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Seanad Éireann debate -
Wednesday, 20 Nov 1985

Vol. 110 No. 1

European Communities (Amendment) Bill, 1985: Second Stage (Resumed).

Question again proposed: "That the Bill be now read a Second Time."

I would like to make a brief contribution to welcome this Bill. It has positive and negative aspects but the positive aspects far outweigh the negative ones. We should concentrate on the positive aspects. Traditionally we have had a long relationship with Spain and Portugal as regards culture, religion, trade and in many other ways. It is only proper that we should welcome the accession of Spain and Portugal on 1 January 1986 to the European Communities. In the other House the Minister was congratulated on his work in helping to bring about these arrangements. It is proper that I, too, should acknowledge the hard work done by the Minister in arriving at this stage.

The Taoiseach, when he spoke in this House on 26 June this year, gave a very good summary of the historical background of the EC. He pointed out that the Treaty of Rome, on which the Community is based, is largely concerned with economic, commercial and related matters. He said much of the impulse towards this unity was based on economic reasons. This is as true today as it was then. He emphasised that from the outset the founding fathers of the Community were motivated by aspirations that went beyond purely economic or social matters. It is only logical that the accession of the Iberian peninsula would be a consequence of this motivation. It is right and proper that this enlargement should come about. Any body must be a living, growing organisation rather than remaining static. In addition to ideological and cultural aspects the physical enlargement of the Community is most important. The Taoiseach also on that occasion spoke about the financial aid we received from the Community. He said that over the period since our accession the accumulated net inflow of non-repayable moneys is £3.8 billion, which, expressed in 1985 money terms, amounts to no less than £6.8 billion. That is a considerable amount of money. There are those who say that we could have benefited more. Like other Members I do not believe in the begging bowl syndrome or the béal bocht. We are getting what we are entitled to. It would be wrong if, because of some inaction on our part, we did not benefit as much as we should. It has been stated by many people who are more knowledgeable in this area than I that we have not benefited as much as we should from the Regional Fund. We have not been able to take advantage of all the finance that is available because, apparently, the State finds it is unable to put up moneys to match the finance available from the EC.

Looking at the positive aspects of the accession, the EC will in the new year have 12 member states. I understand that the population of Spain and Portugal is around 60 million so that the population of the Community as a trading unit will be in the region of 300 million, which gives great scope in many areas. Spain will have 60 seats and Portugal will have 24 seats in the European Parliament. The numbers of members of the Commission will be increased from 14 to 17 to include two Spanish nationals and one Portuguese. Spain's vote within the Council will be weighted at eight and Portugal's at five bringing the total of weighted votes in the council to 76 instead of the present 63. I do not think I should go into much detail in this regard because the Minister has covered all of these areas in his speech. I found the note for information of Senators very helpful. Indeed, one could quote from it and use it for a considerable amount of time, but most of the details have already been referred to.

One of the areas that we are rightly very concerned about is agriculture, because it is very vulnerable area and it is the area which is of primary importance as far as this country is concerned. Also under this heading we must consider horticulture, which is not developed here at this time to the extent that it should. I feel that perhaps with the accession of Spain and Portugal more scope will be given to us in this regard.

The accession period extends for seven years in general. I believe in the agricultural sector it extends over ten years. There will be a monitoring system for products. As Members have stated previously the CAP should not be interfered with because I think it came under considerable pressure. It has been of enormous benefit to this country and it is in our interest to make sure that there is no interference or watering down in this area. As far as this country is concerned, farmers and the outlets for farmers are of great importance. When I speak of farmers I also want to mention farm labourers. I have worked as a farm labourer. I feel this is a section that has been, by and large, neglected or not given the credit that it should have been. In the area of farming, as I have said before, there is no such thing as an unskilled labourer. Every aspect of farming requires great skills. This is an area with which we are primarily concerned and which we hope will not be interfered with by the enlargement of the Community.

Tourism is another area which has not been developed to the extent that it should be. We have a relatively short tourism season from the point of view of climate. Indoor activities and indoor sports are not catered for in the tourism area to the extent that they should be on account of our indifferent weather. To take advantage of the possibilities which will be open to us because of this enlargement grants should be made available on a generous scale to ensure that no opportunity is lost for the provision of these amenities.

Fisheries is another area about which we are greatly concerned and which means quite a lot to this country. We are an island country and one would have thought that, being an island country, we would have developed our fisheries on a greater scale. The integration of Spain and Portugal over the period of accession will be geared to expiry of the present policy in the year 2002 which seems reasonable enough until we consider the details. The Spanish fleet is composed of approximately 17,500 vessels with a capacity of 75,000 tons and our equivalent is only 1,600 vessels with a capacity of 3,600 tons. The Spanish fleet will represent 75 per cent of the entire EC fleet. This is staggering — with the accession of Spain and Portugal the Spanish fleet will amount to 75 per cent of the entire EC fleet. I believe they could deploy 500 vessels to fish in our area and those ships are powered by engines displacing 700 horse power. Our equivalent would be 20 horse power at maximum and normally around 15 or 16. Having regard to the fact that Spanish ships have on very many occasions been responsible for breaking the regulations and fishing within waters that were out of bounds to them, I sincerely hope that with the accession and the implementation of the full arrangements adequate steps will be taken to supervise the vessels and ensure that there will be no interference with our rights inside the agreed limits.

Forestry is another area which we must consider with this accession. I believe Portugal is the only country, and will be the only country, in the EC which will have a surplus for export, so that it is not going to interfere with our plans. We covered this matter of forestry last week in great detail and I do not think there is any necessity to go into it any further, simply to say it is most important for the country and that I welcome the loan of £29 million which was announced last weekend from the EC towards the development of forestry here. It is something we must all welcome. We went, in great detail, into the areas where progress could be made and should have been made in forestry. Even though this may overall be an insignificant amount, nevertheless it does help. Any help in this area, from whatever source it comes, must be welcomed.

I would like to refer to the movement called Move the Mountain which at present is trying to get some of the food surplus in the EC to be used in Third World countires. Perhaps with the accession of Spain and Portugal in the new year this surplus will increase. While I understand and those who are organising this campaign understand the problems about using this surplus in the Third World countries, nevertheless it is something with which we should all be generally in agreement because it is unbelievable and it is unacceptable that in this day and age we have this surplus and people are dying yearly by the million. It seems morally wrong that so much money is being spent on star wars, defence and offence and that sufficient money cannot be used for the advantage of those countries who up until now have been exploited. The situation is that they have been exploited by the wealthy countries. It is time some amends were made. We would all urge that something should be done about utilisation of this surplus of food for the underdeveloped and starving Third World countries.

Unemployment is something that may not be improved with the accession of Spain and Portugal. Unfortunately, since we joined the EEC things have disimproved. In 1973 there were 2.5 million unemployed in the Community. Now this has risen to 14 million or will be 14 million on 1 January 1986 according to the forecasts. There are three million Spaniards unemployed and half a million Portuguese. These will add to the problem. As the time of accession Ireland had 65,000 unemployed. Today that is 240,000, not taking into consideration the considerable number of people who have emigrated. Technology has to some extent been responsible for this state of affairs. The development of technology has lessened the opportunities in the employment area. With the accession of Spain and Portugal more progress might perhaps be made here in the area of technology.

During 1984 Irish contractors from the private, public and the higher education sectors, assisted by the National Board for Science and Technology, secured project approvals to the value of £8 million. There are many people who feel that, having regard to our low base and having regard to the leeway that has to be made up by us, much more could be done in this area. I would urge that greater advantage should be taken of the research and development programmes with the accession of Spain and Portugal and with the enlargement of this Community to 300 million. There are many areas that we could develop but they have already been covered. The accession of Spain and Portugal seems a logical sequence in the development of the EC. As I said, there are positive and negative aspects, but the positive aspects far outweigh the negative ones. As a people who had a continuing relationship with Spain and Portugal in all the areas that I mentioned, I think it is only fair, proper and right that we should concentrate on the positive aspects and welcome the accession of Spain and Portugal to the Community.

I rise to make a brief intervention in this debate. At the beginning of the debate Senator McDonald welcomed the Bill, welcomed the accession of Spain and Portugal on behalf of the Fine Gael group, but in view of my interest in things European I thought it as well that I should speak in case anyone would misinterpret my failure to do so as indicating that I was in any way lukewarm in regard to this development in the history of the Community or had any reservations in regard to the conditions of the accession itself.

