The reforms proposed under the EU's Agenda 2000 plan were "the most important issue facing Irish and European agriculture at this time," the Minister of State for Agriculture and Food, Mr Ned O'Keeffe, told the Senate. He said it was in the interests of Ireland and other EU member-states that European agriculture should become more competitive on world markets. He added that reforms should be introduced in a way that preserved the principles of the CAP and took into account the interests of member-states.
Mr O'Keeffe said that adequate safety nets must be preserved for beef farmers, and he would be seeking to ensure that any price cuts were fully compensated.
Mr Tom Hayes (FG) said the proposals would lead to a £100 million cut in income for livestock producers, and called for alternative proposals to protect the £1.7 billion beef industry. He warned that beef prices had to be maintained above the cost of production through a combination of intervention and export refunds.
Mr Peter Callanan (FF) warned that cutting prices below the cost of production would make it more profitable for farmers not to produce and would leave them "very vulnerable" in political and budgetary terms.