A financial package which may resolve the head-age issue will be put to a Cabinet meeting today. The Dublin offices of the EU Commission have been occupied by farmers since Wednesday in the dispute. The Minister for Agriculture, Mr Walsh, whose officials were in hourly contact with Commission officials yesterday, is understood to have agreed a package for Government approval.
The Department has also been in close contact with leading officials of the Irish Farmers' Association over losses farmers face when the payments system is changed from a livestock to an acreage base.
Over the weekend, the IFA suggested it would be content if the package for the scheme, which is worth £120 million, was increased to a point whereby those who would lose out would receive what they had been getting under the old scheme.
However, this would greatly increase the cost of the scheme, making the plan more likely to be rejected by the Commission despite the fact the Government is prepared to increase its percentage of the payment.
Up to now, the Government has provided 35 per cent of the payment and the EU the remaining 65 per cent. It also earlier offered a £20 million payment to farmers who will lose out under the new system.
The protesters in the EU offices decided yesterday to continue their protest.