Written Answers. - Milk Quota.
Willie Penrose
Question:
46
Mr. Penrose
asked the
Minister for Agriculture, Food and Rural Development
if the ground rules for the distribution of new milk quota have been altered by the quota review group; if he will identify who will be the main beneficiary of the new quota; and if he will make a statement on the matter.
[17763/00]
There has been no change in the arrangements for the distribution of the additional milk allocated to Ireland under Agenda 2000. Ireland received 32 million gallons additional quota under the Agenda 2000 agreement. Of this, 20.5 million gallons is available in the 2000-01 milk year and the remainder, 11.5 million gallons in the 2001-02 milk year.
The role of the milk quota review group is an advisory one and I did, of course, take its recommendations into consideration in deciding on the allocation of this quota.
The eligibility criteria for the allocation to producers of the additional 20.5 million gallons of milk quota negotiated under Agenda 2000 were set out in my reply to Parliamentary Question No. 42 of 9 December 1999. Some 15 million gallons have already been allocated to active milk producers with quotas of less than 55,000 gallons who have demonstrated a commitment to dairying by filling their existing quota and acquiring additional quota. The co-operatives have been notified of the allocation to each successful applicant.
A further 5 million gallons is being allocated to younger dairy farmers with quotas of less than 35,000 gallons who have shown similar commitment. It was necessary to set strict eligibility criteria for the allocation of the extra quota in order to maximise its effect.
The completed application forms have been received through the co-operatives-dairies and are being examined by my Department to establish eligibility and to calculate the quantity of additional quota to be allocated to each eligible applicant.
My Department will endeavour to have the individual allocations made as early as possible and all applicants will be notified of the outcome of their applications. The additional quota allocated will be available to producers for use within the quota year beginning on 1 April.
I will announce details in due course for the allocation of the remaining 500,000 gallons that has been set aside for special cases arising out of the operation of the general distribution.
No decision has been made regarding the distribution of quota becoming available under Agenda 2000 during the next milk year.
I have also published the rules for the sale of quota from this year's quota restructuring scheme. In establishing the priority categories under that scheme it was important to take account of the particular situation which exists in the current year which is a transitional one from one quota regime to another. For that reason, 85% of the available pool is being set aside for those producers who have been dependent on temporary leasing in recent years and for producers who held quota under land leases which, for reasons beyond their control, they can not now renew. It is clear to me that these are the two categories of producers whose needs are greatest and who would, in the absence of priority access to quota, be in the most vulnerable position. In setting the priority categories I took full account of the advice of the milk quota review group and it is my view that the arrangements which have been put in place are best suited to meet the specific requirements of the current year.
