asked the Minister for Agriculture if he will consider requesting the EEC Commission to make a variable premium on cattle available in this country.
Ceisteanna — Questions. Oral Answers. - EEC Variable Cattle Premium.
13.
The EEC Commission's proposals on agricultural prices for 1984-85 and on the rationalisation of the CAP provide for the termination of the variable premium on 1 April. In any event, only 40 per cent of the cost of the premium is met by FEOGA and the balance would have to be met by the Exchequer.
I sense from what the Minister said, when he talked about the absence of national aids and that national Governments cannot introduce them, that he is now saying that the Commission have turned a blind eye to the existence of the variable premium in Britain while Britain pay 60 per cent of it and FEOGA pay 40 per cent. Is it the Minister's intention in these negotiations to ensure to the ultimate that the variable premium will be abolished because of the competition it causes to Irish producers?
I would like to point out that the variable premium was introduced in 1974.
(Limerick West): We are talking about now.
Will the Deputy allow the Minister to answer the question?
The variable premium has been in existence for ten years. We have repeatedly objected to its continuation over the years. In its proposals last July, better known as COM 500, the Commission proposed that the variable premium, as applied in Britain, be abolished. It is renewed annually by way of a proposal from the Commission in conjunction with the price package. This year such a proposal is not included in the price package put before the Council of Ministers by the Commission. We have repeatedly stated, and as late as yesterday, in the Council that we support the Commission's attitude fully on this matter.
Would the Minister ask the Government to introduce the variable premium scheme here seeing that it is 40 per cent financed by FEOGA and the other 60 per cent is financed by the UK Government? Would the Government consider financing it to the tune of 60 per cent because it would stop the distortion in trading and would create many more jobs in our meat factories?
That is not a realistic suggestion. We have argued for the abolition of the variable premium in Europe on the grounds that it is a gross distortion of trade. We would look a bit silly going out there now and asking for something which we said should be abolished.
Can I take it from what the Minister said that after the conclusion of the negotiations if the variable premium is still in existence in Britain he will then give very serious consideration to its introduction?
We will cross our fences when we come to them.