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Seanad Éireann debate -
Thursday, 13 Dec 1984

Vol. 106 No. 8

Developments in the European Communities: Motion (Resumed).

Debate resumed on the following motion:
That Seanad Éireann takes note of developments in the European Communities since January 1984.
—(Senator Ferris)

I will speak mainly to item No. 6, even though it has been agreed to debate motions Nos. 6, 7 and 8 together. It is somewhat difficult to speak in the absence of the customary six monthly report on the developments within the EC, so I would like to range casually over a whole series of items, many of them well publicised but some which have scarcely gained any recognition whatever in the public media.

One of the immediate results of the tragic famine in Ethiopia has been to focus the attention of everybody on EC food policy. I would like to avail of this opportunity to congratulate our Minister of State at the Department of Foreign Affairs, Deputy Jim O'Keeffe, on the exemplary manner in which he handled his role as co-ordinator of EC aid for the famine-stricken victims. The need for a fully integrated food policy has become very obvious.

Recently we have had the long and tortuous but fruitful negotiations with regard to the super-levy problem in order to handle surplus dairy products within the Community. It is quite obvious, however, that with surpluses in beef and cereals we are also talking about levies in these areas. Indeed, we can justifiably predict that they are literally just around the corner.

One may argue from the standpoint that it is far better to have to contend with this surplus situation than a shortfall. One must consider that the cost of storing the butter mountain of one million tonnes amounts to £720,000 per day, just for storage alone, coupled with something in the region of £1 million to keep our beef stored in intervention. The whole scale of the problem is put very much into perspective. While we may laud the exercise of giving cheap butter at Christmas time to everybody, I do not think it is seriously addressing the problem. While it may sweeten people's view of the European Community it is certainly nothing but a stop gap solution which in the long term will probably de-stabilise the market by breaking the generally even pattern of consumption.

While there are glaring deficiencies in the EC relief effort we must say in defence of the EC that its relief effort has been going on for a very long time. I would point to last April, for example, when the European Community approved over £57 million for a programme to combat drought and famine in Ethiopia. Again, it devoted further finance for the arid sub-Saharian regions further south in Africa. Yet, this substantial cash funding got very little attention and precious few headlines from our EC correspondents. I would blame the journalistic representatives of the main papers in this country who are our representatives in Brussels for not focussing sufficient attention on the degree of ongoing assistance which has been forthcoming from the Community for famine-striken areas and by way of positive development of their own resources. Generally, the cause of the lack of exposure and the lack of publicity could be put down to the fact that there were more immediate and pressing and more exciting negotiations going on at that particular point in time — last April — when our super-levy negotiations were in full flight.

One of the fundamental problems of underdeveloped countries is that we dump EC surplus food production on world markets and in doing so we undermine their traditional economies and their self-sufficiency programmes. In Europe, for example, we subsidise hothouse producers of fruit and vegetables which would grow quite naturally in the climates of these underdeveloped countries whose industries are destroyed by the big trading blocks, particularly by their trading policies. The EC, for example, has continued to increase its sugar production despite the repeated warnings that it is the staple crop of many of the economies of these underdeveloped countries. For long the Development Committee of the European Parliament has been warning that the EC's food aid programme is destroying the self-sufficiency of the Third World.

However, here we must draw a distinction between the long term strategy of granting aid to develop agriculture in the poorer countries and the immediate need to get urgently-needed relief to the starving millions. A problem that has emerged very clearly from the most recent famine and one that will have to be addressed for future such contingencies is the absolute necessity of mobilising aid far sooner than has happened on this occasion or on previous occasions. Many people die before we are even aware of the famine. Many more die in the stricken areas because we are unable in the initial stages to get little more than a trickle of food to the starving victims. We are talking literally of thousands dying by the hour as a result of such delays. It is a situation where every hour counts. I would make the point that if Berlin could be relieved for a considerable period by airlifting supplies on a constant daily basis by the Western allies then surely it is possible for us to do so in Ethiopia 40 years later. Surely it is within the competency and capability and the resources and potential of the armed forces of Europe who have the knowledge, the manpower, the aircraft and the technology to do so immediately that such an emergency arises no matter what part of the world it arises in in the future.

