I propose to take Questions Nos. 13, 17, 23 and 31 together. I am very unhappy with the prices paid by factories for cattle at this time. The price is now approximately 10 per cent lower in national currency than this time last year.
The main cause of the current difficulties is the reduction of export refunds which has been brought about by the EU Commission in an attempt to stay within the GATT limits on subsidised exports. These limits have been put under further pressure in the past year due to a substantial fall in EU beef consumption arising from the BSE situation. This has significantly increased the surplus of beef on the Community market and made it more difficult to stay within the limits on EU subsidised exports agreed in the context of the last GATT agreement. The effect of these reductions in exports refunds on Irish producers has been exacerbated by the revaluation of the Irish agriculture conversion rate.
The changes in export refunds over the past years are as follows: 1 May 1996 — 12 per cent increase in refunds; 14 January 1997 — 10 per cent reduction in refunds; 26 March 1997 — 7.5 per cent reduction in refunds; 18 April 1997 — 5 per cent reduction in refunds for bone-in male beef, boneless male hindquarter beef and live exports of male cattle; 15 per cent reduction in all other categories, mostly female.
I have made strong and frequent representations to Commissioner Fischler regarding these cuts, most recently at the Council of Ministers meeting in Luxembourg earlier this week. I have emphasised the specific problems the Commission's approach has created for beef producers, especially our winter finishers, because of the heavy dependence of the Irish beef trade on third country markets. I have asked the Commission to abandon this approach and, instead, to manage the licensing system through the application of reducing coefficients. I stressed the importance in that context of reversing the recent reductions in export refunds and I am taking other actions to support market prices.
As regards reductions in cattle prices arising from the revaluation of the Irish agricultural conversion rate, I have already answered that question and pointed out the measures we intend to implement. I have also pointed out the adjustment to the deseasonalisation slaughter premium I secured last year which is worth £20 million or 7p per pound. I consider that extremely important in alleviating farmers' difficulties.