asked the Minister for Agriculture if the rumoured changes in creamery milk prices are likely to become reality; and if he will make a statement on the matter.

I presume the Deputy is referring to the EEC Commission's price proposals for 1979-80 details of which were released on 31 January. These proposals provide, inter alia, for certain adjustments of Green currency rates, a freeze on common prices for most commodities including milk and certain ancillary measures which in the milk sector include an increase in the co-responsibility levy. The Council of Ministers had a preliminary discussion on these proposals at its meeting on 5 and 6 February. The proposals have now to be examined in detail and the Council will continue its consideration of them at its meetings over the next few months. Obviously at this juncture I cannot anticipate the outcome. In the negotiations, however, my aim will be to secure the best possible overall deal for Irish agriculture.

I am trying to ascertain whether there is any basis for the suggestion that there will be a penalty or levy imposed on any milk producers to the creameries.

This may emerge from the existing milk co-responsibility levy which is a penalty of sorts on the individual milk producer. One of its intended functions is to restrain the overproduction of milk within the Community. It is embodied in the Commission's proposals to the Council that the scope of this restraint be extended through the extension of the co-responsibility levy itself. This matter is coming up for consideration currently at the Council of Ministers.

How can an Irish Minister for Agriculture resist a levy on milk from the EEC if his own Government are putting on a levy of 1p per gallon and are at the same time withdrawing a subsidy that was there for some time?

That is not a question.

It is. It is very relevant.

Question No. 3.

The whole question is the proposed imposition by the Community of a levy which amounts to a tax on milk production so as to restrain milk production. The measures taken by the Minister for Finance in his budget yesterday have quite the opposite intention.

No. Is the Minister in favour of a two-tier price for milk?

That question does not seem to arise at all.

It arises directly.

The Commission's proposals suggest that farmers producing less than 60,000 litres per annum be exempted from the levy and if these proposals were implemented a great many of our milk producers would be exempt from any co-responsibility levy at all.

They are not being exempted from the Fianna Fáil levy.

These will, therefore, deserve to be examined in great detail.

Question No. 3.