Vol. 521 No. 6
2 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 the main beneficiaries of the new quota; and if he will make a statement on the matter. [17846/00]
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 of additional milk quota under the agreement. Of this, 20.5 million gallons is available in the 2000-01 milk year and the remainder, that is, 11.5 million gallons, in the 2001-02 milk year.
The role of the milk quota review group is an advisory one and I took 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. A total of 15 million gallons has 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 five million gallons is being allocated to younger dairy farmers with quotas of less than 35,000 gallons who have shown similar commitment and to date we have received approximately 3,500 applications. 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 and are being examined by my Department to establish eligibility and to calculate the quantity of additional milk 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 this year. 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.
Did the Minister take the advice of the milk quota review group, which comprises members of ICOS, ICMSA, IFA, Teagasc and Macra na Feirme, to give restructured quota as a priority to those engaged in temporary leasing and to those with non-renewable leases? Did the milk quota review group not put forward a case for farmers who have shown their commitment to farming by purchasing restructuring quota from the restructuring scheme in recent years and who are now being denied priority access to such quota? Did the Minister accept the recommendation of the milk quota review group which forgot to include an important group of young people?
The milk quota review group is made up of the main farming organisations. It has been there for some years and it advises the Minister of the day on the allocation of milk quotas. I took its recommendations into account.
I have 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 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 cannot renew. It is clear that these are the two categories of producers whose needs are greatest and who would, in the absence of priority access to quota, be the most vulnerable. In setting the priority categories, I took full account of the advice of the milk quota review group. It is my view that the arrangements which have been put in place for this transitional year are best suited to meet the specific requirements of the current year.
Why are young farmers who purchased 50% of their quota in the past four years from the restructuring scheme being discriminated against at a time when there are not any tax concessions to enable them to purchase it? What is the position of young farmers who applied for milk restructuring in 1999 and were given so many thousand gallons but when their herds got brucellosis they were advised not to use it but to reapply this year? Will they be thrown to the wolves now that the rules have changed? How did the farming organisations forget to make a recommendation on their behalf? I am baffled by what has happened.
The position of farmers who purchased milk quota similar to those alluded to by the Deputy demonstrates their interest in active milk production. They acquired quota under restructuring and that was additional permanent quota which was made available to them. People depending on temporary leasing were seen to be vulnerable. If they had 15,000 or 20,000 gallons of milk under temporary leasing and that was cut off, they would have no option but to sell it.
3 Mr. Connaughton asked the Minister for Agriculture, Food and Rural Development the number of applicants who have applied for the special young farmers milk quota allocation; the number of such applications that met the criteria laid down; the amount of quota each successful applicant will receive; and if he will make a statement on the matter. [17722/00]
The Department received in excess of 5,400 completed application forms for allocation from the five million gallons of additional milk quota for younger dairy farmers with a quota of less than 35,000 gallons. These applications were received through the co-operatives. They are being examined in detail and in many cases information had to be verified by my Department to establish eligibility and to calculate the quantity of additional quota to be allocated to each eligible applicant. The 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 current quota year.
The Minister talked this year and for the past ten years about the importance of new entrants to farming. However, it is disgraceful the way those farmers have been treated.
The Deputy must confine himself to questions.
Did the Minister look after farmers in a disgraceful way?
When the announcement was made about the five million gallons of additional milk quota, did the Minister say it was likely that young farmers would get a maximum of 5,000 gallons? From the figures the Minister has given to the House, it looks like young farmers will not get much more than 1,500 gallons, which is the same as they would be likely to get from a lucky bag. It will be almost useless to them. Why were they not notified about this at the beginning of the milk year on 1 April, as they should have been? Is it true there is a new rule in the Department that new entrants to farming will not get a quota from this allocation this year?
The position in regard to milk quota is fairly straightforward. There are approximately 31,000 milk producers in the country. Ireland received 32 million gallons and 15 million gallons have already been allocated. There was in excess of 21,000 applications for the 15 million gallons. It is relatively easy to divide it into the overall amount available. We can only give out what we have available. As regards the five million gallons, the Department received in excess of 5,000 applications. Approximately 3,000 to 3,500 of these will be eligible. It is easy to divide that figure into five million gallons to find out what is available.
It is a small amount.
I do not want to mix my metaphors, but it is like the loaves and fishes. We can only divide what milk is available. In prioritising the categories to give active milk producers and those committed to milk production as much as is available, the milk quota regulations, apart from the additional milk, are being changed and modified. We want to ensure that committed active milk producers get a fair crack of the whip and get access to quota in so far as is possible.
Will new entrants to farming, who are not involved in milk production, get an allocation this year? Has a decision been made on that? What is the position on the dairy hygiene certificates? Will milk be accepted at the creameries after the last day in July?
The priority is for active milk producers.
New entrants will not get anything.
There is also an additional allocation of milk for various hardship cases. I hope to be able to announce that five million allocation in the next couple of weeks. The delay has not been caused by the Department.
Where was it caused?
Some 5,400 applicants made their cases to the co-operatives which sent them into the Department. Approximately 2,000 of those applicants are ineligible. Checks had to be done on the applications. The dairy certificates are a matter for the milk industry. The milk industry should seek to ensure that the maximum number of producers get their certificates in. It is in their best interests to do that. Already markets have been lost in some co-operatives' processing areas because they have not got the certificates.
The Minister said that milk would be taken from them.
It will be taken but it will only be eligible for a certain number of markets. It will be ineligible for casein and various other dairy ingredients markets.
Will the Minister put the date back for two months to give them a final chance?
This has been going on since 1997—
I know.
—and it is time for the co-operatives to become serious about this matter.
They have become serious.
