Mr. Chairman, first of all, I should like to thank you for taking this report first because I have to get away to another meeting.
The report deals with the common organisation of the market in sheepmeat which the Commission is proposing at present. As you know, sheepmeat is the only main livestock product for which no common market organisation exists. This has been a legitimate source of grievance for us since we joined the Community. Indeed, we have been the Member State which has suffered most by the failure of the Community to observe Treaty obligations in the matter. Since last December much of the sting has been removed for us by the agreement giving us access to the French market. Nevertheless, I believe that even if the matter is no longer as pressing for us as it was we must recognise that sooner or later the Community must agree on a market régime for this product if only because it seems certain that the Court of Justice will hold that for sheepmeat, as indeed for other products, there must be free movement throughout the Community.
In this report I am proposing that we support the Commission in seeking free and unrestricted movement of sheepmeat products. I do not think we can do otherwise, for the principle of free movement of goods is fundamental to the Treaty. Consequently, I believe that we have to go along with the Commission on this point however much we might prefer to continue as we are and have access to the high prices that prevail in a protected French market; the Commission's proposals seem to be aimed at achieving prices somewhere between the present French and British levels. While this report supports the Commission on free movement it finds the proposals in general quite unsatisfactory.
The principle of Community preference is fundamental to the common agricultural policy. I suggest it is not being observed in these proposals because there is nothing in them to prevent Community prices from being depressed by cheap imports from third countries. The main difficulty centres on imports into the United Kingdom of cheap mutton and lamb from New Zealand. While regard must be had to GATT obligations the report suggests that the Commission is not tackling the problem adequately. In this report I propose that negotiations be opened with New Zealand with the object of securing either a limitation on imports or a raising of their prices. The report also is critical of the proposals in the matter of intervention. It can be accepted that permanent intervention is not required. The report is asking for adequate price support at times when there is a temporary over-supply in areas of the Community. The report, therefore, takes the line that this problem will not be adequately met by aid for private storage which may not be availed of.
Finally, the report objects to the proposal that the initial basic price be based on the 1977 prices throughout the Community because it would mean that low prices in Ireland and the United Kingdom would be reflected in the basic price. I am suggesting that we support the Irish Farmers' Association in seeking to have the basic price fixed initially on the basis of Continental prices. That is roughly a synopsis of what is contained in the report.
I recommend the report to the Joint Committee.