We are now reaching the crucial stage, it has been acknowledged, in this particular tragedy because the initial response, despite the fact that it was enormously heartening and enormously generous, is very much tapering off, and it is quite obvious that the momentum must be maintained for a period of six to nine months if we are even to contain the problem at its present level. I do not want to be accused of morbidity in my contribution but I will continue briefly in much the same vein by stressing that the recent pesticide tragedy in India has helped to focus attention on the use of pesticides and chemicals in agriculture within the European Economic Community. One welcomes the commitment of the Minister for Agriculture to the introduction of a Pesticide Bill. We have the problem in many EC countries where the disposal of animal manure has become a tremendous problem, just as great a problem, in fact, as the overuse or the abuse of fertilisers. In the Netherlands, for example, the nitrate levels in ground water is now 30 milligrammes per litre and although the World Health Organisation standards are 50 milligrammes per litre it is estimated that, at the present rate of increase, within a decade much of the land of the Netherlands, unless emergency measures are taken, will in fact not be usable for the production of food for human consumption.

Cadmium — which is heavy metal — levels in soil are increasing, again at an enormous rate due in many cases to sewerage, sludge, potassium and fertilisers. At this rate, again, it has been estimated that within a century or so the arable lands of Western Europe would be no longer suitable for the production of crops for human consumption. When one considers that Western Europe contains only about 7 per cent of the world's arable land and that it uses about 25 per cent of the world's annual consumption of pesticides and 17 per cent of the fertilisers used globally, it can be seen quite clearly that there is an urgent need for the development of criteria for the usage of both pesticides and fertilisers. It is a Bill, therefore, which is urgently needed, there is nothing like prevention and indeed at EC level it is quite obvious that there will have to be integrated pest-management control procedures and regulations. Environmental alarm bells were also sounded quite recently in the extensive damage done to the West German forests. The damage in these traditionally very famous forests of Bohemia, Saxony, the Black Forest region, has increased from 8 per cent in 1982 to 34 per cent last year, mainly caused by air pollution. Again, this highlights the need once and for all for pollution-free cars and the development of technology in order to minimise the effect of pollution and emission from such cars and combustion engines.

On the lighter side, I would like to stitch into the record of the House my particular welcome for the additional £90 million of EC regional funds which have been made available for the creation of 5,500 jobs. We note with considerable satisfaction that these will grant-aid the development of three new digital exchanges together with 23 rural subscriber units, and, furthermore, that this money will be needed for the development of our national primary routes and our national secondary routes in order to bring our standards of main route traffic and roads up to comparable EC standards.

From the Government's viewpoint one of the most heartening aspects has been the EC Commission's Economic Report and its endorsement of the Government's economic strategy. In particular the Commission's report underlines, approves, endorses and encourages the Government to maintain this policy in two particular areas, and that is in relation to pay restraint and public sector cuts. It is nice that the people who ultimately are the people funding many of the operations here should be the people that would be in a position to call the tune. While there has been a fair degree of scepticism and a fair degree of criticism and indeed many scathing and derisory comments in relation to the Government's economic policy, the period of the development of our economy up to the emergence of the Building on Reality plan was a very, very fruitful period.

The Government, in fairness, were not in a position to launch forth with any kind of a plan unless it had got basic component items of the economy right. Inflation has been cut to almost a third of what it was two years ago. Our balance of payments has been on the right side for 11 out of the last 14 months. We had managed to decelerate the growth in unemployment and consequently as a result of these initiatives are now in a position to launch forth with an economic plan costed, itemised, with definite objectives and realisable targets within specified deadlines. It is that type of positive achievement and that type of positive planning that has won the endorsement of the EC Commission for budgetary policy and economic strategy.

