Michael D Higgins (Galway West, Labour)
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Question 125: To ask the Minister for Agriculture and Food if she will make a statement on the outcome of her meeting on 23 June 2005 with the EU Commissioner for Agriculture and Rural Development, Ms Fisher Boel, regarding the EU sugar regime, the overshoot of the special beef premium and the management of the dairy market; and if she will make a statement on the matter. [26451/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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I met the EU Commissioner for Agriculture and Rural Development, Ms Fisher Boel, in Ireland last June to discuss the Commission proposals on the reform of the sugar regime, the overshoot of the special beef premium and the management of the dairy market.

As regards sugar, I emphasised my total opposition to the Commission proposals, which had been published just prior to the Commissioner's visit. I explained in detail the adverse impact these proposals would have on sugar production in Ireland. In response, the Commissioner explained the rationale behind the proposals. Both sides accepted that the proposals would be subject to difficult negotiations in the Council of Agriculture Ministers in the months ahead. I restated my position subsequently at the Council in July and am endeavouring, in co-operation with like-minded member states, to seek a more balanced outcome, which will take Irish interests into account.

I had previously been in contact with the Commissioner on the special beef premium overshoot, and at the meeting in June, we reviewed the ongoing technical discussions. The Commissioner expressed her understanding of the problem and subsequently responded positively, allowing me to announce a special payment package. Taken in conjunction with the Exchequer funding, which is the subject of a supplementary estimate, the package is worth approximately €17.5 million.

The concession agreed by the Commissioner only addressed the position of the second age category, as she was adamant that no concession was possible in the first age and bull category in light of the legally binding ceiling of 1,077,458 animals. However, the final outcome means that payments under the 2004 special beef premium scheme will amount to almost €340 million, compared to €290 million paid under the 2003 scheme.

I also used the opportunity to emphasise my serious concerns about the Commission's management of the milk market and called for careful consideration of the effect of these management decisions on the competitiveness of the dairy industry. I particularly disputed the extent to which these adjustments were warranted, arguing that downward pressure on institutional supports limits the sector's ability to fully exploit opportunities to export milk products to international markets, and reduces the returns available to farmers.

I will continue to urge the Commissioner to use all the market management tools at her disposal to provide the stability that the dairy sector now requires to consolidate its competitiveness and future investment capacity and, particularly, to maintain and expand international market share.