Local view for "http://purl.org/linkedpolitics/eu/plenary/2009-03-10-Speech-2-487"

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"− First of all, I have clearly signalled that I am ready to use the management tools that we have available. However, we have certain limits and it is very important that the decisions we might take do not mean that, at the end of the day, we shoot ourselves in the foot. We have to take into account the fact that intervention is a fine and – I was happy to hear – short-term measure. This is because we have to, I would not say get rid of it, but it has to apply to the market at a later stage, which rather prolongs the pain, but we cannot just dump it. As I said previously, we did show our commitment by increasing export refunds, both on butter and on powdered milk, ten days ago, and we are monitoring the market. Concerning compensation, it seems that quite a lot of dairy farmers have forgotten that, under the 2003 reform, they were actually compensated via the direct payment, and so an amount not linked to the dairy cow but calculated on the basis of historic production between 2000 and 2002, is now incorporated into the direct payment. I also sometimes have to remind some farmers that this compensation has already taken place. I know this is not a fully satisfactory answer in this difficult situation, but it has been taken into account. I sent a very clear signal during the Green Week in Berlin at the beginning of January, saying that I was ready to spend some of the unspent money under the 2009 budget, and the Commission has made a proposal to spend EUR 1.5 billion in 2009 to cover the gap arising from the consequences of the health check not entering into force until 1 January 2010, when the package for trying to meet the new challenges comes into effect. The question of whether Member States want to spend EUR 1.5 billion is not in my hands, but in those of the Heads of State and Finance Ministers, and I hope it will also be possible, via a sort of lobbying by Members of the European Parliament on their national governments, to push for a solution. I completely agree on the three reasons for the situation. For Ireland, exporting into the UK with an exchange rate that makes life even more difficult is, of course, a huge disadvantage, specifically for Irish farmers. I do not under estimate the spin-off consequences of the scandal in China, where some people might be much more cautious over the dairy products they eat and drink. The increase on the world market does not come exclusively from the United States. We have seen a significant increase taking place in New Zealand, and this has been dropped on the world market with the consequences we have mentioned. I hope that in general, on the world market, production will go down, because this is a general problem and not one only affecting European dairy producers. It is very difficult to make money in the dairy sector at the moment. We will therefore not hesitate to use the tools available in an appropriate and balanced manner."@en1
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