asked the Minister for Agriculture and Food if, in view of the fact that Ireland is under the milk quota for the year ending April 1987 and in view of the fact that the industrial dispute of the clerical officers in ACOT prevented dairy farmers from being notified formally of the requirements until the end of March, he will waive the regulation that prevents farmers who have exceeded the quota from being eligible for farm improvement grants.
Written Answers. - Farm Improvement Programme.
132.
The farm improvement programme implements EC policy on farm investment aids. Under the programme, the restrictions on dairy investment aid apply at individual applicant level; such restrictions must be adhered to regardless of whether the aggregate milk production is within the national quota.
In accordance with EC requirements, grant-aid for dairy investment is payable only where an applicant's milk quota is respected. Each applicant for acceptance into the farm improvement programme undertakes to observe all the programme conditions, one of which is that aid shall not be granted for investments related to milk production which would result in the permanent milk quota being exceeded. Furthermore, in drawing up farm plans which include provision for dairy investment, ACOT ensures that each participant in the programme is made fully aware of the necessity not to exceed the allocated permanent milk quota.
As I announced recently, grants for non-dairy investment under the programme will no longer be dependent on compliance with the milk quota requirements. Furthermore, milk quotas associated with land leased for a minimum of three years may be taken into account in calculating a dairy farmer's permanent milk quota for programme purposes. These two changes, which apply retrospectively, will result in a substantial number of dairy farmers, who would have been ineligible under the previous rules, being eligible for grants for planned investment.