Dáil Éireann debate -
Thursday, 10 May 2012

Vol. 765 No. 1

Priority Questions

Rural Environment Protection Scheme

1.Deputy Michael Moynihan asked the Minister for Agriculture, Food and the Marine his plans for agri-environment options scheme for REP scheme 3 farmers in 2012, the number of farmers who will be affected by the decision not to open an AEOS scheme this month, the amount of money he anticipates saving; and if he will make a statement on the matter. [23454/12]

Minister for Agriculture, Food and the Marine (Deputy Simon Coveney)

I want to re-emphasise my commitment to the agri-environment schemes in general, which put environmentally-friendly farming to the forefront and which recognise the vital role farmers play in delivering public goods for the benefit of all society. This commitment by Government is matched by the enthusiasm of Irish farmers who have shown a keen willingness to engage with environmental issues since the introduction of the first agri-environmental scheme.

REPS, which was the first such scheme, was introduced in 1994 to promote ways of using agricultural land which are compatible with the protection and improvement of the environment, biodiversity, the landscape and its features, climate change, natural resources, water quality, the soil and genetic diversity. There are currently almost 30,000 participants still in REPS.

The successor to REPS, AEOS, is a more targeted agri-environment scheme and is part-funded from modulation funds under the CAP health check. The scheme specifically targets the three challenges of halting biodiversity loss, contributing to the improvement of water quality and combating climate change, that have been assigned the highest priority at European level and those that have been identified as needing urgent action. There are currently about 15,000 participants in AEOS 1 and 11. The scheme builds on the important environmental work carried out under REPS and will go some way towards addressing the serious challenges of sustainability and conservation.

My own ongoing commitment, and that of the Government, to agri-environmental schemes are evident in the funding of €243 million which has been provided to meet commitments under REPS and AEOS in 2012. The commitment is also clear from the fact that despite serious budgetary pressures, I re-opened AEOS to new entrants last year. Deputy Moynihan will point to the fact that there was a surplus last year, but we had to budget for a multi-annual REPS scheme. The problem was this year and next year, not last year.

Nevertheless, I know that farmers are concerned as to whether there will be a new AEOS scheme. It was not possible or appropriate to open an AEOS scheme this May. I do want to open a limited and more targeted scheme this year, which is what I said on budget day. That is what I hope to deliver. I hope farmers will be able to apply for that before the end of September. We are undertaking a review of commonage framework programmes at the moment, which may well change the stocking rate levels within those framework programmes. They may well be a factor in the qualification criteria for any new AEOS scheme. So, instead of opening it in May, we are hoping to get sanction from the Department of Finance to open a much more limited scheme, which I have discussed with farm organisations repeatedly. I have been consistent on this, so hopefully we will open it for applicants by the end of September, if we can get sanction to do so.

Deputy Michael Moynihan

I thank the Minister for his reply. I am glad that after nearly 12 months he has acknowledged that there was sufficient funding in place for 2011 for the AEOS scheme. At the time, he constantly said there was no funding for it, so I am glad he has acknowledged that now.

The Minister said that the AEOS scheme would be targeted. Many farmers are living in severely restricted regions and have sought this scheme. Therefore, targeting the scheme must be the way forward.

The Minister said he was reviewing the packages concerning the commonage framework, but what are the prospects in September? What are the indications from the Department of Finance at this stage for funding an AEOS scheme, which is vitally important? Some 13,000 farmers have come off REPS 3 who, for the first time since 1994, have no avenue open to them to continue in an environment scheme. What are the prospects of funding such a scheme within the available budgets as outlined for 2012? Given the Minister's discussions with the Department of Finance, what is the likelihood of having such a scheme in place in September? What is the Minister hoping the scheme will target at that stage?

