Vol. 485 No. 4
43 Mrs. B. Moynihan-Cronin asked the Minister for Agriculture and Food the contingency plans, if any, his Department has made to address the projected loss of premium payments to all farmers in the event of Ireland's application for the special beef premium exceeding the temporarily reduced quota for 1997; and if he will make a statement on the matter. [23360/97]
Following the BSE crisis in 1996 a number of measures were agreed at EU level to correct the imbalance between production and consumption in the beef market. One of the measures agreed by the Council of Agriculture Ministers in October 1996 involved a temporary reduction in the special beef premium quota, in order to eliminate an incentive to increase cattle numbers. The national ceiling in Ireland was reduced from 1,286,521 premium rights to 1,002,458 rights. The reduction applies for 1997 and 1998.
While final figures on the number of valid applications for the 1997 special beef premium are not yet available, it is likely that, on the basis of current estimates, the national ceiling will be exceeded by about 10 per cent. EU Regulations provide for a pro rata reduction in payments to be made across all eligible animals in proportion to the level of overshoot of the national quota.
There are no provisions in the EU regulations governing the scheme for member states to compensate for any loss of premium payments in the event of the national quota being exceeded.