I conclude as I commenced and that is by congratulating the Taoiseach on his handling on his EC Presidential term. It was a period of difficult and at times of traumatic negotiations, but it was a period which was rounded off in a most exemplary manner, a most fruitful and thoroughly rewarding manner in the historic achievement in relation to agreement on wine and wine-producing states. When one gleans from the various Heads of State their reaction by way of very fulsome praise for the handling of matters by the Taoiseach, one sees very much in perspective the esteem and the respect with which he is held as a European and as a European statesman. It is most refreshing for a very tiny country, both in terms of size and in terms of population, that we should be able to discharge our function at the apex and pinnacle of EC affairs with such satisfaction and win such fulsome praise from quarters from which it is very often not so readily forthcoming. I compliment the various Ministers who as heads of their respective portfolio groupings within the EC have performed their tasks and fulfilled their stewardships, again with considerable confidence and with considerable results.

I should like to speak on motion No. 7 and motion No. 8, both of which are in my name. I quite agree that I have already contributed on motion No. 6 but these three motions were listed together this morning.

You have already contributed.

I have already contributed on motion No. 6. The Leader of the House said this morning that the three were being taken together and since I spoke on motion No. 6 I have submitted motion No. 7 and motion No. 8.

Acting Chairman

They were taken together at that time also.

I do not think so. I would like to differ.

Acting Chairman

I am afraid you have already contributed.

I must protest because since I spoke on motion No. 6 which has been on the Order Paper for five or six weeks, we from the joint committee have submitted motion No. 7 and motion No. 8.

Acting Chairman

They have all been taken together.

To my knowledge they were not taken together the last time I spoke. I bow to the Chairman's ruling but nevertheless I will raise that with the Committee on Procedure and Privileges.

A Chathaoirligh, a Sheanadóirí, tá áthas orm bheith in bhúr láthair. I am glad of the opportunity to address the Seanad on this motion which is of such importance to us all. I do not need to remind the House that we are going through a very difficult period at the moment. I will avail of this opportunity to say a few words and I hope you will not think I am straying too far from the subject of the motion involved: "That Seanad Éireann takes note of developments in the European Communities since January, 1984" when I review the Irish Presidency. There are three weeks to go yet and there are some very important Councils, including one which is taking place in Brussels at the moment, before we conclude the six months of our third Presidency of the European Community since we joined on 1 January 1973.

I will digress here to say a little bit about the Presidency. The more you examine the European Communities in their founding and the rules that were laid down for their governing over the past 25 years, the more you come to admire the founding fathers who laid down these rules. It often struck me before I assumed the Presidency that the period of six months in which the affairs of a large complex is conducted is far too short a period. When you think about it, at the end of six months you come to the conclusion that in fact the period was deliberately chosen to ensure that no one country or no one individual in any country could make claims for a period in office that did not take account of the lead-up to that period and the subsequent following through of whatever negotiations took place afterwards. This was a very wise decision. It also ensured that every country, both big and small, had an equal responsibility at set periods for managing the Community. We assumed during this six months added responsibilities and were in effect the board of management for the entire Community during that period.

Having said that, I must also say that when we assumed office there was a certain number of things in train. The second direct European elections had just taken place. There was a new Parliament in session. A very significant series of summits starting in Stuttgart in June 1983 coming through Athens in December 1983, Brussels in March 1984 and Fontainebleau in June 1984 had all taken place and all had made contributions which I hope we have added to in our Dublin summit in early December this year. They had all made their contributions to this thrust forward that we all recognised and which indeed was reflected in the low poll in the European elections in June last.

That is something that this House, this Parliament and indeed all Parliaments in the Community, should have seen as a warning. They should have seen red lights flashing at the low turn-out of the poll in June of this year.

The Summit at Fontainebleau very quickly saw that because they sensed the disillusionment, the slow-down of the machinery of the Community that was taking place, as a result of the disillusionment amongst the ordinary public in all the member states. They reacted very quickly to that situation when they set up the two ad hoc committees. One of them was set up to look into the actual functioning of the institutions of the Community. That is presided over by a Member of this House, Senator Dooge, and it is working extremely well. It has had a number of meetings and did send, through the European Council in Dublin a fortnight ago, its first interim report and that has since been published. If they have a chance to look at that I think Senators will agree that the businesslike manner in which they have addressed their tasks and have promised to complete their work and present their final report to the next Summit in Brussels in March is an indication of the seriousness and the sense of urgency which was transmitted to them from the Fontainebleau Summit and cannot but redound in a positive way to the benefit of the Community.

