Vol. 474 No. 4
47 Mr. Sargent asked the Minister for Agriculture, Food and Forestry if he has considered the plea by tomato grower organisations that compensation of £650,000 be paid in view of other EU member states assisting their grower sectors following devaluation of the Spanish peseta. [3158/97]
49 Mr. Sargent asked the Minister for Agriculture, Food and Forestry the assurance, if any, he can offer to tomato growers that the detrimental effects of devaluation of the Spanish currency will not be repeated; and, if not, the safeguards, if any, which he has put in place to prevent growers going out of business, as happened in 1995 following such a devaluation. [3157/97]
I propose taking Questions Nos. 47 and 49 together.
I can give no assurance that detrimental effects of currency devaluations will not occur in the future.
Tomatoes, in common with most fruit and vegetables, are the subject of a common organisation of the market and member states of the European Union are precluded from providing assistance out of national resources. The principal influence on tomato prices is the supply-demand situation in the Community rather than currency fluctuations.
Council Regulation (EC) 2611/95 of 25 October 1995 provided for the possibility, subject to European Commission approval, of national aid being granted in compensation for losses of agricultural income caused by monetary movements in other member states since the beginning of the 1994-95 marketing year and no later than 31 December 1995. The latest date for notification to the European Commission of any proposed aid project under Regulation 2611/95 was 30 June 1996. I understand that only two member states, Belgium and France, provided national aid under this regulation, none of which was in respect of horticulture.
I am happy to say that there was a considerable improvement in tomato prices in 1996 as compared with 1995.
