asked the Minister for Agriculture the reasons for accepting both a milk super-levy and an increase in the co-responsibility levy in the Brussels negotiations of 1984 and if he will make a statement on these matters.
Written Answers. - Milk Super-Levy.
284.
The decisions to increase the co-responsibility levy on milk and to introduce a quota system in the Community milk sector were taken by the Council of Agriculture Ministers during the farm price negotiations earlier this year. They were part of a general package deal with rising expenditure and structural surpluses on a number of agricultural markets.
In the milk sector failure to contain production would in a short period have threatened the viability of the whole market system with very serious consequences for dairy farmers throughout the Community. The super-levy system was seen as the most effective way of tackling the problem. The Deputy will be aware that the agreement eventually reached took special account of Ireland's particular situation with regard to dairying. The general co-responsibility levy was increased to help offset the rising budgetary costs of the milk policy and, in particular, to take account of the fact that the quotas fixed for 1984-85 were generally higher than those for future years.
285.
asked the Minister for Agriculture if he envisages any changes in the operations of the co-responsibility levy, in view of the introduction of the super-levy and if he will make a statement on the matter.
There are no changes envisaged in the operation of the co-responsibility levy, as a result of the introduction of the super-levy.
286.
asked the Minister for Agriculture if, as an encouragement to new product development, he will seek a derogation from the milk super-levy for milk converted into new milk-based foods which will not contribute to the traditional milk products surplus; and if he will make a statement on the matter.
The present EC regulations governing the milk super-levy do not permit such a derogation and there is no prospect of any such derogation being agreed in the foreseeable future. Product diversification is primarily a matter for the milk processing industry and I would hope that the industry would avail itself fully of the investment aid towards diversification which is available from the Industrial Development Authority and in certain circumstances from the guidance section of FEOGA as well.