Allister urges Commission to block Sterling equalisation moves
12 February 2009
Ulster MEP Jim Allister has urged the European Commission to block any moves which could result in Irish exports to the UK being subsidised under a Sterling Equalisation Scheme.
The MEP’s remarks came in response to calls by the Irish Farmers Association and the Irish Exporters Association for the Irish Government to establish a Sterling equalisation fund, which would guarantee food exporters an exchange rate of £0.80.
The MEP said,
“The Northern Ireland agri-food industry has, until very recently, had to put up with the huge competitive disadvantage of a strong Pound, while the Irish have enjoyed boom times stemming from the comparatively weak Euro. Now that the tables have turned, we see Irish producers and meat exporters calling for a Government export subsidy to be introduced, which would give Republic of Ireland product a direct trading advantage over UK product. This is unacceptable.”
“For some time now, we have watched as the Irish have looked after their own interests, regardless of the impact on their Northern Ireland neighbours –their handling of the recent dioxin situation as a case in point. This latest proposal –to establish an export subsidy aimed squarely at the United Kingdom –is in contravention of the fundamental principles of the Common market, and would be detrimental to the interests of all UK producers. Therefore, I have tabled a question to the European Commission, asking for confirmation that such a fund would indeed be in contravention of EU competition rules.”
ENDS
Question to Commission:
"Having regard to the currency fluctuations which habitually afflict commerce within the EU and the fact that no Euro or Sterling Equalisation Scheme was thought appropriate when sterling was strong, does the Commission agree that there is no case requiring a Sterling Equalisation Scheme or guaranteed trading rate, and that such would be anti-competitive and amount to an export subsidy on trade?"
