I am aware of the income difficulties being experienced by beef producers because of the recent fall in cattle prices. The main cause of the current difficulties is the series of cuts in export refunds by the EU Commission in an attempt to stay within the GATT limits on EU subsidised exports. The fall in EU beef consumption arising from the BSE situation has significantly increased the surplus of beef on the Community market and made it more difficult to stay within these limits. The effect of the reductions in export refunds on Irish producers has been exacerbated by the revaluation of the Irish agriculture conversion rate.
As regards the reductions in cattle prices arising from the revaluation of the Irish agricultural conversion rate, I should point out that the EU has already agreed to provide compensation amounting to £20 million for the revaluations on 11 November 1996 and 10 January 1997. I have announced the arrangements for the payment of this aid. An additional EU funded compensation package amounting to £11 million to compensate for the most recent revaluation on 29 March has also been approved. I also announced last week a further £17 million would be provided for national resources to help alleviate the income difficulties being experienced by beef producers as a result of the recent revaluation of the Irish agricultural conversion rate. Subject to clearance with the European Commission, I intend to use the national funds to pay a top-up of £50 per head on all male cattle and heifers slaughtered in meat export plants and local abattoirs and on heifers sold through marts during the period 1 April-10 June 1997. Applicants will be required to provide proof of ownership of the animals on 1 April 1997.
