EU farm ministers yesterday gave broad agreement to the thrust of Commission proposals to continue the reform of the Common Agricultural Policy. The Minister for Agriculture, Mr Walsh, said ministers had also agreed the overall agricultural guidance budget but that detailed approval of sectoral changes would have to wait for the Commission's proposals to be published next year.
Final approval of plans for the post-2000 period, set out in Agenda 2000 and reflecting a continuation of the MacSharry 1992 reforms, would probably not be agreed until 1999, he said.
Responding to questions on findings by the Court of Auditors report yesterday that the EU's cereal and beef farmers had been massively overcompensated for price cuts that had not happened, Mr Walsh said the payments had been based on estimates put forward by the Commission and approved by 15 member-states.
He would make no apology, he said, for fighting Ireland's corner and the Commission had acknowledged the country had spent its money well. Echoing the comments of the IFA president, Mr John Donnelly, he said it was important also to understand that even if some overcompensation had occurred this was not the case with Irish beef producers in the last two years. They had been forced to accept prices that were 20 to 25 per cent below average EU prices, he said.
Ireland, the Minister said, still had important development needs in areas like traceability and the modernisation of plant and would continue to argue its case for funding. Irish agriculture sources also maintain that changes proposed by the Commission in the system of compensation would make "overpayments" less likely in future.
The proposals allow for "modulation" of payments - greater flexibility for member-states to target payments where they are most needed - and ceilings on the amount any one farmer can receive.
Speaking to fellow ministers, Mr Walsh insisted farmers should receive "full compensation" for any proposed price cuts.
