Fischer Boel's views on key issues

By Matt Dempsey

Commissioner Mariann Fischer Boel arrives in Ireland today (Thursday) for her first official visit. Earlier this week she addressed key issues.

Matt Dempsey: Commissioner, Irish farmers will warmly welcome you to Ireland, but they are gravely concerned about the apparent determination of the Commission to drive down milk prices.

Mariann Fischer Boel: To make EU agriculture more competitive, reform was necessary, including a reduction in the milk price. There was little effect from the first price cut because of the very good market situation. This year, the market does not look bad either.

In the medium term, the prospects for dairy products look good worldwide. So I think our policy is definitely moving in the right direction.

MD: There is also serious concern regarding last week's budgetary discussions that seem to be putting the Fischler reforms in jeopardy even before the first payment is made.

FB: Clearly, last week's European Council saw the issue of farm subsidies high up the agenda. But, as far as I am concerned, the process of putting the 2003 reforms in place continues.

The budget for market support and direct payments was fixed in October 2002 and that is the basis we are working on. I oppose re-opening that package and I hope we can secure a deal on the future EU budget rapidly so that we can go ahead with the reforms that still need to be carried out and have certainty over future Rural Development programmes.

Sugar reforms

MD: This week's proposals on sugar beet raise the prospect of no sugar industry remaining in Ireland.

FB: I know that the sugar reforms I put forward this week will be hard for some people to agree with.

But I am equally sure there is no alternative if EU sugar production is not to be squeezed slowly and painfully out of the market. I believe that the voluntary restructuring scheme offers an attractive way to make it easier for the least competitive producers to leave the market and find alternatives.

If there were no reform, the result would be much worse. There would be no compensation for anyone.

What we are doing is providing some compensation to get us through what will be a painful restructuring process which has to happen anyway.

MD: Many farmers believe that we are seeing the abandonment of both Community preference and the abolition of any commitment to improving EU farm incomes.

FB: I don't agree that there is any talk of abandoning Community preference. And for me there is no doubt that the reformed CAP offers every opportunity to improve farm incomes. Irish farmers will continue to receive the same level of direct payments, but will be able to tailor their production to market requirements to look for the best possible returns.

Self-sufficiency

MD: There appears to be a drive to continually reduce EU food output. Do you have any aspiration towards any degree of EU food self-sufficiency?

FB: Of course we must stop producing food for which there is no market, but there is no drive to 'continually reduce EU food output'. We need to play to our strengths - producing high quality food which can gain premium prices wherever possible.

MD: What now is the status of the Single Farm Payment after 2007, despite the agreement that payments would continue until 2013?

FB: As far as I'm concerned, the Single Farm Payment remains a cornerstone of the CAP. There is a lot of talk about what happens now with the EU budget, especially for agriculture.

Whatever happens, I will fight for a good result. We need to make sure that the reforms, which we are only now putting into place, are bedded down properly.