Deputy Simon Coveney

Those are all very reasonable questions. My answer, which I have been giving consistently, is that at the moment we cannot afford to put together an AEOS scheme that will cost as much as the AEOS scheme I introduced last year. We do not have the budget for that. Looking at the figures, we will have to make substantial savings again this year, in terms of the budgetary ceiling under which I must operate, unless I can negotiate an increase in that ceiling. However, I am not in the business of promising something and then not being able to deliver upon it on budget day. That is why I have consistently said that I will have to get approval to do this, and we will apply for that. This will be a more targeted scheme which will not be as broad as late year's scheme or as AEOS I. I have spoken to farm organisations about that and I will continue to talk to them about it during the summer.

If there is a new scheme, I want it to prioritise farmers who are working in SAC, Natura or commonage areas. In some cases, those categories are farming under severe restrictions in terms of what they can produce and the kind of stocking rate at which they can produce. There should be some recognition of that. In addition, they have a specific obligation to look after the environment because of the sensitivity of the land they are farming.

An Ceann Comhairle

Thank you, Minister. We are over time.

Deputy Simon Coveney

That is why I want to prioritise those people. However, it will be a matter of whether we have the budget to do it, as to whether we can broaden it outside those categories.

Deputy Michael Moynihan

May I ask a brief supplementary?

An Ceann Comhairle

I am sorry but we are over time. Six minutes are allowed per question and we have taken nearly seven minutes. We will now move on to Question No. 2 in the name of Deputy Jonathan O'Brien. Two minutes are allowed for the Minister's initial reply and four minutes for supplementaries.

Deputy Simon Coveney

If Deputy Moynihan wants to talk to me afterwards, I will happily clarify anything for him.

Agri-Environment Option Scheme

2.Deputy Michael Colreavy asked the Minister for Agriculture, Food and the Marine the number of farmers that qualified for the agri-environment option scheme in 2011; and if he will make a statement on the matter. [23550/12]

Deputy Simon Coveney

The agri-environment option scheme - or AEOS, which we have just been talking about - is a targeted agri-environment scheme that is part-funded from modulation funds under the CAP health check. As currently framed, the scheme specifically targets three challenges that have been assigned the highest priority at European level. As I outlined in my reply to Question No. 1, these include halting the loss of biodiversity, contributing to the improvement of water quality and combating climate change. The format of the scheme was a menu-type approach, therefore, consisting of actions which can be demonstrably linked to those challenges, such as for example, traditional hay meadows in the case of biodiversity, riparian margins in the case of water quality, and minimum tillage practices in the case of climate change.

There are currently about 15,000 participants in AEOS I and II and I believe that the scheme builds on the important environmental work that commenced with REPS. A total of 6,894 applications were received under AEOS II, which I opened to new applications in 2011. Of this number, 6,615 applicants have been approved into the scheme while the remaining 279 applicants were rejected as not meeting the requirements of the terms and conditions of the scheme. All successful applicants have now been informed of their approval into the scheme and of associated queries that arose from their applications. Of the 2,400 applicants that had initial queries, over 1,840 have responded to query letters that were issued and replies are awaited on the remaining 560 cases.

Under the EU regulations governing the AEOS scheme and other area-based payment schemes, a comprehensive administrative check, including cross-checks with the land parcel identification system, must be completed on all applications before any payment can be made. The land parcel identification system has caused much frustration in my Department and for applicants because it has delayed the payment and processing of applications in many cases. These checks are well advanced and I expect that they will be completed shortly and that payments will commence in June. Payments in respect of 2012 will commence later on this year.

Deputy Jonathan O’Brien

I wish to apologise for Deputy Colreavy who is unable to attend the House. I was given a crash course in agricultural policy at 9 o'clock this morning. The Minister has covered some of the issues in reply to the first question. One of the Deputy's roles as Minister for Agriculture, Food and the Marine is to ensure that as many people who want to farm land are able to do so. The agri-environment options scheme, AEOS, was an important aspect in that regard. It gave farmers additional income to enable them to have a livelihood from farming. It is unfortunate the scheme is not going ahead. The Minister said in his reply to the first question that he hopes to re-open it in September and that it will depend on discussions with the Minister for Finance. What discussions has he had with the Minister for Finance on this and how are they progressing? When does he envisage a decision will be made on it? If he is talking about re-opening the scheme in September for receipt of applications, when does he envisage he will announce a new scheme?

