asked the Minister for Agriculture and Food when he proposes to introduce a national milk agency with responsibility to control supply, sales and distribution of liquid milk; if he will outline the role of such an agency; the structure of the agency; his views on the manner in which he expects the liquid milk industry to proceed in the future, with particular reference to the need to compete in the market and at the same time to protect producers and consumers; and if he will make a statement on the matter.
Written Answers. - National Milk Agency Establishment.
28.
The general scheme of a Bill for the setting up of a national milk agency was recently approved by the Government. The proposals are now being discussed with the various sides of the industry and the legislation for the agency will be prepared as soon as possible. Given speedy progress with the drafting of the legislation the new agency should be in operation before the middle of 1989.
The proposals for the regulation of the liquid milk market by the agency include provisions stipulating that (i) dairies and producers supplying the liquid milk market must be registered with the agency (ii) producers must in addition to meeting the necessary technical standards have a contract with a registered dairy guaranteeing all-the-year-round supply or supply during the winter months and (iii) the agency will be empowered to refuse to register contracts which do not provide adequate compensation to meet the costs of all-the-year-round production.
I am satisfied that the new arrangements will ensure the orderly development of the liquid milk market and will contribute to the maintenance of the very high level of milk consumption in Ireland, which is the highest in the European Community.