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Dáil Éireann díospóireacht -
Wednesday, 3 Jul 1996

Vol. 468 No. 1

Written Answers. - Milk Quota Distribution.

Noel Davern

Ceist:

213 Mr. Davern asked the Minister for Agriculture, Food and Forestry if his attention has been drawn to the anger at the second distribution of extra quotas; and if he will introduce a system that will benefit smaller and younger farmers, thereby enabling more farm families to remain on the land. [14624/96]

I assume that the Deputy is referring to the allocation of milk quota under the second stage of the 1996-97 temporary leasing scheme.

When I announced the first stage of this year's temporary leasing scheme in April last, I indicated that I would review the situation for the second and third stages based on the outcome of that stage.

That review has now been undertaken by the milk quota review group. In so doing, account was taken of the factors which affected the level of allocations under the first stage. The change in the operating rules was one such factor. However, of far more significance was the fact that the amount of quota demanded exceeded the supply by three times. A further significant factor was the huge increase in the number of applicants. These factors, allied with a super-levy penalty last year, and production well in excess of quota to date this year, affected the operation of the first stage of temporary leasing.

In keeping with the recommendations of the review group, I have decided that, under the second and third stages, total priority will be given to smaller-scale producers. Furthermore, special provisions will be made within this category for producers who were allocated temporary leasing quota under the first priority category in the 1994-95 and 1995-96 schemes.

I have also announced details of a further subsidised milk quota restructuring scheme to be operated this year. As this subsidy is in place specifically for smaller scale producers and new entrants to dairying, this measure will benefit those producers who wish to improve the viability of their enterprise, thereby offering further encouragement to smaller-scale producers to remain in milk production.

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