EU to endorse £520m package to farmers for compensation over BSE losses

THE European Commission is set today to endorse a £520 million package in compensation payments to farmers for losses due to the BSE crisis. The package is worth £40 million to Irish producers.

The Commission will propose a once off increase in the suckler premium by £24 a head and the special beef premium by £20. Because the payments are being made to all beef producers at a flat rate, the package will be of particular advantage to those less affected.

Last night the IFA, which has been seeking specially targeted measures, expressed reservations about the approach.

Across the EU beef prices have fallen by about 5 per cent since the crisis broke. And while in some countries there have also been sharp falls in consumption, in Ireland the price fall has been more dramatic.

The IFA's Brussels representative, Mr Michael Treacy, said it was essential the EU came up with full compensation for winter beef finishers. The Commission funding came nowhere near what was required.

Industry sources put the losses to Irish winter finishers at £60 million.

Mr Treacy added that any short term measures would have to be supplemented by longer term approaches to restore the market by reviving consumption and getting European beef back into third country markets.

Commission sources said the cost of the package would be met from the budget for 1996.

Today the EU's Standing Veterinary Committee will discuss the recommendations of the Commission's scientists in favour of lifting the export ban on tallow, gelatin and semen. With the British expressing confidence that the French will back the decision, a favourable outcome now looks more likely.

The vote by the member states' chief veterinary officers is under the qualified majority system a blocking minority can be put together by France, Germany and Spain. On Monday the Tanaiste, Mr Spring, confirmed that Ireland would back the partial lifting of the ban.

If the Standing Veterinary Committee backs the move, the Commission will be able to lift the ban as soon as Britain has put new controls in place.