Dáil Éireann debate -
Thursday, 23 Jun 1994

Vol. 444 No. 3

Written Answers. - Agricultural Sector Grants.

Proinsias De Rossa

Question:

41 Proinsias De Rossa asked the Minister for Agriculture, Food and Forestry the total value of grants and subsidies paid to the agricultural sector and for market support measures for agriculture, paid out over the past five years; in view of the substantial amounts involved, if he has satisfied himself that the expenditure represents the best possible value for money; and if he will make a statement on the matter.

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

In the period 1989-1993 a total of £7,025.55 million has been paid in support measures to the agricultural and food sectors from EU and national sources. Some 71 per cent of the total is accounted for by the basic CAP market support measures, including the cost of intervention purchase, export refunds and miscellaneous aids. The remaining 29 per cent is accounted for by direct payments to farmers, mainly in the form of premium and headage payments, and other schemes, including farm modernisation and rural development schemes.

The high costs of market price support was one of the principal reasons decisions were taken in 1992 at Union level on the reform of the CAP. This reform involved a reduction in guaranteed prices for a number of major products, including cereals, beef and milk. It also involved an increase in certain direct payments to farmers, in compensation for the phased reduction in prices. The CAP reform package was completed by a series of accompanying measures, covering forestry, farmer retirement and agri-environment.

I am satisfied that, generally, the expenditure involved represents good value for money for the European Union and for Ireland. I am satisfied in particular that the overall CAP reform package represents an improvement in the use of resources at EU and national level. Under the reform, resources are channelled more directly to the farmers, prices are supported at levels more beneficial to the consumer and the food industry, and there is a clearer focus on measures to improve the structure of the agricultural sector and the promotion of rural development.

My Department will continue to strive to ensure that, both in the design of policies and administration of programmes and schemes, the best possible value for money is achieved for both the EU and national taxpayer.