asked the Minister for Agriculture under the new super-levy quota milk regime the position of farmers who participated in his Department's scheme of premiums for non-marketing of milk and milk products for a period of five years, which period included the years 1981 to 1983, inclusive; whether it is the case that such farmers are now being denied any quota of milk production at all notwithstanding the fact that the period of non-marketing of milk applicable to them has expired; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Milk Quotas.
21.
Milk quotas are based on deliveries made during 1983. Accordingly farmers who participated in the non-marketing scheme and whose non-marketing period expired before or during 1983 are entitled to a quota based on their actual 1983 deliveries. Other participants in the scheme whose non-marketing period expired after 1983 are in the same position as new entrants to milk production and are dependent on sharing in the "flexi-milk" available to their co-operatives or dairies. I am, however, examining whether changes can be made in these arrangements for 1985-86 and I hope to be in a position to make an announcement shortly.
In cases where the Department entered into agreements with farmers in 1980 under the milk cessation scheme, whereby these farmers would be paid certain allowances if they agreed not to produce milk for a five year period, is it not unfair to such farmers who have dairy units on their farms not to permit them to return to milk production?
I am not sure that this is unfair. The situation has changed. People were compensated for agreeing not to engage in milk production for a five year period.
I take it that one of the consequences of the super-levy regime is that farms in respect of which there are no milk quotas are effectively devalued.
That is open to argument. It may be that they have changed to some other system of farming and are quite happy, so the question could be hypothetical.
Regarding those farmers who are not happy now that the five year period has expired, would the Minister be prepared to give sympathetic consideration to their cases? I am aware that representations have been made to the Department by some farmers who are extremely unhappy, farmers who are being deprived of income and who have elaborate dairy units attached to their farms.
One would wonder, then, why they agreed in the first place not to produce milk. If flexi-milk is available in the co-operatives with which any such farmer would be involved his case might be considered in that way.
Their agreement was for five years.
(Limerick West): Is it part of the terms of that scheme that the farmers concerned are debarred from returning to milk production during the time that the quotas apply?
They are not debarred from returning to milk production. If the period of the scheme expired between 1 January 1983 and 20 May 1984, they would be regarded as new entrants.
(Limerick West): What priority would the Minister be prepared to give to those applicants regarding the flexi-milk that may be available for disposal?
I do not think I could classify them within the present order, which is, first, for disease, secondly, for new entrants, and thirdly, for financial difficulties. They would probably fit in after that order.
22.
asked the Minister for Agriculture if, in view of the special circumstances of the Irish dairy industry as a predominantly spring calving, grass-based industry, he will take steps to have the milk quota year aligned on a calendar year basis with the base reference year; and if he will make a statement on the matter.
It is not considered that there is any realistic prospect of having the year for super-levy purposes altered to the calendar year.
Would the Minister not agree that in the Irish circumstances, whereby production is very much grass based, it would be very much to the advantage of the industry to have the year aligned to the calendar year?
I agree that in our circumstances it would be better that the marketing year coincided with the calendar year but we are sure that the other member states would not agree to that. Unfortunately, our seasonality factor renders it better that the situation would be as outlined by the Deputy, but other countries do not have that specific problem and it is highly unlikely that they will consider changing. Any tentative suggestion in that regard has always been dismissed out of hand.
(Limerick West): Is there any possibility that the price negotiations would be brought forward so as to ensure that dairy farmers particularly, because of the pattern of calving, would have an indication at the beginning of the year of what the milk prices for that year would be? In other words, could the price fixing be brought forward, say, to November or December?
That is a question that will have to be considered very carefully having regard to the continuing delays in price fixing. I am very much aware of the losses which farmers and especially dairy farmers suffer as a result of these delays, delays that sometimes go beyond 1 April. The price fixing negotiation system will probably become much more complicated with the accession of Spain and Portugal because there will then be 12 rather than ten members involved in the negotiations. The matter is something that I will be putting forward because I agree that we should seek an early price fixing date from the Commission.
Are there plans for altering the seasonality factor in respect of production in the Irish dairy industry from the position where we produce almost 14 times as much in summer as we produce in winter, whereas on mainland Europe the figure is as low as about twice as much in summer as in winter?
This question is not as easy as it may seem. Our system, which is based on grass, is a relatively low production system whereas continentals depend largely on feeding right through the winter. Co-operatives here encourage people to produce milk in winter by way of providing a better price.
(Limerick West): That used to be the case.
But this has not been sufficient to encourage winter production.
23.
asked the Minister for Agriculture the steps he is taking to provide milk quotas to farmers in financial difficulties, new entrants to milk production, who acted on his advice, and young farmers; and if he will make a statement on the whole issue of milk quotas.
For 1984-85 provision was made for these categories of producers out of the "flexi-milk" available within co-operatives and dairies. Having consulted the farming and co-operative organisations I am now considering whether any changes need to be made in these arrangements for 1985-86. I will be making an announcement in this matter shortly.
Would the Minister agree that there are huge numbers of people in the categories mentioned who have not been accommodated in the past year? Would he like today to give me the headings of any proposals he may have to accommodate these people?
I cannot give the Deputy headings in this regard but I instigated discussions about two months ago with the farming organisations and the co-operative movement in the hope that we could come to a permanent arrangement to cater for new entrants. Those discussions have progressed quite well but have not been finalised. I am not in a position to disclose anything until they have been finalised. I am concerned that permanent provision be made for new entrants and am aware that there is a problem in certain areas, particularly in west Cork and in parts of Kerry and Wexford. I have met several representative groups of new entrants and have discussed the problem with them.
Is the Minister aware that dairy farmers are now preparing for next year, particularly for the first three months of the year, and that because of this the question is very urgent? Can he tell us if he will have the proposals before us within the next week?
Yes, I am so aware. I hoped that a voluntary agreement would have been reached by now and I definitely hope that agreement will be reached within the next few weeks.
I tabled a question to the Minister for Agriculture regarding the concern and anxiety of farmers in my constituency in Clare at the increasing competition between co-operatives and milk suppliers which is causing confusion in the industry. Could I have an indication from the Minister if he will accept the question?
He cannot because I have ruled it out of order.
This is an important issue. It is very relevant. There is a question on the Order Paper which is equally relevant and I do not understand why my question should be disallowed.
If the Deputy would like to come to my office and discuss this he will be very welcome.
I support Deputy Daly. Will the Minister make a statement on this very serious issue in the Munster area or is he prepared to go into hiding as he has done for the last two and a half years?
I wish to raise on the Adjournment the question of the proposed sale of the Blasket Islands which appeared in an American newspaper.
I will communicate with the Deputy.