Dáil Éireann debate -
Tuesday, 8 Feb 2000

Vol. 513 No. 6

Written Answers. - Milk Quota.

Michael Creed

Question:

220 Mr. Creed asked the Minister for Agriculture, Food and Rural Development if he will reconsider his decision to restrict private leasing of milk quota in the context of the farm retirement scheme for new entrants and those whose current leases are due to expire; and the reasons for the proposed restrictions. [3378/00]

Minister for Agriculture, Food and Rural Development (Mr. Walsh)

The regulatory framework arising from the Agenda 2000 agreement allows for greater flexibility in the operation of the milk quota regime. I have decided to take the opportunity to make significant changes in the system which operates in Ireland in order to ensure that active, committed producers have greater access to quota over the coming years.

The objectives of the new arrangements are to provide for: more flexibility and certainty for milk producers in the operation of the milk quota regime; greater priority access to additional permanent milk quota for small scale and medium size producers; the retention of as many dairying enterprises as possible; and greater competitiveness within the Irish milk production sector. The present situation where milk quotas transferred with land has made it difficult for producers in the small to medium sized categories to acquire additional quota at a reasonable cost. In many cases they had to take on additional land which they did not require in order to get additional quota. This clearly had consequences in terms of their production costs.

I have decided, therefore, that with effect from 1 April 2000 milk quota will no longer transfer with land, subject to certain exceptions. These exceptions will include: family transactions – conditions to be defined in the national implementing regulations; a renewal of a lease agreement for land and milk quota between the original lessor and lessee or their successor-in-title where the original lease agreement was executed in accordance with the provisions of the European Communities (Milk Quota) Regulations, 1995, earlier national implementing legislation or national rules; and the transfer, by way of lease or sale, of land purchased with quota between 13 October 1999 and 31 March 2000 – both dates inclusive. It will also be possible in the case of land and milk quota lease agreements executed prior to 13 October 1999 for the lessee to definitively purchase the milk quota from the lessor without the relevant land.

After 1 April 2000 the main mechanism for transferring quota will be through a restructuring scheme based at milk purchaser level. A maximum price will be set nationally and priority access will be given to smaller and medium category producers. It is clear therefore, that a number of options for the transfer of quota will continue to be available to participants in the farm retirement scheme.

I decided on the changes to the regime following wide consultation and I am satisfied that they represent the best way forward for the industry as a whole.