Written Answers. - Milk Quota.
Ned O'Keeffe
Question:
75
Mr. E. O'Keeffe
asked the
Minister for Agriculture, Food and Forestry
the reason the milk quota increased from minus 2.5 per cent in September, 1992, to 2.5 per cent of the national quota in December, 1992; if he will recommend that farmers with a quota below 40,000 gallons who have exceeded their quota be exempted from superlevy charges in 1993; if his attention has been drawn to the hardship imposed on many of the farmers who do not have income at this time because of their oversupply position; if he will give details of the quota position of milk purchases in the country; the changes, if any, he proposes for the milk quota year 1993-1994; and if he will make a statement on the matter.
The surge in national milk output between September and December 1992 resulted in estimated national delivery figures increasing from 1.5 per cent below quota to 1 per cent over quota when calculated on a monthly basis. The increase in milk production can be attributed to a number of factors including favourable autumn weather conditions, under-production during the earlier part of the year and the incentive provided by buoyant milk prices. The fact that superlevy had not been incurred in the previous three years may also have caused producers to disregard the warnings issued in relation to their quota position.
I am well aware of the hardship caused to individual milk producers by the imposition of quotas and have taken every action possible to limit the effect of this, particularly in relation to smaller producers. While all producers who exceed their quota, following the allocation of whatever flexi-milk is available, are liable for levy, smaller scale producers have, and will continue to have, first call on flexi-milk. Also, I have introduced, during 1992, for the first time in a single year, two separate temporary quota leasing schemes so that producers can lease quota without land to cover anticipated need at the end of the milk year. The terms of the leasing arrangements were also improved by me in order to increase the availability of quota to those who require it by permitting producers to lease up to 99 per cent of their quota compared with 75 per cent previously.
Under the quota system operated by Ireland, milk quota is allocated to milk purchasers. While my Department monitors the national position on the basis of milk intake information received from purchasers, the purchaser is responsible for the day to day management of that quota and thus for the transmission to individual producers of information on an ongoing basis regarding his/her quota position. In view of the arrangements for flexi milk allocation, both nationally and within purchasers, this exchange of information can take place only between an individual producer and his/her milk purchaser.
The national milk intake position as at 31 January, when calculated on a monthly basis, was estimated at 1 per cent in excess of quota.
In the Council negotiations on the new EC quota Regulations agreed last December, I was successful in ensuring that the provision enabling small producers to be given priority in the reallocation of unused quota should be maintained as a part of the overall system in the future. The new regime, to apply from 1 April 1993, provides also for restructuring of quota and for greater flexibility in relation to land/quota link. I have already decided that restructuring and temporary leasing schemes will operate in Ireland at the beginning of the 1993/94 milk year. It is my intention to pursue vigorously, in the coming prices negotiations, the issue of EC funding for restructuring already raised by me at the Council of Ministers.
