Beefing up to the EU

The government promised to "respect our historic imports of beef" from both non-EU countries and EU countries. These historic imports, which are the annual imports of beef before membership of the EU, have consisted of between 6,000 and 7,000 metric tonnes a year, which represents a large sum of money.

In the case of beef from non-EU sources, highly competitive world prices were charged whereas in the case of imports from EU countries the very low EU external prices applied. Now Malta has to buy at the inflated artificial EU internal protected high prices at which bull meat prices are three times higher and cow meat prices are double what they used to be. A weekend feature writer wrote: "Who cares if steak is Lm2.60 per kilo instead of Lm1.60?". We can say that at least 60 per cent of the Maltese people care because such an increase takes a big slice off one's monthly wage. The fiasco is that we are subsidising the inflated artificial price for the benefit of other countries' beef industries.

The impression was given before membership that a considerable proportion of our beef consumption from non-EU sources would be allowed in tariff- and quota-free. However, we are now told that only 14 per cent of the total imports will be from non-EU countries on a penalty-free basis this year. The rest will be heavily taxed to protect EU producers.

Worse still, in 2005 the amount allowed in tariff-free will only be 14 per cent of the amount imported this year - 14 per cent of 14 per cent, or practically nothing!

Importers, consumers, hotels, restaurants etc will be forced to buy practically all their beef from EU sources only. They will also be at the mercy of the high prices imposed within the protectionist EU; prices kept artificially high by the levies the EU imposes to crush competition. Higher prices on 6 - 7,000 tonnes a year mean at least an extra Lm7 million added to the budget deficit. So the public will also have to pay extra taxes to cut that budget deficit. A total of Lm7 million, or about €18 million, down the drain which could be spent on our children's future, better schools, better sports facilities and better social care.

This is exactly what I predicted for years, yet was abused and insulted for telling the people the truth.

Contrary to what some would have us think, these arguments are not pre-accession. These arguments emanate from my desire to help find solutions to the problems we are facing as a result of the PN government's poor negotiations.

The beef fiasco is yet another broken promise by a discredited government and unless they stop their false declarations they can never win back the credibility they need to unite the people and the businesses to overcome the damaging terms they meekly accepted in order to join the EU.

Mr Farrugia is the opposition's spokesman on agriculture, fisheries and rural development.