Likewise, the other committee, the People's Europe Committee — a novel idea, strange in itself but again the idea was born of the low turnout in the European Elections — is functioning well. There is no doubt that the lack of interest by the voters of all ten member states of the European Community indicated a sense of distance between themselves and the institutions of the Community; a sense of distance between the reality of their own existence and their perception of what was taking place in Brussels. That was something that had to be addressed in the second committee to which also an appointed member on behalf of the Irish Government was Mr. Eamonn O'Toole, the Assistant Secretary in the Department of Foreign Affairs. Its fundamental task is making the European Community more relevant to the ordinary people in Europe. I believe that the work of those two committees when completed will give that kind of incentive, that sense of "these are our institutions" to the people of Europe.

There are many other difficulties facing the Community but these are very important because they relate to the ordinary people and also they relate to the machinery of governing Europe. It is certainly in the interests of the people of Ireland and the Irish Government to see that it runs as smoothly as possible. We said in July, when the Taoiseach first addressed the European Parliament, that we would assess the priorities in contributing to a solution of problems then facing the European Community. We picked out a number of these in particular. First was the problem of enlargement. Secondly, was the conclusion of the third ACP-EEC convention. Third is the solution for the 1984 budgetary problem and fourth the establishment of these two committees which I have already spoken about. I am glad to be able to say that those two committees in fact are now established and they are both working very efficiently.

As regards enlargement, Spain and Portugal applied to join the European Community in 1977 and negotiations have been going on on a stop-go basis since then. The political decision was taken in Brussels in March that negotiations should be completed by 30 September 1984, and so allow accession to take place on 1 January 1986. It became very clear to us in the course of the Presidency that in fact that date of 30 September 1984 was extremely ambitious and that a lot of the necessary work that needed to be done could not possibly be completed in that timescale and that it would be very difficult to complete before the end of our Presidency. The major chapters that needed negotiation between the two applicant states and the Community had hardly been touched on. There were negotiations between the ten member states to try to reach a common position on all matters that must be negotiated between the applicant countries and the Community. This involved the chapters on social affairs, high tariffs, fisheries, agriculture, wine and none of these had been brought to conclusion or near conclusion when we assumed office. So we had to set about trying to get results as far as possible.

We immediately drew up a new calendar, put in a lot of extra Council meetings, foreign affairs Council meetings, to try to get a common position within the Community so that we could present it to Spain and Portugal in November, we hoped. We also had a whole series of negotiating sessions with the Portuguese and the Spaniards during the last six months. I, of course, in July went to both Lisbon and Madrid to have discussions with the Spanish and the Portuguese Governments and to point out to them the difficulties I saw on the road ahead and the necessity, both on their side and indeed on the Community side, to have a fully flexible approach to the negotiations.

I think I can fairly say, at this stage, that we have brought all those chapters up to the brink, and while it will not be possible to push them all past the finishing line, I can say that if we can push one part, they will all flow from it. They are all linked together because it is not possible to put a position on, say, fisheries when certain states are going to have to make sacrifices on whatever is of interest to them.

We are now at the point where we can get internal agreement on wine between the ten countries, on agricultural products, high tariffs, on institutional affairs and on social affairs. I hope that when we meet again on 17 and 18 December in Brussels, next Monday and Tuesday, we will be able to get an agreement on a compromise fisheries proposal for the Presidency to put to the member states. If that is so, it will mean that in effect the Community will have achieved common positions on all these chapters during our Presidency. That is a very significant achievement to have brought about. Bearing in mind what I said earlier about the Presidency being able to claim credit for any progress that had been made, I should add a footnote to what I have said, and pay tribute to the sense of urgency shown and the amount of work that was done by the French Presidency prior to our term of office and, indeed, by the Greek and the German Presidencies before that again. We can, however, fairly claim that we have now brought the negotiations to where the Community will have a common position on all the chapters — not three-quarters or 80 per cent — but on all the chapters. Next Tuesday evening we can start the serious negotiations with the Spanish and the Portuguese Governments. If we reach agreement then, well and good. We have come around a large bend and we are on the last few hundred yards up to the tape at this stage, so I am quite confident the negotiations can be completed.

