Statement by Jim Allister MEP following meeting with Commissioner Fischer Boel
11 November 2008
Statement by Traditional Unionist MEP Jim Allister, following meeting in Brussels with Commissioner Fischer Boel and representatives of the Northern Ireland dairy sector
"We had a useful and serious discussion on the looming dangers for the dairy sector, following the unprecedented fall in the auction price of milk in October. I found the Commissioner more appreciative of the risks than sometimes. It is clear that other regions too are hurting with the spot price in Germany having fallen to 19 cents.
I reminded the Commissioner of the promise in her written reply to me on 27 October that the Commission would be ready to act "in the necessary targeted and responsible way" in the event that "market prices deteriorate in a more substantial way." With our 30% fall in the October auction I pressed her that the substantial fall had now happened and thus she must make good on her promise to respond in a targeted way.
The Commissioner's initial response is to look at bringing forward the start date for private storage aid on butter, but, as we pointed out, this will not really help the Northern Ireland situation. The date when intervention can open, 1st March, is set not by the Commission, but by a Council Regulation, thus of itself the Commission cannot change this. This leaves export refunds. It is clear the Commissioner will need to be further persuaded on their ability to help. She believes such refunds would merely be discounted in the milk price. The processors take issue with this and say that was not our experience in the past. The processors will now communicate further with the Commission to demonstrate this. Thus, I have certainly not given up on export refunds and believe they would help put a bottom in the market.
There is no reason why export refunds could not be targeted on the specific sector of whole milk powder, where we are so dependent. I think we probably made some movement in opening the Commissioner's mind on this issue, but it remains a work in progress.
There are no immediate and magic answers out of this meeting, but certainly the Commission is now in no doubt as to the situation our producers face and as to the expectation of help from Brussels. I think it is possible the Commissioner will come up with a package of measures, ensuring they will be sufficient and in time is my new focus."
