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Dáil Éireann debate -
Thursday, 15 Feb 2001

Vol. 530 No. 5

Other Questions. - Milk Quota Rights Group.

Andrew Boylan

Question:

11 Mr. Boylan asked the Minister for Agriculture, Food and Rural Development if he has any proposals to allocate milk quota from the quantity available to him for allocation for the marketing year beginning in April 2001 to members of the Milk Quota Rights Group; and if he will make a statement on the matter. [4097/01]

I have outlined my position in relation to this group in Dáil Éireann on a number of occasions.

As I have stated previously, this issue is extremely complex and has implications for the generality of milk producers in view of the limited amount of milk quota available. It is also the case that the State simply cannot be expected to take on legal responsibilities where they do not exist.

The position is that no provision has been made in respect of any persons or group of persons who are not party to the proceedings in the Duff case and other associated cases. I have received legal advice to the effect that any proceedings that may be initiated by such persons are barred by the passage of time.

However, notwithstanding this position, and despite the fact that there is no legal obligation to go further toward meeting the demands of the group in question, I have already indicated that I am prepared to look at what can be done in the context of the additional milk quota which will become available on 1 April 2001.

I have consulted with the various social partners in the industry on this issue and specifically with the Milk Quota Review Group which is representative of all the main farming organisations. I will also have regard to the views of the Attorney General, given the complex legal issues involved, before I make a decision on the matter.

Would the Minister not agree that time is running out on this issue and that by 1 April it will be too late? Would he also agree that this is a political decision he must make? Can he tell the House what he will do about it? Will the Government make a political decision to allocate justice to these people or not?

If this was not a complex issue it would have been addressed and sorted out before now. The problem exists and falls to be addressed now. I am obliged to have regard to legal advice given to me by the Attorney General in relation to this matter and that is what I will do. As I said, from a humanitarian point of view and an equity and fairness point of view, I have asked the Milk Quota Review Group to make recommendations to me on the matter as it is the relevant advisory body in relation to the distribution of the milk quota. There are conflicting demands for the relatively small amount of quota available, which is 11.5 million gallons. We will seek that amount to be fair to everyone in this regard.

Has it been possible to ascertain the number of farmers involved? This was one of the concerns of the Department. While I appreciate the legal nuances and niceties, is it possible to deal with this issue on a ex gratia basis? The Attorney General has referred to ex gratia ways of dealing with other problems. I know the legal advice, but would it be possible to deal with it on this basis so that those people who expected to get 10,000 and 15,000 gallons under the plan are accommodated? This problem was not of their making, no more than is the BSE problem, and they are the innocent victims. They do not want the optimum solution; a reasonable solution will suffice.

What is the latest date by which the Minister has to make a decision on the milk quota which will be available?

During the early 1980s approximately 20,000 farmers had plans under the farm modernisation scheme and 14,000 or 15,000 of those had included in their plans a capacity to increase milk production. One can only assume that when money is being paid out most of them would seek an allocation, in the same way as they would seek an allocation of milk. That is the only basis on which I can address this matter. I will look at it in the context of the 11.5 million gallons to be allocated, given the competing demands for this milk. Obviously the sooner the decision is made the better.

The date?

I expect a decision to be made during the next few weeks because it comes into effect on 1 April and people need to make plans.

Billy Kelleher

Question:

12 Mr. Kelleher asked the Minister for Agriculture, Food and Rural Development when he will announce the allocation of additional milk quota to dairy farmers, which was negotiated under Agenda 2000; and if he will make a statement on the matter. [3868/01]

One of the results of the negotiation of the Agenda 2000 package was an increase of 2.86% in the national milk quota, amounting to 32 million gallons. Already farmers with quotas of less than 55,000 gallons have got their allocation, while 3,100 younger farms have also got an increase in their quota. The balance of the 11.5 million gallons will be available this year and I am considering how this should be allocated. As usual, I will give careful consideration to the views of the Milk Quota Review Group in arriving at my decision. As the Deputy may be aware, although there is no legal obligation on me to do so, I have indicated that I am prepared to look at what can be done for the members of the Milk Rights Group in the context of the additional available quota. There are complex legal issues involved and I am awaiting legal advice in relation to them. When I have considered that advice, I will make an announcement on the allocation.

I am glad the Minister referred to young farmers as it is important that they are encouraged to stay on the land and are given extra quota. However, it is equally important that small quota holders are allocated extra quota as many of them will not be able to survive without it. It is vital that these small dairy farmers are looked after. I also ask the Minister to look at what can be done for the Milk Rights Group.

In the allocation of quota the priority category were farmers under 35,000 gallons who have an agricultural qualification or green certificate. They got the bulk of the milk which became available last year. The second category were farmers with up to 55,000 gallons. They got virtually all of the remainder – there was a small amount for those over 55,000 gallons. Since the mid-1980s preference has been given in all of the schemes and restructuring to smaller and medium sized farmers, and this will continue. This is a difficult process but the percentage of farmers in the 35,000-50,000 gallons range is increasing. The last restructuring scheme was helpful to these farmers. Last year 62.5 million gallons of milk became available. This was the amount of milk restructured during the previous five years. I hope we can be of further help to small and medium sized farmers in the allocation this year.

Will the Minister comment on the request of the Border group, led by Mr. Dan Buckley, that recognition be given to the difficulties experienced by farmers in Border regions and the need for additional quotas? I understand meetings were held with the Minister, the Taoiseach and the Northern Ireland authorities as part of the peace process. Those farmers who have experienced difficulties as a result of issues outside their control must be given additional quota if they are to rebuild their lives.

I am familiar with the case to which the Deputy has referred. I raised the matter in Brussels and, in a bilateral context, with Brid Rodgers who represents Northern farmers. There is much sympathy for them but there has been little practical action so far.

Sympathy is no good.

I am committed to being as helpful as possible. I have made the case to Brussels but there is a different regime in the North. In the Agenda 2000 negotiations the authorities who represent Northern farmers wanted to get rid of quotas altogether, while we want them retained. We were on different wavelengths in that regard. However, this does not take away from the case for farmers in Border counties to get additional quotas. As a cross-Border gesture this is important, apart altogether from the economic considerations.

While I appreciate the Minister's comments on the restructuring of the scheme, I want to raise with him a case involving a young farmer who was forced into the milk production scheme 12 months ago. His late uncle had leased the quota of 15,000 gallons but because he could not re-negotiate the lease he had to take it up. He recently applied to the Department for an extra quota to bring him up to a viable level.

A question, please, Deputy.

The reply he received from the Department is that he did not qualify for extra quota because he had not been involved in milk production for long enough. However, his neighbour who has a 52,000 gallon quota got an extra 3,000 gallons. Will the Minister explain the reasons behind this?

He sounds like a man who could be a number one voter for either of us.

He was already there.

He was already there but he was sent back.

If the Deputy gives me the details I will be glad to follow up the matter. Who knows but it could increase my overall quota in Cork South West in the next election.

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