asked the Minister for Agriculture and Food if he will arrange for the immediate allocation of the 8 per cent addition to milk quota to farmers residing in disadvantaged areas to those farmers who are still in milk who were supplying to Galway Dawn Dairies in 1983, all of whom resided in a disadvantaged area.
Ceisteanna—Questions. Oral Answers. - Milk Quotas.
18.
Ireland's national quota was distributed in relation to the level of producers' milk deliveries in 1983. Each milk purchaser obtained a basic quota of 1983 deliveries from producers plus (i) 497 gallons for suppliers with 1983 deliveries of less than 14,000 gallons and (ii) 3.55 per cent of 1983 deliveries for suppliers over 14,000 gallons. These were national criteria and not applicable to any particular area of the country. Dawn Dairies was treated in exactly the same manner as all other milk purchasers in the country. The percentage increase over 1983 deliveries obtained by any purchaser was, therefore, based on the concentration of smallscale producers, rather than the purchaser's geographical location.
The only way in which this dairy or any other purchaser could be granted additional quota at this stage is from a national reserve, set up either by Government funding, or by deductions from the quotas of other purchasers and producers, neither of which is a practical possibility.
Would the Minister agree that excess milk allowed to small producers has been found to be inadequate? Would he also agree that in 1983 there should have been greater recognition of small producers who were at that time converting to dairying from a very low base, who find now they must purchase additional quotas or, alternatively, discontinue milk production?
I agree that it is a matter of critical importance. In 1987, of all the countries in the EC, I managed to get agreement uniquely for Ireland to introduce a milk restructuring scheme which would confine priority to the sales of milk quota without land to small producers and young producers thereby guaranteeing that the power of the cheque book would not determine capacity to acquire quota. That restructuring scheme is being implemented rigidly by all the dairies. Deputy Leonard is right to point out the problems of small producers particularly. I am very concerned about them and I am determined to ensure that what should have been done five or six years ago will now be implemented very strictly.
Would the Minister agree that there is a case for farmers with quotas under 25,000 gallons to be exempt from super-levy penalty?
I am trying to manage the consequences of decisions that were taken in 1984. I acknowledge that it was not the Irish Minister for Agriculture who took those decisions; it was the Council of Ministers generally; but that is in place now. What I am trying to do is to get a measured degree of relaxation on that levy for the small producers. I hope to get that during the course of this year but it takes 12 countries to reach agreement.
Is the Minister aware that many small farmers in dairying had small quotas in 1983 and found themselves at that time with no asssets on the basis of which they could borrow money to develop their dairies but waited until they had money saved to go further into dairying, and now find that they will not get any increases in their quotas? I hope the Minister will look into this matter in the present negotiations that are taking place.
I hope to see the whole quota regime being renewed within two years, particularly in the interest of smallholders. I hope to see the co-responsibility levy being modulated in favour of smallholders and, through the leasing clawback scheme, the restructuring scheme, I want to assure the House that the priority will be with the small producers.