Dáil Éireann debate -
Wednesday, 23 Feb 2000

Vol. 515 No. 1

Written Answers. - Milk Quota.

Liam Aylward

Question:

102 Mr. Aylward asked the Minister for Agriculture, Food and Rural Development the criteria used for the allocation of additional milk quota; the exceptions, if any, to the guidelines; when decisions will be made; and if he will furnish any relevant information relating to this matter. [5460/00]

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 changes in the system which operates in Ireland in order to ensure that active, committed producers have greater access to quota on a permanent basis at a reasonable cost over the coming years and that the Irish dairy sector is positioned to face the competitive challenges that lie ahead.

On 13 October I announced my intention to introduce, by way of national regulations, applicable from 1 April 2000, an arrangement for the transfer of milk quota other than the current system whereby such quota transfers with land.

The objectives of the new arrangements are to provide for: (i) more flexibility and certainty for milk producers in the operation of the milk quota regime; (ii) greater priority access to additional permanent milk quota for small scale and medium size producers; (iii) the retention of as many dairying enterprises as possible; (iv) greater competitiveness within the Irish milk production sector.

I secured additional quota under the Agenda 2000 agreement and 20.5 million gallons of this becomes available on 1 April 2000. The criteria for the allocation of this 20.5 million gallons are as follows: 15 million gallons will be made available to producers with quotas below 55,000 gallons who meet certain criteria. The criteria include a requirement that they must have produced 90% of their quota in two of the quota years 1995-98, that they have not sold or leased quota with land during the period in question, that they have not reduced their available quota in more than one year during the period and that they have acquired quota on a permanent or temporary basis during the same period. Five million gallons will be made available to a special scheme for younger active producers who have commenced milk production since 1989. The eligibility criteria for this category also include the 90% quota usage level as well as those related to the purchase and leasing of quota. Additional criteria in this category include an age limit of 35 at the date of commencement of milk production, educational qualifications and a maximum quota after allocation of 35,000 gallons. The maximum allocation to producers in this category will be 5,000 gallons. The balance of 500,000 gallons will be set aside for exceptional cases arising out of the operation of the general distribution.

It was necessary to set strict eligibility criteria for the allocation of the extra quota in order to maximise its effect and unfortunately anyone who does not meet all of the eligibility criteria is not entitled to an allocation.

The scheme for the allocation of the 15 million gallons is being administered by the dairy co-operatives in accordance with the criteria set by me.

The closing date for receipt by milk purchasers of applications under the scheme for the allocation of five million gallons of additional quota to younger dairy farmers with a milk quota of less than 35,000 gallons was 8 February 2000. The milk purchasers will submit the completed application forms to my Department and they will be processed as quickly as possible. All applicants will be notified of the outcome.

The additional quota will be available to successful applicants with effect from the 2000-01 milk quota year.