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Dáil Éireann debate -
Thursday, 26 Feb 1998

Vol. 487 No. 8

Written Answers. - EU Beef Supports.

Breeda Moynihan-Cronin

Question:

16 Mrs. B. Moynihan-Cronin asked the Minister for Agriculture and Food the plans, if any, he has to compensate drystock farmers who have been forced out of farming activity as a result of the introduction of CAP reform in view of the fact that they were left with no quotas and, therefore, no rights to any supports; and if he will make a statement on the matter. [5148/98]

It is generally acceptable that the 1992 reform was beneficial to the vast majority of Irish beef producers, who received a substantial increase in premium payments following the reform. I accept that drystock producers have experienced difficulties in recent years because of the reduction in cattle prices arising from the BSE scares of 1996. However, substantial sums of money were paid to beef producers in 1996 and 1997 to compensate them for the reduction in prices both as a result of the 1996 BSE scare and the revaluation of the Irish Green Pound in 1997. Drystock producers received a substantial proportion of these payments through a top-up of the special beef premium and the deseasonalisation premium.

The EU Commission has published outline proposals for the reform of the beef regime as part of Agenda 2000. These proposals are oriented towards reduced support prices and a greater emphasis on direct payment to producers. It is expected that the Commission will come forward with more detailed proposals towards the end of next month.

Brendan Howlin

Question:

17 Mr. Howlin asked the Minister for Agriculture and Food the steps, if any, he is taking to ensure that beef heifer producers are supported; if his response to the Santer proposals will include a proposal in this regard; and if he will make a statement on the matter. [5151/98]

The EU beef regime has traditionally focused intervention support on male cattle and income support through the premium system on male cattle and suckler cows. The rationale for this approach is that the removal of appropriate quantities of male beef from the market through intervention purchasing should be sufficient to maintain prices for all cattle, including heifers, at reasonable levels. In addition, premium payments on suckler cows and male cattle are designed to compensate producers for the reduction in prices for all cattle following the 1992 reform of the beef regime.

These arrangements have worked reasonably well up to the present. However, I am concerned about the implications of the outline Santer proposals for the continued viability of heifer-beef production. For that reason, I have raised at the Council of Agriculture Ministers — and I have made strong representations to Commissioner Fischler — that appropriate provision needs to be made in the detailed proposals to ensure that heifer-beef production will continue to be economically viable under the reformed regime. I believe that the EU Commission has an understanding of the problem. Detailed proposals are expected to be adopted and published by the Commission towards the end of next month.

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