Jack Wall
Question:64 Mr. Wall asked the Minister for Agriculture, Food and Rural Development the details of the 2001 new milk quota restructuring scheme; and if he will make a statement on the matter. [4246/01]
Written Answers. - Milk Quota.
The new scheme, which will commence on 1 April 2001, will cater first of all for those producers whose entitlements were not fully met under last year's schemes. Included in this category are producers who had been dependent on temporary leasing in recent years, those who had purchased quota under recent restructuring schemes and those who had lost land and quota leases. I am also making special provision for recent and new entrants to the sector. A total of 20% of the restructured quota pool, after the entitlements I have already referred to have been dealt with, would go to recent and new entrants to the sector who were under 35 on 1 April 2001. The balance of quota available in the pool will go to all producers on the basis of a 3:2:1 ratio to categories I, II and III, as was done last year. The category bands are being adjusted upwards – category I to 180,000 litres from 160,000 and category II to 275,000 litres from 255,000 litres.
Following the trend over recent years and in line with the clear indication I gave last year, the maximum price at which quota may be bought and sold under the scheme is being reduced and will be fixed at 27p per litre, approximately £1.23 per gallon. This is a fair price, taking account of the requirements of active milk producers who need to increase their quotas and also of those who wish to give up or curtail milk production and sell all or part of their quotas.
I have made my decision on the details of the new restructuring scheme taking account of the overall requirements of the sector. As usual I have been guided by the very clear recommendations of the milk quota review group whose members represent the various interests in the industry.