A Presidency compromise on reform of the sheepmeat regime was adopted by a majority vote at a meeting of the Council of Agriculture Ministers on 19 December 2001. The final compromise submitted by the Presidency provided for a basic premium of €21 per ewe to be supplemented by a national envelope equivalent to €1.22 approximately per ewe for all producers. In addition, the compromise included a supplementary premium of €7 per ewe for producers in disadvantaged areas. In other words, there is a total of €29 for sheep farmers in disadvantaged areas.
I saw the proposed reform as giving an opportunity both to redress some of the problems which we have had with the sheepmeat regime over the years and to place the industry on a sound footing for the future. Sheep production falls very much within the European model of agriculture in view of its extensive nature and land use requirements. I made a strong case in the negotiations for the premium to be fixed at a level which ensures that sheepmeat remains a viable farm enterprise.
The outcome, while not as much as we would like, is reasonable. It provides permanency in the premium, in other words, a fixed premium, and the premium is double the amount paid last year. In addition, sheep farmers and the sheepmeat industry had a record year last year and I hope that situation will continue into the future.