Vol. 573 No. 4
130 Mr. Stanton asked the Minister for Agriculture and Food the impact the bringing forward of dairying decoupling from March 2004 to January 2005 will have on the industry here; and if he will make a statement on the matter. [25473/03]
Under the mid-term reform agreement, a dairy premium will be introduced from 2004. It was originally envisaged that the premium would remain coupled to the milk quota on an individual holding until the year 2007, after which it would be decoupled. In the course of discussions in the Council it became clear that the possibility existed to decouple from an earlier date. Following detailed consideration of the impact of the decoupling of the dairy premium and having taken account of the views of representatives of dairy producers, I decided to decouple the dairy premium from 2005, the earliest possible date. This action will provide dairy farmers with the necessary certainty that they require to allow them to take informed decisions on their future in the industry. Decisions on the sale and acquisition of milk quota and land and the associated investment decision can be taken in a more certain environment. In addition, the decoupling of the premium at the earliest possible date should provide for a more gradual restructuring of the industry at producer level.
