Dáil Éireann díospóireacht -
Wednesday, 28 Apr 1999

Vol. 503 No. 7

Written Answers. - Pigmeat Sector.

Willie Penrose

Ceist:

79 Mr. Penrose asked the Minister for Agriculture and Food if his attention has been drawn to the fact that the French Government has provided a special aid package worth £16.6 million for pigmeat producers; the plans, if any, he has to introduce a similar aid package; the circumstances under which this aid can be given in view of the Government's refusal to grant any aid to pigmeat producers; and if he will make a statement on the matter. [11078/99]

Minister for Agriculture and Food (Mr. Walsh)

The criteria under which member states may pay state aid are set down in article 92 of the EU Treaty. In general terms, any aid granted by a member state or through State resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods shall, in so far as it affects trade between member states, be incompatible with the common market.

Member states wishing to introduce state aid are obliged to notify the EU Commission beforehand.

I am aware that France has recently announced a package of aid for pig producers there, but I understand the package has not begun operating, nor has the EU Commission been officially notified by the French authorities.

However, I have taken a range of actions to help the pig sector. With regard to export refunds, I have, along with my colleagues from other member states, secured substantial increases from the EU on four occasions since last May. In February of this year I followed this up by securing a further increase, when refunds for certain processed products for Russia were enhanced by 47 per cent to 80 per cent. These increases have been, and will continue to be, of help to the market.

I was also successful in gaining agreement from the EU Commission for the introduction of a scheme of aids to private storage, under which EU funding is provided for the storage of pigmeat for a maximum period of six months. The scheme is still running and to date over 285,000 tonnes of pigmeat have been taken off the Community market temporarily. Ireland has 2,036 tonnes of pigmeat in storage under this scheme. This is a positive contribution towards improving the market.

At the end of last year the Council of Ministers decided on a food-aid package for Russia, which includes 100,000 tonnes of pigmeat. This package, when concluded, will have a positive effect on the market.

Pigmeat prices have risen by 3 per cent since the beginning of the year and I am hopeful that this trend can be continued.

An Bord Bia launched an extensive promotional campaign for bacon earlier this year. This campaign was aimed at the consumer who was encouraged to buy quality assured bacon. This helped sales, thus improving the market.

I will continue to press the Commission to utilise the instruments available under the common organisation of the market i.e. export refunds and aids to private storage, to the maximum extent possible. I have the support of a considerable number of member states in this approach.