Dáil Éireann debate -
Thursday, 21 Feb 1991

Vol. 405 No. 5

Written Answers. - EC Milk Quota System.

Liam Kavanagh

Question:

51 Mr. Kavanagh asked the Minister for Agriculture and Food if he sees any merit in the proposal from an Irish MEP that the EC milk quota system be replaced by a system of differential price support and world market prices to produce over agreed levels of output, and that this method of support could be extended to all other commodities supported by the Common Agriculture Policy which would result in the vast majority of Irish farmers being better off; and if he will make a statement on the matter.

Minister for Agriculture and Food (Mr. O'Kennedy)

The milk quota system is due to continue until the end of 1992. The EC Commission is shortly to review the operation of the milk quota system, as a basis for decision on the continued application of a supply management policy in the dairy sector beyond 1992.

The merits of any possible modifications to the system will be examined in the context of this review. In deciding on the Irish position in the context of that review I shall be looking at what arrangements will best ensure the continued development of the Irish dairy industry and maintain the profitability of milk production on Irish farms. At this stage I would not rule out any option but I would say that differential price supports would be very difficult to fit into the CAP system, even if they could be shown to be of some Irish benefit.