John McGuinness
Question:228 Mr. McGuinness asked the Minister for Agriculture and Food his view on the various issues raised by the Irish Cattle Traders and Stockowners Association in relation to the CAP reform negotiations. [16121/98]
Written Answers. - Common Agricultural Policy.
I share many of the concerns expressed by the Irish Cattle Traders and Stockowners Association (ICSA) in relation to the CAP reform negotiations and, in particular, on the need for full compensation for any reduction in the intervention price for beef. I have already made it clear to the Commissioner and the Agriculture Council that the reform proposals are not acceptable and that substantial improvements will have to be made to them.
I agree with the ICSA view that further increases are required in the case of the suckler cow premium and that the supplementary suckler cow premium should be retained. However, the replacement of the two instalments of the special beef premium by an area-based premium could result in reduced premium income for Irish producers, particularly in view of the consequential loss of the extensification premium. Furthermore, there is little or no support from other member states for such an approach. The ICSA suggestion for a forage area premium could be accommodated, in part at least, through payments from the proposed national envelopes, which provide for payments to be made either on cattle or forage area. With regard to the extensification premium,
I am concerned about the implications of the proposal to base this premium on real stocking density but it is unrealistic to expect that it will be possible to secure the exclusion of heifers and sheep from the calculation of stocking density. A more practical solution might be to increase the maximum stocking density limit of 1.4lu-ha for this premium. I have already made strong representation to the EU Commission for the introduction of an extensification premium in the sheepmeat sector. However, the EU Commission has not accepted this proposal on the grounds that the round world premium, which was introduced in the content of the 1992 reform, is of major benefit to the majority of extensive sheep producers in the Union.
As regards the proposed increase in the special premium for bulls, it is not practicable in a European context to attempt to target this premium on dry stock producers and on small dairy quota holders. The introduction of national envelope will, however, enable member states to better target compensation at those producers most seriously affected by the reduction in the intervention price.
Negotiations on the Commission's proposals are an early stage and I am confident that, as they progress, significant improvements can be achieved. I am conscious of the particular concerns of drystock producers and I will spare no effort in seeking to ensure they are taken into account in any final settlement.