§ Mr. Russell BrownTo ask the Minister of Agriculture, Fisheries and Food what was the outcome of the Agriculture Council held in Luxembourg on 23 and 25 June; and if he will make a statement. [5942]
Dr. John CunninghamThe Council reached agreement, Spain voting against, on a package of measures covering the CAP support prices and aids for the 1997–98 marketing year, the penalties to be applied when arable base areas are exceeded, and the rate of set-aside to apply to the 1998 crop.
630WOn prices and aids, the agreement largely maintained the status quo, in advance of negotiations on reform of the major regimes, which are anticipated to start in the Autumn. However, monthly increments for cereals intervention and sugar storage refunds were cut by around 9 per cent. to reflect interest rate changes. The Council agreed to address the important question of over-compensation of arable farmers for past support price cuts in the context of the forthcoming discussions on reform of the arable regime.
In response to requests from me and several other Ministers, the Council agreed in principle that the set-aside rate for the 1998–99 marketing year should be maintained at 5 per cent. It invited the Commission to submit a proposal accordingly, as soon as possible. The proposal to amend the regulations concerning the arable penalties system was adopted with minor amendments—notably, to suspend the application of penalty set-aside for a further year—and requests from several Member States for measures which would have weakened or complicated the system were successfully resisted.
I argued for, and secured, a further commitment from the Commission to propose new measures to safeguard the welfare standards of breeding pigs without requiring them to be unloaded at staging points during journeys. This will help secure the high health status of these valuable animals when they are transported on long international journeys.
On BSE, I reported to the Council the measures I have recently announced to the House following SEAC's advice that the controls on specified bovine material should be extended to imports and that the UK should extend its controls on sheep and goat offal. In reply, Commissioner Fischler supported my call for a Community-wide solution to this problem and urged Member States to support the measures he has recently tabled on specified risk material.
The Council also unanimously endorsed an Italian application for approval of a state aid to agricultural co-operative members and adopted by qualified majority (Germany voting against) a Directive concerning maximum pesticide residue levels in food.