Dáil Éireann Debate, Tuesday - 4 December 2012
535. Deputy Brendan Smith asked the Minister for Agriculture, Food and the Marine if he will outline the proposals, if any, he has put forward in relation to the need to put in place effective market support measures to deal with price volatility in the context of common agricultural policy reform; and if he will make a statement on the matter. [54489/12]
View answerEffective market support measures begin with an adequate budget. If we are to ensure that farmers can be supported through periods of extreme price volatility, we have to first of all ensure that the CAP is properly funded. Accordingly, I have been supporting the Taoiseach and Tánaiste in their ongoing efforts to protect the CAP to the maximum extent possible in the negotiations on the EU Multiannual Financial Framework (MFF). We have said that the Commission’s proposal to freeze the CAP budget at 2013 levels in nominal terms is a reasonable starting point, and at the recent European Council the Taoiseach again strongly defended CAP funding. Ireland will continue to work with others to get the best possible CAP deal in the MFF.
As regards the market support measures themselves, the broad thrust of the Commission’s CAP reform proposals is, in my view, generally acceptable, in that the proposals strike a good overall balance in providing an effective safety net. The main support measures, including those of most relevance to Ireland, are retained, and the inclusion of exceptional measures, with flexible triggers, to overcome emergency circumstances is welcome, as are the transitional provisions which provide for the abolition of sugar quotas. However, I have stated my preference for mandatory rather than the proposed discretionary intervention for beef and veal if the trigger price is reached, and for the continuation of mandatory APS for butter rather than the discretionary mechanism proposed by the Commission, given the role of APS as an important mechanism for easing seasonal supply pressures. I have also supported colleagues who have indicated that a review of reference prices is warranted in order to bring them up to date with current market realities.
On sugar quotas, I have been very clear in my support for the Commission’s proposal to abolish quotas from 30 September 2015, but I have also made it clear that, in the event that the quota regime is extended, there should be no market control barriers to the re-establishment of the Irish sugar industry, catering for our national requirements. Another key issue on which I have expressed concern relates to the Commission’s proposals to strengthen the role of producer organisations, associations of producer organisations and interbranch organisations. While I agree that measures to strengthen the position of primary producers in the food chain are warranted, I believe we must be careful to ensure that such measures do not in any way prejudice the effective operation of the single market, which is an absolutely fundamental element both of the Treaties and of the CAP.
