The main farm organisations last night backed the rejection by the Minister for Agriculture, Mr Walsh, of a compromise document put forward in an attempt to reach agreement in the CAP reform negotiations in Luxembourg.
A document put forward by the Greek presidency of the Council of Ministers only made "minimial changes" to the Fischler proposals, said Mr Walsh before attending tripartite talks with the Agriculture Commissioner, Dr Franz Fischler, and Greek officials which were scheduled to continue until midnight.
"This does nothing to address the concerns already expressed about Dr Fischler's proposals," he said.
"We want substantial changes to the original proposals made by Dr Fischler."
He said he thought the compromise paper was an attempt to find the limits of those who were opposed to the reforms and he expected a second compromise document before the end of the week.
However, Mr Walsh said he was still prepared to do business in Luxembourg "if a proper compromise document is put forward".
The Greek document made no mention of the kernel of Fischler reforms, decoupling, which involves breaking the link between farm production and direct payments. These would be replaced by a one-off annual payment based on payments made in the years 2000-2002.
However, it did propose that there should be no additional milk quota created and held out the possibility of redistributing direct payments within regions.
The Irish Farmers Association president, Mr John Dillon, speaking in Luxembourg, rejected "this latest twist in the Fischler proposals".
He warned that the proposals were a slippery slope to re-nationalisation of the CAP, which would lead to major conflict between member-states. Any attempt at partial decoupling would have to be resisted.
Mr Pat O'Rourke, president of the ICMSA, said Ireland must not accept the compromise proposals and that Mr Walsh would have the full support of Irish farmers and the agri-sector in saying no to this compromise document.
"I am convinced that a better deal for Irish farmers can and must be achieved, even if this issue has to go to the heads of government meeting in Greece in 10 days' time," said Mr O'Rourke.
"While the compromise paper provides for some changes to the original Fischler package, the unacceptable cuts in the dairy sector and the losses in the calf and weanling sector in Ireland, are still part of the proposals. This is absolutely unacceptable," concluded Mr O'Rourke.
The president of Macra na Feirme, Mr Thomas Honner, said while there were some positive elements in the compromise paper, he found it difficult to see how they could form a basis for any agreement.
Before the negotiations began, Dr Fischler signalled that the substance of his original proposals must remain in place.
"This means it is not possible to come to a conclusion without decoupling. The critical member-states are moving.
"To me this seems to be the most important thing, they are moving on technical issues but also on the substance," he told reporters.
The talks are expected to continue through to the weekend.