No milk quota rise proposed for Irish farmers

THE refusal of a milk production quota increase for Ireland was among the reasons cited by the Minister for Agriculture, Mr Walsh, for his deep disappointment at the EU compromise proposals.

The German presidency of the Council of Ministers proposed milk quota increases for Greece, Italy and Spain, but not Ireland. The compromise paper suggests consideration of a 10 per cent price cut, instead of 15 per cent proposed in the beginning by the Commission.

Following a day of further bilateral meetings, ministers were to convene at 2 a.m. for plenary negotiations that are expected to run right through the morning, in an attempt to contribute at least a partial agreement to special summit discussions on the Agenda 2000 EU financing proposals in Bonn today.

The president of the IFA, Mr Tom Parlon, said after a meeting with Mr Walsh he was disappointed at the Irish failure to secure recognition of vital national interests. Virtually every other country had received packages tailored to their particular needs. He called on the Taoiseach, Mr Ahern, to refute the EU-held view that Ireland had done well out of the 1992 reforms. The president of the ICMSA, Mr Frank Allen, said the latest dairy and beef proposals were completely unacceptable.

The Minister was most critical of the German presidency's failure to recognise Ireland's case for an increase in its milk quota and insisted that the 1984 commitment recognising the special dependence of Irish farmers and the overall economy on milk production should be honoured.

However, Mr Walsh welcomed some improvement from Ireland's point of view in that the German proposal eases the price cuts in the beef and milk sectors, though compensation to farmers will still be partial. Observers say the presidency's latest compromise packages are still a long way from brokering an agreement and note it has yet to table any proposals on the deeply controversial issue of how budget cuts will be paid for.

Although the meeting had originally been due to end today, it is understood that interpreters have now been booked by the Germans until Monday, suggesting behind-the-scenes plans for a longer sitting of the Council of Ministers. The new German compromise paper suggests cutting beef guarantee prices by 25 per cent, instead of the 30 per cent proposed by the Commission, and increases the suckler cow quota in line with Irish concerns. The proposal would restore a previously cut quota for the suckler cow premium.

But Irish officials were disappointed it did not go farther on prices and that it leaves unchanged both a very low safety net intervention price and a triggering mechanism that is not automatic and requires a decision of ministers.

Low compensation in the form of the male beef premium and suckler cow premium are left unchanged.

Payments for extensive grass-based production are still based on a lower density limit of 1.8 animals per hectare, rather than the density of two animals favoured by Ireland.

On cereals, rates of 10 per cent set-aside for 2000-2002 and 0 per cent for 2002-2003 are suggested.

While Irish farmers may be able to benefit from the new eligibility of grass silage for arable aid payments, the paper appears to negate this advantage by making such acreage subject to the current overall cereals quota. The Minister was last night seeking clarification.