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Dáil Éireann debate -
Tuesday, 29 Jun 1993

Vol. 433 No. 1

Ceisteanna — Questions. Oral Answers. - Milk Quotas.

Dinny McGinley

Question:

20 Mr. McGinley asked the Minister for Agriculture, Food and Forestry the reason for the delays in processing sales and transfers of milk quotas since the beginning of May 1993; and if he will make a statement on the matter.

Paul McGrath

Question:

31 Mr. McGrath asked the Minister for Agriculture, Food and Forestry the reason for the delays in processing sales and transfers of milk quotas since the beginning of May 1993; and if he will make a statement on the matter.

Brendan McGahon

Question:

82 Mr. McGahon asked the Minister for Agriculture, Food and Forestry the reason for the delays in processing sales and transfers of milk quotas since the beginning of May 1993; and if he will make a statement on the matter.

I propose to take Questions Nos. 20, 31 and 82 together.

Arrangements for the sale of milk quota surrendered under the national milk quota restructuring scheme 1993 were not put in place pending council decisions on quota issues in the context of this year's farm prices package. Some of these issues related specifically to restructuring of quota and in particular to Ireland's successful request for a Community contribution towards this. I am at present in consultation with the Milk Quota Review Group considering a scheme for the use of the funds and the additional quota available to Ireland. I hope to announce a scheme for the sale of surrendered quota shortly.

Would the Minister agree that the level of assistance provided under the current restructuring scheme is very low and is unlikely to call for a large amount of restructuring? Would the Minister agree — this is the most important part of the question — that the uncertainty that has obtained since the beginning of May has now turned out to be a serious problem in relation both to the sales of land and the transfers of quota for people who are carrying on with restructuring outside of those schemes? Can the Minister give us some indication when these schemes might go ahead and say whether he will approve transfers drawn up and agreed between participants in the interval but which cannot now be carried out because the regulations are not yet in force?

I agree with Deputy Dukes that the amount is small. Ireland is the only member state that sought some contribution for a restructuring scheme but was informed that any such scheme had to be Community-wide. Even though we were the only country who looked for it the scheme is now Community-wide. I am in consultation with the Milk Quota Review Group to make the best use of this money. I am in consultation with the co-operatives in the west and north-west who exerted most pressure for this subsidisation of restructuring in order to devise a worthwhile scheme. Indeed, they have indicated that they will be prepared to contribute some finance for this purpose. Therefore, within the next couple of weeks I hope to be able to announce a scheme for the sale of surrendered quota so that a worthwhile scheme can be put in place. Approximately 13 million gallons have been offered under the provisions of the scheme which, with the seven million gallons, should make a worthwhile amount of milk available for restructuring.

Will the Minister undertake to approve the schemes in respect of which since 1 May last agreements have been reached for the transfer of quotas between producers but which have been held up because the Minister's Department has not been in a position to sanction them due to the uncertainty about the restructuring scheme? Can the Minister confirm, where voluntary schemes or agreements have been entered into between producers, he will now sanction them without any further question?

I have no difficulty in assuring Deputy Dukes that I will address that problem immediately.

I am not asking the Minister to address the problem but to say whether he will sanction those schemes.

The difficulty that arose was that, though the prices package was agreed in May, we had to await the legal text before we could implement those schemes. There has been no delay at this end. I realise how important is this restructuring. Approximately 60 million gallons have been restructured over the years. That is important, especially for smaller milk producers in the west and north-west, who had been losing milk over the years to some larger farmers in the southern part of the country. It is vital to them. I will ensure no delay occurs in getting this scheme off the ground.

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