Vol. 573 No. 3
210 Mr. Ring asked the Minister for Agriculture and Food the effects the recent Fischler Proposals will have on the three dairy co-ops in the west of Ireland (details supplied); if it is likely that these co-ops will have to close down; and his proposals to try and protect these co-ops. [24781/03]
The recently agreed outcome of the mid-term review of the Common Agricultural Policy contained a number of elements of direct relevance to the dairy sector. These include: the con tinuation of the milk quota regime until 2014-15; further reduction in support prices of 4% over and above that agreed in 1999 under Agenda 2000, with compensation at the rate of 80% for that additional reduction; payment of aid directly to producers by way of compensation for the support price cuts agreed under Agenda 2000 and the mid-term review – the reduction in support prices and the payment of compensation to begin in 2004.
Following agreement at EU level on this, I subsequently announced my decision to decouple the dairy direct payment in 2005, the earliest date on which that could be done. This will provide dairy farmers with the necessary certainty they require to allow them to take informed decisions on their futures in the industry. I made this decision having taken careful account of the views of representatives of the industry.
Overall the outcome of this mid-term review in the milk sector provides producers and processors with a more certain framework for the period ahead. The continuation of the milk quota regime to 2014-15 will provide a stable environment within which they can plan for the future. The future of individual companies and entities operating in the dairy sector depends on a range of factors relating to their performance in the commercial environment in which they operate. There is no evidence to suggest that the outcome of the mid-term review negotiations will undermine the ability of the co-operatives mentioned to continue their operations into the future or indeed to further develop their enterprises.
211 Mr. Ring asked the Minister for Agriculture and Food if there were exemptions secured for areas within Objective One regions or for any country in the EU in relation to the recent Fischler CAP proposals; and if the individual Governments in the EU are introducing exemptions for these areas. [24782/03]
212 Mr. Ring asked the Minister for Agriculture and Food if there was an exemption or a special deal secured for the Objective One region in the recent Fischler CAP proposals; and if the Government will introduce exemptions for farmers in the Objective One region. [24783/03]
I propose to take Questions Nos. 211 and 212 together.
The mid-term review of the Common Agricultural Policy had a number of main elements. These included decoupling of direct payments from production, within a range of different options, the introduction of modulation and reforms in the milk and cereals sectors. The classification of countries and regions for Structural Funds purposes was not, however, involved. The issue of exemptions or special deals for Objective One regions did not, therefore, arise.
