Irish protest at cut in beef export refunds

IRELAND yesterday lodged a protest with the EU's Farm Council at the decision of the Commission to reduce export refunds for …

IRELAND yesterday lodged a protest with the EU's Farm Council at the decision of the Commission to reduce export refunds for beef. But sources inside the Commission say the move is unlikely to have any effect, as the demand for export licences remains at a level far above that provided for in the GATT agreement.

In the absence of the Minister for Agriculture, Mr Yates, who is ill, the Irish case was made by the Secretary of the Department, Mr Michael Dowling. The issue was up for discussion but not decision.

The cut in refunds affects Irish producers particularly badly because of their heavy reliance on the market in non EU third countries, worth some £400 million a year.

The IFA renewed its call for the Government to intensify efforts on the issue. Its president, Mr John Donnelly, told journalists that the key problem was to get a floor price.

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Beef was now selling at 86-88p a lb, but farmers needed at least 90p to break even, he said. The combination of the cut in export refunds and the revaluation of the green pound would cost the farming community up to £120 million.

Nuala Haughey add: The Irish Cattle Traders and Stockowners' Association called for a "radical overhaul" of the EU support systems for beef producers. The 10 per cent cut in export refunds showed a "complete lack of understanding" by the EU.

Patrick Smyth

Patrick Smyth

Patrick Smyth is former Europe editor of The Irish Times