Dáil Éireann díospóireacht -
Wednesday, 4 Dec 1996

Vol. 472 No. 4

Written Answers. - Ewe Premium Payments.

Robert Molloy

Ceist:

21 Mr. Molloy asked the Minister for Agriculture, Food and Forestry if he is committed to changing the method of calculation of ewe premium payments; if so, the steps, if any, he has taken to effect such a change; if he will press for an abolition of the stabiliser mechanism; and if he will make a statement on the matter. [23372/96]

Denis Foley

Ceist:

54 Mr. Foley asked the Minister for Agriculture, Food and Forestry if he will renew his efforts to seek a renegotiation of the EU ewe premium. [23393/96]

Minister for Agriculture, Food and Forestry (Mr. Yates)

I propose to answer Questions Nos. 21 and 54 together.

EU regulation 3013/89 aims to provide for the full establishment of a single market in sheepmeat, involving compensation, by means of an annual premium, for loss of income. Despite the operation of the common organisation of the sheepmeat regime since 1992, market prices within the European Union have failed to converge to any worthwhile extent, though some narrowing of the divergence has occurred and average gross income per ewe does not show the same degree of divergence as in price levels.

The late spring and early summer of 1995 was a very difficult time for the sheepmeat sector. I sought and secured exclusive arrangements for Ireland in the form of a special premium to producers in the non-disadvantaged areas and a top-up in headage payments to producers elsewhere. I have sent a detailed memorandum to Commissioner Fischler outlining the areas which need to be examined. Among the proposals which I suggested was that there should be an automatic top-up of the premium or payment of the rural world premium to all producers where there is unusual market failure.

As regards the operation of the stabiliser co-efficient, the setting of the co-efficient at 7 per cent was part of a package agreed by the Council of Ministers in 1992. It was part of an agreement which,inter alia, saw sheep quotas fixed on a more favourable basis than originally proposed. Nevertheless I have suggested to the Commission that a lower stabiliser is now justified in the light of the current EU flock profile.

The EU Commission recently submitted a report on the operation of the quota system and, in that context, I will press for a review of the ewe premium system. However, it should be recognised that this issue is being considered against a background of concern about the cost of the sheep meat regime and no support from other member states for a fundamental adjustment to the regime. It is also the case that this year has been an extremely good year for Irish sheep producers, with record prices prevailing for most of the year.