Noel Dempsey
Ceist:60 Mr. Dempsey asked the Minister for Agriculture, Food and Forestry the plans, if any, he has to pay the additional £6.60 which was cut from ewe premia. [8425/97]
Written Answers. - Grant Payments.
The level of the ewe premium in any year is determined by the average prices paid in the EU markets for that year. During 1996, both the EU and Irish market prices for lamb were at record levels from March onwards, due to buoyant consumer demand. Irish lamb producers who sold their lambs in 1996, benefited from prices about 21 per cent higher than those available in the previous year. The premium is designed to compensate producers for poor market returns and in a year of good prices the premium paid is inevitably lower. The combination of market prices and premium in 1996 resulted in a significant improvement in returns to producers compared to 1995.