Farm package approved

THE EU Commission yesterday agreed some structural changes to bits farm price support mechanisms as it approved the package for…

THE EU Commission yesterday agreed some structural changes to bits farm price support mechanisms as it approved the package for 1996-1997.

The Farm Commissioner, Mr Franz Fischler, also confirmed that intensive discussions are taking place to reach agreement on the level of the Irish beef fine origin ally set at £103 million. He said the President of the Commission, Mr Jacques Santer, would be chairing a committee within the Commission to arbitrate on the issue.

It is now understood that the issue will not be resolved until next month with Commissioners responsible for budgetary issues still determined to press for the full fine, while an independent conciliation committee has proposed the halving of the fine

Mr Fischler said that with a small increase in beef prices registered last week as well as export refund increases the week before, there was no further case for the further increases Irish farmers have been calling for.

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Irish beef producers facing troubled times will take some comfort, however, from changes in the deseasonalisation premium which will ensure that payments aimed at spreading production throughout the year will be available in 1996.

Under current rules, member states where 40 per cent or more of steers are slaughtered between the beginning of September and end of November are entitled to the premium. The threshold is being reduced to 38 per cent to allow Irish farmers, North and South, to benefit.

The Commission also agreed to merge the two beef premiums into one. They were paid at 10 months and 22 months, and will only now be paid at 10 months but at a rate 14 per cent higher.

The Commission has also decided to simplify the set-aside scheme

Patrick Smyth

Patrick Smyth

Patrick Smyth is former Europe editor of The Irish Times