Dáil Éireann díospóireacht -
Thursday, 2 Dec 1999

Vol. 512 No. 2

Written Answers. - Sheep Sector.

Ivan Yates

Ceist:

105 Mr. Yates asked the Minister for Agriculture, Food and Rural Development the progress, if any, he is making with the EU Commission and the Council of Ministers in relation to obtaining extensification premium payments for sheep producers; and if he will give details of his proposals and requests to the Commission in this regard. [25713/99]

Ivan Yates

Ceist:

106 Mr. Yates asked the Minister for Agriculture, Food and Rural Development the assessment, if any, his Department carried out on the relative position of Irish sheep farmers to their EU counterparts in each member state in relation to the average price for sheepmeat payable to farmers and the ewe premium income; the proposals, if any, he has put forward to review or alter the method of calculation of ewe premium; if his Department is seeking an extension of the rural world payment to non-disadvantaged areas in view of the income crisis in the sheep sector; and if he will make a statement on the matter. [25714/99]

Minister for Agriculture, Food and Rural Development (Mr. Walsh)

I propose to take Questions Nos. 105 and 106 together.

An analysis carried out by my Department shows that prices paid to sheep producers in Ireland tends to be among the lowest in the EU. It is also clear that a single EU wide premium fails to reflect the disparity in prices and therefore, even allowing for differences between production systems and meat yields in member states, does not support the income of producers in an equitable manner throughout the Union.

I have on a number of occasions pointed out to the EU Commission both within the Council of Ministers and in bilateral discussions the deficiencies in the sheepmeat regime in this respect raised the matter most recently at the November Agriculture Council. I have outlined the serious income situation facing sheep producers and the failure of the ewe premium system to properly compensate Irish producers because of the lack of convergence of prices across the European Union. In particular, I have requested the Commissioner to take urgent action to address these issues, including by way of the temporary suspension of the stabiliser or through the payment of a supplementary premium in member states where prices are significantly below the EU average. Apart from the United Kingdom, there is no support from other member states. As far as the extensification premium is concerned, I have also raised this matter with the Commission on a number of occasions in recent years.

Commissioner Fischler has indicated that he intends to review the current sheepmeat regime next year. The direction and focus of that review will be highly significant.

Finally I wish to point out that a total of £130 million will be paid to Irish sheep producers in EU premia and headage payments in 1999.