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Dáil Éireann debate -
Wednesday, 5 Feb 1997

Vol. 474 No. 4

Written Answers. - Export Refunds.

Desmond J. O'Malley

Question:

79 Mr. O'Malley asked the Minister for Agriculture, Food and Forestry the percentage of the secondary proofs accepted by the Government's decision of 5 November 1996 to release £17 million in export refund securities which involved certification from Bureau Veritas in Paris; and if he sought or received any indemnification from Bureau Veritas prior to such release. [3172/97]

All files containing Bureau Veritas secondary proofs were processed and cleared in the early 1990s, but balances of securities held, amounting to approximately 3.95 per cent of the £17 million referred to, were released last November.

The question of some type of indemnification from Bureau Veritas does not arise. The EU Commission Services have already adjudicated upon these proofs as part of the clearance of the 1991 account and further disallowances cannot be imposed. Furthermore the Commission approved the release of the £17 million in export refund securities implemented on foot of the Government decision.

Peadar Clohessy

Question:

81 Mr. Clohessy asked the Minister for Agriculture, Food and Forestry the way in which he proposes to secure a restoration of beef export refunds to their previous level; and if he will make a statement on the matter. [3078/97]

Brendan Smith

Question:

156 Mr. B. Smith asked the Minister for Agriculture, Food and Forestry the proposals, if any, he has to have the rate of export refunds increased; and if he will make a statement on the matter. [3287/97]

I propose to take Questions Nos. 81 and 156 together.

Everything possible is being done to get the recent cut in export refunds for beef reversed. The decision to cut refunds was taken by the EU Commission in order to reduce the demand for export licences because they believed that the level of applications was excessive relative to the quantity allowed under the GATT agreement. Licences totalling 60,000 tonnes had been sought on the day prior to the decision. I have made it clear to the Commission that these cuts are unjustified and unnecessary at a time when the income situation of beef producers is still under severe strain.

I have proposed an alternative approach to the Commission for controlling the demand for export licences in a fairer and more effective manner, thereby allowing the refunds to support market prices at reasonable levels. This issue was raised at the Council of Ministers meeting in January and support was forthcoming from a number of member states for a quick reversal of the decision. The Taoiseach has raised the matter directly with the Commission President, Mr. Santer, and he has also written to him seeking an immediate increase in the refunds. The fact that the Commission have acceded to my request to reduce the validity period of licences to 30 days as a method of controlling applications in order to stay within the GATT limits is a first step in this process to get the refunds increased to their former level. I will maintain pressure on the Commission and seek the continued support of my colleagues in the Council of Ministers to get a quick reversal of the decision.

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