Written Answers. - Milk Quota.
Michael Creed
Ceist:
203
Mr. Creed
asked the
Minister for Agriculture, Food and Rural Development
if he will give details of the recent milk quota regulations which place restrictions on the sale of land with quota; if he will give details of the fact that these farms will have to be operated as an independent going concern and the implications which this has for the sale of farms particularly with small quotas; and if he will make a statement on the matter.
[3007/00]
Dan Neville
Ceist:
217
Mr. Neville
asked the
Minister for Agriculture, Food and Rural Development
the details of the new milk quota regulations being introduced on 1 April 2000.
[3367/00]
I propose to take Questions Nos. 203 and 217 together.
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 changes in the system which operates in Ireland in order to ensure that active, committed producers have greater access to quota over the coming years.
The objectives of the new arrangements are to provide for more flexibility and certainty for milk producers in the operation of the milk quota regime; greater priority access to additional permanent milk quota for small scale and medium size producers; the retention of as many dairying enterprises as possible; and greater competitiveness within the Irish milk production sector.
Details of the changes to the quota system are as follows.
1. Changes in the arrangements for the transfer of milk quota
I have decided that with effect from 1 April 2000 milk quota will no longer transfer with land, subject to the following exceptions: family transactions – conditions to be defined in the national implementing regulations; sale of a holding as a going concern where that enterprise will continue to be operated as an independent holding; a renewal of a lease agreement for land and milk quota between the original lessor and lessee or their successor-in-title where the original lease agreement was executed in accordance with the provisions of the European Communities (Milk Quota) Regulations, 1995, earlier national implementing legislation or national rules; and the transfer, by way of lease or sale, of land pur chased with quota between 13 October 1999 and 31 March 2000 – both dates inclusive.
2. Scheme for the purchase and resale of milk quotaApart from the exceptions outlined above, under the provisions of Article 8(b) of Council Regulation (EEC) No. 3950/92, the transfer of milk quota will be through a scheme to be operated by way of a pooled system at co-operative-dairy level. Under this scheme, quota holders may, at the end of each milk quota year, offer all or part of their milk quota for sale to their co-operative-dairy. The co-operative-dairy in turn may only sell milk quota to eligible producers attached to that concern under detailed rules determined by the Minister for Agriculture, Food and Rural Development. While all producers will be entitled to purchase milk quota under this scheme, priority will be accorded to small and medium sized producers.
The maximum price for the sale of milk quota under this scheme will be fixed at national level.
3. Temporary leasing of quota held by persons no longer involved in milk production
With effect from 1 April 2000 it will no longer be possible for quota holders, not engaged in milk production, to temporarily lease their milk quota under the provisions of article 6 of Council Regulation (EEC) No. 3950/92 and Regulation 16 of the European Communities (Milk Quota) Regulations 1995, where the milk quota has been either temporarily leased or transferred in connection with a land lease agreement expiring during the 1999-2000 milk quota year or both of the foregoing for the preceding three milk quota years – 1997-98, 1998-99 and 1999-2000 – or for a longer period.
With effect from 1 April 2000 such quota holders may either resume milk production in their own right during the 2000-01 milk quota year; sell the milk quota into the 2000 milk quota restructuring scheme referred to above; renew the land and milk quota lease agreement; or sell the milk quota without the land to the lessee on expiry of the lease agreement, where that is allowed. In certain exceptional circumstances, persons no longer involved in milk production may apply to the Minister for Agriculture, Food and Rural Development for an exemption from this provision. These exceptional circumstances will be detailed in the national implementing regulations.
4. Land and milk quota leases expiring on or after 31 March 2000It will be open to lessors and lessees provided that they are the original lessor and lessee, or their successors-in-title, who were parties to lease agreements involving land and milk quota executed under the provisions of the European Communities (Milk Quota) Regulations, 1995, earlier national implementing legislation or national rules, to agree on one of the following options, where a lease agreement expires on or after 31 March 2000: in the case of land and milk quota lease agreements executed prior to 13 October 1999, the lessee may definitively purchase the milk quota from the lessor without the relevant land; and as outlined at 1 (iii) above a lessor and lessee or their successor-in-title may renew a lease of land and milk quota.
In the event that the lease agreement is not renewed the following options are open to the lessor: resume milk production in his-her own right during the same or next milk quota year; and sell the milk quota into the milk quota restructuring scheme referred to at 2 above.
5. Land and milk quota transactions executed in the 1999-2000 milk quota yearLease Agreements and Sales
In the case of a producer transferring land and milk quota by way of a sale or lease during the 1999-2000 milk quota year, the transferee has entitlement to deliver any unused part of the said milk quota in this milk quota year. It should be noted that in the case of transactions executed and notified to the appropriate co-operative-dairy after 31 December 1999, the transferee will have no entitlement to utilise any unused milk quota during the 1999-2000 milk quota year.
Where a producer purchases land and milk quota between 13 October 1999 and 31 March 2000 – both dates inclusive – and subsequently transfers by way of lease or sale the purchased lands, the milk quota in question will also be transferred to the lessee or new purchaser, as the case may be.
All land and milk quota transactions referred to above are, subject to the exceptions outlined at paragraph 2 of Notice 266/20 to S.I. No. 266 of 1995, liable for milk quota clawback at the rate of 20% on all of the milk quota transferring in connection with such transactions.
In the case of land and quota lease agreements currently in place or lease agreements executed up to and including 31 March 2000, the lessee must operate the leased lands for the duration of the lease agreement if he-she wishes to retain entitlement to the leased quota.
6. Quota held by persons temporary leasing their milk quota
Where a person, no longer involved in milk production, has temporarily leased all of his-her available milk quota until the end of the current milk quota year, it will not be possible to transfer such milk quota on or after 1 April 2000. It will be open to such persons to resume milk production; sell the milk quota under the 2000 milk quota restructuring scheme; or temporary lease their milk quota in the 2000-01 milk quota year subject to the conditions set out above.
