Market Intervention Public Intervention & Private Storage Aid - PowerPoint PPT Presentation

Market Intervention

Public Intervention & Private Storage Aid • Part of CAP for wheat, barley, maize, rice, meat, butter, skimmed milk powder, sugar, olive oil, flax, pigmeat, sheepmeat, goatmeat • Reduction in price and income volatility • Run by EU; delivered in UK by Rural Payments Agency • Powers will transfer to Secretary of State, Scottish Ministers, Wales and NI. • Not currently used. Last UK stock of SMP sold 2019. Beef and sheep not used in 20 yrs; limited SMP and butter 2015-18, pigmeat 2015, 16

Public Intervention & Private Storage Aid UK Agriculture Bill Scottish Agriculture Bill • Clause 20 (England) and similar • Clause 5 for Wales, NI • Modify EU law on PI/PSA so it a) • Modify EU law on PI/PSA so it ceases to have effect; b) ceases ceases to have effect otherwise to apply temporarily; c) simplify that in exceptional market or improve op.eration conditions; or alter its effect in the meantime.

Crisis Powers • European Commission under Common Market Organisation Regulations on “exceptional measures” • “Market disturbance” – significant price rises/falls internal or external market – can “take the measures necessary” • Specific measures re animal disease, loss of consumer confidence due to public, animal or plant health risks • Catch all “emergency measures to resolve specific problems”, eg 2018 Baltic flooding

Crisis Powers • 2016 €350m EU (€30m in UK) for • Crisis reserve €2800m held back milk and other sectors re from direct payments, disbursed Russian import bans later if not used • 2017 Italian earthquakes. Flexibility for Italy to support • 2019 €50m (+domestic match) for Irish beef and veal – Brexit uncertainty. Reducing production and restructuring – quality schemes, market diversification, sustainability

Crisis Powers UK Agriculture Bill Scottish Agriculture Bill • New power for Secretary of State • European powers retained, in to declare “exceptional market hands of Scottish Ministers conditions” – severe disturbance in • PI/PSA still available agricultural markets • Triggers powers to give financial assistance to agricultural producers whose incomes are adversely affected – grant, loan, guarantee &c • PI/PSA can be invoked