I intend my intervention to be brief because I think many of the salient points, all of the points that really need to be considered by this House of the Oireachtas in agreeing to this Bill, have already been touched on in the debate. I would like, as Senator Fitzsimons has done, to thank the Minister for Foreign Affairs for the very informative introductory speech which he made in connection with this Bill. He covered the ground, the negotiations, the long six year history of the negotiations between the Community and Spain and Portugal and he described clearly the situation which will exist following the accession on 1 January next. I would like indeed not only to congratulate the Minister on this but to be somewhat more general. I think I speak for all Senators when I say that I think the Minister for Foreign Affairs and the Minister of State at the Department of Foreign Affairs both show this House a good deal of honour in the thoroughness with which they prepare their material when coming into the House, by the assiduous way in which they attend debates and listen to these debates. The fact that the Minister for Foreign Affairs is not here this afternoon is because he is heavily engaged in another place but also because it was thought appropriate that since fisheries had loomed largely in the debate the replies to the Second Stage debate on behalf of the Government should be given by the Minister responsible for Fisheries.

If we look at what is happening now we are, of course, passing into a new phase of Community action, passing into a new stage of the history of our European Community. It is always dangerous to use metaphors in this sense but I think we can say that with the accession of Spain and Portugal we will be coming to the end of Act II — I do not know whether it is a drama or an opera — but with the accession of two more southern European countries it probably will be more in the nature of an opera than a drama from now on. In what we might call Act I we had a prolonged overture. We had, from the end of the Second World War, a number of moves, a number of attempts to move to European Union in one form or other. In 1948 we had the establishment of the Council of Europe and the establishment of the OEC, later to become the OECD. This was rather in the nature of an overture.

We had in Act I the original Community of the Six. We had very extensive development during that phase, a movement towards a common market and a movement towards the development of common aims and common objectives outside the strict limits of the Treaty itself. Then we ourselves did not appear except in the form of the noises off in this Act I. Then we had Act II when we had the Community moving from a Community of Six to a Community of Nine, then to a Community of Ten, now to become a Community of Twelve. The stage we are reaching now is something that is a culmination of a development of 40 years.

While there may be a tendency on the one hand, to say perhaps this is the limit of expansion; on the other hand, there may be a tendency to look around and ask who is going to be next? This was touched on by Senator McDonald. What will happen as we go into the third Act. And we do not know how many more acts there are to be. I think we have not seen the end of the expansion of the Community but neither do I anticipate that any further expansion will occur for some time. We are talking now about the end of a development that stretches back over 40 years. Who could possibly predict what will be the developments in Europe over the next 40 years, even over the next 20 years? If we attempted to prophecy even for a decade, I think we would be liable to get a number of things wrong. For me, as somebody who believes in a Europe that is not merely a Europe of the Ten or the Twelve, there must be the hope that in 20 years' time the situation of Europe and the world will be so transformed that we will be able to look not merely to the countries that are our colleagues in the Council of Europe or in the OECD but not in the Community, but, I would hope, across the divide that cuts historic Europe in two.

After all, we look back to the beginning of this process. We look back to the discussion at the time of Marshall Aid and the formation of the OEC, in connection with the administration of that aid. For a long time it looked as if Poland and Czechoslovakia might be part of that process until the imperial edict came forth which prevented them from so being. We cannot tell what will be the further development. All we can do is look to the immediate consequences of the change brought about by the Treaty of last June which we are incorporating in our domestic legislation.

There are going to be difficulties following this expansion. There was a considerable degree of difficulty which persisted following the expansion of Europe from six members to nine and some additional difficulty in the expansion from nine to ten. These difficulties will make even more urgent the necessity that the structures and the institutional arrangements of the Community should be reformed without delay because they have proved inadequate for the Europe of the Nine and the Ten; they probably would, at this stage, have been inadequate even if Europe had remained a Europe of the Six. They certainly will be inadequate in a Community of Twelve. However, what we must realise is, while we must take account of these increased difficulties and must learn to cope with them, that the accession of Spain and Portugal increases greatly the potentiality of the European Community, potentiality to benefit all its members through co-operation. We should not be afraid of the challenge that faces us in giving a realisation to that potentiality. Europe will be strengthened fundamentally by the accession of Spain and Portuagal and the greater strength that Europe will have when it becomes a Europe of the Twelve makes it well worthwhile to face the difficulties involved.

There will be particular difficulties for this country. It is only right that these should be discussed during this debate. There will be problems for our fisheries, for agriculture and to a lesser extent problems for our industry. I think it is only proper that the Minister here today should be congratulated on what he managed to achieve during the fishery negotiations. Of course, he did not achieve everything we would have liked him to achieve; he did not achieve everything he would have liked to achieve himself, but negotiations are negotiations. In getting the essential recognition for the Irish box, I think he achieved something which many of us would hardly have hoped for at certain stages in these negotiations. No sense of disappointment that more was not obtained should be allowed to cloud this very substantial achievement that was made. The Minister, in replying to the debate, will be able to answer in detail the particular comments that were raised. I only want in my contribution to congratulate him on a job well done.

There will be difficulties in regard to agriculture because the balance of agriculture within the Community will be substantially changed as a result of the accession of Spain and Portugal. Following expansion Mediterranean agriculture will loom very much larger in the Common Agriculture Policy and we will find that it will not be only dairy products and meat that will be at the heart of the annual price review but olive oil and fruit will be in there to an extent they never were before. The concentration of Mediterranean agriculture now in the Community will, in regard to the products of northern European agriculture, create a much more difficult task for our negotiators. This task will be rendered even more difficult because most of the countries of the Community that will be concerned with these northern products do not have the same structure in agriculture that we have. A number of them will be looking at these products from the point of view of agri-business, from the point of view of a type of factory farming unknown to us in Ireland to any extent and it will be difficult to defend the very legitimate interests of family farming in the northern European agricultural products context.

I am heartened to a great extent by the degree to which our agricultural organisations have approached the problem of the changing nature of the Common Agricultural Policy. We have been well served by our national farming organisations by the extent to which they have kept in touch to a remarkable degree, not merely with day to day developments in regard to agriculture in Europe but in regard to likely developments to come. They have anticipated the trend; they have been ready for the changes; and it is only fair to say that in many respects they have shown a degree of forward-planning in this regard which has not been echoed to the same extent by the national organisations on the industrial side, with a few exceptions.

There will be difficulties for Europe in the new, enlarged Community. There will be difficulties for Ireland in the new, enlarged Community; but it will be a Community. As has emerged from this debate, most people are worried about the fisheries problem. They are worried that the difficulties we have had with sections of the Spanish fishing fleet will be intensified after enlargement of the Community. But these will be problems that can be brought up within a Community context. As I have said many times in this House, the importance for a small open economy like ourselves of the existence of the European Community is that we who would be powerless in the jungle of international competition are protected under the rules of the Community because there are rules and because there is a referee. While there may be difficulties in regard to the depredations of certain sections of the Spanish fleet, I believe the Minister will find these easier to handle within the Community than hitherto when Spain was not a member of the Community.

Finally, in all the negotiations in regard to the accession of Spain and Portugal there has been a remarkable degree of understanding on behalf of our negotiators regarding the problems of Spain and Portugal. On the other hand, there has been quite a remarkable degree of understanding on the part of the reprepresentatives of Spain and Portugal on the particular problems of Ireland. This may well be a reflection of the fact that for many, many years there has been a resident Irish Ambassador both in Madrid and Lisbon and that there have been resident Spanish and Portuguese Ambassadors here in Dublin. The interests of all three countries have been well served by, not only this level of diplomatic representation, but by those who have served. We have been particularly lucky that the Ambassadors of Spain and Portugal who have served here in recent years have been men of ability and understanding who did a great deal to promote understanding between our countries, an understanding that will serve us well when we become colleagues after 1 January.

I give my full support to this Bill. I welcome heartily the entry of Spain and Portugal into our Community and I am confident, not that there will be no problems between us as Community members, but that these problems will be overcome.

We all would hope that the accession of Spain and Portugal will make an important impact on the Community generally. We all know Spain and Portugal are famous for their very warm climate, a place in the sun perhaps for a holiday. Spain is also famous for its bull fighting. In the sporting area we are aware of Real Madrid and Benfica and last year we can recall our own John Treacy being beaten in the marathon by the famous Portuguese runner, Carlos Lopez. These are things we readily know about Spain and Portugal but we must now look at them in a very different context. We must have a more aggressive attitude towards them if you like, because in many ways they will be our competitors and, therefore, we must look on them with a different attitude.

