Dáil Éireann díospóireacht -
Thursday, 20 May 1999

Vol. 505 No. 2

Written Answers. - Milk Quota.

Jim O'Keeffe

Ceist:

110 Mr. J. O'Keeffe asked the Minister for Agriculture and Food his views on whether there is a lack of incentive for farmers to lease milk on a temporary basis to their co-op as opposed to privately leasing it in view of the fact that the stocking rate rule in relation to beef premia composed in the milk quota leased to the co-op on a temporary basis is still counted in establishing the stocking rate of that farmer; and his further views on whether the rules in this regard should be changed. [13375/99]

Minister for Agriculture and Food (Mr. Walsh)

The rules relating to the treatment of milk quota for the purposes of calculating stocking density under the cattle premium system have not been changed under the Agenda 2000 agreement. Under these rules the milk quota is included in the calculation of the stocking density of the producer holding the quota on 1 April which is the start of the milk quota year.

In the case of a land and quota lease effective from the beginning of the milk quota year, the quota would be held by the lessee and included in the calculation of his or her stocking density. It should be remembered however, that the land to which the quota attaches would also have been transferred from the lessor to the lessee.

In the case of temporary leasing, the quota, under the regulation, is in the possession of the quota owner on 1 April and, therefore, is included in the calculation of his or her stocking density. The method of dealing with temporary leasing for the purposes of calculating stocking density has been raised by my Department with the EU Commission a number of times. However, the Commission has confirmed that this is the way temporary quota must be treated for the calculation of the stocking density and I see no prospect of changing that.

It should be noted that the temporary leasing scheme has operated satisfactorily over the years and has allowed very significant quantities of quota be transferred each year to the benefit mainly of small scale producers.