I propose to answer Questions Nos. 1, 3, 40 and 54 together.
In accordance with what I indicated during the Adjournment debates in the Dáil and Seanad on 24 June last, I raised the question of the lower ewe premium for 1992, resulting from its calculation for the first time on the basis of a single region for the entire Community, at last week's Council of Agriculture Ministers meeting in Luxembourg. At the Council I pressed for an additional premium to compensate farmers in member states, including Ireland, where market prices are particularly low. I received the support of some other Ministers who had similar concerns. The Commission noted my concern and agreed to examine the matter and to monitor developments closely over the coming months. I can assure the House that I will keep in frequent touch with the Commission on this issue and that I will raise the matter in the Council again should that prove necessary.
Conscious of the current marketing difficulties facing sheep producers and the need to pay the first advance of the 1992 ewe premium and the rural world premium at the earliest possible date, I have decided to make an ad hoc payment to 1992 applicants on the basis of their 1991 approved ewe numbers. This advance payment, and the additional special rural world premium in disadvantaged areas, will amount to close on £39 million. This, together with the payment last April of the final balance of the 1991 premium, will bring the total ewe premium payments for 1992 to approximately £84 million for the 52,000 sheep producers in the country.
During the Adjournment debates, I referred to the recent demonstrations at Agriculture House, which involved the intimidation of some of my staff and the forcing of unfortunate ewes into the foyer of my Department. I have said those actions were deplorable and that such behaviour would not be tolerated. In addition, immediately after the demonstration, I issued a press statement condemning those actions. I wish to reiterate my strong feelings on this issue and to assure the House that behaviour of that kind is not acceptable at any time.
I accept that there are currently problems in the sheepmeat market and that the new method of calculating the ewe premium is not adequately addressing those problems in some member states, including Ireland. That is because market prices in the Community have not come together to the extent expected when the new arrangements were agreed in 1989. I have been drawing attention to the likely emergence of this problem for many months. Now that the recent decision on the ewe premium has confirmed that my anxieties on this score were well founded I will increase my efforts to have the problem solved.
Apart from my efforts to secure increased premium payments, which form an important part of sheep producers' incomes, and the satisfactory outcome of the recent Common Agricultural Policy reform negotiations for the sheep sector, my Department have already taken a number of initiatives to improve competitiveness and profitability of the Irish sheep sector. These include the provision of generous State and FEOGA grant aid for establishment of modern slaughtering and processing plants, the upgrading and modernisation of existing plants and the upgrading of facilities at livestock marts. Furthermore, a code of practice was introduced which was supported by all sections of the industry. This code has resulted in improvements in quality and presentation of the product. At farm level, my Department, in co-operation with the main sheep breed societies have intensified the breeding programme to improve productivity, growth rate and carcass quality. In addition, the extension of the EC producer group regulation to the sheep sector should be of benefit to producers in their marketing efforts. A proposed EC sheep carcass classification scheme which should greatly facilitate intra-Community trade to the benefit of producers is under discussion at present. Finally, CBF, on which farming organisations are represented, is involved on an ongoing basis in the promotion of sheepmeat both at home and abroad.
I believe that all of these measures have contributed and will contribute further to the development of a strong, vibrant and competitive sheep industry.
I was asked about the number of breeding ewes. In 1991 there were 4,622,000 breeding ewes and the total sheep number was in excess of nine million. It is expected that the ewe numbers for 1992 will show an increase.
As regards milk, a decison was taken in principle by the Council of Ministers to reduce national quota levels by two successive cuts of 1 per cent applying from 1 April 1993 and 1 April 1994. However, before these reductions can be implemented the Commission is obliged to present reports to the Council of Ministers on the market situation, accompanied, if necessary by proposals to revise these decisions. If the present favourable trend in the market for dairy products continues it will be very difficult to justify any reduction in quota in 1993-94.