Deputy Simon Coveney

I thank the Deputy for those questions because they give me an opportunity to clarify a number of matters on which I believe there has been some confusion. It is true to say that no scheme has been opened yet but I have said consistently since budget day that I hope to open a much more limited scheme. It is important, even if it is only a skeleton scheme, that we keep environmental schemes intact and in place. Hopefully, we will have more money to spend in future years after a Common Agricultural Policy, CAP, negotiation and we can start expanding and building on those schemes again. The idea that we would not have any environmental scheme available to which farmers could apply would be a very negative move. Even though we have severe budgetary challenges to overcome in my Department, as has every other Minister, I want to try to put some limited scheme in place that would allow farmers to apply for an environmental scheme that, hopefully, we will be able to expand and develop in future years. That is why we will make a detailed submission to the Minister, Deputy Noonan, which may already have gone.

This is not about the Department of Finance, but about my Department. I will take responsibility for the AEOS. I do not want to pass this on to a decision from the Minister for Finance - that is not the issue but rather that any money we will spend on a new AEOS will have to be found in savings from somewhere else. That is my job, to try to put a budget together that can provide for a limited new AEOS III, but we must go through the procedure of getting approval to do that. I am committed to trying to do that. It will need to happen quite quickly because farmers would need to know whether they would be eligible, what they would need to do to apply and so on. We will need to do that early in the summer and I would hope to be able to give clarity on this probably in June.

An Ceann Comhairle

We will move on to Question No. 3.

Deputy Jonathan O’Brien

A Cheann Comhairle-----

An Ceann Comhairle

We are over the time allocated for this question. I am obliged to play by the rules, otherwise we will not get to deal with ordinary questions.

Deputy Simon Coveney

We are trying to obey the Ceann Comhairle.

An Ceann Comhairle

That is reason; I do not want to be cutting off Members.

Animal Welfare

Maureen O'Sullivan

Question:

3Deputy Maureen O’Sullivan asked the Minister for Agriculture; Food and the Marine if he will provide an account of the consequence to the complaints made to Horse Racing Ireland and the Turf Club in relation to the treatment and welfare of race horses owned by a person which was brought to his attention previously. [23467/12]

Deputy Simon Coveney

I thank Deputy Maureen O'Sullivan for raising this issue again. Earlier this year I responded in detail to questions put down by the Deputy regarding the matters to which she now refers, which is the welfare of horses. I explained, in my earlier replies to the Deputy, my Department's responsibilities with regard to the welfare of horses and the options open to an individual should he or she wish to refer or progress complaints relating to the welfare of horses.

My Department's responsibility, which is set down in legislation, extends to the welfare and protection of farmed animals only, that is, animals normally bred or kept for the production of food or for use in the purpose of farming. The relevant legislation in the matter raised by the Deputy is the Protection of Animals Kept for Farming Purposes Act 1984 and the European Communities (Welfare of Farmed Animals) Regulations 2010. Animals "used in competitions/shows, cultural or sporting events or activities while so being used" are outside the scope of my Department. Accordingly, it is clear that complaints relating to the welfare of horses in training, which I believe is to what the Deputy is referring, are not covered by this legislation and, thus, currently fall outside the remit of the Department.

The principal statutes governing cruelty to all animals, including race horses, in this country is the Protection of Animals Act 1911 and the Protection of Animals (Amendment) Act 1965. Responsibility for enforcing this legislation rests with An Garda Síochána which may, on receipt of a complaint, investigate and bring a prosecution against any person alleged to have committed an offence under these Acts.

