Brian Cowen
Question:13 Mr. Cowen asked the Minister for Agriculture, Food and Forestry when the double advance of the ewe premium will be paid in view of the disastrous lamb prices at present.
Ceisteanna—Questions. Oral Answers. - Grant Payments.
Ewe premium payments are made in accordance with EU regulations and payment is made in three instalments. The amount to be paid is fixed by the Commission and the regulations preclude payment of any of the instalments until some days have elapsed from the date of publication of that decision in the Official Journal. The publication date is dependent on the smooth operation of the Commission's publication facilities involving translation.
The overall value of the premium to Irish sheep farmers will be in the region of £80 million. The final instalment is due to be paid soon after the end of the 1995 marketing year and is expected to bring total payments to around £123 million for the 1995 premium year.
Since EU legal constraints will preclude publication of the decision fixing the second instalment until after 1 July 1995, indications at present are that the decision will be published early in July allowing payment of both instalments to commence no later than the second week of July.
I can assure the Deputy that my Department will facilitate the earliest possible payment of the first and second instalments consistent with EU regulations, and I might add that this will be the earliest date on which this payment has ever been made.
On what date was it paid last year?
It was paid on 27 July. It will be paid two weeks earlier this year and the Deputy should acknowledge the Minister's achievement in that regard.
The Minister of State will be aware that when Commissioner Fischler came to Ireland we were told, on 27 May, that the Minister, Deputy Yates, had arranged for the early payment of the double advance of the ewe premium. He indicated it would be paid in the month of June. Since then, lamb prices have plummeted even further. Despite the cosmetic exercise undertaken by the Minister during the Commissioner's visit, payment of the ewe premium will be made within a week or ten days of the date it was paid last year.
In 1993 payment of the first and second instalments commenced on 27 July, while in 1994 payment of both instalments commenced on 26 July. Hopefully, payments will be made this year two weeks earlier and that is a considerable achievement on the part of the Minister. We all acknowledge that the price of lamb is at an unacceptable level but the Minister is doing everything possible to help sheep farmers. Deputy Cowen should acknowledge the Minister's achievement in regard to advance payments this year.
Sheep farmers will be waiting with open arms for those cheques to arrive. What policies will the Department pursue to improve the income of sheep farmers? It is quite clear that the APS scheme has not put one additional penny into farmers' pockets and there is now a 20 per cent reduction in lamb prices compared to last year. Apart from engaging in cosmetic exercises on the front page of the Farmers Journal, will the Minister do anything to improve the income of farmers? He should not insinuate that there is a crock of gold at the end of the rainbow when the rainbow has long since disappeared.
In regard to the APS scheme, approximately 270 tonnes of lamb was taken out of the market and put into storage until the autumn. Those negotiations were unprecedented because they took place over a period of 48 hours. The Minister should be congratulated on that major achievement.
What price increases have ensued?
If it had not happened I dread to think what price reductions would have taken place. It has helped considerably.
Sheep farmers' income is down 25 per cent.
This year to date average prices are down 6 per cent on last year's prices but they are not down to the level they were back in 1992. As Deputies know, there are problems in the French market which takes about 75 per cent of our lamb. The Minister spent two days last week in Paris at a promotional marketing campaign organised by An Bord Bia. I spent a day in Madrid promoting Irish lamb and the response was very good. Certainly the people of Inishowen have received further orders as a result of my intervention.
Overall we have been doing well. I would have expected the Deputy to ask about top up premiums which we are doing our best to get.
What is the Minister going to do? Very little has been done to put money into the sheep farmers' pocket. Given that this Government has promised during the by-election campaign in Wicklow to spend in the region of £12 million in the area, what can the sheep farmers of County Wicklow expect before 29 June?
The Minister for Agriculture, Food and Forestry has performed very well. We will do everything possible in Europe to negotiate a top up premium. The Minister has taken steps and is making proposals to effect this. Because of a mechanism put in place by a previous Minister for Agriculture, Food and Forestry in 1992 member states cannot have a national premium. All that is left to us to do is to try to get a top up premium and we are striving to do that. I hope we will be successful and I am sure the Deputy will support our efforts.
Is the Minister for Agriculture, Food and Forestry, Deputy Yates, raising the disastrous lamb prices at the Council of Ministers meeting? The aid for private storage scheme was introduced with a great fanfare but how many hoggets were taken out of the market? Will the Minister of State not admit that the Minister, Deputy Yates, has failed miserably to put an extra penny in sheep farmers' pockets? Is it not time that this was admitted? The Minister of State has been waffling and the sheep farmers know that.
The sheep farmers in Wicklow know it.
I am disappointed with Deputy Hugh Byrne's response. Surely he should be magnanimous and acknowledge his constituency colleague's achievements. The Minister is doing his best to address the problems in the sheep sector.
On the question of aid for private storage, 270 tonnes of lamb was purchased for storage until autumn. That was a very welcome development.
What about the hoggets?
The Minister has put in place other initiatives and has negotiated for the first time that the two instalments of the premium will be paid during the first two weeks in July. That is a major achievement.
It is of no relevance.
During the lifetime of the previous Government the farmers were forced to drive their sheep into the offices at Agriculture House because they were totally ignored. At least we are trying to deal with the problem——
During our time farmers' income increased.
——and do something about it, as we did for the pig industry. I am confident this Minister will produce the goods and Deputy Byrne should know that. I have confidence in the Minister's negotiating skills and that he will be able to do something to ease the plight of sheep farmers.
Did the Minister raise this matter at the meeting today?
He is raising a number of issues, including this.
Is it on the agenda?
He is raising the issue. I do not know whether it is on the agenda, but I will check it out for the Deputy.