Agreement was reached with a Libyan Government delegation in July last providing for the re-opening of the Libyan market for Irish cattle and beef on the basis of agreed veterinary health conditions and terms of contracts. This agreement was the culmination of extensive contacts with the Libyan authorities since early 1997. The Libyan Government, through the General Peoples Committee, formally cleared the agreement before the end of September and written confirmation to this effect was received. Although the Libyan authorities indicated their wish to have the agreement implemented immediately, there have been delays in the conclusion of contracts for Irish cattle. To establish the reasons for these delays which were of concern both to me and the Government our ambassador in Rome, who is accredited to Libya, visited Tripoli again in mid-October. The ambassador was assured there was no political blockage to the agreement and that it was now a matter for Irish exporters to pursue contracts with the purchasing agency in Libya. Ongoing contact is being maintained with the Libyan authorities through every possible channel with a view to ensuring that the July agreement is implemented in practice. Our position is that an official agreement has been reached with the Libyan authorities and that it should be honoured.
Iran was a traditionally important market for Irish beef until 1996. I am pleased to say that a veterinary protocol was signed in Dublin on 29 October 1998 providing for detailed arrangements for the immediate resumption of the export of beef to Iran. The successful conclusion of this protocol followed a week long visit here by a veterinary delegation from Iran and the decision in principle by Iran to re-open its market to Irish beef which I had negotiated in Tehran two weeks previously. The conclusion of beef contracts is now a matter for the industry but I hope these will be completed with the minimum of delay.
As regards the short term, the current market weakness in the beef sector which results from the collapse of the Russian market has put downward pressure on prices paid to producers. However, the improvement in the intervention arrangements which I negotiated this month along with the 21 per cent increase in export refunds has had the effect of arresting the decline in prices and bringing about some upward movement. On a number of occasions I have indicated to meat processors that the full benefit of the improved intervention arrangements should be availed of and that the commensurate returns should be passed on to producers.
I have also asked the EU Commission that everything be done to maintain the existing commercial infrastructure in Russia so that it continues to be a viable economic market when the Russian economy improves.