Spain and Portugal are becoming members of the Community at a very critical time. It is a time of very high unemployment in the Community; it is a time of world recession, and it is true to say that non-EC countries such as Norway, Sweden, Finland, Austria and Switzerland have come through the recent world recession in a much healtheir state than the countries who are members of the EC. A comparison on this aspect of the debate is well worth considering at this point.

I had the pleasure recently of being on a private visit to Switzerland to attend the Ireland versus Switzerland game in the World Cup, and naturally I was looking at the scene in Switzerland with great interest. I accept that in many respects Switzerland and Ireland are different but many people to whom I spoke in hotels, restaurants, pubs and in various businesses certainly led me to believe that Switzerland will not be one of the countries to become members of a further enlarged EC. What I saw was a happy people, a leisurely people, a wealthy people whose level of unemployment is less that 1 per cent. Inflation is at a very low rate. The good jobs were there for the Swiss and the less attractive jobs were there for perhaps the Yugoslavs and people from other countries. So when we talk about an enlarged Community, if ever that happens, I believe Switzerland will be very slow to participate in it.

When we talk about this scene many people will ask: "Would we be better off out of the EC?" I am sure this has been asked of everybody in this Chamber from time to time. But I think whatever disadvantages there are in being in the EC we would be worse off if we were on our own. So we must ask at this point where the Community is going and where an enlarged Community is going? What have been the failures and can we learn from these failures? Is this the time for a new Treaty? How has the EC progressed along the road to achieving the fundamental aims of the Community? Is it time for a reappraisal of the importance of the EC?

When we talk of the EC, I think in the main we talk about three particular areas. One is the Social Fund, and we know that we are doing reasonably well from that fund. That would be my own opinion because I see that many young people are getting an education from the money available from the European Social Fund; there are many retraining and training programmes. Perhaps we could do better but nonetheless it is something about which I am not too unhappy. Obviously the most important area for all of us is the Common Agricultural Policy and the Fisheries Policy. We know that in the years from the beginning of the EC the farming community had very good days. The Common Agricultural Policy served this country well in the early days. Now, it is true to say that this situation is in some way under threat. We are told that farmers' income will be reduced over the next five years by up to 20 per cent. I think that we must protect, in so far as we can, the interests generally of the entire agricultural community.

For the Irish farmer a more serious threat is lurking in the suggestion or proposal to dismantle the existing price support systems. This is a threat to the future of Irish agriculture at a time when the economic recession and widespread unemployment are making it necessary to retain as many people as possible in agricultural employment. In my opinion we should certainly endeavour to resist more effectively and with greater effort the implementation of policies which would be a major setback to our economy.

As we know Spain and Portugal are agricultural countries. Their projects will not be, as it were, in direct competition with the Irish farmer, theirs being concerned with citrus fruits and the wine industry and ours being dairy produce and beef production. At least we should say that we have Spain and Portugal as potential customers and that, hopefully, they will take our produce. We should welcome them and encourage them and do all we can to request them to deal with us for our farming produce. Having said that, I should sound a note of caution perhaps because it is very much a fact of life that in a situation like this the stronger nations tend to do better than the smaller countries for obvious reasons.

As far as our fishing industry is concerned — and I confess I would not be the best judge in the world of that and I am glad that the Minister for Fisheries is present for this aspect of the debate — from what I know, it is something that we will have to watch and show our concern about. We will have to become very carefull about this and at times be the watchdog for our fishermen. We know that one of the main conditions of this accession is that for the first ten years from 1986 to 1996 Spanish vessels will not be allowed within a 50 mile zone of the Irish coast. This might sound sufficient on paper but we know that a regular feature of life is a number of Spanish vessels being arrested around our coasts. Over 100 Spanish vessels were brought to Irish ports for breach of a previous agreement and in the knowledge that we have some 1,500 vessels and in the knowledge that the Spanish have 17,000 vessels, obviously it is an area in which we must show our concern and our extreme caution and be very careful that our fishermen are not losing out.

I mentioned the Regional Fund. I happened to be at a meeting yesterday in Roscommon of the General Council of County Councils, the regional grouping, and much concern was expressed regarding the Regional Fund and how the roads of Ireland and so on were being neglected, particularly in the west of Ireland. This particular region includes Clare, Roscommon, Galway, Mayo, Sligo, Longford, Westmeath. Many of the Members expressed their concern. They felt that we should be tackling the Regional Fund in a much more dynamic way to ensure more finance for that particular region. The very fact that Spain and Portugal are now coming into the EC means that the population of the weakest regions will practically be doubled. We are now bringing into the Community a vast area with a per capita income which is the lowest of the poorest regions of the existing Community. This, obviously, will put increased demands on the regional policy, which will be some way detrimental to the Irish case. It will, effectively, reduce our share of the Regional Fund. Obviously, we have to guard against this.

With the accession of Spain and Portugal, the whole question of regional policy brings new problems. As we know, up to now the arrangement was for the Government to send a list of particular projects to Brussels. In time, money was paid to the national Exchequer. It has been suggested many times that Governments over the years, in some way or other, have regarded the European Regional Fund as a source of revenue rather than for development of the particular region. An enlarged Common Market, as we know now, with an extra 50 million people, will certainly put extra demands on this country. Regrettably, from our point of view, the larger powers tend to do better in this situation. I have no doubt that Germany, France, and Britain will be endeavouring to secure the greatest benefits for themselves. They are large and have a greater capacity to exploit new markets. In my opinion they will almost certainly exploit the two new markets to the very best advantage for their own economies.

However, these are the problems that have been expressed right across the board. The previous speaker, Senator Dooge, referred to them. I agree that there will be difficulties for Europe and for Ireland. We have a duty to support our Government in order to ensure in an enlarged Community that we, in this country, will receive our fair share of whatever gains are to be made.

I will be brief on this Bill. It would be remiss of me not to welcome the Bill which provides for the accession of Spain and Portugal. This Bill actually amends the European Communities Act of 1972, and will bring into effect the accession of our two neighbours. We have been in very close contact with Spain and Portugal during the period of discussions and have much in common with these two countries. They are both now infant democracies. I am proud of the part that the socialist groups played in bringing about a democratic process in both countries. This year, coincidentally, is the tenth anniversary of the death of Franco. If he were still in control of Spain, there is no doubt in my mind that he would not be looking for accession to the European Community. He would want to be dictating his own philosophy on that great peninsula as he did for four decades before that. It is vital that two countries which have achieved the status that they now have internationally should apply to be active members of the Community.

I know that Ireland, small as she may be, is influential in many areas. We were part of the procedure that led up to the actual Treaty which gave effect to the accession of Spain and Portugal. In the debate at the time of our accession Ireland fought for the principle of membership. Such membership ensured new markets and guaranteed prices for our products, which is enshrined in the CAP. We can only welcome the fact that other nations who aspire to the same ideals are following the same road. Having brought our plans to fruition we now have to look at our position as existing members of the Community and see what the consequences will be, particularly, when we realise that we are net beneficiaries from the Community and particularly from the CAP. We anticipate that Spain and Portugal will also want to benefit from CAP, even though in respect of different products.

Most of our benefits can be confined to areas like the CAP and the benefits from the Social and Regional Funds. These benefits were achieved at a major price, as we all know, because of the consequences on our existing industries. We entered a vastly advanced technological Community.

The benefits of joining that we have enjoyed in some areas were certainly offset in other areas. I am wondering if, in fact, anybody has whispered in the ears of Spain and Portugal that all is not going to be rosy when they join the Community, as we have found to our cost. Things continually change. They sometimes change for the better. We have had to fight every inch of the way as a member of the Community to try to ensure that, as a nation on the periphery — as Spain and Portugal will also be because of their peninsular position — and as an island, we would benefit from our accession to a central power bloc. The consequences for Spain and Portugal are likely to be significant.

I am wondering if there is any necessity to whisper in their ears that all will not be rosy? Many of us would have liked to increase the Community because of the solidarity that a common policy in marketing can bring and the opening up of a common policy which creates additional markets. We have to look at the positive side of the accession of such a large area as the Iberian peninsula. A large, increased population will provide a challenge to our marketing, and particularly as we are major exporters of agricultural products. We now have on our doorstep a whole new market. It is up to us to ensure that we can compete in that market.

Likewise, it is open to Spain and Portugal to take advantage of the Irish market. They certainly have taken advantage of the Irish tourist market. Spain has been one of the most popular resorts for many Irish people because of the value of holidays in Spain and the fact that one was almost guaranteed sunshine there. There is no doubt now that once they join the Community the day of the cheap holiday in Spain will be over. They will immediately amend their prices. They will find that by being members of the Community everything changes. Their currency is likely to change, not in name but certainly in value. Their prices will also change. This is a challenge that every open democracy has to face. Every democracy that is part of a common community policy must pursue the markets.

