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Dáil Éireann díospóireacht -
Tuesday, 10 May 1994

Vol. 442 No. 5

Ceisteanna—Questions. Oral Answers. - Viable Milk Quota.

Avril Doyle

Ceist:

5 Mrs. Doyle asked the Minister for Agriculture, Food and Forestry his views on the gallonage of milk that constitutes a viable quota.

Patrick D. Harte

Ceist:

13 Mr. Harte asked the Minister for Agriculture, Food and Forestry his views on the gallonage of milk that constitutes a viable quota.

Donal Carey

Ceist:

18 Mr. Carey asked the Minister for Agriculture, Food and Forestry his views on the gallonage of milk that constitutes a viable quota.

Michael Lowry

Ceist:

20 Mr. Lowry asked the Minister for Agriculture, Food and Forestry his views on the gallonage of milk that constitutes a viable quota.

Bernard Allen

Ceist:

28 Mr. Allen asked the Minister for Agriculture, Food and Forestry his views on the gallonage of milk that constitutes a viable quota.

Phil Hogan

Ceist:

33 Mr. Hogan asked the Minister for Agriculture, Food and Forestry his views on the gallonage of milk that constitutes a viable quota.

Ivan Yates

Ceist:

34 Mr. Yates asked the Minister for Agriculture, Food and Forestry his views on the gallonage of milk that constitutes a viable quota.

Charles Flanagan

Ceist:

37 Mr. Flanagan asked the Minister for Agriculture, Food and Forestry his views on the gallonage of milk that constitutes a viable quota.

Austin Currie

Ceist:

40 Mr. Currie asked the Minister for Agriculture, Food and Forestry his views on the gallonage of milk that constitutes a viable quota.

Michael Noonan

Ceist:

44 Mr. Noonan (Limerick East) asked the Minister for Agriculture, Food and Forestry his views on the gallonage of milk that constitutes a viable quota.

Paul Bradford

Ceist:

48 Mr. Bradford asked the Minister for Agriculture, Food and Forestry his views on the gallons of milk that constitutes a viable quota.

Nora Owen

Ceist:

51 Mrs. Owen asked the Minister for Agriculture, Food and Forestry his views on the gallonage of milk that constitutes a viable quota.

Alan M. Dukes

Ceist:

59 Mr. Dukes asked the Minister for Agriculture, Food and Forestry his views on the gallonage of milk that constitutes a viable quota.

Enda Kenny

Ceist:

63 Mr. E. Kenny asked the Minister for Agriculture, Food and Forestry his views on the gallonage of milk that constitutes a viable quota.

Michael Finucane

Ceist:

65 Mr. Finucane asked the Minister for Agriculture, Food and Forestry his views on the gallonage of milk that constitutes a viable quota.

Jim Higgins

Ceist:

71 Mr. J. Higgins asked the Minister for Agriculture, Food and Forestry his views on the gallonage of milk that constitutes a viable quota.

Is it in order to take my priority question with No. 13?

Yes, that will be included.

I propose to take Questions Nos. 5, 13, 18, 20, 28, 33, 34, 37, 40, 44, 48, 51, 59, 63, 65 and 71 together.

In deference to Deputy Carey, I will be economical with my reply on this occasion. The amount of milk quota necessary for viability depends on the circumstances of a particular farm enterprise.

Amazingly. I had expected such an answer. When a farmer applies to the Milk Quota Review Group for quota from the national reserve, the Minister does not ask the number of beef heifers on the land, the number of acres under tillage and details of enterprises other than the dairy enterprise. Consideration of the application for extra quota is based on the viability of that dairy enterprise alone. There is an official figure stating that a farmer has a viable or a non-viable quota. A milk operation is a stand alone business. Would the Minister agree that no farmer can be expected to continue in milk production if he is to subsidise it from tillage, beef or any other enterprise? What is the figure the Minister, the Department and the industry considers to be viable in terms of a dairy enterprise?

The position is straightforward. If a farmer has other enterprises, the size of his quota will be a factor in maintaining a reasonable family farm income. The size of the farm, other enterprises, whether the farmer has a sheep quota, or suckler cow quota, the cost efficiency of his operation and the extent of borrowing will be taken into account. Since the quota system came into effect in 1983, we have geared restructuring and redistribution schemes towards the smaller farmer. For example, in the most recent scheme in the order of six million gallons were redistributed and the cut-off point was 15,000 gallons. Viability depends on the type of farming carried on by a farmer.

Is the Minister considering a permanent regional milk quota restructuring scheme for small farmers, aided by EU funding, to allow small milk producers, to expand within each region? Applications have been made through the Leader programme to rewrite some of the EU rules on restructing. Would the Minister agree there is a case to be made for protecting quotas in certain areas to ensure the viability, particularly of smaller producers? I thank the Minister for achieving 15,000 gallons. If a farmer had no operation other than milk production, what quota would be considered viable? Is it 25,000 gallons or 40,000 gallons?

In reply to the first part of the question, I put a proposal to the European Commission to facilitate regionalisation of quotas, or at least the containment of the current level of production within regions. I am criticised in the southern part of the country for seeking to ensure that farmers in disadvantaged areas are allowed to continue in milk production. A number of co-operatives, particularly in the north-west, have set a headline by supporting smaller farmers who wish to acquire additional quota. I hope European Union approval will be forthcoming for this scheme. I expect that in the prices proposals in the next five or six weeks we will be able to achieve that.

On the question of quota, some people can produce milk of 35p a gallon while for others it costs 75p a gallon. The cost of production and other enterprises on a farm are taken into account when deciding on a quota. It would be very much in the interests of all dairy farmers to get into the commercial sector in dairying which is as good as any sector in any country.

The Minister will not hazard a guess on gallonage?

The Minister spoke about his proposal to the EU on the regional allocation of milk quotas. Will he confirm that the EU is considering the Leader application from my constituency for milk quotas? Is he favourably considering this application? In July 1993 the Minister gave his imprimatur to the Fr. Harry Bohan proposal before a big audience in the West County Hotel in Ennis. Will he confirm that he still interested in that proposal?

We seem to be beyond the bounds of this question.

It is about milk quotas.

It is regional structuring of milk quotas.

It is beyond the bounds of the question before us.

I always seek to speak favourably about reports I am about to launch. In the case of Fr. Harry Bohan's report, a very worthwhile study showed that not alone were the people in west Clare under pressure but were losing milk production capacity. I recently launched a study in the Duhallow region of north-west Cork, where the experience in Clare was used, and it showed that if worthwhile measures are not taken in this area we are looking at the last generation of milk producers. I asked the milk section in the Department to take that study into account in reviewing the redistribution and reallocation of quotas and particularly to financially help those who wish to seek additional quota. I expect new measures to be implemented later this year. Experience from the past ten or 12 years shows that there is a concentration of milk production rather than giving at least another generation of dairy farmers an opportunity to stay in business.

As a Deputy who represents a co-operative that has led the way in helping small farmers to buy quota, I believe the Minister should urgently seek EU agreement to subsidise the purchase of quota for smaller farmers. Will the Minister guarantee that he will put an end to the practice of transferring milk quotas through the sale of land and other quota transactions? The practice of allowing milk to go from the north and north-west through bogus means cannot continue. The smaller farmer in the north and north-west cannot compete with the cheque book farmer in the south. The Minister must give an assurance that smaller farmers in disadvantaged areas will be defended.

There will be a tightening up of the regulations on the transfer of quota. We will be insisting on a land quota link and on transparency in any transaction to transfer land quota.

My question which was similar related to the poaching of milk quota from areas that can ill afford to lose it and which would have serious implications for the co-operatives in the future.

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