Rather than reading the rest of this reply, I will make a few other points. We are changing this nonsense because it is ridiculous that my Department cannot follow up on a welfare query in regard to race horses or other horses for that matter. I introduced the Animal Health and Welfare Bill in the Seanad last week, the purpose of which is to bring legislation together to try to stop this type of thing happening where, essentially, there is no Department, apart from the Department of Justice and Equality, through the Garda, with which people can follow up on complaints such as this. The Deputy will see significant legislative change on which she will have an opportunity to contribute in the coming weeks when that Bill is brought before the Dáil.

Additional information not given on the floor of the House.

I have clarified to the Deputy in the past that my Department has no role, or jurisdiction, in resolving the issues referred to and that it is for the owner of the race horses to decide if she or he wishes to report matters to the Garda or indeed if he or she wishes to institute civil proceedings. It is my understanding that complaints made to the regulatory bodies have been investigated and the outcome of those investigations have been made known to the complainant.

The programme for Government 2011 contains a commitment to strengthen legislation on animal cruelty and animal welfare. The main vehicle to fulfil this commitment is the new Animal Health and Welfare Bill which consolidates and updates existing legislation in the area of animal welfare and brings the responsibility for the welfare of all animals under the remit of my Department. The Bill is currently being considered by the Oireachtas.

Deputy Maureen O’Sullivan

I thank the Minister for that answer and for the other answers he gave me about this situation. I know it predates his taking office as the Minister for Agriculture, Food and the Marine and his predecessor, the then Minister, Deputy Brendan Smith, would have dealt with it first. I am delighted about what the Minister said about regarding the welfare of horses in the context of the Animal Health and Welfare Bill. I think he and I will be having a few debates about another animal, the hare, and coursing, and probably fur farming as well. On this matter, I welcome what the Minister has said.

The current position is difficult in terms of to where a complaint should made. When a complaint was made, it went to the Turf Club. It appeared that was a dead end and this gentleman was left with no other recourse. What the Minister is planning in this context is probably too late for him and, in the meantime, I wonder what recourse he has.

Deputy Simon Coveney

I have written to the gentleman concerned. I know the case the Deputy is talking about. He needs to go to the Garda, which has legal responsibility in that regard. I have outlined that to him in some detail in written correspondence and, to be fair, I think the previous Minister probably did so too.

I accept that the legislation in place to deal with animal cruelty, codes of practice or the protection of animals is antiquated. It dates back to the 1911. We live in an entirely different world now. We are trying to modernise that legislation in a relatively large piece of work. It has taken quite some time to draft the Animal Health and Welfare Bill. I think it is good legislation and I would like to get feedback from the Deputy and anybody else who wishes to contribute to it. We might not agree on everything-----

Deputy Maureen O’Sullivan

No.

Deputy Simon Coveney

-----but I am trying to get balanced legislation that takes account of farming and hunting practices in a reasonable way, but also provides appropriate protection for animals to ensure that we do not have either wanton or accidental cruelty because neither is acceptable.

Deputy Maureen O’Sullivan

Having read through the massive correspondence I got from the gentleman, it was very frustrating for him, and for me having read it, that when he brought an issue to the Turf Club and to Horse Racing Ireland it was almost like a dead end. I felt for him that he had to take those issues further instead of getting answers at the time when the matter could have been resolved instead of it continuing on for the number of years that it has.

Deputy Simon Coveney

Nobody likes to see somebody chasing a cause for a long time and not being able to get adequate answers. I am sure he is a genuine person but the appropriate line of investigation here, if the Deputy wants to call it that, and this is my understanding having asked for legal advice on it, is through the Garda. I am not sure whether he has gone down that road but to be fair to Horse Racing Ireland and the Turf Club, they have limited powers and roles as well.

