Six EU states insist on higher compensation for BSE losses

AT least six member states have said they will fight for a substantial increase in the level of compensation the EU is proposing to pay farmers to cover losses over the BSE crisis.

Denouncing the Commission's £580 million package as grossly inadequate, the Minister for Agriculture, Mr Yates, called on fellow farm ministers to back a package of at least £800 million.

However, a Commission spokesman said the money was "simply not there" and that member states would have to supplement the Commission funding with nationally funded programmes. The issue comes up for vote at a farm ministers' meeting on June 23rd.

The row erupted yesterday morning at the Agriculture Council after the late night vote on lifting the export ban on British tallow, gelatin and semen.

The failure to win a qualified majority vote on the issue will not stop the Commission exercising its right today to lift the ban. But yesterday many diplomats were warning that the difficulties encountered did not bode well for further discussions on a framework for lifting the overall ban.

The Agriculture Commissioner, Mr Franz Fischler, yesterday promised to put the issue on today's agenda although formal approval should technically wait until Sunday.

Mr Yates's demand for more than the £580 million Commission support found a ready echo round the table with Germany, France, Spain, Austria and Belgium also demanding more. Mr Yates's pitch for £800 million would raise the cash available for Irish farmers to around £80 million from the currently proposed £57 million.

But even that scale of an increase was denounced here as inadequate by the Irish Farmers Association president, Mr John Donnelly, who put Irish price losses at 15 per cent across the whole sector, or £260 million for the year.

Mr Yates disputes the IFA figures, putting BSE linked losses at closer to 8 per cent and warning that any losses incurred before the BSE scare broke cannot be compensated for. "We cannot refight old battles on GATT and CAP reforms," he said.

He strongly opposed Commission suggestions that member states should come up with additional cash themselves, warning that this would discriminate against the poorer states.

Mr Yates said he would be meeting the British Minister, Mr Douglas Hogg, on July 3rd, and was expecting the Dutch, German and French ministers in Dublin at the end of June for consultations on the EU presidency.

Mr Fischler also refused to be drawn on his views on the long awaited British BSE eradication programme, which was put before ministers on Monday.