I have no doubt but that the Irish agricultural scene is ready for this. Most Senators referred to the area of fisheries. We are fortunate in that we have the Minister, Deputy O'Toole, present for the debate. It is appropriate that we should commend him for the tremendous efforts he made to ensure that our fisheries are protected. We have had problems, particularly with Spain, in the area of fisheries. Let us hope that when they join the Community they will keep the rules of the Community. We in Ireland have been too good in obeying the rules of the Community. We should ensure that other member states also obey the rules. Once Spain becomes a full and active member of the Community she is more likely to abide by the rules, because the penalties will be much greater. For that reason I hope that because of the deal negotiated by the Minister for Fisheries, combined with the regulations of the Community, which will be enforced by a very powerful power bloc, the Spaniards will be forced to obey the rules and regulations. Our fishermen would particularly welcome that. It has been a source of concern to them over a long period. The likelihood of the Spanish fishermen getting inside our waters is much greater because of the size of their fleet.

We welcomed recently the fact that the Community increased the budget to take account of the accession of Spain and Portugal. We hope that this additional allocation will take into account the fact that there is obviously going to be much greater demand in a whole lot of areas because of the structure, nature and soil and climatic conditions of Spain and Portugal. It is obvious that they will make greater demands on the Regional and Social Funds. We must be conscious of the fact that they will. If there is not a commitment to increase those funds, then it is obvious to everybody that Ireland's share would be much less than it is now. All of us would contend that we have never benefitted from the Regional and Social funds. Recently, there have been signs, particularly in the area of infrastructure, road developments and the western drainage package, that we have just begun to benefit from deals negotiated over a number of years. It is obvious, with the changing structure of CAP, that there will be greater demands made by Ireland on the Regional and Social Funds. It is imperative to ensure, as existing members, that additional allocations are made available to take account of the two extra countries who will be looking for allocations out of this section of the Community funds.

One other positive note on the accession of Spain and Portugal to the Community that cannot be quantified easily in terms of money — and all of us are obsessed with the monetary impact of additional countries in the Community —is in the area of what they can offer the Community by way of their tremendous culture. Spain and Portugal will make a major contribution to the European Community in the area of culture. They have tremendous heritage of language and music. Indeed since their foundation they have always been inspired with a spirit of adventure which goes back to the great voyages of discovery. Their influence is visible throughout the world, resulting from their forebearers landing in various countries and influencing them. Their language is spoken throughout a great part of the world because the people of Spain and Portugal were eager to explore the whole world. Their culture will make a tremendous impact on all member states of the Community. Ireland's membership has had a similar effect. Our culture, our heritage, our language and our music have made a major impact on the Community. This has been proven by the impact Comhaltas Ceoltóirí Éireann, with song and dance, have made on continentals who never had access to that kind of culture in the past. I am sure Spain and Portugal will do likewise. I hope sincerely that the Spaniards and the Portuguese will meet the challenge that comes from membership of the Community. Because they are new democracies they will be anxious to protect democracy. By joining the Community they can ensure that that democracy is protected.

Senator Dooge also said the people living within the Eastern bloc, had they been given the opportunity earlier to become part of the European Community, would now be living in a freer society than they are at present. They would have benefitted much more from their membership by way of not alone political union, which many Europeans want, but from the market relationship with other "customers", so to speak. Our agricultural industry has met this challenge as well as, if not better than, many others. We have done so from a very poor start. Many of the farmers in other agricultural communities were already factory farmers, using all sorts of techniques that were alien to us. It has taken us some time to catch up. Unfortunately, when we were in the process of doing that we were suddenly faced with the problems associated with quotas. That had a dampening effect on our agricultural producers. Increasing Community markets with the accession of Spain and Portugal will assist our agriculture, provided we are prepared to meet the challenge.

I welcome this legislation to allow Spain and Portugal to join the Community.

I, too, welcome the Bill. I will be brief. Ireland has many historic links with Spain and Portugal. It is only right and proper that we would be allies of those two countries and support their accession to the Community. In the long term the enlargement of the Community will be for the betterment of all of us. We will have a large market for our produce. There are many other advantages which we will be able to exploit over the next few years.

I know that Spain and Portugal are probably going into the EEC now with the expectations which we had 12 years ago when we joined. Looking back on those 12 years or thereabouts, we can all agree that the country, in general, has benefitted by our entry into the EEC, particularly the farming sector. We all know that the Common Agricultural Policy is the cornerstone of the European Community. It is the policy from which the economy of this country benefits most. Large sums of money have been paid to our farmers, the agricultural sector and to food processors over those years. In fact, last year, I believe, under the various FEOGA schemes £650 million was paid out to us. That must be a great advantage to the agricultural sector.

We know that everything is not as we would like it. We know, in spite of all the funds available to our farmers and to the agricultural sector, that farmers' incomes are still falling. It is predicted that they will fall more over the next five years. Nevertheless, we have the opportunities. We have a market of millions of people that we did not have before we joined the EEC. Then we were dependent solely on the British market for our agricultural exports. Now we are sending cattle and beef to the far ends of Europe and to North Africa. That is a development which we should all welcome. That has been brought about mainly as a result of our entry into the EEC. I know that there are still many opportunities that can be exploited by our farmers, our meat processors and our exporters in general. I know that they will try to capture as much of that market as they possibly can. By so doing they are adding to the national funds and putting more money into our farmers' pockets.

There are disadvantages, of course. We have all seen the disadvantages over the last few years with the advent of the super-levy when many of our farmers were geared for more milk production. Particularly in the west of Ireland our small farmers, who have been behind in that area over the years because they were not traditionally dairy farmers, were just getting themselves organised on a good sound footing when this super-levy came along. It is tragic, because we realise that the production of milk is the best source of income for the small farmer. Unfortunately, it is not possible now to expand because of the super-levy. As well as that, we have the milk cessation scheme which was introduced during the year and which, again, is the great threat to our dairy industry, especially if our quotas are sold to the EC. It is a loss to the country in general. I would be very worried about that scheme. I hope that our Government will come up with a scheme to match it so that those quotas will not be lost to our country. The disadvantaged areas, too, are a problem which——

An Leas-Chathaoirleach

I do not like interrupting the Senator. He can make passing references, but I do not think he is dealing here with the Bill.

I am trying to generalise as much as I can. I am trying to highlight the advantages and disadvantages for our country. I have already stated I am sure that Spain and Portugal will meet those advantages and disadvantages, too, over the next few years. I believe that by working together the entry of those two countries can be to our advantage. Their entry can be to the advantage of this country because it is giving us an additional market for our produce. Spain and Portugal are known for their production of fruit and wine. Even though there is a surplus of wine on the market at present, it is not going to affect our agricultural output here. We do not produce wine as such, and we do not grow oranges or grapes. In that way their entry is not going to affect us very much. The countries that their entry will affect, such as Italy and Germany, have already welcomed Spain and Portugal into the community and I think they are to be congratulated on that. The accession of Spain and Portugal will, naturally enough, upset the people who are producing wine in those countries, as well as grapes and fruit of all kinds. Nevertheless, they have welcomed those two countries.

One of the big disappointments over the years in the Community is the way the unemployment figures have risen. When we went into the EEC our unemployment figures amounted to about 65,000. Today they stand at about 250,000. In the Community at large the figure at present is something in the region of 14 million. That is a big disappointment, because our young people looked forward to the European Community and to the enlargement of the Community as an opportunity for them to exploit the situation and create new opportunities. Unfortunately, that has not happened. It is one of the big tragedies of our time that more has not been done to tackle that unemployment situation. A figure of 14 million in the Community at present is very frightening. Of course, we also have to consider the fact that Spain at present has about two million people unemployed and Portugal has about 500,000. Again, if the unemployment problem has not been solved for the existing members of the Community, I am afraid it is very discouraging for Spain and Portugal. I would hope that the brains of the Community would get together and try to reduce that figure of 14 million and to create some kind of hope in the hearts of our young people. They must assume then that the governments of those countries are concerned about them and that they are prepared to get down and work to try to create the jobs that are so necessary for young people at present.

We have our own problems here at home, as I have said, but they are only very small in comparison with the problems in Europe. The same can be said about the "mountains" we hear about every day — the butter mountains, the milk lakes, the beef mountains and so on. When one sees the terrible starving and suffering that exist at present in certain parts of the world, it is beyond me why some schemes could not be devised to try to get rid of the mountains of milk, butter, beef and cereals that we have stored up in ships and in storage rooms all over Europe. I can never understand why something cannot be done to eliminate that and to ship more of that feed and grain to the starving millions.

