Bertie Ahern
Question:1 Mr. B. Ahern asked the Taoiseach if he will make a statement on his meeting with the President of the European Commission, Jacques Santer. [11470/97]
Ceisteanna—Questions. - Meeting with President Santer.
The President of the European Commission, Jacques Santer, visited Ireland on Tuesday, 22 April, solely for the purpose of participating in a ceremony to mark the transfer to the Commission of the site of the new Product Quality Control and Audit Office in Grange. I was delighted to welcome President Santer to County Meath. His presence there underlined the paramount importance of this new office for the development of the Union's policies on food safety. The location of the office in Ireland will serve to underline Ireland's image as a producer of high quality agricultural produce.
In his day long discussions with President Santer, did the Taoiseach raise the question of Structural and Cohesion Funds after 1999, the cuts in export refunds or corporate tax harmonisation? What is the President's view on those matters?
The question of Structural Funds after 1999 will be dealt with in the financial perspectives document which will be produced at the conclusion of the Intergovernmental Conference.I did not discuss the other matters in substance with the President.
I understand much of the day was spent discussing agricultural matters. I presume, therefore, the Taoiseach would have raised the key question of restoring cuts in export refunds on behalf of farmers.
Cattle producers are most affected by the position in regard to export refunds. I raised the matter with the President. There is significant disagreement between Ireland and the Commission about the way in which the digression of refunds is calculated. We believe the periods used for the calculation and the duration of the concession should be shorter because there are a number of unused concessions in regard to export refunds which could be used by Ireland, the principal country in the EU which exports to third country markets. Under-used or unused facilities for refunds that lie dormant are a matter of concern to the Government and the meat and farming communities.
The Deputy will be aware that the problem regarding export refunds is not of recent origin. It originated in the world trade deal negotiated by a previous European Commissioner and, in so far as Ireland is concerned, by a previous Government.It is important that we operate that agreement in such a way as to minimise the current substantial difficulties. I am pleased the Commission agreed last week, following my meeting with the President, to accept all Irish offers for intervention. This will allow some easement in the marketplace. I am also pleased the Government has since been able to announce subsidies which will be paid on cattle slaughtered between 1 April and 10 June. This will also help ease the position for producers. However, I do not under-estimate the extent of the long-term difficulties the Irish cattle industry must face as it adjusts to a more open world trading market.
It is widely accepted that serious decisions must be made in conjunction with the IFSC regarding corporate tax harmonisation. Did the Taoiseach raise these matters with President Santer? I understand they will be discussed at the next ECOFIN Council meeting.
As that is a matter for the Minister for Finance the Deputy should table a question in that regard to him. I did not discuss this matter in detail with the President in the course of his visit to Ireland which was primarily of a ceremonial and social nature. We discussed the position regarding the cattle trade and the financial perspectives post 1999 were touched on. In the course of our primarily social conversations, we discussed the prospects for the conclusion of the Intergovernmental Conference and the Amsterdam summit. Those were basically the topics we were able to cover in the time available to us. I did not discuss a whole range of issues with the President. The Deputy's party was also represented on the occasion and they can vouch for what I am saying.
I was pleased to hear my colleague was at the top table.
We are very civilised in County Meath.
Even if he was at the top table, I am sure the Taoiseach had an opportunity to discuss the single currency. As a former Minister for Finance, I have a great interest in currency matters. It is obvious the Irish pound is facing difficult times. What difficulties does President Santer perceive for the single currency? Is the Taoiseach concerned that there may be speculative attacks against the Irish pound? The Central Bank has obviously decided the inflationary pressures that made it support the Irish pound in recent weeks have disappeared or it is trying to move the pound to a new floor. What is the Government's view in this regard? The pound fell sharply today against sterling and while that may be good for some people others will be very concerned about it.
The Irish pound is not linked to sterling. Like our economy, it pursues its own course. At this stage in our history there is no need to shadow sterling. In GDP terms our income per head exceeds that of Great Britain. This indicates that those who deal with our economy in currency, trade or other matters deal with a strong independent economy, in respect of which independent judgments can be made without reference to sterling or Britain.
The Taoiseach has just enunciated a new economic policy.
We must proceed to other questions. We cannot range over all issues appertaining to the EU now.
According to the Central Bank last week, the exchange rate policy here is balanced against the basket of currencies. The Taoiseach said the opposite. What discussion did the Taoiseach have with President Santer about difficulties in the currency markets which are having a great effect on our economy?
Ireland is a member of the Exchange Rate Mechanism, a European mechanism, and we respect the disciplines of the exchange rate mechanism. We are not linked to sterling.
What policy are we pursuing? I asked a question on a day when the Irish pound has fallen quite sharply——
We cannot debate monetary and economic policy now.
It appears we cannot discuss anything.