24-27 June Agriculture Council

Date: 04/07/1996

DESPITE hours of deliberations, the Italians failed to secure a deal on the 1996-97 price proposals. This will become the first priority for the Irish presidency. Italian Minister Michele Pinto claimed there was simply no money left in the budget to meet all the ministers' demands and the Special Committee for Agriculture will now look at where savings can be made by delaying planned 1997 expenditure until 1998. Pending an agreement, a number of institutional prices were rolled-over.

A NUMBER of new points found their way into a compromise paper, including initial ideas on next year's proposals for the dairy sector. Proposals for changes to the beef sector - made before the crisis - were withdrawn pending a more far-reaching plan which should be ready before the end of September. Nobody spoke out against the Commission's proposal to cut set-aside to 5&percent; for the next harvest, although French Minister Philippe Vasseur said he would prefer zero set-aside. The UK raised the idea of reducing aid payments to the arable sector.

HOPES that an agreement could finally be found on the reform of the fruit and vegetable sector were dashed, after a final compromise paper actually moved the member states further away from an accord. There was a feeling that it was unwise to vote through a deal with which a majority of main producer countries was unhappy. Ministers want to reach an agreement in July.

MINISTERS agreed a system to divide up the 850 million ecu from this year's budget to compensate beef farmers affected by the BSE crisis. Although the Commission's preferred approach is to top up existing premiums, member states will be free to distribute their allocation as they choose, as long as they observe EU competition rules. Member states will also be able to match Union funds with national money if they so desire.

COUNCIL agreed plans to reduce the tariffs on imports of sour cherries for processing from Eastern Europe, although Bonn and Athens voted against.

ONCE again, ministers failed to agree on where the plant variety rights office should be situated. Eight countries remain in the running, and the decision must be taken by unanimity. But member states did agree to appoint Dutchman Bart Kiewiet as its first president.

THE Commission confirmed its intention to make progress on veal crates, as well as battery hens, in response to a request from Germany, Austria and the UK.

THERE was a political agreement on harmonising veterinary inspection fees throughout the EU, although Germany, Spain and Sweden voted against.

UNDER the pre-accession treaty's 'structured dialogue', ministers met their counterparts from the Central and Eastern European countries. Debate centred on the competitiveness of agriculture and the importance of rural development.