Vol. 402 No. 6
23 Mr. Connor asked the Minister for Agriculture and Food if he will seek a low interest rate Euro loan for utilisation by small dairy producers to purchase extra milk quotas from co-ops in disadvantaged and less favoured areas, where unused quotas exist.
I am not disposed to introduce a low interest Euro loan scheme for the purchase of milk quotas as proposed. Loan subsidy schemes involve very high costs and experience has shown that it is extremely difficult to ensure that this cost is limited to providing assistance only to those in need.
However, I have ensured in the last number of years that any milk quotas becoming available under such schemes as the temporary leasing of quotas, the allocation of flexi-milk, co-operative restructuring and the clawback system on land leases are redirected to small scale producers and other priority categories. In addition I was instrumental in obtaining agreement at EC level for the introduction of a reserve pool of 11 million gallons which was again allocated to small scale producers, new entrants into agriculture and other hardship cases.
