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Dáil Éireann debate -
Thursday, 11 Dec 2003

Vol. 577 No. 1

Written Answers. - Milk Quota.

Denis Naughten

Question:

113 Mr. Naughten asked the Minister for Agriculture and Food his plans for the future ringfencing of milk quota; and if he will make a statement on the matter. [30558/03]

The term "ringfencing" can be used in the milk quota context to describe two different sets of rules. The first relates to the movement of quota from less favoured areas arising from the transfer of dairying lands and other concerns the distribution of milk in milk quota restructuring schemes.

With land transfers, where land in an LFA to which quota attaches is transferred by way of sale, lease, gift or inheritance, only milk produced on the transferred farm or on other lands within 48 km of it can be delivered in respect of that quota, that is, the new quota holder cannot use the quota on lands more than 48 km away from the original holding. An exemption is available to a producer who sells his-her entire holding and buys a new holding more than 48 km away.

The term ringfencing has also been used in the context of the restructuring scheme. This scheme is operated at co-operative level, according to detailed rules set each year by my Department. A primary condition of the scheme is that quota sold into the restructuring pool by any co-operatives suppliers is available for purchase by that co-operatives other suppliers only.

I have no plans at the moment to change these arrangements.

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