asked the Minister for Agriculture details of the EEC Commission's proposal for the organisation of the market for sheepmeat; when this was presented to the Council of Ministers; when a decision will be taken; and if he will make a statement outlining his views on the matter.

2.

asked the Minister for Agriculture the decisions, if any, taken at the recent meeting of the Council of Agriculture Ministers, in relation to the formulation of a sheep meat policy in the EEC.

With the permission of the Ceann Comhairle, I propose to take Questions Nos. 1 and 2 together.

The main elements of the Commission's proposal are (a) annual fixing of a basic price, (b) aids for private storage of sheepmeat, (c) a levy against imports of sheepmeat from third countries equal to the difference between the free-at-frontier offer price and the basic price subject to a maximum of 20 per cent and (d) a transitional arrangement providing for compensation for producers disadvantaged by the operation of free intra-Community trade in sheep and sheepmeat. The Commission proposal was forwarded to the Council on 29 March 1978 and was published in the Official Journal No. C93/5 of 18 April 1978 a copy of which is in the Library. At its meeting last month the Council of Agricultural Ministers agreed to intensify discussions on the proposal so that decisions can be made before 31 October next. In the discussions in the Council the Irish objective is to secure the best deal possible for Irish sheep producers, but as the matter is still under negotiation I do not propose to make any further comment at this stage.

Do I take it that the Minister is not opposed to the directive in its present form or does he have reservations about it?

He is not opposed to it.

I should like to know if the transitional arrangements include the possibility of a deficit payment or a premium to producers? Will Ireland definitely be benefiting from these transitional arrangements or will they merely be confined to France, which is the high price market at present?

Discussions are taking place on these arrangements. I regret I cannot be more specific at this stage. Our main objective would be to secure the best deal possible for Irish sheep producers.

As a member of the European Parliament I received a reply from Mr. Gundelach on this matter. I should like an assurance from the Minister that, in the event of the bilateral agreement with France having to go as a result of a Common Agricultural Policy on sheepmeat, Irish sheep producers will be guaranteed, even by way of subsidy from the European Community, a price equal to that which they now enjoy under the bilateral agreement?

I can assure the Deputy that every effort will be made to compensate the Irish producers for any loss they might suffer as a result of the common arrangement for sheepmeat at present being discussed.

When does the Minister expect an outcome of this matter in relation to the court case being taken by the United Kingdom against France which, by itself, may undermine the agreement which the Minister reached with France?

I understand that the Advocate General recently delivered an opinion but the decision will not be available until after the resumption of the court sittings in the autumn.

If the court hearing does not conclude until the autumn is it possible that the Council will be adopting this common policy before that decision?

I do not think that is likely. I believe they will wait for the court decision.

They may not be able to adhere to the 31 October deadline?

Very little will happen until then.