Dáil Éireann debate -
Thursday, 24 Mar 1994

Vol. 440 No. 6

Written Answers. - Blair House Agreement.

Jimmy Deenihan

Question:

64 Mr. Deenihan asked the Minister for Agriculture, Food and Forestry if a full analysis of the effects of the Blair House Agreement on food exports has been carried out by his Department; and if the sectors of the food industry which will be most affected have been identified.

Minister for Agriculture, Food and Forestry (Mr. J. Walsh)

The Deputy will be aware, from replies to earlier questions and from other discussions in this House that I had major reservations from the outset as regards the potential impact of the original Blair House agreement. Arising from efforts made by the Commissioner, other Ministers and myself, very significant adjustments to that agreement were secured and are now part of the final outcome for agriculture.

The main modifications related to the export support commitments, market access and the peace clause. By comparison with the Blair House Agreement, the revised arrangements will allow the European Union in the period up to 1999 to export some additional 362,000 tonnes of beef, 146,000 tonnes of dairy products, 8 million tonnes of cereals and 269,000 tonnes of poultry and eggs. The acceptance of the Union's market access arrangements will help to safeguard Community preference while the extension of the peace clause will ensure that European Union agriculture support measures are not subject to undue challenge in the GATT.

These modifications almost fully address the concerns I expressed regarding the Blair House Agreement. Our analysis of the effects of the final agreement is that it should not impose undue constraints over and above the Common Agriculture Policy reform decisions for most sectors.

However, in the event that additional measures might be necessary, I secured explicit assurances at the Agriculture Council in December that, if this was the case, any consequential measures would be based on principles already agreed and in particular that any such measures would be shared out fairly, taking account of the circumstances of certain categories of producers and of the most affected regions. The Council also, at my specific request, asked the Commission to make full use of its statutory powers to ensure stability on internal markets adversely affected by commitments made within the GATT.

While the GATT outcome is therefore much more positive than might have been the case, this is not to say that it will not present challenges for the agriculture sector. It will be necessary for the sector to become more market-led and competitive and this is an approach I have been advocating for some years. Based on results to date I am confident that the industry will meet the coming challenges.

The Government for its part will continue to provide every support to the industry. In this context, legislation is currently being drawn up to establish the new agency which will be known as An Bord Bia. The task of the board will be to promote, develop and assist the marketing of Irish food products. The establishment of the new body is but one part of a five year programme which has been drawn up for the further development of the food industry, including improvement of competitiveness.