Dáil Éireann debate -
Wednesday, 12 Nov 1997

Vol. 482 No. 6

Written Answers. - Export Refunds.

Paul Connaughton

Question:

249 Mr. Connaughton asked the Minister for Agriculture and Food the proposals, if any, he has made to the EU Commission to avoid a repeat of the severe export refund cuts of spring 1997 between November 1997 and spring 1998. [19134/97]

Paul Connaughton

Question:

250 Mr. Connaughton asked the Minister for Agriculture and Food if he will support the introduction of a national quota for the allocation of export refunds under the current GATT arrangements. [19136/97]

Minister for Agriculture and Food (Mr. Walsh)

I propose to take Questions Nos. 249 and 250 together.

I presume that the Deputy is referring to the question of export refunds in the beef sector.

The level of export refunds, which is the responsibiity of the European Commission, acting either on its own initiative or through the beef management committee, depends on a number of factors, such as price developments in third country markets, US dollar movements and particularly the level of applications for export licences relative to the WTO ceiling on subsidised exports. Most of the reductions in export refunds in the past year were designed to reduce applications for export licences to the level of the WTO ceiling. I have made strong representations to the Commission over the past number of months about the disproportionate effect of refund reductions on steer prices in Ireland and I am pleased that, in the case of the two most recent reductions, the Commission has applied a much smaller reduction to refunds on beef from male cattle than to refunds on beef from female cattle.

With regard to the next six month period, the position is that the Commission proposes to extend, with effect from mid-January 1998, the special export refund system to cover male forequarter beef in addition to male hindquarter beef with a view to enabling them to target any necessary cuts in refunds more selectively on beef from female cattle. In view of the fact that the vast bulk of our beef exports to third countries consists of steer beef, this approach should help to minimise the effect of any refund cuts on steer prices in Ireland.

As far as a national quota for the allocation of export licences is concerned, the position is that such an approach is not legally permissible in view of ruling of the European Court of Justice in Case No. 51/87. In any event, I believe that the approach I have outlined is more likely to protect the interests of Irish producers.