Vol. 482 No. 6
197 Mr. Kenneally asked the Minister for Agriculture and Food the steps, if any, he is taking to alleviate the plight of hill sheep farmers who are achieving an average price which is only half of that achieved by their lowland counterparts; the steps, if any, he will take to change the way the price is calculated in view of the fact that it discriminates against hill sheep farmers; and if he will make a statement on the matter. [18795/97]
241 Mr. Connaughton asked the Minister for Agriculture and Food the action, if any, he will take at EU level to alleviate the income crisis on hill sheep farms resulting from the 40 per cent cut in ewe premium from 1995 to 1997. [19115/97]
244 Mr. Connaughton asked the Minister for Agriculture and Food if he has proposed to the EU Commission that the rural world premium be increased to 10 per cent per ewe; and the progress, if any, he has made in securing this policy change on behalf of sheep farmers. [19122/97]
260 Mr. Connaughton asked the Minister for Agriculture and Food his views on whether there is a severe income crisis in hill sheep farms; and the action, if any, he intends to take to alleviate this crisis for flock owners before the end of 1997. [19155/97]
261 Mr. Connaughton asked the Minister for Agriculture and Food the estimated level of the 1997 ewe premium based on the lamb prices to date in 1997; the actual reduction from the 1995 level in this regard; and the action, if any, he will take on behalf of sheep farmers to make up the difference. [19156/97]
I propose to reply to Questions Nos. 197, 241, 244, 260, and 261 together.
The ewe premium is designed to compensate producers for the difference between the EU basic price and the average EU market price for sheepmeat. In view of this, it is inevitable that the rate of the ewe premium will be lower in a year, such as 1997, when market prices are high, in relation to the level of premium paid in 1995, when prices were at relatively low levels.
The 1997 ewe premium is currently expected to be £11.78. The premium was fixed at £20.59 and £13.99 for 1995 and 1996, respectively. The lower premium payable in 1997 reflects the higher market prices throughout the EU and Ireland this year and, when account is taken of this, the total return from the market and premium payments was slightly higher in 1997 than in 1995.
As far as hill sheep farmers are concerned, it should be noted that the EU sheepmeat regime recognises the postion of the hill sheep farmer through the payment of a supplementary rural world premium of £5.51 on eligible ewes to producers in disadvantaged areas, where all hill sheep farmers are located. In addition, these producers also receive a headage payment of £10 per head on the first 200 ewes-hoggets under the disadvantaged areas scheme. These supplementary payments largely compensate hill sheep farmers for the lower prices they receive from the market.
198 Mr. Kenneally asked the Minister for Agriculture and Food if he will introduce an extensification premium for sheep which would particularly benefit farmers of black faced sheep; and if he will make a statement on the matter. [18796/97]
224 Mr. Ring asked the Minister for Agriculture and Food when he intends to introduce extensification premium on ewes in the hill areas; and the progress, if any, he has made to date with this scheme. [19096/97]
242 Mr. Connaughton asked the Minister for Agriculture and Food the progress, if any, which has been made at EU level in securing extensification premium for sheep farmers as specified in the Programme 2000 agreement. [19118/97]
I propose to reply to Questions Nos. 198, 224 and 242 together.
In fulfilment of the commitment under the Partnership 2000 agreement, I made representations to the EU Commission earlier this year for the introduction of an extensification premium in the sheepmeat sector. The Commission has not agreed to this request. They consider that the extensification premium and the rural world premium are similar measures in that the extensification premium was introduced in the beef sector in 1992 following a cut in institutional prices and that the rural world premium was introduced to offset the negative effects of the stabiliser in the sheep sector for producers in the disadvantage areas, where extensive production systems prevail. I will continue to press this issue with the Commission at every possible opportunity.
