asked the Minister for Agriculture and Food if his attention has been drawn to the serious problems facing grain growers as a result of the price proposals; and the plans he and the Council of Ministers have to change EC cereal policies to ensure a livelihood for our grain growers.

I am aware that the price proposals for 1989-90 as put forward by the Commission would reduce the intervention support available to cereal growers. I have recently had discussions with grower and grain trade representatives on the situation in the cereals sector. During Council discussions over the coming months, I will, of course, do my utmost to ensure that the interests of Irish cereal producers are taken into account when decisions are made.

The proposed green rate devaluation of 1.511 per cent at 1 July 1989 would help to offset the effects of the price proposals. Of course, the refund of the co-responsibility levies to small scale producers will continue to mitigate their position.

Our present low inflation and interest rates serve to keep input costs under control. It is now clear that maintaining cereal growers' incomes will depend largely on producing crops to meet the demands of the marketplace. This would mean developing the already valuable malting barley export trade and expanding the production of quality milling wheat.

All cereal growers will receive a refund of IR£2.09 per tonne because the guaranteed threshold of 160 million tonnes was not exceeded by 3 per cent, while up to 90 per cent of growers in Ireland will receive the full refund of £8.95 per tonne on the first 25 tonnes of grain sold under the scheme of aid for small producers of cereals.