The butter voucher scheme is provided for in Regulations of the European Union which provide for the sale of butter at a subsidised rate to social assistance beneficiaries.
The cost of the subsidy is borne by the European Commission. The Minister for Agriculture, Food and Forestry is responsible for the negotiation of the scheme at European level and for the redemption of the vouchers and the recoupment of the sums involved from the European Union. My Department is responsible for certain aspects of the implementation of the scheme, mainly the printing of the vouchers and their distribution to eligible beneficiaries.
Ireland is the only member state still operating the scheme. It was due to expire at the end of 1996. I was concerned to ensure that its benefits were not lost and I liaised very closely with the Minister for Agriculture, Food and Forestry to ensure its continuance.
The Minister for Agriculture, Food and Forestry successfully negotiated the continuance of the scheme for a further two years. However, the Agricultural Council was only agreeable to its continuance with a reduced budget. The reduction was proposed by the Commission due to the declining pattern in Irish butter consumption over the last number of years.