The bureaucrats in Europe could take a little advice from Bob Geldof who visited Brussels recently and asked them to get rid of some of the red tape that is so prevalent there at present. At a time like this they could get rid of that red tape and could ship some of those millions of tons of grain, beef and butter and whatever else they have in cold storage all over Europe.

As I said at the outset, I hope that the entry of Spain and Portugal will be to the advantage of all the Community and that we can work as a group in harmony with one another for the betterment of Europe in general.

Is fada an lá ó tháinig an Spáinn chun cabhrú linn sa tír seo agus tá tagairt déanta cheana do Cholumbus nuair a chuaigh sé trasna an Aigéin Atlantach cé nach raibh a fhios go raibh se ag dul go dtí Meiriceá. Shrois sé an tír sin agus anois tá a lán de shíol Gael ansin agus nach iontach an rud é gur féidir leo £500 milliún a thabhairt dúinn chun cabhrú sa Tuaisceart. Muna raibh an Spáinn toilteanach teacht i gcabhair ar Cholumbus is dócha nach mbeadh an seans sin ann. Freisin, thíos i gCionn tSáile i dtús na seachtú aoise déag bhí siad toilteanach dul isteach sa troid ar ár son agus cé nár éirigh leo an bua a fháil ansin, bhí siad ann agus is maith an rud é go bhfuil seans againne teacht i gcabhair orthu. Ó thaobh na Portaingéile de is dócha nuair a bhí mise óg bhí buidéal port le fáil i ngach teach i gContae an Chláir pé scéal é ach táimíd níos "sophisticated" anois. Tá gin agus vodka le fáil i ngach teach. Ní raibh a fhios ag na daoine go raibh an Phortaingéil ag teacht i gcabhair orainn chun fíon a thabhairt dúinn.

When I mention wine, I suppose I think of the problem that wine created for the entry of Spain and Portugal. It did not upset many of the farmers in Carlow I know and it did not upset many people in Ireland. It was a major problem for the actual accession of Spain and Portugal. I am glad for their sake it is fixed. After all with the wine scandal that is going on in Europe anything concerned with wine is nearly a worry at this stage and there is a lot to be said for drinking orange.

The whole question of the unity of Europe is what concerns the EC. I think it is a very natural process that Spain and Portugal should become part of the defensive bloc of Europe, the political unit of Europe, because it has been sticking its neck out in Europe as a peninsula since the world was formed; sticking your neck out is always a dangerous game and it will be nice to have the body of Europe supporting it as it will on January 1986. It is right that the whole of Europe should become a unit and it makes political sense to have these two countries joining us.

We probably have our own worries in Ireland as has been mentioned by several speakers. There are the questions of agriculture and fishing. With the Minister responsible for fishing here I should be very careful in what I say, coming from an inland country that is not directly involved but because of marriage I am very much involved in the fishing industry and I know the fears our fishermen have. I too believe that perhaps by having the Spaniards in Europe we may be able to do something about them because they seem to be running slightly amok on the fishing grounds around our country. While they have been held at bay, from 1986 until 1996 when a certain number of vessels will be allowed into the Irish box I have certain worries, because of the practices they have set up for themselves, that in actual fact it might not be so easy to keep them under control. However, the EC rules are there and our Minister is there to rap somebody on the knuckles in an official way if they do not do what they should do. Our fishing industry is a very important one and while those of us who are inland may feel it only concerns the coast it is a natural asset we have that we must protect and while we cannot be greedy we must make sure that there is no abuse of our fishing grounds and that our own fishermen get every opportunity of dealing with the problems and benefiting from that asset.

I know the arrival of Spain and Portugal may not cause a major problem as regards the production of goods and we have access to them for dairy products, meat and veal and so on, but the way we are going in Europe at the moment I am not sure how our farmers will finish up because we have got to the quota stage in everything now. We are always asking farmers to produce more. They are being caught in that situation and indeed the modern style of Europe whereby they are anxious to buy up the milk quotas to encourage farmers to get out is something that worries me very much. It should be opposed. If our young farmers who will be supplying Europe and competing with Spain and Portugal to a certain extent — our young farmers who are trained so well in farming methods and are trying to get involved in what we used to teach in school, the scientific methods of Holland, Belgium and Denmark — have no markets and no facility for using their skills, we are not doing them a great service. There should either be a tax incentive or disincentive for the selling of these milk quotas and while people who sell do not like to have any obstacle in their way those who sell to younger farmers should be given a tax concession rather than those who sell back to the EC because we must keep market quotas available because a good young farmer coming up is the kind of person we want. If an older farmer who wants to get out of dairy farming sells a quota to the EC it is a market closed. We have another problem for these young farmers as well where we are linking the milk quotas to the land. The young farmers cannot afford to buy land in order to get the quota. It is something that we should look in to because we have to give scope to our young farmers and if we do not we are doing them a disservice. I hope we will consider this at a future date.

The fact that we have gained markets in Spain and Portugal may not be a tremendous advantage to us because in the very warm weather out in Spain and Portugal they will not be eating huge dinners and lunches of beef. At least in Ireland we lose our appetite when we get an odd fine summer. The fact that tariffs are being reduced by over 50 per cent in two years in both countries will open the place to some of our goods and will obviously provide a market for us.

I am delighted that our Government played such a leading role in speeding up the process of getting Spain and Portugal into the EC. They started back in 1978 and early 1979 and under our Presidency a lot of the problems were sorted out. I would like to thank our Ministers for working so hard and creating such a good image for Ireland. I know they had to look after the interest of Ireland as well but they have done so and I hope, now that we have got a natural unit of geographical land put together to form a proper barrier, that Spain and Portugal will benefit from their link-up with Europe and that we also will gain from the extra markets that they leave open to us. I welcome the Bill and hope that the 1 January accession date will be met.

I welcome very much the accession of Spain and Portugal as members of the European Economic Community. If we were to be totally insular and narrow-minded, from an economic and other points of view, we might not as a country have taken the stance we took and the position we adopted. One has to be very objective in this sort of matter. No doubt Spain and Portugal, as members of the EC, will automatically present certain difficulties and certain problems for us as a country, as it does present and will present for other countries.

The products that we are keenest at producing and most competitive in the production of — milk, cereals and beef — are products in regard to which the Portugese and the Spanish are not at the top of the league. It is countries like France and Italy, which are producing Mediterranean products, that have most to fear economically from the inclusion of Spain and Portugal as part of the Twelve. There will be certain drawbacks here and there, but we have added to our market an additional 48 million people. At present Spain is a very significant importer of our produce, roughly £94 million being the latest figure for Spanish imports from Ireland. The Portuguese import figure would be of little consequence.

I would make the point that we and our marketing people should look in depth at the requirements of Spain and Portugal in an enlarged Community that we could supply. In this area we have a long distance to go. We have always tended to produce a product and then go out and try to sell that product. We have failed too often to investigate the market possibilities in the first instance and then go out and produce a product fulfilling the needs of the market place. We should aim at having a definite policy of producing for the requirements of the market place.

We know that the coffers of the EC are strained with the VAT level of 1 per cent. We are also aware, in accordance with the agreement, that the upper level will be increased 1.4 per cent from 1 January 1986 and provision made for tentatively increasing that to 1.6 per cent in 1988. That level of VAT may or may not be sufficient for us to do within the Community the sort of thing that we ought to do. Personally, I figure that it may well fall short of the requirement of the EC from the point of view of supplying funds in adequate amounts for the Regional and Social Funds as well as for the very important Common Agricultural Policy. It has been stated already in this discussion on the accession of Spain and Portugal that we are at a crossroads vis-a-vis our Common Agricultural Policy. One could not but agree very fully with that. The inclusion of Spain and Portugal will do nothing to solve that problem. It will, if anything, aggravate it to a certain degree. We, as a country must insist on and continue to get concessions that are appropriate to a small island on the periphery of the mainland of Europe. Taking into account our distance from the market place, in no way can we be compared to countries like France, Germany, the United Kingdom, Denmark, Holland —and many of these countries had many years to develop their economies. For that reason we must, without apology to anybody, make certain that we get special concessions in the various areas in which we require them, be it in the agricultural sector in the context of the Common Agricultural Policy or in the area of the Regional and Social Funds and their distribution and allocation.

