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Dáil Éireann díospóireacht -
Thursday, 23 May 1974

Vol. 272 No. 14

Ceisteanna—Questions. Oral Answers (Resumed). - EEC Trade Distortions.

44.

asked the Minister for Agriculture and Fisheries whether the present EEC system of monetary compensatory amounts gives rise to serious distortions of trade and whether Ireland is therefore entitled under the Treaty of Accession to demand that such distortions be corrected.

The community system of monetary compensatory amounts is designed to counteract the effect which international currency disturbances would otherwise have on the common pricing arrangements under the common agricultural policy. Indeed, the common prices could hardly operate at all in the present monetary circumstances but for the existence of the monetary compensatory amount system. I fully agree that for Ireland, as an agricultural exporting country whose currency has depreciated, the system gives rise to serious problems for some of our agricultural exports. I have accordingly pressed consistently for offsetting adjustments and have in fact been successful in securing some relief, for example in connection with our beef exports to the US. The Deputy can be assured that I will continue to pursue the matter vigorously with a view to having a unified market throughout the Community restored as quickly as possible.

Arising out of the Minister's reply and in the light of his earlier reference to the conditions under the Treaty under which Italy took certain action, I believe it is open to us also, under the conditions of the Treaty of Accession, since there is undoubtedly very serious distortion of trade——

I am sorry to interrupt Deputy Gibbons but I wish he would ask questions rather than argue.

I have a right to ask a question and it is a very important one.

The Deputy has and the Chair wants to facilitate the Deputy.

Then, please, if the Chair will allow me? I will have to begin again. I was saying that there is undoubtedly——

This is the problem, Deputy, it is not a question.

——serious distortion of trade. Therefore, under the Treaty of Accession, we are entitled to redress. Is the Minister aware that at present imports of beef are being made from Germany, Holland and Denmark into the United Kingdom which are going into competition with our exports to that country, caused by this very situation vis-à-vis monetary compensatory amounts.

I would suggest to the Deputy, not entirely caused.

To a great degree.

I believe that the cheap German beef on the British market arises from another cause, that is the fact that intervention has broken down in Germany and that this beef is not making intervention price. If it was, it could not be sold on the British market at the prices obtaining at the moment.

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