asked the Minister for Agriculture the proposals he has to allow a natural growth in the dairy industry, the industry best suited to this country and to accommodate new entrants to milk; and if he will make a statement on the matter.
Ceisteann—Questions. Oral Answers. - Dairy Industry.
42.
Mr. Byrne
Within the constraints of the super-levy system, I have made special arrangements to provide for new entrants. Under a national reserve which I announced in July last some 6,000,000 gallons are being allocated to new entrants by way of permanent quota. As milk production is limited by quota, improved returns to milk producers and others in the industry must come from the development of more value added products and better marketing. The industry itself has a major contribution to make in these respects and, of course, the Industrial Development Authority are prepared to assist all worthwhile eligible projects.
Is the Minister now telling me that the dairy industry is a closed shop, with no prospect of new entrants from May 1984?
I am saying that the only new entrants who will be considered for increased milk supply are those whom I have previously mentioned. Those are the people who came into milk production between 1 January 1983 and 20 May 1984. Anybody else who wishes to come into milk production must buy or lease a quota in conjunction with the land to which the quota is attached.
Is the national reserve which was built up this year a once off effort and will the bigger suppliers be compensated for their loss in earning capacity? Most of these would have heavy borrowings.
We have no intention of compensating people for any losses that result from the setting up of the national reserve. That was done purely to assist people such as new entrants whom I consider to be in a much more difficult situation.
Will the Minister renew his efforts to increase our quota in the EC to at least 7 per cent, which would be pretty close to natural growth? This would accommodate especially the younger farmers, from whom he had, I understand, a deputation recently.
I would not like to mislead the House by saying that there is any realistic hope of getting such an increase. The tendency, as one can see from the recently announced proposals under the heading of the EC Milk Cessation Scheme, is to cut back further within the EC. The present proposal is for a 3 per cent reduction in EC milk production and for countries to have the option of reducing their national production by a further 3 per cent. In the light of that, it would be unrealistic to expect any dramatic increase for us at this stage.
Is the Minister aware that some suppliers with quotas of 5,000 gallons have now supplied in excess of 30,000 gallons, which will cause the imposition of a penalty of about £10,000 this year? Will he take those people into consideration?
I am sorry, Deputy, that is something that those people will have to look after themselves. As I stated in reply to a previous question, national production at present is 1.5 per cent over the allotted amount; it is 1.5 per cent only. Individuals may have serious problems but that is a matter for them to work out in conjunction with their co-operative society. If there is flexi milk available then the co-operative may be able to assist them. I doubt if the proportion of over-production is as high as was stated.
The Minister can be quite sure that it is. Will the Minister tell us here today what he has in mind for the younger farmer who is interested in getting into milk production, if he is aware of the fall-off in young, would-be farmers to agriculture?
If the young farmer does not inherit a milk quota the only options open to him at present——
Are America or England.
——are to purchase or lease a milk quota in conjunction with the land to which it is attached.
We have now concluded Question Time.