Nora Owen
Question:135 Mrs. Owen asked the Minister for Agriculture and Food his views on milk quotas which are sold or leased to non-family members; and if he will make a statement on the matter. [20149/98]
Written Answers. - Milk Quotas.
Paul McGrath
Question:140 Mr. McGrath asked the Minister for Agriculture and Food the regulations under which his Department can claw back milk quotas from farmers in certain circumstances; if he will give details of these circumstances; if his attention has been drawn to the huge annual income reduction that can be involved for a farmer who purchases a farm with quota and loses 20 per cent of his purchased quota; if his attention has further been drawn to any other business where similar penalties apply; and the reason this practice is acceptable to his Department. [20309/98]
I propose to take Questions Nos. 135 and 140 together.
The provisions for the operation of the milk quota system in Ireland are set down in the European Communities (Milk Quota) Regulations, S.I. No. 266 of 1995. Under the EU and national regulations milk quota is attached to land, and quota is transferred with the lands to which it is attached. The quota system as operated in Ireland provides for the sale and lease of milk quota. Where these transactions take place under the temporary leasing and restructuring schemes, the system gives priority to smaller and more vulnerable producers who wish to increase their quota.
The clawback measure was introduced under Regulation 4(19) of the European Communities (Milk Quota) Regulations, 1995. The purpose of the clawback is to ensure that sufficient milk quota is available under the temporary leasing and restructuring schemes and thus in turn available for redistribution to small scale producers. Specific land transactions such as family transfers or renewals of existing arrangements are exempt from milk quota clawback.
Similar mechanisms operate in a number of other member states and in some cases the rates are much higher than those in Ireland. I have asked the milk quota review group to review all aspects of the operation of the milk quota regime in Ireland, including the clawback arrangement.