Dáil Éireann debate -
Tuesday, 6 Oct 1998

Vol. 494 No. 4

Written Answers. - Beef Premium Scheme.

Michael Ring

Question:

199 Mr. Ring asked the Minister for Agriculture and Food the plans, if any, he has to change the special beef premium ten month scheme, starting from birth to cover male and female calves, subject to a maximum to 20 animals. [18599/98]

Willie Penrose

Question:

214 Mr. Penrose asked the Minister for Agriculture and Food the plans, if any, he has to ensure that beef bred heifers will be included in any premium system that will be introduced in the Agenda 2000 proposals; and if he will make a statement on the matter. [18704/98]

Willie Penrose

Question:

224 Mr. Penrose asked the Minister for Agriculture and Food if his attention has been drawn to the problems being experienced by dry stock farmers; the steps, if any, he will take in the context of the Agenda 2000 proposals to ensure that EU supports are targeted to these farmers; and if he will make a statement on the matter. [18714/98]

Minister for Agriculture and Food (Mr. Walsh)

I propose to take Questions Nos. 199, 214 and 224 together.

I am aware of the problems being experienced by drystock producers arising in particular from the market difficulties. In the course of the last month, I made strong representations to the Commission for the introduction of more effective market and income support arrangements. I am pleased that the Commission has responded speedily to these representations. The recent increase in export refunds, combined with the re-opening of Libya for live cattle, should help to improve the situation. In addition, the increase in the advance of the cattle premiums from 60 per cent to 80 per cent will enable my Department to pay an additional £45 million in premiums to farmers this year and this should help to improve the cash flow of drystock producers. The retention of the deseasonalisation slaughter premium for 1999 will also be of particular benefit to drystock producers.

With regard to Agenda 2000, the Commission's proposals provide for the reduction of beef prices by 30 per cent and for compensation to be paid to farmers through increases in the direct payments. The intention is that 50 per cent of the compensation will be provided through increases in the suckler cow and special beef premiums with the balance coming through a national envelope system in order to enable member states better to target the compensation on those beef producers who are not adequately catered for by the existing premium system. Under these proposals, it will be possible for drystock producers to qualify both for the standard premiums and for payments from the national envelope in respect of their suckler cows and male cattle. The proposals also provide for heifers of beef breeds over eight months of age to qualify for headage payments from the national envelope.

I should point out that negotiations on the Commission's proposals are at an early stage and will take some time to complete. I am conscious of the particular concerns of drystock producers and I will spare no effort in seeking to ensure that they are taken into account in any final settlement.

With regard to the suggestion that the special beef premium should be changed to cover both male and female animals from birth, such a change would require an amendment to EU Council Regulation 805/68 based on a proposal from the Commission. At present there is no such proposal from the Commission.

I should point out, however, that such a change would have very substantial budgetary implications, in particular in view of the fact that calves reared for veal production would qualify for the premium. As explained above, the Commission intends that heifers of beef breeds over eight months of age will qualify for headage payments under the national envelope system which has been proposed in the context of Agenda 2000.