Vol. 510 No. 3
27 Mr. Creed asked the Minister for Agriculture, Food and Rural Development the legislative changes, if any, necessary to break the land and milk quota link; the way in which this legislation will impact on family farm transfers; if there will be adequate protection for small and medium-sized milk producers; if existing producers will get a priority claim to purchase extra milk quota which they may have leased; and if he will make a statement on the matter. [22583/99]
The regulatory framework arising from the Agenda 2000 agreement allows for greater flexibility in the operation of the milk quota regime. I have decided to take the opportunity to make significant changes in the system that operates in Ireland in order to ensure that active committed milk producers have greater access to quota over the coming years. It is essential that the new system will bring a greater degree of certainty to these producers so that the dairy industry will be in a position to meet the competitive challenges that lie ahead.
In order to achieve this, I have decided that the transfer of quota based on the rigid link between quota and land will be replaced by a system that allows for the sale of quota in a structured manner and in line with priority categories which will be set. This will be done in a fair and balanced way in order to encourage the best possible development of the industry while recognising the interests of all the parties involved. I hope this will facilitate a more orderly arrangement for the distribution of quota.
I recognise that the introduction of changes to the manner in which quotas can be transferred is a complex process and I have been advised these changes should be implemented by primary legislation. Every Member will get an opportunity during the passage of that legislation to table amendments and, if they are worthwhile, I will accept them because the issue of land and quota is dear to Irish people. I want to make sure this is done in a proper, fair and equitable way. This legislation will address the question of family transfers and other exceptional circumstances and will seek to provide adequate protection for all milk producers. It is intended that the arrangements for dealing with existing and expiring leases will also be contained in that primary legislation.
I wish the Minister well in his endeavours in this regard. As a principle, any changes that favour active producers is something to which I am sure we would all subscribe, but the Minister must also be aware that there is an inextricable link between leasing arrangements for quota and the farm retirement scheme. While we are all anxious to facilitate those who are active producers, what plans has the Minister to provide for those who are in the farm retirement scheme, who will see the value of their asset, their milk quotas, diminish significantly in a relatively short period? Will he take steps to ensure proper synchronisation between the new leasing arrangement and the new farm retirement scheme that will be introduced and that those who will be most severely affected by the new arrangements will be adequately compensated? When is it anticipated the relevant legislation will be published?
The thrust of the change is to make it easier for active milk producers, particularly young farmers, to get access to milk. Since the courses were introduced, we know how difficult it is for committed farmers to get access to milk. Officials from the Department as well as an officer from the Office of the Attorney General intended to go to Brussels this week to meet the legal services of the Commission to ensure we have a sound legal basis for the legislation, but Brussels postponed the meeting until next week. It is envisaged we will have the legislation through the House in time for 1 April, which is the new milk quota year.
I want to ensure a smooth changeover so that inter-family arrangements are not disrupted. Some farmers have a substantial amount of their milk on lease. If they have 70,000 gallons from approximately 20 cows, 50,000 gallons could be their own and 20,000 could be leased. That lease will not be terminated abruptly and the milk farmer will not have to sell part of his herd. We want to do it smoothly and fairly and to take into account people's different circumstances. At the same time, we want the future of the dairy industry in the hands of committed active milk producers who milk their cows every morning and evening.
I accept what the Minister said about people who are committed to dairy production. However, there is another side to this equation. Sufficient thought has not been given to the financial implications for people who have entered long-term arrangements through farm retirement schemes and who have leased their quotas. The Minister should factor in satisfactory compensatory arrangements for these people before he publishes legislation because the Department's track record on milk quotas is not good, regardless of what Minister was in office. One has only to remember the milk rights case, the Duff case and the mulder quota.
It is not in order to make a statement. I will call the Minister for a brief final reply.
This is of great importance to a significant number of farmers who availed of farm retirement schemes and who leased milk quotas.
I ask the Deputy to conclude because the Minister will not have a chance to reply.
I ask the Minister to consider the other side of the equation in terms of milk quotas and the consequences of what he is doing.
I accept what the Deputy said. That is why in the discussions with the legal services to the Department I have said this is an exceptionally sensitive and serious matter and that I would be happier to introduce primary legislation to support any changes which will be made. I give a commitment to the House that if a reasonable amendment is proposed to the legislation, I will accept it. There are two sides to every story and I know that many people who are retired have leased their quotas and their land and that their situation will change over the next ten years. We want to make those changes as fair and equitable as possible. The milk quota review group—
The time for priority questions has expired.
—has been fair up to now. It has a good record, as does the tribunal in relation to milk, given the small amount that is available.
All those voices favour active milk producers.
I agree. We will ensure people are dealt with fairly.
