Jerry Cowley (Mayo, Independent)
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Question 452: To ask the Minister for Agriculture and Food if she will seek support from fellow Ministers in the Agriculture Council for a review of the 2006 dairy budget (details supplied); and if she will make a statement on the matter. [31711/05]

Jerry Cowley (Mayo, Independent)
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Question 460: To ask the Minister for Agriculture and Food if she will engage with the European Commission to challenge the methodologies used in setting refunds and aids and to request greater flexibility to allow the dairy sector and dairy farmers benefit from strong markets; and if she will make a statement on the matter. [31811/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 452 and 460 together.

Finance Ministers will conduct their second reading of the preliminary draft budget for 2006 later this month following which it will be sent to the European Parliament for its final reading. I will endeavour to ensure that the budget for 2006 is sufficient to provide for the full range of market and other supports, direct payments and rural development measures which are essential to allow Irish farmers and processors to maintain their competitiveness in 2006 and beyond.

As regards the dairy sector I have continuously impressed upon the Commission the necessity to ensure flexibility in its ongoing evaluation of aids and subsidies in order to take full account of variations in the market or weaker dollar-euro exchange rates. I am particularly concerned that the dairy sector be provided with sufficient resources to meet its market challenges and that the market dynamics take precedence rather than an undue emphasis on the budgetary requirements, while respecting prudent budgetary disciplines.

My priority in the ongoing implementation of the CAP reform is the maintenance of a stable and appropriately resourced dairy sector. This requires the provision of a combination of appropriate levels of internal supports and export refunds to safeguard the sector's market share, allow for its expansion and provide the necessary returns to farmers.