Written Answers. - EU Beef Fine.
Dermot Ahern
Question:
10
Mr. D. Ahern
asked the
Minister for Agriculture, Food and Forestry
the involvement, if any, the Attorney General and officials of his own Department have had regarding the negotiation on the proposed EU fine concerning the meat industry; and if he will make a statement on the matter.
[5749/96]
Helen Keogh
Question:
54
Ms Keogh
asked the
Minister for Agriculture, Food and Forestry
if he will report on the final outcome of the fines imposed on Ireland for breaches of EU regulations by his Department arising out of irregularities in the beef industry, specifying the amounts of the fines under each individual heading and year and setting out the matters that are still outstanding; and when each of the amounts have to be paid by his Department to the Commission.
[7796/96]
Liz O'Donnell
Question:
68
Ms O'Donnell
asked the
Minister for Agriculture, Food and Forestry
the steps, if any, he is taking through permanent representation at Brussels or otherwise to effect a reduction on behalf of Ireland in the fines of £109.925 million proposed to be imposed by the European Commission; and if he will make a statement on the matter.
[5305/96]
I propose to take Questions Nos. 10, 54 and 68 together.
On 27 March 1996, following a lengthy process of discussion between the Irish Government and the EU Commission, the Commission decided to disallow £71.982 million in relation to the intervention beef inquiry for 1990 and 1991 and to the audit of the 1992 EAGGF Guarantee expenditure as follows:
|
(£m)
|
|
Intervention Beef Inquiry (£26.240 million for 1990 and £24.045 million for 1991)
|
50.285
|
|
Beef Tendering Procedures (£9.615 million for 1991 and £8.860 million for 1992)
|
18.475
|
|
Valuation of Beef Stocks
|
0.105
|
|
Premia
|
1.017
|
|
Export Refunds
|
0.087
|
|
Miscellaneous Intervention Adjustments-Corrections
|
2.013
|
|
Grant Total
|
71.982
|
The decision by the Commission on the beef storage case was for a reduction of £24 million in the disallowance by comparison with what had been proposed by the Commission services leaving a total in this case of £50.3 million. This represented 10 per cent of the cost of beef intervention in Ireland in 1990 and 5 per cent in 1991. In its decision, the Commission explained the differentiation between the two years as follows: "because Ireland has, since the beginning of 1991, shown its willingness to introduce significant improvements in its control system and began to put in place arrangements for remedying the deficiencies found".
This improvement in control systems was a central part of the case made by Ireland in its negotiation with the Commission services and I was glad to see this point acknowledged in the final Commission decision.
The disallowance for the multiple tendering case is £18.5 million which is 2 per cent of the cost of beef intervention in 1991 and 1992. The Government was disappointed that the Commission maintained the full disallowance in this case.
The Commission has asked that the £71.982 million be declared in Ireland's statement of May EAGGF Guarantee expenditure. The Commission advance for May, which is due in July, will accordingly be reduced by the amount of these disallowances.
I have asked for legal advice on a challenge to the Commission decision, which has to be made within two months of the publication of the Commission decision. Having considered that advice, I will be making a recommendation to Government as to whether or not a challenge should be made. In the event of a successful challenge, the money will be returned to the Irish Exchequer.
The negotiation on the EU disallowances was a co-ordinated one and involved a number of Departments. The Office of the Attorney General and an independent legal adviser, Ms Mary Finlay, SC, advised on the preparation of a memorandum on the beef storage case to the independent Conciliation Body. In the negotiations with the Commission, close liaison was maintained between my Department and the Departments of the Taoiseach, Foreign Affairs (including the Permanent Representation in Brussels) and Finance to ensure that the interventions in the negotiation were made most effectively. I met Commissioner Fischler on the issue in Strasbourg on 17 January. A formal meeting was held on 26 February between the Commission services (led by David Williamson, Secretary General, and involving the Cabinets of President Santer, Commissioners Fischler and Gradin) and an Irish delegation consisting of officials from the Department of the Taoiseach and my Department. Close contact at political and official level was maintained with the Commission, including Commissioner Flynn and his Cabinet, right up to the Commission decision on the disallowances on 27 March.
In summary, I consider that the reduction of £24 million in the beef storage case was a significant achievement, given the difficult negotiating environment which existed. I have already paid tribute to Commissioner Flynn and his Cabinet, to my Government colleagues and to the officials from my own and other Departments for their contributions in securing this reduction. I am hopeful that a legal challenge to the Commission decision in the European Court will be successful, in which case a significant reimbursement to the Irish Exchequer would occur.