In the context of the super-levy on milk we succeeded in establishing without any question a strong precedent where in 1984 our Minister for Agriculture and other members of the Government headed by the Taoiseach got a fine exemption or derrogation for our Irish dairying industry, where we got a base line of 1981 as against the other countries base line of 1983. On top of that we were given the green light to move forward to the extent of 4.6 per cent. This in total would give us, in the context of the super-levy, an increase of 20 per cent approximately. When one adds the difference between the 1981 production level and the 1983 production level, which was our base year as against the base years for the other countries, it gives us an advantage of 20 per cent as against a cutting back situation for the other members of the EC. That was important for the dairying industry, and it continues to be important. I mention it this afternoon in the context of our insisting in the future on getting special concessions as we will require them.

With the present economic situation, we are not in a position to compete on an even basis with the economies of France, Germany and these other countries to which I made reference already.

An Leas-Chathaoirleach

I do not like to interrupt the Senator but as I have said to my colleague on the other side, I wish he would try to relate his remarks to the accession of Spain and Portugal.

I make the point that Spain and Portugal, not unlike our own country, are disadvantaged countries. They will be given certain concessions in the years ahead. What I am saying is that our country must get concessions appropriate to its needs. It would be very inappropriate if we were to discuss the accession of Spain and Portugal without taking cognisance of the position within our own country. For that reason I feel it very relevant to put a strong emphasis on the situation within our own shores and to make sure that the Government and Governments of the future will keep to the fore the position of our own country.

With regard to Spain and Portugal, we see a situation where their dependence on agriculture is quite considerable. About 27 per cent of the population of Portugal is engaged in agriculture. The equivalent figure for Spain is something like 18 per cent. Obviously, therefore, the dependence of these countries on agriculture is far higher than any country at present within the Community with the exception, perhaps, of Greece, the most recent entrant. Quite frankly, while there are problems, to which I alluded in regard to the entry of Spain and Portugal into the Community, I feel that if we view the matter in a positive fashion we can gain a lot of advantage from their membership and as members of the European Community they can be very important to us.

We must remember that membership of the EC, while it is by its very name an economic community, has other dimensions as well. There are political dimensions to it and these are of great consequence. For that reason we welcome the entry of Spain and Portugal into the European Community. One would like to think that as time progresses, further enlargements may occur which would consolidate still further this political dimension. One has in mind, in particular, the position vis-a-vis Turkey, whose membership would bring great advantage to the European Community.

There will be a transition period for Spain and Portugal. In this seven-year period, when trade barriers are being dismantled, we can, as I indicated earlier, gain from that situation. One important thing the accession of Spain and Portugal will do is to reduce significantly the Community's negative trade balance in agriculture. It will be reduced by approximately one quarter and that is a very significant development.

This country has many similarities with Spain and Portugal. It is in that context that we should refer to the situation in Ireland and what we like to see happen in the Community. As Senator Hussey pointed out a few moments ago, unemployment in the EC stands at 14 million people or thereabouts and in our own country exceeds 200,000. That is a very disappointing feature. I believe that with a more vigorous approach at European level we can have this undesirable situation improved; and I would say that within the Irish scene it is important that no effort be spared to reduce that level of unemployment.

We have been very positive net beneficiaries of the European Community; but, in common with our new partners, Spain and Portugal, we must get special concessions in the areas of the Regional and Social Funds. I have already talked about the Common Agricultural Policy and the need for special considerations there. In regard to the Regional and Social Funds, I believe it behoves the entire Community to view this island here in a very special light.

Finally, I would just like to say that, in common with those Senators who have spoken already, I welcome very warmly and very positively the joining of Spain and Portugal with the other ten countries in the EC and I hope and I believe that their membership can in the long term, when the problems have been sorted out, be of considerable advantage to us economically, politically and in other ways as well.

I would, first of all, like to express my thanks to the House for the expeditious way in which it has dealt with this matter of the accession of Spain and Portugal. As always, this debate indicated the genuine interest of the Members of this House in this matter, which is of great importance to us.

In replying to the debate, I propose to address myself directly to the issues of the accession of Spain and Portugal rather than give any kind of general dissertation on the general issues relating to the Community. In the debate Senators asked that, in view of the enlargement, was it not appropriate that we would at this time draw up a balance sheet of the pros and cons of our membership of the Community, seeing that we are there now for the past 12 years and that in doing so this kind of assessment would influence our attitudes to the Community itself and our behaviour therein in the future.

I do not think that there is a need, first of all, for such a balance sheet. We have had substantial benefits from our membership of the Community. They have been considerable since day one; and we have also, of course, invariably taken stock of our position vis-a-vis the Community and there is an ongoing assessment by the Government and its agencies as to where we stand on any issue from day to day within the context of the EC. There is no question of stopping at a particular point and assessing where you stand.

This is an ongoing process and because of its nature, and because we are talking about a community of nations, there is all the time an evolving situation where things are changing, some things making progress, some things not making progress. There is change all the time and the Community and its members at all levels must ensure in so far as it can that, despite the so-called massive bureaucracy there, the Community itself responds to the changes that go on within its membership and, indeed, in relation to third countries also with whom it has very close relations all over the world. Therefore, unless we as members are prepared to play our part in the overall approach of the Community to these changes and try to achieve some dynamic response to many of the things happening, both within the Community and outside the Community and in third countries with whom we have close economic, social and cultural relations, then we are failing in our function as a member of the Community. There is no time for a static approach.

This is my first day participating in the debate. Senator Fitzsimons mentioned the begging bowl concept and said he was not in favour of promoting that idea. We have responsibilities to live up to as members. There are also benefits accruing to us from our membership but we should not overdo or oversell ourselves as all the time looking for something and trying to exploit our membership of the EC. We have an obligation to see to it that we get justice and fair play and that we get our entitlements as members of the EC but not to the detriment of others. That is the important point. I am glad that Senators saw that point.

One area that is very relevant in relation to evolvement and the need for its ongoing assessment is the Common Agricultural Policy. CAP has been the subject of long and tedious debates on where it stands, what its past history has been and what its future will be. Senators referred to the Commission's Green Paper and have expressed concern at some of the proposals outlined in that Green Paper and concern that the basic principles on which CAP is based might be undermined by some of the proposals enshrined in the Green Paper. As Senators know the Green Paper is a discussion document setting out sets of possibilities and options for the future in a broad framework within which CAP might operate in the future given the food surpluses we have.

Will regard to the mountains of beef, butter and cereals and the lakes of milk, I am sure the Senators would agree that it is time to sit down and discuss what we should do in this kind of situation in which we subsidise the production of these commodities; we then have to pay for their storage and at the end of the day the markets are not sufficient to absorb the volume of these commodities on hand. There is something wrong in that kind of equation.

That having been said, Senators have been quite correct in expressing concern about the Green Paper and its contents. In the case of Ireland we entered the EC largely on the basis of the benefits that would accrue to us and that we expected to accrue to us from our agriculture. The Minister, Deputy Deasy, has also expressed concern at the content of some of the proposals in the Green Paper. He has pointed out very vehemently in European forums the importance of the agricultural sector in Ireland and that its centrality to our whole way of life must be recognised by our European partners. Our traditional rural lifestyle is based on agriculture. The social consequences of any diminution of that recognition that agriculture must get in the context of the EC must be looked at very carefully. My colleague in Agriculture is very much aware of the importance of this aspect of the economy.

Senators have expressed views and disappointments in relation to the Regional Policy. I would go along with the view expressed that the policy and the concept underlying it has not achieved its primary objective. The primary aim of the Regional Policy when it was set up in 1975 was to eliminate the economic disparities and the imbalances that exist between the favoured and the less favoured areas in the Community.

The Minister for Foreign Affairs dealt with this area in detail. I do not propose to repeat what he said except that I would endorse the disappointment expressed with the lack of progress since the establishment of the fund in 1975 when it represented 4.8 per cent of the Community budget. Ten years later, in 1985, it represents a mere 7.3 per cent of that same budget.

One would have expected that the determination and enthusiasm there was in 1975 for the levelling out of the disparities and imbalances would have carried us on to ensure a greater level of funding but while the enthusiasm was there I am afraid the funding did not keep pace with the ideas that existed in 1975. We still have major differences in economic and social levels between different areas within the Community. There is a direct ratio between the success of efforts in that respect and the level of funding made available to ensure that success. Unless the funding is made available the economic convergence which was sought through the establishment of the fund which has been very elusive in the past will continue to be elusive in the future.

