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Dáil Éireann díospóireacht -
Tuesday, 7 Feb 1995

Vol. 448 No. 6

Written Answers. - Milk Quota Holders.

Tony Killeen

Ceist:

216 Mr. Killeen asked the Minister for Agriculture, Food and Forestry the incentives, if any, operated by his Department or the co-operatives to encourage smaller milk quota holders to remain in dairying; and the plans, if any, he has to address this issue. [2645/95]

The operation of the milk quota system in Ireland is biased in favour of small scale milk suppliers. Producers with quotas of less than 30,000 gallons have first priority access to quota becoming available under the temporary leasing and restructuring schemes and in the distribution of any unused quota at the end of the quota year.

The 1994 restructuring scheme also provided for the first time for a subsidy of 50 pence per gallon to producers with quotas of less than 20,000 gallons towards the purchase price of additional quota. I have decided that a subsidy will also be available for the 1995 restructuring scheme and £6 million has been earmarked for this purpose.

The principle of ring-fencing of quota within the disadvantaged areas was also introduced into the 1994 restructuring scheme. As the majority of small scale producers are situated in these areas, this is a further positive development in encouraging such producers to improve the viability of their holdings and thus to remain in milk production.

I have also decided to extend this principle of ring-fencing to sales and leases of land to which quota attaches and legislation is presently being prepared which will have the effect of retaining milk quota in disadvantaged areas. This measure will be of help to smaller producers, who predominate in those areas.

Apart from quota related incentives, we also have in place a scheme under which small producers can avail of a 60 per cent grant towards the cost of up-grading their on-farm dairy facilities to bring them into line with EU standards.

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