asked the Minister for Agriculture and Food if he will outline the recommendations of the milk quota review group.
Written Answers. - Milk Quota System Review.
34.
I decided in April last that, as we were at the mid-term stage of the initial milk quota system, it was an opportune time to review the existing quota arrangements. I therefore set up a small group, comprised of representatives of farming and co-operative organisations, as well as from Teagasc and my Department, to examine all aspects of the quota system and to report on the changes that might be made to improve national and Community arrangements. It was chaired by an assistant secretary in my Department.
The group which met on 16 occasions has completed its report which was presented to me last week. Because I had kept in very close contact with the group's work, I have been able to make speedy decisions on these recommendations. I announced earlier that I had accepted the group's recommendations for the temporary leasing scheme and for the flexi-milk arrangements for 1988-89. These details were outlined in notices published by my Department during 1988. I can now state that in so far as the group's other recommendations relate to areas within my competence, I have decided, with some small modifications to agree to all of the proposed changes. Other proposals involving amendments to the Community regulations will of course require to be negotiated with the EC Commission and the other member states.
I would like to thank all the members of the group for the efficiency of their work. I also wish to thank the organisations involved; the Irish Farmers Association, Irish Creamery Milk Suppliers Association, Macra na Feirme, Irish Co-operative Organisation Society Ltd, Irish Dairy Industries Association and Teagasc for their ready willingness to participate in this exercise which I regard as a very useful approach to policy review.
I am now arranging for publication of the group's report and for copies to be made available for the Dáil Library. In the meantime the following is a brief résumé of the main recommendations.
Main Recommendations by Quota Review Group
(i) Original distribution of national quota to remain unchanged.
(ii) Any imbalance of opportunities between producers in the different areas of the country will be addressed by restricting access to quota that becomes available for restructuring, etc., to the priority categories, particularly for those suppliers with quotas of less than 30,000 gallons.
(iii) Any quota available in any co-op or dairy area beyond the needs of the priority category producers would be transferred to other areas through a national reserve.
(iv) Greater priority for smaller scale producers under the temporary leasing and flexi-milk rules and within that group to new entrants and to farmers who have been following development plans drawn up under the Farm Modernisation Scheme in the period 1981 to 1984.
(v) Elimination of the clawback on quotas involved in land sales and clawback on quotas under 50,000 gallons involved in land leases (the leasing threshold is at present 25,000 gallons).
(vi) Imposition of stiffer penalties in order to eliminate irregularities and abuses of the system.
(vii) The setting up of a quota appeals tribunal to deal with cases where the quota arrangements are causing genuine hardship.
(viii) Preparation of a study by Teagasc on the consequences for the dairy industry here of the proposed break in the link between land and quota in the context of the operation of the single internal market in the Community in 1992.