The EU Agriculture Commissioner, Mr Franz Fischler, yesterday rejected claims by the Irish Farmers' Association that his reform of the Common Agricultural Policy will cost the industry here £150 million. Mr Fischler, in Dublin to sell his Agenda 2000 reforms and to meet all the interests involved, said he thought the figures being used by the IFA were based on abnormal situations.
He said all of those he had met had recognised the need to reform the CAP, and this was the basis on which he was proceeding.
The implications of maintaining the status quo in agriculture, he said, could be very negative for Ireland and its economy, and would lead to huge food mountains of beef and milk products.
He said reform of the CAP before the next round of world trade talks was not conceding to our global rivals. Reform of the CAP under the former commissioner, Mr Ray MacSharry, had set the tone for the GATT agreement.
"After reform we will have a clear picture of where we are, and we can defend that situation," Mr Fischler said.
He said that following his discussions with interested parties in the Union a complete package for discussion would be presented early next year when serious negotiations begin.
He said he was aware of Ireland's dependence on raising beef from grass and said there could be a possibility of a grass premium to help Irish producers.
Mr Fischler said he did not see an end to export refunds in the new world trade agreement, but there would be areas, such as parts of South-East Asia, where it would be possible to export without the aid of refunds.
The Minister for Agriculture, Mr Walsh, said in a statement that he had outlined Ireland's concerns in relation to the proposals and had emphasised that the protection of farmers' incomes had to be the prime objective of reform.
Mr John Donnelly, president of the IFA, told the Commissioner he rejected his reform proposals because they would cost the industry £150 million.
The reforms, he said, discriminated against Ireland's grass-based economy. It was also planned to cut beef prices well below the cost of production and the increased direct payments being proposed fell far short of the loss of production value, he added.
Mr Frank Allen, president of the Irish Creamery Milk Suppliers' Association, said rural Ireland would be reduced to a "rural desert" if the worst excesses of the proposals were implemented.