Simon Coveney
Question:35 Mr. Coveney asked the Minister for Agriculture and Food the way in which he intends to implement the dairy premium scheme; and if he will make a statement on the matter. [14749/04]
View answerThursday, 20 May 2004
Questions (36)
Written answers
The dairy premium will be coupled in 2004 and decoupled as and from 2005, which is the earliest possible date for decoupling the payments under the EU regulations. The level of the premium amounts to approximately 1.2 cents per litre — 5.5 cents per gallon — in 2004, approximately 2.4 cents per litre — 11.1 cents per gallon — in 2005, rising to approximately 3.6 cents per litre — 16.6 cents per gallon — from 2006 onwards. Once the payment has been incorporated into the single payment from 2005 onwards, it will be subject to modulation and other adjustments.
The premium will be based on the quota held by producers on 31 March 2004 in the case of the coupled 2004 payment, and on 31 March 2005 in the case of the decoupled payment from 2005 onwards. Because the overall premium amount allocated to individual member states was based on the national quota held by them in 1999-2000, and as Ireland was given a 2.9 % increase in its national quota as part of the Agenda 2000 agreement, the premium will be paid on about 97% of each individual producer's quota.