There is not at this stage any EU Commission proposal to introduce a fixed ewe premium. This suggestion was included in a consultant's report to the Commission as one of a number of possible amendments to the EU sheepmeat regime. The Commission's response to this report in the form of formal proposals is still awaited, although it is expected shortly.
While a fixed premium has some advantages over a variable premium, particularly in that it provides a greater degree of certainty to producers about the level of the premium, it has the significant disadvantage that, unlike a variable premium, it is not increased when prices fall. In view of this, in the event that the Commission comes forward with a proposal for a fixed premium, I will seek to have the premium fixed at a significantly higher level than that which has obtained in recent years.