Ivan Yates
Ceist:4 Mr. Yates asked the Minister for Agriculture, Food and Forestry if the draft EC price proposals for 1993/94 are acceptable to him; and, if not, the proposals he intends to table to ensure that farm incomes are protected.
Ceisteanna—Questions. Oral Answers. - EC Price Proposals.
The Commission's proposals on farm prices and related measures for 1993/94 were formally presented to the Council of Ministers on 10 February 1993. By and large the proposals represent confirmation of the first stage of the Common Agricultural Policy reform arrangements for those products covered by reform and are largely a roll over of existing arrangements for other products. A detailed examination of the proposals is being carried out at present in my Department.
The proposals are due to be discussed again in the Council of Ministers on 16-17 March. The Deputy can be assured that I will take all the necessary measures in the course of negotiations to ensure that the interests of Irish farmers are protected.
There will be no St. Patrick's Day parade for the Minister.
I am sure the Minister will find some parade to attend in Brussels. Will the Minister confirm that what is basically proposed here is a price freeze and that this is particularly unacceptable for the sheep and pigmeat sectors which, despite the general increase in incomes, have experienced a severe drop in incomes in 1992? Will the Minister clarify the position in relation to pigmeat? I have seen reports which state that the Commission is proposing a 25 per cent cut in the base price for pigmeat at a time when prices are at their lowest level for 12 years?
We have only been presented with proposals at this stage, and they are at the preliminary discussion level, the first stage. I will be using the price negotiations to rectify a number of matters of concern to Ireland. We have already spoken about beef and the intervention weight limitation. Deputy Yates referred specifically to the position in regard to sheepmeat, about which I have been made aware over the last number of months. I have sought to improve the situation somewhat and an additional £56 million will be sent out to sheep farmers during the next few weeks. I will be using the occasion of the Council of Ministers' meeting to highlight the fact that prices in the European Community have not converged and that we are being unduly penalised as a member state.
Deputy Yates also referred to pigmeat. A reduction of approximately 25 per cent in the base price of pigmeat is proposed. I will be seeking a modification of that figure because even though the market for pigmeat was good during the earlier part of last year it became quite depressed towards the end of the year; a very poor year for pigmeat.
I ask the Minister to have special regard to the sheep and pigmeat sectors because the overall income figures mask the fact that those sectors are going through an exceptionally difficult period. As I understand it, last year farmers made a profit of £8 per pig but are now incurring a loss of £7 per pig. These proposals on the guide price for sheep and the base price for pigmeat are unacceptable. Will the Minister bring that view forward on behalf of Irish producers at the appropriate Council of Minister's meeting?
Yes. With regard to pigmeat, we have modernised the processing end of the industry and the marketing aspect has been taken up by CBF. Towards the end of last year, producers suffered a drop in price. As the Deputy said, producers lost approximately £8 on each pig. I will take that very much into consideration. Last year was a difficult year for sheep farmers but, unlike pig farmers, they got very substantial headage and premia payments. In the full year, 50,000 sheep farmers got £152 million in direct payments, which is not an insubstantial amount of direct aid. Indeed, if other sectors or Departments got that kind of annual payment they would consider themselves to be quite well off. I have contacted CBF, who have opened up valuable markets in Spain and Portugal. I hope that not only will the income from headage and premia be maintained for the year, but that the market for sheep will improve.