Senators will recognise from the Community Summit in Dublin last week that there is a further stumbling block before we can actually formally complete those negotiations with the two applicant countries and that is the general reservation by the Greek Government on the form of integrated Mediterranean programmes to be put in place by the Community. These are programmes that were disagreed on amongst the member states. Proposals from the Commission were made that when the Community was enlarged to include Spain and Portugal there would be no obvious and detrimental effects on France, Italy and Greece, but particularly on Greece. They stated that the Community should address itself to that problem and make provisions to ease the burden of enlargement on those three countries. The commencing date for those programmes was 1985. The community recognises its obligations on that but differs from the Greek Government on the measurement in cash terms of those obligations. That is the present state of play in those negotiations and until that problem is resolved this remains to be clarified.

There was some confusion about this last week but all the negotiations are now going ahead and can be completed with Spain and Portugal subject to this general reservation which the Greeks state. The Irish Government fully recognise their obligation to the Community to protect the Greek economy from the potentially damaging effects of the enlarged Community. But until that problem is resolved the actual signing of the completed treaties with Spain and Portugal will not take place. We need agreement in March next because unless it occurs in March of next year then the accession date, which is the firm date I have in my mind and which the Irish Presidency has kept on referring to since 1 July last will not be met. But the date of completion of the negotiations was not a fixed star in the sky; it was movable; it was 1 January 1986. That must be adhered to for the very good reason, if not for the equally good political reason, the very good practical reason, that the new own resources which are so necessary for the development of the Community, for the continuation of policies, for the adoption of new policies to help the convergence of the economies of the Community cannot come into force until 1 January 1986 with enlargement. They are tied to enlargement. If we cannot achieve the accession date of 1 January 1986 for enlargement then there will be no new own resources and we will have to go through another period of draft budgets and uncertainty that affect farmers particularly in the member states. They are the first people who will feel the effects of the decision taken in the European Parliament this morning to massively reject the 1985 budget.

They have a right to do that. Parliament is one arm of the budgetary authority of the European Community. I would have hoped that they would have seen the damage that would ensue from this, even though this is not a point of view they accept. It is my point of view that damage will ensue to their constituents in the member countries for taking this course of action. I recognise their right to do it, though it means that uncertainty will exist through the early months of next year, with the Community not knowing, except on an ad hoc, one-twelfth basis, where its cash is coming from each month. You cannot plan on the basis of those circumstances. The European Parliament has taken the decision this morning. We have to respect their right to do so.

We had other budgetary problems, of course, when we resumed office. That was the 1984 budgetary problem. The difficulty we faced was the resolution of the short-fall between expenditure for 1984 and funds available within the 1 per cent ceiling. In 1984 we needed bridging finance. Fortunately, we were able to do that in September, through the agreement of the member countries to a supplementary budget to be financed by contributions from individual member states between now and the end of this year. That problem was got out of the way. The other two problems which I referred to when I was giving a review of 1983 was the conclusion of the negotiations between the African, Carribean and Pacific Countries and the European Community. This is a convention which the Irish Government had the honour of signing for the Community on the previous two occasions on which it was concluded. It originally started in February 1975 and the negotiations were completed during the Irish Presidency and signed on that occasion in Lomé by the present Taoiseach. These are lengthy, difficult and complex negotiations that have to be undertaken and they have been going on now for just over 12 months.

There are 66 countries under the ACP umbrella and if I spoke earlier about the difficulty of getting a common position between the Ten member states, Senators can imagine the difficulties that my co-chairman of the ACP had in getting a common position between his 66 member states, all of whom are to be found in very much different parts of the world. The African, Carribean and Pacific peoples speak different languages and have extremely differing sets of needs. However, eventually, after a number of extremely late nights, or should I say early mornings — 6 o'clock and 7 o'clock on two occasions — we came to a conclusion in the end of November. I am very pleased with that because again I am proud of having the honour of signing the third Lomé Convention last Saturday in Lomé. I had the honour of signing on behalf of the European Community on that occasion.

