Brian O'Shea
Ceist:451 Mr. O’Shea asked the Minister for Agriculture and Food the action she proposes to take to ensure that the EU dairy support budget is at least maintained at the present level of €2.4 billion. [21133/05]
Amharc ar fhreagraTuesday, 21 June 2005
Ceisteanna (431, 432, 433)
Bernard J. Durkan
Ceist:456 Mr. Durkan asked the Minister for Agriculture and Food if an adequate EU dairy market support budget will be maintained; if she will commit herself to setting sustainable dairy produce prices which will return adequate profitability in dairying; if she can or will prevent concessions at WTO which will weaken market supports, thus reducing export opportunities; and if she will make a statement on the matter. [21313/05]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 451 and 456 together.
The EU preliminary draft budget for 2006 in respect of milk and milk products is currently under negotiation and I have signalled my disquiet on the level of funding proposed for the sector.
I am anxious the dairy sector is provided with sufficient resources to ensure adequate support in meeting both internal and external market challenges. The draft budget reflects the Commission view on how the market is likely to perform and the consequent demands for export subsidies in the market and the level of product aids required under the disposal schemes currently available.
In this regard I have strenuously opposed recent reductions in dairy processing aids and export subsidies proposed by the Commission, which have resulted in lower spending on the budget for milk and milk products. These EU market management measures are essential components in enabling the dairy industry compete on world markets. In my contacts with the Commissioner and during the Council discussion on 30 May I emphasised that unless these supports were viewed in a market rather than a budget context, they would be less effective in meeting their commercial objectives and would prevent EU processors and exporters from availing of current opportunities on the world market.
Stability in the current period is essential so that the industry is in a position to consolidate its international market share, develop its product portfolio and respond to further trade liberalisation under the next WTO round. I am committed to the maintenance of the range of market measures currently available so that the EU dairy sector is fully equipped to export surplus dairy products in the more competitive world market that will emerge after the Doha round is finalised.
Question No. 452 answered with QuestionNo. 444.
Brian O'Shea
Ceist:453 Mr. O’Shea asked the Minister for Agriculture and Food the action she proposes to take to prevent concessions at WTO which will weaken dairy market supports, thus reducing export opportunities; and if she will make a statement on the matter. [21135/05]
Amharc ar fhreagraAgreement was reached in August 2004 on a framework which sets out the overall outline and structure of the next World Trade Organisation agreement. The detailed implementation of the framework agreement is the subject of on-going negotiation at technical and political level with the aim of concluding an agreement at the WTO ministerial conference in December 2005.
I am satisfied that the framework agreement secured the benefits to Irish farmers of the mid-term review of the Common Agricultural Policy insofar as the EU's internal market supports are concerned. My priorities for the further negotiations are to ensure that: the arrangements for the liberalisation of market access will protect the interests of Irish producers and processors on domestic and EU markets; the phasing out of all forms of export subsidies will be applied in parallel, as provided for under the framework agreement, thereby ensuring equal competition for all exporters on the world market; and the phasing out period for export subsidies will be as long as possible to allow Irish producers and exporters time to adjust.
My overriding objective will be to ensure that the terms of a new agreement can be accommodated without the need for further reform of the Common Agricultural Policy.