May I suggest to Deputy Brennan that, as we are so short of time, he has six minutes and the Minister three to reply.
Adjournment Debate. - Milk Quotas.
I thank you, Sir, for having given me permission to raise this matter on the Adjournment. It is my first time to speak in the House in the presence of the Minister of State, Deputy J. Walsh. I congratulate him on his appointment and wish him well.
Hear, hear.
As the House will be aware farmers in regions other than disadvantaged ones are purchasing milk quotas. It is a shame that farmers are allowed to purchase milk quotas in disadvantaged areas, particularly wealthier farmers who can well afford to purchase them. I believe there are discussions taking place at present in Brussels the outcome of which will have lasting effects on our national milk production.
I want to refer to the restructuring of the milk quota which I hope will be completed this week at the discussions in Brussels and which will be of great advantage to the west. However, the restructuring of such milk quotas will be beneficial only if they are allowed to obtain in respective regions, ensuring that farmers in the south are not allowed purchase milk quotas from disadvantaged areas of the west. As the House will be aware, this practice is taking place at present. It is happening in my county where farmers are selling — perhaps through no fault of theirs — their quotas for considerable amounts of money. This cannot be allowed to continue. When the restructuring has been finalised it will be the responsibility of national Governments to decide who should be allowed purchase these milk quotas.
We are very concerned about this practice particularly in the North Connaught area I represent. We in the west cannot afford to lose milk quotas to our southern or eastern counterparts, because our climate is not as good as that in the south or east. Generally our harvesting is five or six weeks later than those other regions. It is very unfair, therefore, that our milk quotas should be taken from us.
I would propose that milk quotas be sold or leased only to farmers living and farming in the region where the quotas obtain, that the co-operatives be entitled to purchase quotas in their catchment areas.
I have agreed to give my colleague. Deputy Leonard, a few minutes of my time.
Deputy Leonard will appreciate that his time is extremely limited and that the Minister of State must get in before 12.30 a.m.
I support the plea made by Deputy Brennan about milk quotas. The future of farming and many co-operatives in the west would be placed in jeopardy if there were to be a diminution of milk quotas in disadvantaged areas. The former Minister, Deputy Deasy, when announcing the milk quota scheme on 31 May 1984 stated that the quantity of additional milk being made available to small producers amounted to 1 per cent only of the total. That is when these problems commenced. Ever since small producers and co-operatives have been placed in a very vulnerable position. With restrictions on milk production the large powerful co-operatives sought to entice supplies of milk from smaller co-operatives in Connaught/Ulster. They managed to do so effectively in the course of the first milk cessation scheme.
I welcome the expression of concern by Deputy Brennan in regard to this matter and the fact that he has brought his concern in relation to the transfer of milk quotas to the attention of the House. It is in keeping with Deputy Brennan's position as a staunch defender of the rights of small farmers in the west, and their entitlement to a decent living. I can assure him of the sympathetic consideration and understanding of all in Agriculture House.
I might draw his attention to the fact that under EC and national regulations on the milk super levy milk quotas can be sold or leased only when the lands to which they are attached are also sold or leased. Likewise when land which has a quota is sold or leased the corresponding quota automatically transfers with it.
All cases of transfer of quota from one co-operative to another resulting from the sale or lease of land require the Department's approval. I can assure Deputy Brennan that the Department's approval will be forthcoming only where we are satisfied, following a thorough investigation and report by the local inspectorate, that it is a bona fide transfer.
I am fully satisfied with the monitoring of quota transfers by the Department. I would invite Deputy Brennan — if he has any evidence whatever of any shady dealings or any transfers about which he is doubtful — to bring them to the attention of the Department when I can assure him they will be speedily and thoroughly investigated. If there is any contravention of EC regulations then the full penalties laid down for such offences will be brought to bear on relevant offenders. I should say that, on summary conviction, a fine of £1,000 applies in addition to the full super levy penalty of £1.07 per gallon of milk on all deliveries made on foot of any irregular transactions.
Essentially I am inviting Deputy Brennan to bring to the attention of myself, the Minister or any of the officials of Agriculture House any irregular transactions of which he might be aware when I can assure him they will be fully investigated. I have the greatest sympathy for the less well off farming community in that I represent an area similar to that of Deputy Brennan and indeed of Deputy Leonard.
I have always felt it is essential that changes should be made in the Community regulations to enable proper restructuring of milk production to take place within co-operative areas, in other words to prevent leakage of milk out of one co-operative area into another. We have been actively pursuing with the Commission and the Council a measure to be introduced which would enable co-operatives and dairies to purchase quotas from producers wishing to give up milk production for re-sale to small scale farmers with the capacity to develop, and to other farmers with special needs within the same co-operative area. A proposal to this effect has now been included in the price-fixing compromise circulated to the Council. Our Minister will be seeking to have this implemented as part of the price-fixing agreement as soon as possible. I am sure Deputy Brennan will agree that that measure will be enormously appreciated by such people as the North Connacht Co-operative and also by the Town of Monaghan Co-operative in which Deputy Leonard is so interested.
The Dáil adjourned at 12.30 a. m. on Thursday, 18 June, 1987 until 10.30 a.m.