Dáil Éireann debate -
Thursday, 29 Mar 2001

Vol. 533 No. 5

Written Answers. - Fixed Ewe Premiums.

Alan M. Dukes

Question:

27 Mr. Dukes asked the Minister for Agriculture, Food and Rural Development if he agrees with the EU Commission proposal to introduce a fixed ewe premium; if so, the level at which such a fixed premium should be set; and if he will make a statement on the matter. [7857/01]

Minister for Agriculture, Food and Rural Development (Mr. Walsh)

There is not at this stage any EU Commission proposal to introduce a fixed ewe premium. This suggestion was, however, included in a consultant's report to the Commission as one of a number of possible amendments to the EU sheepmeat regime. The Commission's response to this report in the form of formal proposals is still awaited, although it is expected shortly.

While a fixed premium has some advantages over a variable premium, particularly in that it provides a greater degree of certainty to producers about the level of the premium, it does have the significant disadvantage that, unlike a variable premium, it is not increased when prices fall. In view of this, in the event that the Commission comes forward with a proposal for a fixed premium, I will be seeking to have the premium fixed at a significantly higher level than that which has obtained in recent years.