Concern on detail of CAP reform

The Minister for Agriculture, Mr Walsh, said the Government did not have a problem with the overall thrust of EU CAP reform but was concerned that in its detailed provisions Agenda 2000 might not achieve the desired objective of balance in the market.

The Commission is proposing to bring farm prices down to world market levels while compensating farmers with increases in direct "cheque in the post" payments.

Mr Walsh was in Brussels yesterday for a meeting of EU farm ministers at which they gave their initial reactions to the proposals announced last week by the Commission. Mr Walsh insisted that there was now up to 1 1/2 years to tailor the programme to meet specific Irish needs and he was determined to "get the best possible deal for Ireland".

Responding to specific elements of the package, Mr Walsh told journalists there was concern to ensure that farmers would be fully compensated for proposed price cuts; that there would be "equity" in the distribution of funds; and that consumers would genuinely benefit from the price reductions.

He welcomed proposals to give national governments a greater say in distribution of the compensation payments but insisted that should mean "national discretion without losing national envelopes".

Mr Walsh said the Department had established an expert group on "equity" in the payments system and had started discussions with the Department of Consumer Affairs with a view to ensuring price cuts were passed on.

The president of the Irish Farmers' Association, Mr John Donnelly, said farmers' chief concern was that they would not receive full compensation from the EU for price cuts. But they were also worried that they would be increasingly forced to produce beef for a market that would be paying below the real costs of production. They did not want to become totally dependent on the "cheque in the post".

Mr Donnelly also expressed concern at Agenda 2000's ambiguity on capping of payments.

The Minister also met the Agriculture Commissioner, Mr Franz Fischler, who assured him he would look at delays in paying some £17 million in agrimonetary compensation due to Ireland since the end of March.

Mr Walsh reiterated Irish concerns that the present intervention price system had the effect of dragging market prices down and argued that the system could be changed satisfactorily without increasing the volume taken into intervention.