On the issue of equine welfare in Ireland generally, we have done a good deal in working with the Equine Centre in the past year to get a handle on the number of abandoned horses in Ireland. We have also done a good deal of work on the identification and the traceability of horses in terms of microchipping and the provision of passports. There is a good deal happening in this area. Ultimately, the Animal Health and Welfare Bill is the place to deal with this debate from a legislative point of view.

Deputy Maureen O’Sullivan

I look forward to the debate.

Fisheries Protection

John Browne

Question:

4Deputy John Browne asked the Minister for Agriculture; Food and the Marine the position regarding 16 mackerel negotiations in the North East Atlantic taking into consideration the unanimous recommendation of the European Parliament Fisheries Committee to introduce sanctions against countries fishing unsustainably; and if he will make a statement on the matter. [23456/12]

Deputy Simon Coveney

I have set out for the House on a number of occasions the situation concerning the breakdown of negotiations for the management of mackerel in the north-east Atlantic.

Mackerel is Ireland's most important fishery economically and any threat to its well-being is a matter of serious concern to me. The north-east Atlantic mackerel fishery, if fished within recommended levels, is worth approximately €1 billion, with the value to the European Union as the largest shareholder estimated to be more than €600 million, of which Irish fishermen could expect to receive upwards of €100 million for their mackerel catch. We are speaking about value on the pier side and of course its value to Ireland is much greater when one factors in value added from processing.

I have been to the forefront in seeking a negotiated solution to this problem but also recognise there is little appetite in either Iceland or the Faroe Islands at present to come to the table with realistic demands. In that light, I have been calling for the EU, together with Norway, our allies in this matter, to deploy all effective means to persuade them to fundamentally re-examine their position on the management of this stock.

I have called for and broadly welcome the EU Commission proposal for a regulation of the European Parliament and of the Council which allows for the introduction of trade sanctions and other measures against third countries engaged in fishing activities which may lead to depletion of the fish stocks shared with the EU. I would prefer if these proposals were stronger than set down and I am seeking amendments to include the flexibility to extend the restrictions to cover all fish and fish products should the situation demand. However, any measures introduced must be in compliance with the relevant rules of international law, and more particularly the rules of the World Trade Organisation, the Law of the Sea and the European Economic Area. The available legal advice suggests the Commission proposal is compatible with international law but suggests that further extension of the restrictions may be very problematic. Any amendment to the proposals, including those sought by Ireland would have to be examined and judged to be in compliance. However, at this point it is important to be aware that we have not received support from either the Commissioner or from fellow Ministers for the extra changes we seek. However, the Commissioner has come a long way to support the Irish position to try to do something significant to get a resolution to the mackerel crisis and I compliment her on this.

When answering previous questions I outlined the numbers about which we spoke with regard to the level of irresponsible catch taking place at present. This is an urgent issue for the Department and me to resolve as soon as we can. Otherwise we will have forced upon us a dramatic reduction in mackerel quota allocation to save the stock.

Additional information not given on the floor of the House.

The sanctions regulations will be adopted by co-decision of the Council and European Parliament so both institutions first adopt their own positions and then must find agreement on a common text of the regulation before it becomes law. The European Parliament fisheries committee adopted its position on the proposal last month and this is in line with my position seeking stronger measures than proposed by the Commission. The formal negotiations between the Parliament and the Council on the text of the regulation will commence shortly.

From an Irish perspective it is about four issues - jobs, economics, sustainability and fairness. I will continue to made it clear that Ireland cannot accept the Faroe Islands' and Iceland's unjustifiable and unsustainable fishing of mackerel stocks and will pursue all avenues to find a satisfactory resolution.

Deputy John Browne

I thank the Minister for his reply and remind him that up to four years ago Iceland and the Faroe Islands had little involvement in the mackerel fishing industry. Does the Minister accept illegal fishing, coupled with the legitimate quotas of the EU and Norway, will devastate the mackerel industry and have serious consequences for the Irish industry in particular? What steps will he take to resume talks at European ministerial level? Where will the Gallagher report fit into these talks when they recommence? There is urgency about this issue. The mackerel industry in Ireland is at boiling point. I accept the Minister is doing his best but there is a need for an urgent meeting at EU ministerial level.

