Vol. 487 No. 8
2 Mr. Penrose asked the Minister for Agriculture and Food the proposals, if any, he has to ensure there will be a more equitable and fairer system for the allocation and distribution of EU beef supports to drystock farming families to ensure that they will have a reasonable income and prevent the drift of these families from the land; and if he will make a statement on the matter. [5350/98]
As the Deputy is aware, the European Commission published outline proposals for the reform of the beef regime last July as part of Agenda 2000. The proposals are based on reducing support prices and providing a greater level of direct payments to farmers. Detailed proposals are expected to be adopted and published by the Commission next month.
It is my intention, in the context of the negotiations on these proposals, to seek full and equitable compensation for any cuts in prices to ensure the continued viability of the maximum number of family farms in the country and to ensure that beef production remains an integral part of our agricultural economy.
The Minister will have our support in trying to secure the best deal in the forthcoming negotiations. We now draw down 12 per cent of EU premium payments and we must ensure that national envelope is protected. The Minister will also have our support in resisting the modified proposals emanating from the EU to cut beef prices by 25p to 30p per pound which would have devastating effects in the long-term on the socio-economic structure of rural Ireland. As the Minister is aware, 100 farmers per week are leaving farming, agricultural colleges are unable to fill their quotas and two-thirds of farmers are on an income of £5,000 per year. Most of those are part of the 100,000 drystock farmers.
Will the Minister agree that drystock farmers are in need of an increased focus of aid and that the beef heifer area should be examined in relation to any new proposals? The suckler cow premium is the genesis of quality beef production in Ireland. Will he agree to examine these two areas because there have not been any subsidies or premia in relation to beef heifers in the past? Furthermore, is the Minister open to other proposals to ensure beef farmers are not left out of any aspect of beef production because many of them believe there is not a clear understanding of the loss they have suffered, particularly in the past four years? Many beef farmers are considering their future. We are now in the last chance saloon where beef farmers are concerned and I ask the Minister to give an assurance that he is open to innovative proposals, both from farming organisations and Members, to redress the imbalance beef farmers believe has existed since the MacSharry proposals in 1992? Many of them feel left out of the system and that has had a major impact on their viability.
The Santer proposals will be published next month and there will be an opportunity during the year — it is anticipated the negotiations will continue until the end of the year — to examine the proposals to ensure there is no loss of EU support or loss of income for farmers and that there is an equitable distribution of EU support without losing any of the overall support.
In relation to beef, Ireland receives 12 per cent of the total beef premia while producing only 7 per cent of beef. It could be argued that we have done relatively well in that regard. On the question of whether this support has been equitably distributed, winter finishers argue that they were left out of the loop. We will have an opportunity in the forthcoming negotiations to redress any perceived inequities. I have already set up a consultative group in relation to beef and all the farming organisations, particularly those concerned with winter finishers, are represented on it with the IFA, the ICMSA and Macra na Feirme. We must get the best possible outcome of the detailed negotiations. Price reductions of 30 per cent are considerable by any standards and already in 1997 direct payments on average accounted for 47 per cent of farmers' incomes, so they are becoming critically important.
In relation to the proposals, documents were leaked over the past few weeks which I understand are fairly close to what the published document will be. In the leaked documents the suggestion is that, in addition to the direct payments, there will be a national envelope of support and it will be up to the member state to divide that out in a more equitable manner. As a member state we will have a better chance in that regard but the person dividing it will find it difficult to please everybody.