The Minister of State in my Department, Deputy Jim O'Keeffe, signed on behalf of the Irish Government. This is an extremely valuable agreement between two groups of nations, the ACP and the EC. There is benefit, political and economic, on both sides. The three Conventions have developed one from the other and they become broader and deeper on each occasion. This one is certainly a big advance. In many ways it is flexible enough to take account of the problems of today rather than just repeating solutions for the problems that were there in 1974 and 1979, in as much as it attempts to tackle the problem of drought and the desertification in the African Continent, particularly in its present convention.

The amount of money that was to be agreed was the final point on which we differed. The fact that we have increased in monetary terms by 60 per cent, Lomé three over Lomé two, is an indication of the importance, despite the very stringent circumstances under which all governments and communities are operating, which the individual member governments attached to this agreement. This shows their willingness to make sacrifices under their own budgets to ensure that those sacrifices are not transferred on a north-south basis to the less developed countries.

The one bonus we had when we came in was the very valuable ground which had been covered in this regard by the French Government, and by the Greek Government before that. In fact, the negotiation with the ACP had commenced at the very end of the German Presidency in 1973 and continued right through the Greek, on to the French and was eventually concluded this week by the Irish Presidency. Again I want to go back to what I said in the beginning about no one Presidency being able to say they started and they completed that. It is just not possible in a single Presidency. I want to pay tribute here to the amount of hard, difficult work that was undertaken by the two previous Presidents and of course by the Commission itself under Commissioner Pisani who has now left the Commission, in bringing about this agreement that was so successfully concluded last month.

The final point I would like to mention is in regard to a problem which erupted during our Presidency. That is not a fair way of putting it, because the world should recognise that long before our Presidency the problem existed. Unfortunately it needed the stopping off by a BBC camera crew in Ethiopia on their way back from India at the end of September to show the effects of drought and famine in that unfortunate part of the world. The problems of drought and famine are not confined just to that part of Africa. They affect all the countries in that part of Africa.

Before that film was shown, the Government had recognised the serious situation because of drought, and that famine conditions were bound to arise in Ethiopia and had instructed the Minister of State, Deputy Jim O'Keeffe, to raise the matter in the Council of Ministers. He raised the matter in September. As a result of the Minister of State raising the matter in the Foreign Affairs Council in September some preliminary work had been done by the Community which took an active interest in the problem. I am pleased to say the culmination of our interest was in the European Council in Dublin last week when the Taoiseach asked for and received the assent of his colleagues and Heads of State for putting together a massive package of aid for Ethiopia and the other countries which will be affected over the next 12 months. Of course the magnificent and generous response of the Irish people over the past two months bears witness to the fact that where the need is seen the need is responded to. That has traditionally been part of the character of the Irish people. I am very proud of the fact that on this occasion we were not found wanting.

We should not lose sight, however, of the fact that the Americans and the Russians have also contributed. Both of these countries have been extremely generous to an immediate need but this does not cure the problem. We need to do far more than supply food when hits a country. We must also provide the means to allow that country to develop so that it can feed itself. That is where the Third Lomé Convention to the ACP and the EC is so valuable. It attempts to tackle that problem in a constructive manner and it is in place until 1990 when it will be signed again. Unfortunately, on this occasion, because of the enlargement of the Community, it is unlikely that there will be another Irish signatory unless something happens to the machinery in the meantime. I am very happy to have been one of the three people to sign on behalf of the Community for the Irish Government. Even though there is still some very important work to be done we can look back with a little pride — and a little tiredness. The six months have been productive for Ireland and for the Community also.

I thank Senators for the attention which they always give to the affairs of the European Community and the detail with which they examine the various documents brought before them, the concern they show and their appreciation of the importance of the Community, not just as a trading bloc for this country but as a political movement. Twelve years ago the Irish people gave a huge vote of confidence in the referendum of May 1972. Their decision on that occasion was justified. I believe it will be seen to be even more justified in the years to come.

Question put and agreed to.
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