Deputy Simon Coveney

Ireland is setting the pace on this issue and we are being supported by other countries and the Commissioner. Talks after talks have broken down when the European Union offered what many, including Ireland, regarded as overly generous solutions for Iceland and the Faroe Islands. Deputy Brown is correct that Iceland has little or no track record while the Faroe Islands have a bigger track record in catching mackerel. Some change is required to the allocation and it is important that we recognise this. Mackerel stocks have moved further north into Icelandic waters and everybody accepts there needs to be some recognition of this. However what is being sought by Iceland and the Faroe Islands is totally unreasonable. Quota management is being ignored and what is being taken is potentially devastating in terms of damage to the stock.

As I have stated previously, we have tried to find a solution through diplomacy and negotiation but it has not worked. This is why we are being forced into a tougher line on sanctions. The Gallagher report adds even more to the sanctions. He wants us to go further and I support him on this. However, it may be difficult to get agreement on it. I understand exactly what he is trying to do and we support him. The bottom line is that there must be consequences for countries managing a stock in partnership with the European Union who choose to blatantly ignore all of the scientific advice on the amount of catch allowed. We need to force a resolution on this because otherwise a resolution will be forced on all of us because the stock will collapse. This would be devastating for the Irish fishing industry because we are so reliant on mackerel for income, particularly in the north west.

Milk Quota

Jonathan O'Brien

Question:

5Deputy Jonathan O’Brien asked the Minister for Agriculture; Food and the Marine if he will provide a breakdown, by co-op, of the percentage that the milk quota was exceeded by up to the end of March 2012; and if he will make a statement on the matter. [23551/12]

Deputy Simon Coveney

Under the milk quota regulations the approximately 80 registered purchasers of milk are obliged on 31 March each year, which is the end of the milk quota year, to draw up a statement for each of the 18,250 milk producers that supply milk to them. The statement should set out, as a minimum, the quantity and fat content of the milk delivered by each producer during the quota year. Each purchaser is then obliged to submit to my Department, before 15 May of each year, a declaration summarising the statements received from the milk producers. It is only when these declarations are received that my Department will be in a position to make a definitive statement on Ireland's liability regarding a super levy fine.

However while awaiting this definitive information my Department did gather preliminary information from the purchasers, as it does at the end of each month, to give farmers and the industry in general an earlier estimated position. On Tuesday, 24 April last I announced that with 99% of the returns then received from the co-operatives, the level of milk deliveries up to end of March 2012 was estimated to be at 0.69% above quota, following estimated adjustments for the butter fat content and the leap year. Based on these estimates a national super levy fine in the region of €11 million liability was expected. I hope by the end of next week to be in a position to announce more accurate figures on the national milk quota position.

This is an unfortunate situation which had been predicted. We had a very strong first three months in terms of the growing season. We had a very mild winter this year which meant grass grew and dairy farmers produced more this year than last and this pushed our producers over quota. We were not able to get the flexibility which five or six countries had come together to seek with regard to butterfat adjustments which would have kept us within quota but I had been predicting since late last year this would be very difficult.

Towards the end of this year we will have a review of the so-called "soft landing approach" and a milk health check and this will be an opportunity for us to debate more flexibility on quota management between now and 2015 when quotas go. At present it is clear our industry is bursting at the seams. It wants to expand and grow but is being held in the straitjacket of a quota system. We need to try to ease out of this slowly and this is in the interests of everybody, including other European countries, rather than having a situation in which people are held back and all of a sudden a great deal of extra milk is released into the system. This is why we need a serious debate at the end of the year when we will review quota management policy at European level.

Additional information not given on the floor of the House.

