Dáil Éireann debate -
Tuesday, 23 Oct 2001

Vol. 542 No. 5

Priority Questions. - Milk Quota.

Paul Connaughton

Question:

100 Mr. Connaughton asked the Minister for Agriculture, Food and Rural Development his views on the future of milk quotas; if he detects a step back from total abolition by many EU countries which heretofore were either neutral on the issue or were inclined to move towards abolition of such quotas; his further views on recent statements by the UK Minister for Agriculture that milk quotas and livestock grants should be abolished; and if he will make a statement on the matter. [25233/01]

Mr. Davern

Under the current arrangements, which were agreed following the Agenda 2000 negotiations, the milk quota regime is to continue until 2008. In those negotiations I strongly supported the continuation of the quota regime. There were some member states, in particular the UK, Italy, Sweden and Denmark, which argued at that time for the abolition of the system.

As part of the Agenda 2000 Agreement, provision was made for a mid-term review of the regime in 2003 on the basis of a Commission report, with a view to allowing the present quota arrangements to run out after 2006. It is now likely that the review will be brought forward to next year. It is to be expected that some member states, which were in favour of the abolition of quotas during the Agenda 2000 negotiations, will adopt a similar stance in the context of the review. However, any change to the current regulations can be made only if there is a qualified majority in Council in favour of such a change.

When discussions on the review get under way I will, of course, seek an outcome which is best for the development of the dairy sector.

Mr. Connaughton

What does the Minister of State believe is best for Irish dairy farmers?

Mr. Davern

I would prefer to see the quota regime remain in place.

Mr. Sheehan

Is that the policy of the Department?

An Ceann Comhairle

As this is a priority question, Deputy Sheehan cannot interrupt.

Mr. Davern

The group opposed to it, namely, the UK, Italy, Denmark and Sweden is known as the London club. We have others on our side such as France, Germany and Belgium which strongly support its continuation and we will get the support of others as well. A qualified majority is needed on the Council. I hope it remains in place because the only certainty a farmer has is the knowledge that there will be a market for this produce.

Mr. Connaughton

I would not disagree with the views of the Minister of State. The mantra across Europe for several years was that the milk quota would have to be abolished. May I put it on record that, in so far as the Government is concerned, during the mid-term review and thereafter, every effort will be made with our EU partners to ensure the milk quota will remain in place, in some shape or form? I suggest that signal be sent out to our dairy farmers so they know what the future holds for them.

Mr. Davern

It is the most commonsense way forward. If, after consultation with the farming groups, somebody can present a better way of doing it, so be it. I do not see that happening because it would mean that the stronger people in the market would take over and that the smaller farmers would lose out. If that were to happen it would be unfortunate for small farmers. It is a guarantee of protection and it is part of rural development policy to ensure that as many people as possible remain on the land. It is the only way forward that I can see and the Minister, Deputy Walsh, has strong views on that issue.