FARMING leaders have urged the Government to block EU plans to scale back beef production, which have been criticised by the Minister for Agriculture, Mr Yates, as not radical enough.
The proposals, announced in Brussels yesterday by the EU Agriculture Commissioner, Mr Franz Fischler, aim to slow the dramatic growth in the beef mountain following the sharp decline in consumption triggered by the BSE scare. Beef consumption is estimated to have fallen by up to 40 per cent while prices are down 15 per cent on average.
Mr Fischler's strategy is to cut eligibility for beef production subsidies while offering cash incentives to farmers who "extensify" their farms by stocking fewer cattle per hectare. Other new subsidies will encourage the slaughter of one million new born calves, while intervention will be opened up to younger and lighter animals for the first time.
In Ireland, the plans will affect the key male beef premium by lowering eligible numbers from 1.29 million to 1 million. Subsidies for on farm investment in beef production facilities will also be restricted. Overhauling the beef sector will cost about £2 billion this year and next but Mr Fischler ruled out any increase in the £30 billion CAP budget. He confirmed fears that subsidies for the currently prosperous arable sector would be used to pay beef producers.
Direct income grants for arable farmers will be cut by 7.3 per cent, while a similar cut will apply to compensation for taking cereals land out of production. Mr Fischler dismissed suggestions that he was taking advantage of the beef crisis to penalise cereals farmers unfairly.
"This is a drastic situation. It is a crisis which requires such measures," he said. The arable sector is enjoying record prices due to a world grain scarcity and the set aside requirement has been cut to five per cent from the original 20 per cent, he stressed.
Last night, Mr Yates said the proposals were not radical enough as Europe faced a surplus of three million animals because of the crisis. He said there had been no proposal from the Commission to cut suckler cow premiums and the calf slaughter scheme being proposed is voluntary.
He said there was a long term future in beef production and compensation was on its way to farmers. There will be £70 million in increased premiums and £60 million next year in slaughter premium payments. The rules governing EU intervention should be more flexible, Mr Yates said, but production must be curbed.
The Irish Farmers' Association President, Mr John Donnelly, called on the Taoiseach as President of the European Council to block the most damaging aspects of the Commission's beef production cuts. "Ireland's vital national interest is under serious threat from the Commission's proposals," he said.
He accused the Commission of rushing to cut beef production and cattle farmers' incomes without making any serious attempt to restore beef consumption in Europe or reopen vital third country export markets.
He also warned that the CAP budget was unable to bear the full cost of the ramifications of the British BSE crisis. Attempting to burden cattle farmers and other sectors with the full cost of the British BSE problem risked sending Europe's agriculture into turmoil, he said.
The Irish Creamery Milk Suppliers' Association president, Mr Frank Allen, also called for rejection of the Commission proposals.
The Fianna Fail leader, Mr Ahern, said the EU proposals on beef were contrary to Irish interests.
"It is a striking measure of the apathy of the Government that at a time when we hold the Presidency of the EU, the policy tide in Brussels has been allowed go out on us," he said.
Mr Ahern accused the Government of not supporting the industry in the crisis and said the Taoiseach and the Tanaiste, Mr Spring, had sat out the BSE crisis.