ministers on the weight limits for intervention beef? Has the Minister any explanation for the fact that we are constantly outvoted on this? Does the Minister have some magic formula that makes everyone disagree with him while he does nothing about it?
We are one of a community of Twelve——
Why are we always in a minority?
If we are in a minority we cannot make a majority out of it.
You are a permanent minority.
