§ Mr. Farrasked the Minister of Agriculture, Fisheries and Food if he will define the arrangements whereby Her Majesty's Government subsidise the cost of importing Irish beef; and what has been the cost involved so far this year.
§ Mr. BishopFollowing the precedent set by the Anglo/Irish free trade agreement, EEC legislation, which provides the authorities for our variable premium scheme, states that beef originating in the Irish Republic and intended for consumption in the United Kingdom should receive the same financial advantages as home-produced beef. Variable premium payable is calculated according to the quantities of carcase beef imported from the Irish Republic which meet the quality standards required for beef premium certification in the United Kingdom. Payments are not made on individual consignments nor to individual exporters. They are aggregated and paid approximately three months in arrears on a Government-to-Government basis. Any market effect is therefore very remote.
In 1977 up to 28th November, variable premium of about £9 million has 88W become payable on eligible cattle and carcase beef in the United Kingdom, about £0.5 million has become payable on Irish carcase beef, but only £1,067 has actually been paid to the Irish Government so far this year. The cost of premiums received by both United Kingdom producers and the Irish Government is partly financed from Community funds (25 per cent.) and partly from United Kingdom Exchequer funds (75 per cent.).