Michael Creed
Ceist:5 Mr. Creed asked the Minister for Agriculture, Food and Rural Development if he will clarify the exact circumstances in which milk quota leases can be exempted from clawback. [17654/00]
Ceisteanna–Questions. Priority Questions. - Milk Quota.
The provisions governing the operation of the milk quota regime with effect from 1 April 2000 are set out in the European Communities (Milk Quota) Regulations, 2000, Statutory Instrument No. 94 of 2000. These set down, among other things, the mechanisms for the transfer of milk quota from one producer to another.
Clawback of quota does not currently apply under any of these mechanisms. However, I have made provision in the regulations for the introduction of such a measure if I deem it necessary in the future.
A clawback applied in the case of certain sales or leases of quota with land under the previous regulations which applied up to 31 March this year.
The Minister has not answered my question with respect to the regime that existed prior to 1 April. What were the grounds under which the Department exempted quota leases from clawback?
A clawback applied in certain cases of sales and leases up to 31 March. A clawback of 20% applied in the case of sale or lease of quota with land up to 31 March. The exemption specified related to family transactions and leasing arrangements which involved the renewal of an existing lease. On more than one occasion in the past, exemption was granted in relation to land and quota used for research purposes.
I am finding it difficult to get a clear answer from the Minister with regard to the exact circumstances in which milk quota leases prior to 1 April this year were exempted from clawback. He has made a general reference to research purposes but I want to know if it was on financial grounds or because of family circumstances, and the number of occasions quotas were exempted from clawback.
I do not have the precise number of cases but I said clearly that they related to family transactions. There was not a clawback in relation to—
Financial circumstances in family transactions?
Within the family. There was not a clawback in respect of a family transaction between father and son or between uncle and nephew, the general family transactions that take place in normal country situations.
They were exempted by regulation. I am talking about exemptions by ministerial discretion.
As I said, that was used on more than one occasion in relation to land and quota made available for research purposes.
Will the Minister publish any correspondence in his Department with respect to a recent lease concluded, which was exempted from clawback, whereby Teagasc leased a farm in County Cork with a quota in excess of 300,000 gallons, which could not in any circumstances be considered to be a lease whereby the clawback would impose considerable financial difficulties on the individual involved, and where the value of the exemption from clawback is worth in excess of £380,000 to the individual concerned, being 20% of 300,000 gallons, which is 60,000 gallons, at a market of approximately £3 a gallon? Will the Minister publish any correspondence either from Teagasc or from the individual concerned?
The publication of documentation is a matter that is open to the Deputy or anybody else under the Freedom of Information Act.
Will the Minister publish it?
I invite the Deputy to make the application. I am amazed at the Deputy's negativity in relation to the milk quota operation, specifically milk for research purposes. I assume the Deputy is talking about the Paddy O'Keeffe land and quota transfer to Teagasc. That was and is a matter for the Teagasc authority.
I understand the farming representatives on the board of Teagasc were concerned about it.
I am quite surprised and disappointed—
Would it not have been applied by you, not the board of Teagasc?
The Deputy should address his remarks through the Chair.
I support that project. Up to 31 March this year, the person concerned could have leased or sold that quota to any individual, which would not have been very valuable to any of the younger farmers and the farmers that want to improve their milk operations. When milk is made available the objective is that it will benefit the overall industry. Surely we should support that.
Many farmers would like to offer their farms to Teagasc if they were exempted from clawback.