Commission backs plan to stabilise beef market

THE European Commission yesterday approved a package of urgent proposals from the Farm Commissioner, Mr Franz Fischler, to rebalance the beef market in the wake of the BSE crisis. Farm ministers are due to meet next week to discuss the measures.

The Commission also confirmed that the huge cost of stabilising the market would have to be met out of the Union's agriculture budget. Mr Fischler warned that every 100,000 tonnes of intervention costs the Union £160 million.

The new measures, largely signalled in advance by the commissioner, include a major extension of provision for intervention in the beef and veal market this year and next. This will raise limits set to 600,000 tonnes and allow intervention for animals of eight to nine months of age.

The Commission will also be proposing that the current calf slaughter premium scheme at present applied on a voluntary basis, be made compulsory in all the member states. There will also be proposals to encourage extensification" of beef farming the production of fewer animals per acre.

Likely to be particularly controversial in Ireland is Mr Fischler's unelaborated commitment to cut the eligibility for the male beef premium. Mr Fischler said the animals which will constitute next and subsequent years' glut in the market are already grazing the fields.

Urgent measures are needed now to ensure the levels of intervention next year do not run into unprecedented figures.

Earlier intervention and the slaughter of calves are crucial, Mr Fischler argues, as intervention stocks will not be able to be sold on to the world market because of GATT rules, and there is little prospect of restoring internal EU demand to its pre-BSE levels.

Mr Fischler will also be proposing measures to enhance consumer confidence in the market with a labelling directive in the pipeline and proposals for a promotional campaign.

The commissioner said he would be urgently seeking Parliament's support for the proposals, as any delay in their implementation would exacerbate the problems.

Meanwhile, MEPs are today to establish a 17 member committee of inquiry into "alleged contravention or maladministration in the implementation of Community law in relation to BSE." The committee is due to report to Parliament within three months.