Ivor Callely
Ceist:101 Mr. Callely asked the Minister for Agriculture, Food and Forestry the total amount of EU subsidies and grants paid to Irish recipients in 1995; and if he will make a statement on the matter. [10637/96]
Written Answers. - Grant Payments.
Ivor Callely
Ceist:103 Mr. Callely asked the Minister for Agriculture, Food and Forestry the impact on Ireland's agricultural industry if EU subsidies were to be curtailed or even withdrawn; and if he will make a statement on the matter. [10639/96]
I propose to take Questions Nos. 101 and 103 together.
The total amount of EU subsidies and grants paid in 1995 was £1,401 million.
EU financed or co-financed schemes are vital to Irish farmers and the food industry. Direct income payments in 1995 accounted for 35.5 per cent of farm incomes. Market support measures such as export refunds benefit the beef and dairy sectors in particular. They are an essential part of the market mechanisms which support prices in the EU. Without this price support, prices for beef and dairy products would fall by about half. This would obviously have very serious implications for farm incomes and employment as well as for the food industry.
The agriculture and food industries are of course a vital part of the Irish economy. In 1995, the agri-food and forestry sector accounted for: 15 per cent of GDP; 15.3 per cent of employment; and 15 per cent of exports.
A reduction in national and EU expenditure on these sectors would therefore have serious implications for the economy as a whole.
However, it should be noted that there is no proposal to abolish EU subsidies to agriculture. Further reform of the CAP, building on the 1992 reform, is likely in the context of the WTO round, European Monetary Union and enlargement. Such reforms may include reductions in market supports and prices but with compensation to farmers through direct income payments. The Irish focus in any future negotiations will be to ensure common financing of measures, and full compensation for farmers for any reduction in markets supports.