asked the Minister for Agriculture and Food if he has satisfied himself with the operation of the milk super-levy system having regard to the fact that some co-operatives in the north and west of the country appear to be millions of gallons of milk under quota while southern farmers and co-operatives are substantially over quota; and if the position will be worsened further by the imposition of a compulsory cut of 1 per cent on farmers in poorer counties like Kerry under the voluntary cessation scheme while refusing to allow farmers into the scheme in other parts of the country.
Written Answers. - Milk Super-Levy Scheme.
131.
I am satisfied with the operation of the super-levy system.
The arrangements for the second stage of the milk cessation scheme were announced by me on 20 May last following consultation by my Department with the farming and co-operative organisations. These arrangements were in accordance with the views of the organisations that disproportionate losses of quota in any area of the country should be avoided. In announcing the details I fixed a maximum limit of 3.25 per cent reduction in quota between the two stages of the scheme for each co-op or dairy. I also emphasised in my announcement — and subsequently in Press advertisements — that the way to avoid compulsory quota cuts taking place was for co-ops and dairies to encourage as many of their producers as possible who were ceasing milk production or were delivering below their quota levels to join the scheme. Unfortunately this did not happen in sufficient numbers in some co-op areas in the south of the country.
I consider that the arrangements made were the fairest and most equitable. If applicants for the scheme had been selected on a purely voluntary basis then some co-ops in the west and north east would have suffered quota losses of up to 6 per cent. I would also point out to the Deputy that the Co-ops, such as those in Kerry, in which compulsory cuts are to be imposed will suffer lesser overall quota reductions than those from whom the reduction has been achieved on a voluntary basis. Furthermore producers who suffer these compulsory cuts will receive compensation at the rate of 22.97 pence per gallon over seven years, i.e. the same rate as that payable to the farmers who joined the cessation scheme.