Vol. 502 No. 6
166 Mr. D. Moynihan asked the Minister for Agriculture and Food when the measures negotiated in the Agenda 2000 CAP reform deal for the Irish dairy sector will become effective; their benefits in this regard; and if he will make a statement on the matter. [9113/99]
The Agenda 2000 agreement on milk provides for the continuation of the quota system for the period up to 2006. It also provides for a 15 per cent price reduction along with compensation to producers to commence from 2005.
Each member state will receive a quota increase. For most of these member states there will be a 1.5 per cent increase commencing in 2005. In Ireland's case, a specific allocation of 2.86 per cent additional quota – 150,000 tonnes or 32 million gallons – was agreed. Two thirds of this will be available with effect from 1 April 2000, with the balance available from 1 April 2001.
Thus, while the overall agreement to extend quotas and delay the price reduction will provide a price stable environment for Irish producers for that period, the special quota allocation negotiated for Ireland is of particular benefit. This is not only because it is almost twice the increase allocated to most other member states but also because it begins to become available for use by Ireland four years before the imposition of any price reduction.
167 Mr. D. Moynihan asked the Minister for Agriculture and Food the changes, if any, negotiated in the Agenda 2000 CAP reform deal in the rules governing extensification payments for livestock; the way in which they compare with the original proposals; when they will become effective; and if he will make a statement on the matter. [9114/99]
Under the current arrangements, the extensification premium is payable on male cattle and suckler cows at a rate of £43.13 per head at stocking rates of less than 1.0 lu/ha and £30.06 per head at a stocking rate of between 1.0 and 1.4 lu/ha. Stocking density is calculated on the basis of (a) all forage area available to a producer and (b) the number of male cattle and suckler cows submitted for premium payments, the number of ewes submitted for the ewe premium and the number of dairy cows used to fill the milk quota held by the producer.
The Commission's proposals under Agenda 2000 provided for (i) the restriction of forage to grazed pasture; (ii) all cattle over six months on the holding and ewes submitted for the ewe premium to be counted in the calculation of stocking density and (iii) the replacement of the two tier premium system by a single premium of £78.76 per head payable on farms with a stocking density of less than 1.4 lu/ha.
Under the final agreement on Agenda 2000, the Commission proposals were amended as follows: all grassland can be included in the definition of forage and member states will have the option of implementing the original Commission proposal as at (iii) above or the following arrangement:
2000/2001: premium of £52 per head where the stocking density is below 1.6 lu/ha; premium of £26 per head where the stocking density is between 1.6 and 2.0 lu/ha.
From 2002: a premium of £63 per head where the stocking density is below 1.4 lu/ha; a premium of £31.5 per head where the stocking density is between 1.4 and 1.8 lu/ha.
The original Commission proposals would have excluded approximately 35 per cent of existing beneficiaries from the premium. I am satisfied that the arrangements which I negotiated will ensure that the vast majority of these producers will retain eligibility for the premium.
168 Mr. D. Moynihan asked the Minister for Agriculture and Food if his Department has quantified the benefits to producers and consumers following his successful negotiation of the Agenda 2000 CAP reform deal; and if he will make a statement on the matter. [9115/99]
My Department estimates that the original Commission proposals – March 1998 – would have cost Irish farmers up to £233 million in the first year after all the changes were phased in by year 2003 and that the total cost to farmers would have been £1,386 million over the seven year period 2000 to 2006.
169 Mr. D. Moynihan asked the Minister for Agriculture and Food the way in which the range of measures negotiated in the Agenda 2000 CAP reform deal for Irish cattle and beef producers compare in value terms with the original proaposals; when the additional supports will become effective; and if he will make a statement on the matter. [9116/99]
The original Commission proposals for reform of the beef regime in the context of Agenda 2000 would have represented an annual loss of some £150 million for Irish producers post-2002 when the measures became fully effective. This estimate was based on the assumption that cattle prices would fall by the full amount of the reduction in support prices. Based on the same assumption, the value of the beef package which I negotiated on 11 March is estimated to be worth approximately £52 million per annum to Irish cattle producers post 2002, falling to £42 million from 2006 when the FEOGA funded supplementary suckler cow premium will no longer be payable in regions in transition from Objective One.
With regard to implementation of the measures, the reduction in prices will be phased in over three years, beginning on 1 July 2000. The safety net intervention arrangements will apply from 1 July 2002. The increases in the premia and the new slaughter premium and the national envelope will also be phased in over three years, beginning on 1 January 2000.
I am satisfied that the major improvements which I secured in the course of the negotiations will be of major benefit to Irish producers both in terms of compensation for the reduction in prices and in protecting the premia structure suited to Irish conditions and the production base which has been built up since 1992.