It will not be possible, however, to provide the specific information requested by the Deputy for some months to come because staff in my Department have to engage with the co-operatives and the milk suppliers on milk quota transfers, dormancy allocations, allocations under the animal disease and hardship schemes, as well as distribution of any surplus quota that may be left in the national reserve, referred to as "fleximilk". This task should be completed by late August, thereby allowing the co-operatives notify each milk producer who has a super levy liability of what that liability is and request that it be paid to my Department by 1 October 2012. My Department is then obliged to make a payment of 99% of the full national levy to the Commission before 1 November 2012.

As I have acknowledged previously, farmers were faced with very difficult choices over the past 12 months in trying to get a balance between the very attractive prices being paid in response to a strong global demand for dairy products and the limitations placed on them by their individual milk quota allocations. There is no doubt that last March presented all of the elements for successful milk production with increased calving, good weather and good grass growth, and this resulted in the volume of milk produced in March 2012 being about 8% higher that the corresponding month in 2011.

I have to remind farmers that, notwithstanding the annual 1% increase which is allocated again this year as part of the soft landing and a softening in the global markets, the three remaining quota years are going to be equally challenging for farmers to remain within quota. Consequently farmers should plan their production activities carefully and pay close attention to the limitations imposed by the quota regime.

For my part, I intend to continue my efforts to raise the issue of the soft landing at every opportunity with member state colleagues and with the Commission in order to ease the transition to the post quota situation for Irish farmers. At this point however, it would appear that a majority of member states do not support any further adjustment to the soft landing, and therefore farmers should plan for the continuation of the quota regime until March 2015.

Deputy Jonathan O’Brien

The Minister mentioned that the milk quotas will end in 2015. Our system is currently bursting at the seams, but farmers are increasing their herds because there is a fear prices might collapse when the quota system is finished. It is difficult to juggle both increasing one's herd and trying to keep within quota limits. It is a European issue which must be dealt with at European level, and I trust the Minister will do that. In the meantime, however, we do not want young farmers to be discouraged from dairy farming as a result of trying to comply with the quota but exceeding it. The sum of €11 million eventually trickles down to the farmers, who will ultimately end up paying it. We do not wish to discourage young farmers from dairy farming because that will do no good for the Irish economy. What steps will the Minister take to try to ease the transition for farmers between now and 2015 and to try to ensure they do not exceed quotas?

Deputy Simon Coveney

This question has been asked on many occasions by my colleague. We are already doing a great deal on this issue. I have met a series of Ministers on a bilateral basis to try to build a coalition on the need to change policy. The so-called soft landing approach is not working for Ireland or for the Netherlands, Denmark, Luxembourg and a number of other countries that are also over quota and will incur super levy fines. There must be recognition of that. It is, perhaps, more difficult to make the argument for that when milk prices are weakening, as they are at present. We are into the high producing months of the year in terms of milk volume and we are seeing a softening of milk prices, which is a diplomatic way of saying that milk prices are reducing slightly, due to the large volumes of milk produced. However, I am still fully committed to arguing, and to reassuring other countries, that we must do something to change the current approach to managing milk quota between now and 2015 if we are to avoid a dramatic increase in milk volumes over a relatively short period of time, which is not in anybody's interest.

In the meantime, we can do a great deal to ensure there are new markets for our extra milk. In 2015, milk production could increase within 12 months in Ireland by approximately 15%. That is why I have been very active in places such as Algeria, which spent €35 million buying Irish cheese last year, and China, which is predicting a 43% increase in dairy consumption between now and 2019. We need to go to these countries and put supply contracts in place so we have an outlet for the large volumes of the high quality milk we will be producing after 2015. That is an exciting prospect. It offers huge opportunities and potential for growth, expansion and wealth creation, but it must be managed in a way that does not result in over-supply and a dramatic reduction in price.

A twin track approach is necessary. First, we must find new markets and develop them. That is happening. Second, we require a different political solution for the phasing out of quotas over time from the current proposed policy.