Minister Creed did not seek supply control measures from Brussels for €100m fund

The Department of Agriculture did not seek any supply control measures when it canvassed the European Commission for beef compensation for farmers.

There was no reference to any supply control measures in the Department’s submission to Commissioner Phil Hogan seeking funding for farmers affected by Brexit-driven beef losses, a Government source told the Irish Farmers Journal.

Conditionality

“The Department did not prescribe any conditionality in its submission,” the source said.

However, Department of Agriculture officials were not surprised that what the European Commission described as a “production reduction measure” is included in the draft terms and conditions.

“Exceptional aid packages always contain some supply control measures,” the source pointed out.

In 2016, the first phase of the 2016 EU Voluntary Supply Management Scheme saw €6.5m paid to 3,500 Irish dairy farmers who applied for aid to reduce their production.

Brussels' terms

The draft regulation, seen by the Irish Farmers Journal, states that the money will be given to Ireland on condition that the “measures taken by Ireland are aimed at reducing production or restructuring the beef and veal sector”.

It also wants Ireland to implement one of three options:

Response

Ireland has until 31 July 2019 to respond with a proposal on the measure it intends to take, the criteria it will use to pay the money and how it will avoid distorting competition with the measure.

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