Direct funds may be saved from axe
He said EU Farm Commissioner Franz Fischler has indicated that the Commission intends to press ahead with its review proposals, except those for compulsory modulation involving the reduction of direct payments by 20% over seven years to provide funds for rural development.
Mr Walsh said discussions on the proposals, which the Commission is expected to detail early in the new year, will continue for several months and that protecting Irish interests will present a major negotiating challenge.
“Our final negotiating position on decoupling will be taken on the basis of a full impact analysis of the implications of the proposals,” he said.
Mr Walsh was speaking at the launch in Dublin of his Department's end of year review and the priorities for 2003.
Provisional estimates issued by the Central Statistics Office have put the farm income drop this year at 8.5%.
The Department review stated that farm incomes had recorded significant increases in the two years prior to 2002, despite the foot-and-mouth crisis and BSE problems.
It attributed an overall decline in farm income this year to the combined effect of weather-related difficulties, a drop in beef slaughterings from their high levels in 2001 and lower dairy market returns.
The review stated that the actions taken by Mr Walsh during the year alleviated the impact of the adverse conditions on farm income.
It also stated that the fact very pessimistic predictions of the middle of the year did not come to pass is a testimony to the efficacy of these measures.
