asked the Minister for Agriculture the proposals he has to ensure the natural growth of the dairy industry to accommodate new entrants to milk production and to allow increases to those whose milk quota is not viable; and if he will make a statement on the matter.
Ceisteanna — Questions. Oral Answers. - Dairy Industry Growth.
35.
Within the constraints of the super levy system, I have made special arrangements to provide for new entrants.
Under a national reserve which I set up in July 1985 some six million gallons have been allocated to new entrants by way of permanent quota. Also I have obtained a commitment from the EC Commission that they will bring forward shortly a restructuring proposal which could enable new entrants, small scale producers and other special category farmers to purchase permanent quotas available within their co-op areas as a result of other producers ceasing production. In addition I have made arrangements for these types of producers to be catered for on a priority basis in the distribution of "flexi" milk.
Is the Minister aware that under the farm modernisation scheme his Department through ACOT, the banks and other lending institutions together with farmers, became involved in a farm plan over a five year period whereby farmers would become involved in milk production? Is he also aware that such farmers invested heavily in milk parlours, housing and paddock fencing and that farms after 1983 could not fulfil the plans as they did not have sufficient quotas? Is he further aware that those people are now in serious financial difficulties? I have been asked to ask him specifically today what advice he has for farmers who find themselves in that situation and who are being led into a corner by his Department. Now, they will not even have a quota under what has been promised because they will not be able to purchase a milk quota.
This is a problem common to all dairy farmers in Europe. We received much more favourable terms than any of the other countries as regards the allocation of quotas under the super levy regime which was settled in 1984. There are bound to be problems and the main problem is one of over-production. A system had to be introduced to rectify that very difficult problem. We do have arrangements for distributing "flexi" milk and preference is given to farmers who have a development plan and whose production is under 25,000 gallons. Unfortunately, there has to be a cut-off point and there will be farmers who have a development plan in excess of 25,000 gallons who could go up much further but that is an inherent problem in the super levy system and in cutbacks in quotas.
Is the Minister aware that there are farmers with quotas as little as 6,000 to 7,000 gallons because the amount of "flexi" milk becoming available is far too little? The information the Minister is putting before us today is not true by implication. Can I ask him also if any progress——
I object to the Deputy saying it is not true.
It is not true.
I said arrangements are available whereby people can get assistance in the form of "flexi" milk if they are under 25,000 gallons, if the milk is available.
I am saying there is no "flexi" milk available. Therefore, I am sure the Minister will agree that people who have invested heavily on his advice find themselves with no quota. There are farmers in County Wexford, and I am sure throughout the country, who will have to sell their farms on account of that.
It is not——
Has the Deputy a question?
I will let him off and I will ask him another one.
I do not like that snide type of comment. It is not true that I advised people to develop like that.
You are not in control of your Department?
Maybe the financial institution and previous Governments did but you could not say I did. We all knew the particular problem was coming about.
You are admitting you are a Government of depression.
One point I want to make is that we received an undertaking from the Commission in Brussels that co-ops would be allowed buy up milk from producers who for some reason are not interested, who may be old or incapacitated, for instance, and that they would be able to redistribute that milk to farmers in the categories I named in the original reply. One of those categories are producers under 25,000 gallons who have a development plan. Unfortunately, the implementation of that plan is held up because a court case has been brought against Luxembourg for the manner in which it was implementing the distribution of excess milk. The Commission will have to come forward very shortly with a completely new proposal as the initial one was found to be defective legally.
A Cheann Comhairle——
The Deputy has asked two questions.
The Minister suggested that Fianna Fáil advised people to get into dairying which is true but he is the one who sold us out on milk quotas.
Has the Deputy a question?
What progress has the Minister made to date with diversification or a product development programme and how involved has he allowed An Foras Talúntais to become?
That is what is important for the future.
Deputy Lenihan, give good example as the Deputy Leader of your party and do not try to organise the exclusion of Deputy Noonan.
It is a very important supplementary question.
It is rather interesting that I was blamed all over Europe for getting too good a deal three years ago but that at home I am accused of not getting half good enough a deal.
You like to give that impression at home.
That is what I have to put up with.
The lord high executioner of agriculture.