EU €11m to dairying 'just a drop in ocean'

PLANS TO provide €11 million in EU funding to Irish dairy farmers to help deal with the crisis caused by the slump in milk prices is “more symbolic than significant”, Fine Gael MEP Mairead McGuinness has said.

Speaking in a debate on the dairy sector at the European Parliament in Strasbourg yesterday, Ms McGuinness said it was not clear at this stage how the money would be allocated.

Her comments came after the EU agriculture commissioner Mariann Fischer Boel announced an extra €280 million for dairy farmers across the European Union at a meeting of farm ministers in Luxembourg earlier this week.

Under the scheme, Ireland would be expected to receive 4 per cent of the allocation – €11 million.

If divided evenly among the 18,000 Irish dairy farmers, the allocation would see them receive just over €600 each.

The money will require approval by EU finance ministers and the European Parliament and it is being taken from next year’s budget.

Ms McGuinness said the allocation was “a drop in the ocean”.

“The commissioner has stated that the money should benefit dairy farmers directly, but it is not clear at this stage how the money will be allocated,” she said.

“Clearly dividing the money among all producers would amount to very little if allocated equally to all 18,000 dairy farmers.”

She said that last season all dairy farmers lost money and the €11 million would not recoup their loses.

Ms McGuinness also warned the €280 million allocated to dairying left little room for manoeuvre should there be problems in other sectors of agriculture in 2010.

“This is a concern. The commission says there is no money available, yet we do not know what future needs will be,” she said.

“At a time when the EU is concerned about food security, we need to have a budget that guarantees that food security needs are met.”