ANDRIESSEN HAILS EC MILK PACT, PROMISES FARM AID
European Community Farm Commissioner
Frans Andriessen welcomed the agreement on details of dairy
output cuts over two years and promised new measures to help
farmers hurt by the drive to reduce EC surpluses.
    "We are now in a favourable position to improve the
situation in the dairy sector," he told a news conference.
    The Commission will be able to proceed with a 3.2 billion
European Currency Unit plan to dispose of over a mln tonnes of
butter in EC stores, as the deal should prevent major new
stocks from accruing.
    A preliminary accord on the dairy package was reached in
December, but approval was held up by a row over Commission
proposals that it be given power to suspend sales of surplus
stocks into store.
    After 36 hours of negotiations, ministers agreed detailed
rules for such a suspension, allowing it only when new public
stocks of butter exceed 180,000 tonnes and when market prices
were sharply below those paid for sales into EC stores.
    Andriessen said the accord improves the atmosphere for what
he said are bound to be tough discussions on his proposals for
cuts in EC farm price cuts, notably in cereals, in the coming
season.
    The ministers also approved a three-year 350 mln Ecu
package of measures to help farmers in difficulty and pay
compensation to those who opt for less intensive production
methods. Andriessen said he regretted ministerial objections
had forced him to withdraw sections of this package, for which
he had originally earmarked 1.3 billion Ecus over five years.
    He said he would revise and resubmit plans to allow older
farmers to take early retirement, either taking their land out
of agricultural production or passing it to successors.
    The Commission is also working on proposals to enable the
EC and member states to provide direct income supports to
hard-pressed small farmers. Andriessen said he could not give
full details, but member state aid would be subject to "strict
criteria to avoid distortion of competition."
 Reuter
