I am aware of the statement to which the Deputy refers. I am acutely conscious of the difficulties that have arisen, particularly in the dairy markets over the past number of months, as a result of a weakening in international demand, and have taken immediate action to address the situation.
Specifically in the dairy sector, I have pressed the EU Commission continuously for decisive action utilising all the market mechanisms available at EU level to stimulate demand. In the past month I have exerted particularly strong pressure on the Commission and I have put a range of proposals to Commissioner Fischler. These included the need to adopt a more aggressive export refunds policy, to prolong intervention for skim milk powder and to encourage greater utilisation of internal supports. I am pleased that the Commission has responded to my proposals by increasing export refunds for cheese by 15%, further increasing SMP and whole milk powder export refunds by 10% and 5% respectively, increasing aid for the manufacture of casein by 52% and agreeing to continue intervention for SMP in excess of the threshold of 109,000 tonnes by means of a tendering system. In relation to this tendering mechanism, I have asked the Commission to ensure that it is used to ensure maximum stability for the skim market on an ongoing basis.
These initiatives, taken in the last few weeks, follow a number of actions taken at EU level since the current market deterioration became evident last November:
Export refunds for skim and whole milk powder were increased on five separate occasions, and together with the latest increase now stand at €715 and €1078 per tonne respectively;
Export refunds for butter were increased twice to their current level of €1750 per tonne; and private storage aid was introduced for both butter and cheese.
In addition, the main internal support measures such as aids for the use of butter in the ice cream and pastry sector and aid for the use of skim powder in animal feed continue to take up significant quantities.
I will continue to closely monitor the market for dairy products in order to ensure that every possible action is taken at community level to stimulate demand so as to safeguard the position of the processing industry and to protect the incomes of dairy farmers.