Brendan Smith (Cavan-Monaghan, Fianna Fail)

On the French Presidency's optimism or expectations on when the health check should be completed, there was an Agriculture and Fisheries Council on Monday and Tuesday of this week. The next meeting is on 18 and 19 of November and we have pencilled in another day for the end of November, around the last Friday of November. From speaking to other member states and the French Presidency, their expectation is that very substantial progress will be achieved by 19 November. We have all been advised for some time of the expectation of another council meeting before the end of November should the health check discussions not be finalised on 19 November. Earlier in the week we had our second trilateral meeting with Commissioner Mariann Fischer Boel and with the Presidency, as have all other member states. The first meeting took place a few weeks earlier. We clearly outlined our total opposition to the proposals contained in the Commission papers for a very serious rise in modulation rates. We have consistently outlined our position, both in the Council of Ministers at the full plenary meetings and in our trilateral discussions.

In discussions officials of my Department and I have had with the dairy industry, processors and farming organisations, the views of the farming organisations diverge on the need for additional milk quota. Unfortunately, demand for daily products in Europe has decreased, which has resulted in lower prices for farmers. That has arisen due to increased exports from the US and New Zealand. Another ingredient in the decreasing prices has been currency fluctuations. I believe, and we have argued strongly with the Commission, that Ireland has the capacity to use additional milk quota. The processors and the dairy industry, apart from the dairy farmers, are——

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