Some Members of this House said that the accession of Spain and Portugal will probably worsen that imbalance simply because it will draw more on that fund resulting in a reduced fund for those people who have been beneficiaries up to now. Ireland has been one of the major beneficiaries on a per capita basis not in the overall lump sum in volume terms. I would not go along with the idea that the accession of Spain and Portugal will have a totally damaging effect. I can see some beneficial results from the accession of our colleagues in Spain and Portugal.

In the normal day-to-day bargaining that goes on at European level you find lobbies forming. From my experience in dealing with my own area small countries tend to stick together and help one another out in relation to many issues and I feel that we will have now a very strong lobby in relation to the Regional Fund and its capacity to do the job it was put there to do. Spain and Portugal will now be a part of that lobby as they would fall into the category of the less developed areas. Extra pressure will be brought on the powers that be to introduce forceful policies with adequate funding for the purposes of eliminating the imbalances and the disequilibriums there are within the confines of the Community. I can assure you that the Government look forward to pressing ahead, with the assistance now of Spain and Portugal, to provide what we regard as adequate funding for that area of activity.

Several Senators referred to the problem of unemployment which is a major problem within the Community and within specific member states including our own. I think we will have to recognise the fact that not only is unemployment a problem in the peripheral area where one might expect severe difficulties but we have now reached the stage in recent years where in the very industrial heartland of Europe it is also a major problem. Recent European Councils have discussed this problem and our Taoiseach has been very much to the forefront in seeking concerted action on this major problem within the Community. While national governments can introduce specific schemes to alleviate the problem within their own territories, our Taoiseach — and I would concur fully with him — has stated repeatedly that in his opinion, and he has gained support for this among his Council colleagues, the only really effective way to do this is at Community level, that it is really a Community problem and that individual states have not the capacity to deal with this problem on their own. It is really a problem that must be faced on a Community basis and the funding, the ideas and the schemes must be Community based.

One of the primary areas concerning the accession of Spain and Portugal is one with which I had direct involvement. That is the area of fisheries and fisheries policy. This particular chapter of negotiations was left to the very end of the accession negotiations, not because it was deemed to be unimportant but because it was deemed to be so intricate: it was felt that it would create so many problems that it would take some time. There were difficulties with commodities like olive oil, fruit and wine, but everybody regarded fish as being of crucial importance and of great delicacy. It was left until the end and it was only in March last that the real down-to-earth discussions took place in relation to this chapter of negotiations.

I agree with my colleague, the Minister for Foreign Affairs. I can say that in my honest opinion, having been involved directly in this, we got what I regard as the best deal possible in relation to our fisheries involvement. Indeed, when one considers the enormous pressure there was on Spain itself as an acceding state and on Portugal to fight every inch of the way for what they could get at this early stage, knowing that if they did not get it then things tend to become tablets of stone as time goes on in EC terms, one cannot but say that we have been very successful in getting the best deal possible. Spain sought, as did Portugal, immediate and full integration into the Common Fisheries Policy. When one considers that what we have done and the concessions we have succeeded in holding on to despite their accession next January, one must realise that we have succeeded in getting a good deal. We have succeeded in getting the total exclusion of Spain inside the 50 miles box for a ten year period up to 1996; and that is the best known, I suppose, of the positive elements which we succeeded in holding on to.

There are other positive aspects also. Of the basic list of 300 vessels authorised to fish in Community waters only 150 of 700 horsepower are on a periodic list and will at any one time be allowed fish in Community waters simultaneously. In other words, of the 300, 150 will be allowed to fish simultaneously. Of this 150, 93 vessels will be allowed into our 50 to 200 mile limit. That particular element of the agreement will continue for the ten years transitional period.

Senators inquired what number of boats we had of that calibre. We have 40 boats which would have that kind of capacity. I got the impression at some stage during the debate that some Senators might have thought that this is 93 extra boats in for the first time on 1 January to our 50 to 200 mile limit. That is not the case. There are in existence for some years agreements with third countries in relation to fisheries policy and Spain obviously up to now has been regarded as a third country. Under the Community/Spain framework agreement Spanish boats have been licensed to fish in that area for a number of years; and this year, for example, 65 Spanish boats of that calibre are fishing already and have been for some time in that band of sea. Basically we are talking about west of and south of this country. We are not talking here of 93 additional boats. The 65 are there under licence, the 93 will be there by right under accession terms. So you are talking about an additional 28. Positive elements of accession would also include in our case, for example — we were discussing this only last week in Brussels—larger quotas in species such as hake, monkfish and megrim. As my colleague, the Minister for Foreign Affairs, mentioned, there is an opportunity here for us to avail of the enormous Spanish market for fish. The species I have mentioned are basically fresh fish for the fresh fish market. That is a big market in Spain and it is a question of our exploiting that market.

People might get the impression that the Spanish fleet will descend on us overnight, but 60 per cent of the current Spanish fleet of 17,000 vessels operate in the waters of third countries with whom they have bilateral agreements. In fact, the vast bulk of the fleet operate in these waters — the South Atlantic, off Madagascar, west Africa and so on. The reason they are not operating here is very simple: they are in more lucrative waters and they will probably stay there. They have bilaterial agreements with third countries and it will now become part of the function of the Community to renegotiate these third country agreements which will be handed over by Spain on the last day of this year.

Senators have expressed concern about our ability to control the fishery and ensure that Spain stays within the regulations governing membership. The fears expressed are understandable in the light of our past experience on the issue of controls. In fact, we have been quite successful here. In 1984 we did succeed. One must remember that we are operating with limited resources in this area. I would like to pay tribute to our Naval Service for what they have done with these resources in apprehending Spanish vessels fishing illegally, that is fishing without having licences, or, if they have licences, fishing the wrong species or, if not, fishing within the 50-mile limit. In 1984, for example, fines imposed amounted to a total of £.9 million and so far this year we have imposed fines of about £1 million on Spanish trawlers found fishing illegally.

We must realise that as and from 1 January next year Spain will be a full member of the EC. As a full member we expect that we will get full co-operation from Spain; and, indeed, their Minister for Fisheries, Senor Romero, gave this undertaking a few weeks ago at a meeting in Brussels at which he was present as an observer. After the accession of Spain the Spanish vessels will be subject to Common Fishery Policy controls and regulations, and I would agree with the views expressed today by some Senators that possibly it will be somewhat easier to control the situation once Spain is within the EC simply because we will be able to draw on the resources within the EC. There is a monitoring facility and an inspectorate there that have powers to inspect and indeed take remedial action if after inspection something has been found to be wrong. At the moment we have a licensing system under which 65 Spanish trawlers operating off our west coast invariably discharge their cargoes of fish in their home ports or on to bigger vessels which then discharge them. The transfer takes place either at sea or at a Spanish port where, as of now, we have no powers to inspect. On their assuming membership our inspectors will be able to go into La Coruna, Vigo and the major fishing ports just as they go to Killybegs or Castletownbere today, inspect their catches, establish where these catches have taken place and see whether they have followed the regulations or not. If they have not, they will have broken the law and they will be fined for that. There is probably a better chance of controlling the problem of the Spanish as a member than there is otherwise. There is strict monitoring in relation to the 150 boats on the provisional list. They will have to report on entering the fishery and on leaving the fishery. They will also have to report their catches in volume and in species terms. This is applying the same concept as there is in the Shetland box which is already part of the European Common Fisheries Policy. Also, we have a new box created for the purpose of conserving mackerel — the mackerel box in the English Channel. The same concept will apply here where they report on arrival and on exit showing their catch for inspection.

The question of maritime surveillance has been discussed specifically in the context of the accession of Spain and Portugal. There was a Council declaration made at that time on foot of a proposal by the Commission and introduced at the behest of this Government. It was that, on the accession of Spain and Portugal and because of the increased surveillance needed, the whole area of our capacity to carry out maritime surveillance would be looked at. It was at our request that this Council declaration was introduced. I am glad to have played a part in that because, while our Naval Service are doing a fine job, they have limited resources; and when you are talking about a band of sea of about 150 miles in length or in width you are talking about a big area for surveillance purposes. Obviously, much of it will have to be done by air, so we will need help to do that job properly.

Senator McDonald complained about the slow progress in relation to a comprehensive transport policy. I agree that the progress has been slow, but one must realise that we are talking here about different economic and geographic conditions, taking the EC as a whole, and that is resulting in different transport networks; and co-ordination of these networks is not easy because of different legal requirements and different networks. The Treaty of Rome provided for a common policy in relation to transport and the Community looks on a common transport policy as a very important element in the European Community context. Work is being done on that and the Community is pursuing the establishment of a framework to achieve that aim. Much has been done and, despite what one might think, some progress has been made. For example, there has been the harmonisation of social legislation in relation to road haulage and that is one step along the road — if one excuses the pun. There is also in course of preparation a master plan whose elements include such important sectors as the planning of infrastructure access of Community interest, transit and cross-Border problems, organisation of the transport market and transport safety.

