AGRICULTURE COUNCIL MEETING, 2nd-3rd MARCH (Hansard, 4 March 1987)

§ The Minister of State, Ministry of Agriculture, Fisheries and Food (Lord Belstead)

The Council continued its discussions on the implementation of the December agreements on milk and socio-structures.

Decisions were taken on the arrangements for modifying the intervention system in the milk sector. Intervention buying of butter may be suspended once offers into intervention in the Community from 1st March exceed 180,000 tonnes. The Commission will use alternative methods for supporting the market. Intervention will he reintroduced if the market falls to the level of 92 per cent. of the intervention price. If physical stocks at any time exceed 250,000 tonnes, excluding quantities offered before 1st March 1987, the "floor price" of 92 per cent. will be reduced to 90 per cent. The Commission undertook that the current delays in payment of the traders offering into intervention will be shortened to 90 days when intervention is reintroduced under these procedures.

For skimmed milk powder, where the Council had already agreed that intervention would be suspended between September and March, it was further decided that intervention could be suspended during the rest of the year in which offers into intervention exceed 100,000 tonnes.

These intervention arrangements will result in a more flexible system. They strike the right balance between the clear need to make intervention less of a market in its own right and the need to maintain market stability.

The Council also agreed to adopt the sociostructures package, excluding the early retirement provisions on which a decision was deferred. We resisted suggestions for splitting the package in any other way. This outcome means that the measures to which we attach importance, particularly extensification and the environmentally sensitive area arrangements, are adopted. The Commission gave its opinion that the measures agreed will cost the Community budget no more than 350 mecu over three years. Before the end of this period, the Commission will report to the Council, which will decide on whether the measures are to be extended.

The outcome of this week's Council means that all the important decisions necessary to implement the agreements reached at last December's Council have now been taken. It is therefore a notable confirmation of the major success of the British Presidency.