M. J. Nolan
Ceist:10 Mr. Nolan asked the Minister for Agriculture, Food and Forestry the proposals, if any, he has for a review of the sheepmeat sector under Ireland's Presidency of the EU. [19115/96]
Ceisteanna—Questions. Oral Answers. - Sheepmeat Sector Review.
The EU Commission is obliged to provide a report on the operation of the sheepmeat quota regime to the Council of Agriculture Ministers in 1996. I have proposed to the Commission that preparation of the report should be availed of to examine the wider aspects of the sheepmeat regime. The report, which is now available, is confined to the issue of the operation of the quota regime.
Given that in the past five or six years more than 5,000 flock owners have been forced out of production, will the Minister commit himself to a review of the sheepmeat sector, as he promised last year, before the end of the Irish Presidency?
Last year was a very bad year for sheepmeat and exceptional measures were approved in December. I looked on the review as a window of opportunity, but circumstances in the beef sector have changed the picture. One of the silver linings on the cloud of the BSE crisis is the upturn in sheep prices which are at an historically high level. Despite my pleadings and urgings, the Commission has declined to put forward favourable proposals to remove the stabiliser and deal with other factors. It proposed a minimalist review which basically endorses the status quo. Now is not the right time to press the matter. When the beef issue has settled down we will agree reforms and seek one thing at a time, whether the DSP, the sheep issue or whatever, rather than focus on a series of matters. There are so many key issues in regard to beef at present that it would be better to have a nil all draw, as it were, on sheep and defer the matter to the future. I will be raising the matter with the French authorities, but the Commission has not favoured a generous review.
Will the Minister agree that by not fulfilling his promise to sheep producers he is in effect abandoning them? The Netherlands will take over the Presidency after Ireland, followed by Luxembourg, and there is no commitment on the part of those countries to the sheepmeat sector. The Minister reneged on his commitment in this regard, giving as his reason the beef problem. Is that the reason the sheep premium was cut? On the question of New Zealand imports, sheep farmers relied on the Minister to have this matter reviewed during the Irish Presidency, but he is now saying that will not be done.
To amend the sheepmeat regime would require a Council majority and no member state other than Ireland would support such a proposal. France would support a change in the stabiliser, which would give a 4 per cent increase in premium. All the Commission's resources are going towards supporting the beef sector at present and since we have a greater dependence on beef than anyone else that suits our interests. I do not believe the Commission will entertain a seriously beneficial proposal for sheep in the prevailing circumstances. Rather than have the sheepmeat regime determined negatively for Ireland, it is better to defer the matter. The difficulties that existed in 1995 have been resolved. Prices fell as low as 80p per lb. during the worst period in 1995 while the prevailing price is more than £1.10 per lb. The Commission will not accept a technical case at present and it is better to leave the option open than to get a bad result.
In the past five to six years lamb prices have fallen by 15 per cent. The Minister has effectively abandoned the sheepmeat producer by reneging on his commitment to review the sector during the Irish Presidency. Sheep producers now know exactly where they stand.
Last year I secured an exclusive arrangement for Ireland whereby the rural world premium, which was not paid in any other member state, was payable in advantaged areas. There is a time and place to seek changes to the sheepmeat sector. It is a fundamental misunderstanding to think that the Presidency proposes and disposes of business. The Commission must propose alterations to the sheepmeat regime and the proposal must be adopted by 58 votes. No other member state would support such a proposal at present, nor is the Commission prepared to put it forward. It is unrealistic to think that this can be done at present. It would be better to see what will be the effect on sheep meat post-BSE and if more difficulties arise for the sheep sector that would be the optimum time to proceed on the matter.