Vol. 494 No. 4
235 Mr. Ferris asked the Minister for Agriculture and Food if his attention has been drawn to the widespread discontent among farmers who have sold their holdings and milk quota and have had 20 per cent of their quota confiscated without compensation; and if he will make a statement on the matter. [18775/98]
The primary objective of the introduction, in October 1996, of a clawback on certain land and quota transfers was to encourage nonproducing quota holders to re-direct their quota away from private land transactions and to offer it instead to the restructuring or temporary leasing schemes. The quota is then available to small scale producers who have first priority status under both schemes.
Quota becoming available as a result of clawback is added to the national reserve and is allocated to small scale producers, free of charge, on hardship grounds.
The operation of the clawback arrangements was reviewed in early 1998 and due to the very significant increase in land and quota transfers, the high price of the acquired quota and the subsequent consequences for the restructuring and temporary leasing schemes, the level of clawback was increased from 10 per cent to 20 per cent.
Specific land transactions such as family transfers or renewals of existing arrangements are exempt from milk quota clawback. I have requested the Milk Quota Review Group to review the operation of the milk quota regime in Ireland and the clawback mechanism is one of the areas which will be covered by that review.
