THE EU Commissioner for Agriculture ruled out any direct aid to the Irish beef industry when he addressed a major conference on beef promotion in Venice, Italy.
Mr Franz Fischler told journalists attending the first European Beef Congress at the weekend that large quantities of Irish beef would be allowed into EU intervention to offset problems.
He said large amounts going into intervention should create a commercial market demand, pushing up the price being paid to farmers. Since Easter the price of cattle has fallen to a low of 80p a lb.
Irish farmers had sought changes in intervention and an increase in export subsidies which are paid to exporters operating outside the EU, but the Commissioner firmly ruled out any direct aid. It was open to the Government to put up its own compensation for the price drop, which has been caused mainly by the revaluation of the Irish green pound.
Mr Fischler said 180 ECUs had been set aside for green pound compensation at the last meeting of farm ministers, but this did not rule out the Government putting up its own national fund.
He also ruled out the possibility of increasing EU export refunds, saying it would not be possible under World Trade Organisation rules which limit the amount of beef which the EU is allowed export with the aid of EU subsidies.
"Export refunds are in line with available licences and we cannot exceed the amounts agreed under the WTO. That is our difficulty. What we can allow is the use of intervention. There will be extended intervention open for big quantities of beef from Irish producers.