I was in Paris on Monday and I met and had detailed discussions with the French Minister there. I also met the German, Austrian, Greek and Portuguese Ministers. We had a long conversation exclusively about beef and we discussed the need to support consumption in terms of a promotion fund and the need to get prices up through an increase in refunds. I had detailed discussions with the highest ranking official in DG6 on this issue on Monday and I also spoke to Commissioner Fischler.
The situation is difficult. Prices are rising or have not dropped in the rest of Europe and there is no justification for a price drop in Ireland. They advised me that, after next month, the medium-term trend to meet the GATT requirement for the remainder of the GATT year, that is to 1 July, is downwards on refunds with longer validity periods. These are all very difficult developments and we must realise that the value of the beef premium is of the order of 28p to 30p a pound weight. Before CAP reform started, the price was 99p a pound and the premium was 4.5p. Now, the price of beef is approximately the same and the premium is worth almost 30p. The Commission feels raw material prices were to drop.
I am trying to secure a short-term measure regarding an increase in live refunds. In relation to beef, the Commission is unlikely to increase the level of prefixation which has been so heavy in recent weeks. However, we are making a sustained case, in conjunction with the British, to secure an increase in live refunds in Ireland, particularly to restore competitiveness in the Egyptian market. France is seeking a similar measure in relation to cow beef.