Senator McDonald also mentioned the appointment of new commissioners, and the individuals nominated for offices on the accession of Spain and Portugal. Senor Marin has been nominated by the Spanish Government as one of its commissioners. It has not yet named the second commissioner to which it is entitled. The man nominated is very familiar with community affairs and I am quite sure he will make a positive impact in the Commission when he assumes office on 1 January. The Portuguese for their part have yet to nominate the one commissioner that has been allocated to them. Senator McDonald also inquired about the allocation of portfolios within the Commission. That is a matter for the President of the Commission when he has his team presented to him. The allocation of portfolios is strictly a matter for him.

Senator Higgins referred to problems in relation to the disadvantaged areas and the underdeveloped areas of the west. In relation to that, could I say that the Government undertook reclassification proposals and submitted them to the Commission who accepted them in total. The Senator also referred to areas in France which on the face of it got special treatment from the agricultural development point of view, despite the fact that they did not come within the criteria for mountain areas. They did, however, fall within the ambit of other criteria which would have made them eligible anyway and brought them into line with assistance which this country is getting.

Senator Dooge gave a very clear expression of his view and where he stands in relation to Europe and we all know his track record on that. He is a European. He also mentioned, of course the difficulties. Very briefly he gave us a resume of what the European concept is and he gave us the background to that whole concept. I would like to thank him for that and also for his kind words in relation to the fishery negotiations. As he has said — and I would be with him on the idea — it will probably be easier for us to control the fisheries policy with Spain as a member.

Senator Fallon mentioned the Regional Fund. I referred to that already. He did make the point, which I think is worth mentioning, that he saw himself as a Member of this House, as being obliged to support the efforts of this Government or of any Government within the context of the EC. I thank him for that expression.

Senator Ferris mentioned Spain and Portugal as being infant democracies. That is true and I am quite sure that if they had not been democracies in the first place they would not be coming into membership of the European Community. I suppose they will expect, as we did, great benefits to flow to them from membership and we have had many advantages accruing to us, as the Senator said, at a price. I think it is fair to say that for any benefits one gets one pays a price. It is a question of the price you pay. Some people might think the price is too high. Personally, I do not. I think that one of the things we can be proud of is that the people of this country overwhelmingly saw fit to join the Community and, having joined it, they have lived up to their expectations of being able to compete albeit in some cases in a rather ragged way. But I think we are learning quickly and ten or 12 years in the life of a Community like the EC is a very short period. There are areas in which we have yet to get our act together but slowly but surely it is dawning on us that nobody owes us a living, that we must go out there and, first of all, be conscious of quality, go into the market-place and compete with people who are operating within much more affluent economies than ours and be able to compete with them successfully. Slowly but surely that is dawning on us and we must take that positive approach.

As Senator Ferris said, a formula was adopted at the time of negotiation of the accession of Spain and Portugal to deal with the Regional and Social Funds. While it might not be to the satisfaction of everybody, there was an undertaking given by the Commission that beneficiaries from these funds would not be victims of the accession of Spain and Portugal, in that adequate funds would be provided to look after them and their demands specifically. Some of the cynics would say "wait and see". We are waiting and seeing what will happen to that.

Going back to the idea of the begging bowl, Spain and Portugal will be major drawers on these funds but we have experience of 12 years within the EC. We have benefited enormously from that experience both in social and economic terms and I think in political terms also despite the fact that we are not talking about a political entity. We have come to know how political systems work elsewhere in our neighbouring democracies. We are able to sit down with our Western European colleagues week after week and council after council and discuss common problems logically and sensibly with them.

I do not wish to mention this to any great extent but I think that the debate taking place at the moment in the Oireachtas must also be put into that context. I feel that that debate is taking place in the Dáil in the knowledge that many people participating have had experience of dealing directly with others in democratic forums, for the past 12 years — which is no harm at all. I think it will be to our benefit and the level of debate in the House reflects that experience over the past 12 years.

Senator Ferris also mentioned the enormous cultural importance of Spain and Portugal. We are aware of this. We all know of the long historical ties there are between those countries and ourselves, that their wealth and richness of culture will be reflected within the Community and that it will be the beneficiary in time to come.

Senator Hussey expressed the view that the accession of Spain and Portugal would create new markets, particularly in the area of the Common Agricultural Policy. This is correct. He also made the point that should not be lost sight of: that, while we had to fight our corner in relation to fisheries, we were not the only country that had reservations about how the accession of Spain and Portugal would affect them. Particularly, there are the wine producing countries, France and Italy. They saw enormous problems with the accession of Spain and Portugal for their respective economies. Yet, while they went in there and fought their corners, at the end of the day there was a generosity to be seen: these were neighbours who were naturally part of the European land mass and whose rightful place was within the Community. In that spirit of generosity they felt, rightly, prepared to take on these two additional countries and to negotiate with them once they were inside the Community. The Spirit of generosity and of challenge is there. The only area where it affected us to any great extent was fisheries.

The problem of unemployment was also mentioned by Senator Hussey. I have referred to it already.

Maidir leis an Seanadóir Browne, thosaigh sé as Gaeilge, agus dúirt sé go raibh an-bhaint againn leis an Spáinn leis na céadta bliain anuas. D'ólamar a gcuid fíona ar feadh na mblianta. Go deimhin, mar a dúirt sé agus is rud suimiúil é seo, tá tairiscint againn ó Mheiriceá faoi láthair go mbeidh cúpla céad milliún dollar ag teacht chuig Tuaisceart na tíre seo ó Mheiriceá agus chuir sé an cheist, an mbeadh sé sin amhlaidh mura mbeadh na Spáinnigh ann agus mura mbeadh na Spáinnigh sásta breathnú amach agus dul amach na céadta bliain ó shin agus tíortha eile a bhunú. Tá sé sin déanta acu agus táimid ag fáil fiúntais as a bhfuil déanta ag na Spáinnigh.

Senator Browne said that the accession of Spain and Portugal makes political sense. It also makes geographical sense in that they are part of the land mass and in close proximity to the centre of European affairs.

Senator Hourigan, also in the spirit of generosity, said that it was not the time for insularity, that we should be objective and that the addition of 48 million people to the Community was a beneficial factor which would be of advantage to us. He made the point, which is correct, that the funding of the EC, with the new countries having acceded, even at the increased rate of 1.4 per cent to the own resources system, will not be sufficient to meet the demands of the enlarged Community. As the House is aware, getting the figure from 1.0 to 1.4 per cent involved a lot of discussion and debate and the people directly involved in this — and indeed the people who were causing some problems — must have known that even agreement on the 1.4 per cent level would not be sufficient to meet the demands of even the existing Community at the time, never mind an increased membership. We are not in a position to affect this to any extent except to pay our share as good Europeans, which we have been doing.

Senator Hourigan also made the point that the accession of Spain and Portugal would reduce the negative trade balance with these countries. He sees this as one of the benefits accruing to us. This is correct, and I fully agree with him.

Like Senator Hourigan and the Senators whom I have heard speak in the House, I welcome the accession of Spain and Portugal. When on 1 January 1986 they join the European Community of 320 million people that Community will be enriched by two new members who are culturally, historically and geographically part of Europe and without whom the European Community would be incomplete. The challenges which face us are increased by the accession of Spain and Portugal. This is not the time for lying down and calling "foul". From the very beginning we agreed to the accession of these two countries because we felt that it was, as one might say, their natural home. From 1 January we will be sitting down in council with them, discussing their problems and fighting our corner at the same time to ensure that their accession will not unduly upset the delicate balance within the Community in relation to the different funds from which we benefit.

It is essential to make the Community more relevant to the solution of the real problem of our time, which is unemployment. It is the Government's view, and the Taoiseach has reiterated it time and again, that the problem of unemployment must be confronted squarely at Community level. Of course, national governments must also make every effort within their jurisdictions to create imaginative policies that will absorb the unemployed into gainful employment. The overall problem must be dealt with at Community level.

We must use the opportunity of enlargement to recharge the Community with the vitality that inspired its founders, who were very far-seeing people, not only so that we can make the enlargement a success but through it to give a new impetus to the further development of the Community as a whole.

Question put and agreed to.

When is it proposed to take the next stage?

Now.

Agreed to take remaining Stages today.

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