Proposals for revision of the income support system for the beef sector in general are contained in the Commission's Agenda 2000 proposals. Negotiations are continuing in the Council of Agriculture Ministers on the proposals which, as they currently stand, I do not regard as being sufficiently favourable to the type of production carried out in this country. The particular situation of dry stock farmers will be taken into account in any agreement by Ireland to the final outcome.
As regards the short term, the current market weakness in the beef sector, which primarily results from the collapse of the Russian market, has put downward pressure on prices paid to producers throughout the Irish cattle and beef sector. However, the improvement in the intervention arrangements which I negotiated in October, along with the 21 per cent increase in export refunds, has had the effect of arresting the decline in prices and bringing about a definite upward movement which should continue over the coming weeks. It is also the case that the current system of support enables a considerable level of direct payments to be made to beef producers.
I have established a task force on beef to examine the future of the sector as a whole from primary production to the marketing of the final product. I will be asking this group to draw up an action plan aimed at putting the sector as a whole on a firm and long-term footing so that it can confidently and vigorously face the challenges ahead.