Brendan Smith
Ceist:169 Mr. B. Smith asked the Minister for Agriculture, Food and Forestry the proposals, if any, he has to have the rate of export refunds increased; and if he will make a statement on the matter. [1901/97]
Written Answers. - Export Refunds.
Joe Walsh
Ceist:172 Mr. J. Walsh asked the Minister for Agriculture, Food and Forestry the estimated cost to the agriculture industry of the 10 per cent reduction in exports refunds; and if he will make a statement on the matter. [1942/97]
I propose to take Questions Nos. 169 and 172 together.
Everything possible is being done to get the recent cut in export refunds for beef reversed. The decision to cut refunds was taken by the EU Commission in order to reduce the demand for export licences because they believed that the level of applications was excessive relative to the quantity allowed under the GATT agreement. Licences totalling 60,000 tonnes had been sought on the day prior to the decision. My Department has made it clear to the Commission that these cuts are unjustified and unnecessary at a time when the income of beef producers is still under severe strain.
I have proposed an alternative approach to the Commission for controlling the demand for export licences in a fairer and more effective manner, thereby allowing the refunds to support market prices at reasonable levels. This issue was raised at this week's Council of Ministers meeting and support was forthcoming from a number of member states for a quick reversal of the decision. The Taoiseach has raised the matter directly with Commission President, Mr. Santer, and he has also written to him seeking an immediate increase in the refunds. Commissioner Fischler has undertaken to examine my suggestions.
It is difficult to estimate the cost to the agriculture industry of the difficulties created by the cut in refunds because the decision should be mitigated somewhat by the improvements in EU markets and through the intervention support measures which are in place. The strengthening EU markets now provide a more attractive outlet for greater quantities of Irish beef at improved prices. In addition, the higher prices on EU markets, combined with the cut in refunds, should lead to higher prices in third country markets, thereby offsetting some of the effects of the reduction in refunds. Furthermore, the fact also that third country markets for beef remain undiminished will ensure that substantial market outlets remain for Irish beef and therefore prices should be maintained close to current levels.