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Dáil Éireann debate -
Wednesday, 10 Oct 1984

Vol. 352 No. 8

Private Notice Question. - Milk Super-Levy.

(Limerick West) asked the Minister for Agriculture if he will explain the source of the error in milk production estimates for last year used in the super-levy discussions; and the steps he proposes to take to ensure that 58,000 tonnes of milk are not lost from Ireland's quota entitlement.

Milk delivery figures are supplied to the Commission of the European Communities monthly on a provisional basis by the Central Statistics Office and similar figures are supplied quarterly by the Department of Agriculture. These figures are normally revised towards the middle of the following year in the light of the final figures then available.

The Council decision on the super-levy issue specifically provided that the basic Irish quota should equal our 1983 deliveries. The actual figure used in the Council regulation to give effect to that decision was based on the latest provisional figure available, that is, 5.28 million tonnes.

Immediately after the Council decision the Department sought precise details of 1983 deliveries from all milk purchasers in the country. The returns from these purchasers were not finalised until early June. It was then seen that the actual quantity delivered exceeded the provisionally estimated figure by some 58,000 tonnes. I immediately raised the problem at the meeting of the Council of Ministers on 18 June and formally applied to the Commission on 3 July for a correction to be made in the regulation to take account of the final figure.

There were subsequently contacts at official level on the matter and we also raised it at the Council meeting in September. I myself discussed it further with Commissioner Dalsager earlier this week and the issue is now before the Commission. I propose to take all steps available to me to ensure that the decision taken by the Council last March is honoured.

(Limerick West): I understand from the Minister that this information about the error became available in June. Is that correct?

(Limerick West): Did the Minister make it clear to our partners during the negotiations on the super-levy that the 1983 figure was a purely provisional one which might have to be revised in the light of revised data?

The figure we were working on during the super-levy negotiations was the figure supplied by the Central Statistics Office which was 5.28 million tonnes.

That was not the question.

It is always made clear to the European Community that it is a provisional figure and that the final figure is not available until the middle of the year at least. Some countries actually do not provide their eventual figures until about two years after the event. We provided our actual figure in the middle of June. I raised it at the June meeting by word of mouth and I put it in writing formally to the Commission on 3 July that we wanted the provisional figure amended.

(Limerick West): With due respect, I do not think the Minister answered my question. I asked were our partners made aware during the negotiations that the 1983 figure was a provisional figure.

All the 1983 figures at that time would have been provisional and the figures from the Central Statistics Office were clearly defined as provisional.

(Limerick West): Was a proviso made during the negotiations that the figure was provisional only and, if it was, why the problems now?

There was no proviso in that regard because that it is not normal procedure. The very earliest at which definite figures become available is the middle of the following year. Everybody knows that. As I said, some countries take as long as two years to update their final figures.

(Limerick West): Is the Minister saying our quota is based on provisional figures and, if so, why has a problem arisen at this stage?

There should not be any problem. It is regular practice that the figures are updated and that you deal with the eventual figures which are submitted. Might I quote from the minutes of the meeting on 31 March when the super-levy issue was finally decided? "The guaranteed quantity of milk for Ireland and Italy will be the equivalent of 1983 deliveries", that is, before any additional percentage. It is the actual 1983 deliveries, not the provisional deliveries.

(Limerick West): There is no problem then. Our quota will be based on actual figures when they become available.

Precisely. There should not be a problem.

(Limerick West): Is there a problem?

In normal circumstances there would not be a problem. It transpired that every country is smarting because of the bad reaction they have had to the deal we got. Whereas normally we would not have a reaction, on this occasion we do. So far, the Commission have not indicated that they will propose that we should be given the true figure. Neither have members of the Council. It is for the Commission to put a proposal before the Council, and then for the Council to decide. In the event of that not happening, we will have to do the logical thing and, that is, to take the case to the European Court of Justice.

The Government bungled it.

To answer the question very succinctly, there should not be a problem. It has never occurred before in that regard.

(Limerick West): Can the Minister tell us what were the exact terms of the agreement on the super-levy? Did they mention an exact tonnage figure for each country, or was the agreement on the basis of the 1983 output, whatever that might have been?

It is exactly as I stated. I quoted from the minutes that it was the 1983 outturn.

(Limerick West): Is there a problem?

In natural justice there should be no problem whatsoever, and normally there would not be a problem. Some people are very sore about the exemption we received at the time.

(Limerick West): We are not concerned about soreness.

Was the co-responsibility levy paid on this amount of milk?

Yes, on the final figure return, not on the provisional figure.

Then the Minister's Department had the actual figures on 15 February and not the following June. Each milk plant have a statutory responsibility to have the actual figures on the 15th of each subsequent month. The Department of Agriculture had the actual figures.

When the negotiations were finalised on 31 March the Department of Agriculture immediately asked each milk in-take point in the country, each milk purchaser, to submit definite figures for their 1983 in-take. When they did that it was obvious that was a discrepancy between the provisional figure which had been supplied and the final figure. The discrepancy came to notice some time in the month of June.

The actual figures were with the Department on 15 February if the co-responsibility levy was paid on them.

This question has been dealt with very fairly and generously but we cannot spend all our time on it. I am moving on to the next business.

Is 4.6 per cent also a provisional figure?

That is a separate question.

No. I do not mind answering.

(Interruptions.)

Let him answer; he does not mind.

If by agreement it is sought to turn this into a debate that can be done but if it is to be dealt with by way of question then I am moving on to the next business.

They are trying to blame a co-op in the Chair's constituency for making the mistake.

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