asked the Minister for Agriculture and Food if he will outline his policy regarding the 1989 farm price proposals, in particular the implications for (i) sugar beet and cereal producers (ii) the Mulder case applicants and (iii) the failure to reduce the dairy co-responsibility levy.

19.

asked the Minister for Agriculture and Food if he will make a statement regarding the proposed price package announced by the EC Agriculture Commissioner in early January.

43.

asked the Minister for Agriculture and Food the way in which he can predict a rise in farm incomes when the Commission's proposals are set to cost farmers £45 million and when there is an increased number of small farmers being forced out of business.

I propose to take Questions Nos. 15, 19 and 43 together. The Commission's proposals for prices and related measures for agricultural products for 1989-90 were formally presented to the Council of Ministers yesterday. In general terms, the proposals represent a continuation of the restrictive approach which has been adopted towards CAP expenditure over the past few years.

Apart from sugar where a price reduction of 5 per cent is proposed, common prices would be maintained at existing levels, but actual support prices would be reduced for a number of products due to the operation of stabilisation measures. An Irish Green Pound adjustment is proposed which would eliminate remaining Irish MCAs and increase prices or offset price reductions by 1.5 per cent in the case of milk, cereals and sugar and by 3.25 per cent in the case of sheepmeat.

The periods during which cereals, oilseeds and protein products can be offered to intervention would be reduced as would the amount and number of monthly increments.

The proposals provide for implementation of the recent Council agreement in principle to reduce the milk co-responsibility levy by 0.5 per cent for farmers who delivered less than 60,000 kg. in 1987-88. I do not accept that the proposals will cost Irish farmers £45 million. In fact, the proposed green pound devaluation will be worth at least £20 million per annum.

The question of the Mulder case applicants does not arise under the price proposals.

The Commission's proposals will be considered further by the Council of Ministers over the next few months and if adopted by the Council would apply from the next marketing year. The proposals have only just been published and will, of course, require detailed study before a full negotiating strategy is developed. My belief that farm incomes will be reasonably buoyant in 1989 is based on an expectation that market prices will remain strong and this view should not be invalidated by the Commission price proposals even if they were to be adopted as they stand. In that regard, I will, of course, be endeavouring to see that they are improved. My overall objective will be to seek to ensure that Community support arrangements continue to underpin producer income levels to the maximum possible extent and that conditions are created to allow the food industry to continue to develop.

I am calling Deputy Emmet Stagg. I advise the Deputy that his supplementary question must, of necessity, be brief as time allocated to questions is almost exhausted.

Does the Government have any long-term strategy for CAP reform or are they simply content to go each year and be beaten back a further step on the price support scheme? Would the Minister not agree that it would be more effective for income distribution within the farm area if, rather than sticking to the price support scheme, he were to look for direct income subsidies for farmers who need such subsidies?

This Government have a long-term strategy for our agricultural interests within the European Community, and I am glad to tell the Deputy that we are putting that strategy into effect right now to the extent that——

You were not very successful.

May I be allowed to speak? There are other important issues to be dealt with. The transfers from FEOGA funds to Ireland this year were at a record level——

We are talking about your failure.

——and we will continue to implement that kind of policy.

That disposes of questions both ordinary and priority for today.