Dáil Éireann debate -
Wednesday, 5 Feb 1997

Vol. 474 No. 4

Written Answers. - Milk Quota.

Donal Moynihan

Question:

42 Mr. Moynihan asked the Minister for Agriculture, Food and Forestry the plans, if any, he has to modify the milk-quota regulations; the schemes, if any, implemented under the supervision of his Department in order that small milk producers will receive the benefit of any available milk-quota for the coming year; and if he will make a statement on the matter. [3094/97]

Ivor Callely

Question:

146 Mr. Callely asked the Minister for Agriculture, Food and Forestry the progress, if any, made with the milk quota temporary leasing and restructuring schemes for 1997-98; the outcome of the milk quota review group which was to be held in early January 1997; and if he will make a statement on the matter. [3256/97]

Minister for Agriculture, Food and Forestry (Mr. Yates)

I propose to take Questions Nos. 42 and 146 together.

Having received the recommendations of the milk quota review group following its meeting in early January, I have announced the details of the 1997 milk quota restructuring and temporary leasing schemes.

In deciding the conditions for the 1997 restructuring scheme I was mindful of the success of this scheme over the years in redirecting quota to priority category producers, in particular to smaller-scale producers and new entrants. The 1997 scheme again makes special provision for these producers and indeed goes further by recognising the especially difficult position of young farmers who have entered dairying for the first time in recent years.

The maximum price for restructured quota will be £1.75 per gallon — as against £2 per gallon last year. This is a fair one which reflects both the realities of the market and also the situation of potential purchasers.

In determining the temporary leasing scheme conditions for 1997, I have also reduced the maximum price from 30p to 27p per gallon. Smaller-scale producers will be given priority and within that category special priority will be given to producers with a track-record of participation in this scheme over the years. I have accepted the recommendation of the quota review group that medium-sized quota holders who have also demonstrated their dependence on temporary leasing should be given some priority also. For this reason, I decided that the available pool would be split on a 75:25 basis between producers under 35,000 gallons and producers between 35,000 and 55,000 gallons respectively.

The closing date for the first stage of the temporary leasing scheme will be 30 April 1997, thereby ensuring that producers will be aware of the bulk of their 1997 quota entitlement as early as possible in the new quota year.

There are, of course, other measures which are already in place and which will continue to direct quota to the most deserving producers namely ring-fencing of quota in the disadvantaged areas and the clawback provisions on land leases and sales. Both these measures have proven very successful and I have thus decided to retain them.