The 1992 reform of the CAP provided for a reduction in intervention prices in the beef and cereals sectors and for compensation to be paid to producers through the direct payment system. The over compensation referred to in the report of the European Court of Auditors relates to the level of compensation provided for in the reform for the cuts in institutional prices relative to developments in actual market prices following the reform. There is no reference in that report to the amounts referred to by the Deputy and I am not aware of the source of that information. The Court of Auditors has not suggested that the over compensation has resulted from inadequate procedures or controls on the payment.
As far as the cereals sector is concerned, it is true that prices on world and EU markets remained buoyant after 1992, particularly in 1995 and 1996, due mainly to weather induced shortages and depletion of world stocks. However, EU prices have fallen below pre CAP reform levels and this is evidenced by an increase in consumption of cereals in animal feed of at least ten million tonnes up to 1996, and a reduction in intervention stocks from 33 million tonnes to less than two million tonnes in June 1997.