Brian Cowen
Question:24 Mr. Cowen asked the Minister for Agriculture, Food and Forestry when legislation to provide for the ring-fencing of milk quotas in disadvantaged areas will be introduced. [14545/95]
Ceisteanna—Questions. Oral Answers. - Milk Quotas.
Robert Molloy
Question:30 Mr. Molloy asked the Minister for Agriculture, Food and Forestry the reason for the delay in enforcing ring-fencing of milk quotas in the disadvantaged areas; and if he will make a statement on the matter. [14575/95]
Brendan Smith
Question:33 Mr. B. Smith asked the Minister for Agriculture, Food and Forestry when he will introduce the necessary regulations to ring fence the milk quota in the disadvantaged areas; and if he will make a statement on the matter. [14512/95]
I propose to take Questions Nos. 24, 30 and 33 together. I am pleased to inform the House the legislation which provides for the application of the principle of ring-fencing in the operation of the milk quota system was signed by me on 4 October.
The Statutory Instrument concerned updates and consolidates all the provisions relating to the operation of the milk quota system in Ireland.
The Minister promised to do this last February and I presume he is aware of the many farmers who relied on the availability of temporary lease quotas from co-ops for the past number of years. They were not told until mid-July what their position would be this year. What will the Minister do for the main dairy farmers, with small and medium size enterprises, who are now being offered 3,000 to 5,000 gallons lease quotas instead of 10,000 to 20,000 gallons lease quotas? What were they supposed to do? They should have been notified of the situation last March, not half way through the main production season in mid-July. What will the Minister do for these farmers? Will he pay their super-levy?
I will not pay anybody's super-levy.
There is no fear of the Minister doing that. He looked after the big boys; the commercial boys were looked after.
The Deputy is not aware of what happened this afternoon. I announced the policy decision in February.
Something happened since then.
I regret it was not put in place earlier.
People are suffering as a result of the Minister's inaction.
The Deputy should allow me to answer the question.
Last February.
There were delays in the Office of the Attorney General because of staffing shortages.
Blame him.
He was supposed to be the be all and end all.
Let us hear the reply.
There is a likelihood of litigation in this regard, challenging the ring-fencing.
The Minister did not say that in February.
Regarding the question raised by the Deputy about small farmers, I took the exceptional step today of introducing measures which will have a 10 per cent clawback on private leases for cheque book farmers. This will involve a 10 per cent deduction for people who had temporary leases and who will have them in the future.
I am not satisfied with the situation whereby all the milk in the restructuring scheme is being siphoned off when milk is making as much as 60p a gallon. As the Deputy is aware, that is cheque book driven. I have taken this exceptional step and the legislation will be put in place soon. It is a new measure which has been checked by the Office of the Attorney General and the EU Commission. It meets fully the ultimate legal powers I can take in this regard.
How many gallons are involved in any such clawback? How many gallons are people demanding, given that they had a certain number up to now and that they were sure they would get it again, based on the Minister's statements last February? Why has he not been in a position to deliver for those farmers, who were not told about their position in mid-July? Was it another promise made in the early flush of ministerial office? Can the Minister explain the position to farmers who are worried out of their wits about how they will work out their quota and the over supply of milk? Will the Minister meet the demands and will he be in a position to look after those people before they sell every cow they own?
The purpose of the 10 per cent clawback is to cut down on the number of temporary leases. It is to put a disincentive or penalty in place so that milk will go back——
Will the Minister ban it next year?
Legally, I cannot do so. I cannot ban temporary——
The Minister could do it next year.
I cannot do so in terms of commercial leases.
The Minister could ban them from now on. That is typical, the big operators are looked after.
Let us hear the reply without this level of interruption.
I must operate within the law. We have over produced by 2.6 per cent this year regarding the super-levy.
It is a drop in the ocean. The Minister is indulging in semantics.
We are exceeding our quota. As the Deputy is aware, this is because there is now a record price for milk. Milk farmers were never doing better with 109p a gallon.
It has nothing to do with the Minister.
The Minister will claim credit for the fine weather yet.
The current market for milk is so buoyant that the dairy farmers are delighted with the Minister.