Vol. 460 No. 3
559 Mr. Bell asked the Minister for Agriculture, Food and Forestry the action, if any, he is taking to restore export refunds on livestock and processed beef exports to September 1995 levels in order to restore stability to the beef industry and in particular redress the disastrous income situation for winter fatteners who are a vital element in the orderly supply of beef; and if he will make a statement on the matter. [1118/96]
I am concerned at the EU Commission's management of the beef market since last autumn, which has led to a significant reduction in export refunds on live cattle and beef. I believe that it over-reacted to the slightly elevated levels of applications for export licences during the latter part of 1995 and that it has adopted the wrong approach in attempting to bring about a reduction in the level of licence applications by cutting export refunds. The 14 per cent increase in export refunds on 1 December last was insuffient and I consider that the current level of refunds is still too low relative to cattle prices in the EU and prices in third countries.
I discussed this issue last week directly with Commissioner Fischler and raised it again at this week's meeting of the Council of Agriculture Ministers. I impressed on the Commissioner and my colleagues in the Council the need for an immediate increase in export refunds in order to ensure adequate returns for our beef producers and, in particular, our winter fatteners. I will continue to press the Commission, both bilaterally and at the Beef Management Committee later this week, to restore refunds to adequate levels.
However, I believe that the failure at this stage to have refunds restored to their previous levels should have no immediate effect on cattle prices because most Irish traders still hold sufficient licences prefixed at the higher refund rate that prevailed up to the end of October last year. In addition, the deseasonalisation slaughter premium worth up to £60 per steer slaughtered this spring will also assist in maintaining producers incomes at this time.
