Dáil Éireann Debate, Thursday - 2 April 2015
108. Deputy Brendan Smith asked the Minister for Agriculture, Food and the Marine his plans to assist farmers who face substantial financial fines due to super levy penalties; if assistance is available, when same will be provided; and if he will make a statement on the matter. [13820/15]
Amharc ar fhreagraThe rules governing the imposition of a super levy are set by regulations agreed at EU level. Under these regulations each Member State is allocated a volume quota of milk, above which a super levy (of 28.6 cents/litre) has to be paid to the EU Commission by producers who contribute to the over production. It is not possible for me on a unilateral basis to adjust these super levy rules. I have, on numerous occasions, proposed action at EU level to mitigate the impact of super levy, primarily via utilisation of an adjustment to the butterfat coefficient, as this would not have required an amendment to existing regulations. Other options previously discussed included the front-loading of the remaining quota increases, a reduction in the super levy, or a type of EU flexi-milk arrangement which would have operated providing overall EU production was within quota. However, given the opposition of a blocking minority of Member States, some of which have gone so far as to seek to link the issue to possible measures to regulate supply after quotas are gone, there is no realistic prospect of any movement on the super-levy.
With respect to the impending super levy, there are a number of initiatives which I as Minister have taken to help ensure that the Irish dairy sector enters the post quota era as smoothly as possible. Flexibility has been secured from the European Commission for farmers to pay the super-levy fine on a phased basis over 3 years and my Department is working on the details of a scheme to give effect to this flexibility at national level. I hope to be able to announce more details on this in the near future. This announcement will serve as a major boost to dairy farmers in helping to ease the cash flow burden of paying the super-levy bill.
On-going contact has been maintained with the Minister for Finance to ensure that existing and future taxation policy reflects the Government’s commitment to agriculture. Of interest to dairy farmers here will be the announcement in last October’s budget to provide for income averaging over five years when it comes to paying income tax bills. I have also ensured that priority has been given to measures for the dairy sector in the Rural Development Plan. In addition, I have impressed upon the Irish banks the need to show flexibility in their dealings with farmers experiencing temporary cash flow difficulties in 2015.
The abolition of milk quota presents a massive opportunity for the Irish dairy sector and one which we should look forward to with confidence. However, it is important that dairy farmers plan prudently for this new era. I believe we have the right balance of measures in pace to ensure that Irish dairy farmers can enter the new era with full confidence.
