I propose to take Questions Nos. 8, 9 and 28 together.
The milk quota system introduced in Ireland in 1984 did not make adequate provision for small scale producers or new entrants into agriculture.
Within the limited degree of flexibility to me under the Community regulations, I have made a number of decisions since 1987 designed to redirect any quota available towards small scale producers. In 1987-88 I introduced a restructuring scheme restricted to producers below 50,000 gallons and of these the first priority category is confined to producers below 30,000 gallons quota. I also assisted these producers by giving them priority under the schemes for the temporary leasing of quotas and the allocations of flexi-milk.
In December 1987 I introduced a clawback system under which a percentage of quota transferring with a lease is retained in a national reserve, if the lessees total quota exceeds 50,000 gallons. One of the main objectives of this scheme is to give small scale producers priority access to quotas becoming available for leasing with land. The House will be aware that as part of the 1989-90 prices package I negotiated a reduction in the co-responsibility levy for small producers and the elimination of it in disadvantaged areas.
Finally in response to my specific request at the price negotiations in April 1989, the Commission agreed to introduce a reserve pool of 11 million gallons for small scale producers and new entrants into agriculture. This was consequently proposed by the Commission in August and finally adopted by the Council of Ministers in November 1989.
I recently announced guidelines for the allocation of this 11 million gallons of quota free of charge. I believe that these arrangements which have been approved by the Commission are fair and equitable taking into account the varied needs of priority category producers, co-operatives and dairies in all parts of the country.
As I have already announced, eight million gallons of the additional 11 million gallons are to be allocated to certain small scale producers with quotas below 12,800 gallons. A further two million gallons are being made available to young farmers under 35 years of age with appropriate training and educational qualifications. The remaining one million gallons is being allocated to other special category producers who have suffered hardship because of inadequate quotas and the Milk Quota Appeals Tribunal which I recently established will deal with these allocations.
The quota allocations to young farmers will be 10,000 gallons. This means that 200 young farmers will benefit from the two million gallons set aside for this category. The allocation of the eight million gallons to small scale producers will be carried out on a flat rate basis nationally subject to the constraints I have announced.
The allocation of quotas to the successful applicants will be made before the end of this month. Investigations will have been carried out before the allocations are made to ensure that only genuine bona fide young farmers with separate holdings, herd numbers and milking facilities will benefit from the allocations. A lottery system is being used to determine the successful applicants from this category.
In general, therefore, it is evident that since taking office in 1987 my concern under the quota system has been, where possible, to allocate additional quotas to small scale producers who would use them and not to grant them to larger quota holders who have already sufficient for their requirements.
