Ceisteanna–Questions. Priority Questions - Milk Quota. – Dáil Éireann (28th Dáil) – Thursday, 18 May 2000

Ceisteanna–Questions. Priority Questions - Milk Quota.

Paul Connaughton

Question:

3 Mr. Connaughton asked the Minister for Agriculture, Food and Rural Development the position of dairy farmers who purchased milk quota under the Agenda 2000 restructuring scheme and who subsequently disposed of such milk quota; if, with regard to dairy farmers who received the 50p per gallon subsidy some years ago, the milk quota can be sold; and the written guarantees, if any, he will give milk producers who, through a family bereavement or ill health, have to temporarily cease milk production until family circumstances change. [13965/00]

Mr. Walsh

A milk producer who purchases quota under a restructuring scheme implemented after 1 April 2000 under the provisions of regulation 26 of the European Communities (Milk Quota) Regulations, 2000, can transfer the purchased quota by way of any of the following transactions: lease of quota and the lands to which it is attached to a spouse or relative as defined in the regulations, transfer of quota and the lands to which it is attached by way of gift to a spouse or relative as defined in the regulations; sale under a subsequent restructuring scheme, temporary lease of the purchased quota provided the three year limit on temporary leasing is not exceeded or transfer by means of the inheritance of the lands to which the quota is attached. It is not possible, however, under the provisions of paragraph (8) of regulation 28 to sell such quota with land.

Quota purchased under the milk quota restructuring schemes operated in 1994, 1995 and 1996 by producers who benefited from the subsidy provided under the Operational Programme for Agriculture, Rural Development and Forestry may be transferred in the following manner: transfer with the lands to which it is attached where these lands are transferred by sale, lease, gift or inheritance to a spouse or relative as defined in the regulations, sale of quota with the lands to which it is attached provided that the vendor is an active milk producer and satisfies the criteria laid down in regulation 7 of the regulations, sale under a restructuring scheme or temporary lease provided the three year limit on such leasing is not exceeded. In the case of such transactions, there is no requirement that the subsidy be repaid.

Milk producers who have to cease production temporarily due to exceptional circumstances, such as ill health or family bereavement, can temporarily lease their quota for at least three milk years under the provisions of the above mentioned regulations. It is also possible in the case of a family transaction to transfer the quota by way of a lease of the lands to which it is attached.

My Department is at present considering applications for exemptions from the general three year rule from approximately 120 people who, for exceptional reasons such as ill health, family bereavement or animal disease, have been unable to produce milk during the last three milk quota years and who, for similar reasons, are not in a position to recommence milk deliveries during the 2000-01 milk quota year. The closing date for such applications was 12 May. Each application is being considered on an individual basis and will be judged on its own merits.

Mr. Connaughton

In so far as producers were in receipt of a 50p per gallon subsidy from 1995-97 when they were buying milk at £2 per gallon, can they sell that milk in the same manner as those who have owned the quota all their life?

Mr. Walsh

Yes.

Mr. Connaughton

Next year, will farmers be able to refill the milk quota they have to purchase this year? Are any impediments placed on what they can do with it, other than what is involved in Agenda 2000?

Will the Minister give a written guarantee to the hardship category – the 120 people who have already written where there has been a bereavement, a widow is waiting for a child to start farming or there has been ill health or animal disease – that the milk will be in the pool for that category of person when they are able to start farming again or their child starts farming in ten years' time?

Mr. Walsh

One of the conditions of the 50p subsidy scheme was that the producer should remain in milk production until the end of the quota system or the year 2000, whichever was the earlier. Therefore, such quota could not be sold by them until 2000. It can now be disposed of by being sold into the 2000 restructuring scheme, by being sold with land in a permanent transfer of land and quota, or by being transferred by way of sale, lease, gift or inheritance with land as a part of a family transaction. There is a wide designation of relatives, including grandparents, grandchildren, nieces, nephews, aunts and uncles. It can be temporarily leased provided the three year limit is not exceeded. It can be traded, sold, leased or inherited in the same way as any other quota.

Dáil Éireann debate -
Thursday, 18 May 2000