(Limerick West) asked the Minister for Agriculture the stand he proposes to take on the latest proposals from the European Commission on the reduction of cereal prices.

The European Commission has not currently made proposals to reduce cereal prices. It has circulated a paper containing a number of options and possible courses of action to be taken in the management of the cereals market. This paper will be the subject of detailed discussions in the weeks ahead, following which formal proposals will be made by the Commission. In the examination of these by the Council of Ministers I shall be seeking the best possible result, not only for cereal producers but also for the economy generally.

(Limerick West): Would the Minister consider seeking a derogation for Ireland, particularly in view of our higher cost of cereal production?

That question does not arise. The Commission has put forward proposals. No definite decision has been taken. The Council is at present discussing these proposals and as a result of those discussions will ultimately put forward something more concrete. We will then decide what our position will be. The measures being proposed at the moment are not all that draconian. There is a move away from the proposal put forward in last year's price package for a direct reduction in prices. On this occasion they are talking more in terms of co-responsibility levies. Another matter which worries us considerably is that payment will depend on the quality of the cereal. Because of our climate and soil the quality of our goods is often not as good as it should be. That proposal would have detrimental effects on us, which is something that we are watching closely.

(Limerick West): If that proposal were part of the definite recommendations, would the Minister then go for a derogation for Ireland?

I am not giving answers to hypothetical questions We shall wait and see the final proposals of the Commission.

(Limerick West): In view of the very small profit margin in grain growing at present, and particularly this year, is it possible at this stage to introduce a national subsidy in view of the fall away from grain growing here?

National subsidies are something that we have to consider in the context of budget policy. I would not like to make any commitment on that.

It may cost us more in the long run.

It probably would be illegal under EC laws that we should give any national subsidy. We certainly do not want to have national aid in the EC.

(Limerick West): The Minister should look for it.

We do not want it in that context. If other countries are given it, we are out of business.