Vol. 398 No. 9
12 Mr. Cotter asked the Minister for Agriculture and Food when Irish stocks of skim milk powder committed to intervention will exceed 100,000 tonnes; the price paid for the product committed to intervention above 100,000 tonnes; and if he has commenced negotiations in the EC to secure a realistic price.
Under the modified arrangements for intervention for skim milk powder agreed in 1987, buying-in may be suspended as soon as the quantities offered for intervention in the European Community as a whole and not just in Ireland exceed 100,000 tonnes. Stocks of skim milk powder in the Community now stand at 51,276 tonnes of which 8,806 tonnes are held in Irish stores. The Commission has not yet indicated its intentions as to the steps it will take if the 100,000 tonne limit is reached. I am pressing the Commission to agree on the action to be taken to maintain market stability in the event of the 100,000 tonne ceiling for the EC being exceeded and announce the details at an early date in order to avoid uncertainty and unnecessary recourse to intervention.
Measures are also required to allow the skim milk powder market to return to balance. I have asked the Commission to readjust market management measures in order to restore price stability to the dairy market generally. Therefore, I welcome the Commission's commitment in the recent prices package to use the management powers at its disposal to maximise disposal opportunities for butter and skimmed powder and minimise sales to intervention.
I want to ask about a matter which was raised in Deputy Cotter's question. When does the Minister expect that, from an Irish point of view, we will reach that ceiling of 100,000 tonnes?
I think there is some misunderstanding on the part of Deputy Cotter. As I have said, there are 8,806 tonnes of skim milk powder in Irish store. The 100,000 tonnes is a Community-wide limit.
When will that be reached?
How can one say?
Surely the Minister must have market intelligence.
If the Deputy had listened he would have heard what I said. I said I am pressing the Commission to agree to take action to maintain market stability in the event of the 100,000 tonnes ceiling being exceeded. I am asking them to announce the details at an early date in order to avoid uncertainty and unnecessary recourse to intervention. I am asking the Commission to take action in advance and to be ready. I do not want to speculate because that would be outrageous on my part.
Arising from the Minister's reply——
A final question, Deputy, please. I want to deal with Deputy Deasy's question.
Is the Minister anxious about this particular aspect of the dairy industry? If milk will be 15p per gallon cheaper than last year on average will he ensure, in any negotiations he has in Brussels with his colleagues in the near future, that we do not find that the skimmed milk powder market collapses before the year is ended?
I did indicate a desire for brevity.
That is what everybody is afraid of.
Not only do I agree with that, but, as President of the Council, I have taken an initiative to get an undertaking from the Commission. In relation to the price negotiations I would like to quote what I said:
I, therefore, welcome the Commission's commitment in the recent prices package to use the management powers at its disposal to maximise disposal opportunities for butter and skimmed powder and minimise sales to intervention.
I expect at the next Council meeting to hear from them in relation to the commitment they have given.
