Dáil Éireann díospóireacht -
Wednesday, 4 Dec 1996

Vol. 472 No. 4

Written Answers. - National Suckler Quota.

Willie O'Dea

Ceist:

66 Mr. O'Dea asked the Minister for Agriculture, Food and Forestry the number of animals which reverted to the national suckler quota in 1995 and to date in 1996 under the 70 per cent rule; and his projections of the impact, if any, on farmers of the 90 per cent rule. [23403/96]

Minister for Agriculture, Food and Forestry (Mr. Yates)

Under EU regulations applicable in 1994 and 1995, producers holding suckler cow quota rights had to make use of at least 50 per cent of those rights in any one of two consecutive years. Otherwise the part not used during the second year reverted to the national reserve where it became available for distribution to priority categories of producer identified by the quota review group under the 1996 national reserve. Use in this context included making application for premium payments in respect of those rights or leasing out the rights or a portion of the rights.

In 1996, the EU regulations required that holders of suckler cow quota greater than seven use at least 70 per cent of that quota every year. Farmers with quotas of seven or less had to use at least 70 per cent in any one of two consecutive years. Otherwise the part not used reverted to the national reserve where it will become available for distribution to priority categories of producer identified by the suckler cow quota review group under the 1997 national reserve. The exceptions to these rules were farmers who joined the farmer retirement scheme or farmers who could demonstrate that they could not make the required use of their quotas because of exceptional circumstances.

The EU Commission has recently decided that, with effect for 1997 and 1998 farmers with quotas greater than seven must use at least 90 per cent of their quotas each year. The part not used will revert to the national reserve but will not be available for distribution to priority categories for a period of two years.

Fifteen thousand suckler cow quota rights were returned to the 1996 national reserve because of non-usage in 1994 and 1995. The position in relation to usage of quota rights in 1996 under the 70 per cent rule is not yet fully established. At this stage it is estimated that some 2,351 farmers with quotas greater than seven who applied for the suckler cow scheme in May 1996 did not make the required use of their quotas. The total number of rights involved is 17,556. It is estimated that about 1,000 further unused rights will be identified following processing of suckler cow scheme application received in the October 1996 application period. All farmers identified as not having made the required use of their quotas in 1996 will be written to over the coming weeks and asked to explain the reasons for non-usage. Farmers who can demonstrate that they could not make use of their rights because of exceptional circumstances will be allowed retain their quotas in 1997. It is expected that up to 50 per cent of the unused rights identified will fall into this category and that no more than about 9,000 rights will ultimately revert to the national reserve where they will become available for distribution, under the 1997 national reserve, to priority categories of producers recently identified by the quota review group and announced by me last week.

It is impossible, at this stage, to predict what impact the 90 per cent usage requirement in 1997 and 1998 will have on the 1998 and 1999 national reserves. Producers who have surplus quota can of course protect their quotas either by buying additional suckler cows, or by leasing or transferring any surplus quota. My Department will notify individual producers over the coming weeks advising them of the new arrangements for 1997 and 1998. In addition, those farmers who can demonstrate that they could not make the required use of their quotas due to exceptional circumstances will be allowed to retain the rights in question.