asked the Minister for Industry, Commerce and Tourism if a subsidy is payable on bread from Northern Ireland sold in the Twenty-six Counties; and why a similar subsidy is not payable on bread from the Twenty-six Counties sold in Northern Ireland.
Written Answers. - Bread Subsidy.
330.
The bread subsidy was introduced in 1975 as a consumer subsidy and was originally confined to bread manufactured and sold for consumption within the State. In 1979 the EEC initiated action against Ireland on the ground that the manner in which the subsidy was being applied was contrary to the provisions of the Treaty of Rome; under Articles 92-94 of the Treaty of Rome, in the case of goods originating in the Community, consumer subsidies must be applied without discrimination related to the origin of the products. In these circumstances, proposals were put to the EEC for the phased extension of the subsidy to imports from other member states (including Northern Ireland) and the procedure against Ireland was then terminated. Since the subsidy is provided solely for the benefit of the Irish consumer, it does not apply to bread which is exported; in any event the payment of such a subsidy would be contrary to the Treaty of Rome.