Jack Wall (Kildare South, Labour)
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Question 46: To ask the Minister for Agriculture and Food her plans to ensure the future viability of the dairy industry here; her views on the recent remarks by Commissioner Fischer Boel that in view of World Trade Organisation related cuts the EU would probably lose most of its share of the world export market for dairy products; and if she will make a statement on the matter. [18870/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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Commissioner Fischer Boel, in her recent address to the Dáil, stated that Ireland and the EU may expect fierce competition in key agricultural markets such as beef and dairy production in the context of a new WTO agreement. The statement was not unexpected and reflects my own opinion that there will be increased competition on international markets in the future. The WTO negotiations are ongoing and the objective of the talks is a fair and equitable balance between the three pillars within agriculture of market access, domestic support and export competitiveness.

As regards market access I have stated repeatedly that there should be no further concessions granted to our negotiating partners and that we have already exceeded the limits of our generosity. I have never wavered from that opinion and provided that it is maintained I would be confident of our ability to maintain a competitive edge on EU dairy markets. As regards domestic supports the bottom line is that there will be no further reform of the CAP and the system of decoupled payments will be fully acceptable as WTO green box compatible. On export competitiveness the EU offer includes the elimination of export refunds by 2013 and clearly this offer will test our ability to compete in third countries. Nonetheless, with careful management of the phasing out process, together with increased scale and efficiency at both producer and processor levels.

I am confident that Irish dairy exports will continue to compete successfully on international markets with products that reach the highest standards demanded by consumers, reflecting emerging trends and tastes.