(Limerick West): Has the Minister in mind the basic principle of the CAP which is the protection of the family farm? Having that in mind, does he agree that all of the proposals are very serious but the proposal with regard to the further reduction in our milk quotas will affect fundamentally that principle of the family farm? Will he consider introducing a milk cessation scheme as attractive as the EC one in order to obviate the possibility that we might lose a further percentage of our milk quota, in other words having our milk quota extinguished?

I am aware of the difficulties that these proposals would create for Irish agriculture if they were implemented. At this stage, however, they are just proposals. As regards a milk cessation scheme, I am basing my case on the wording of the minutes of the March 1984 super-levy agreement which states that Irish milk production should not be reduced during the period of the super-levy regime.

Two cessation schemes have been spoken about. The Community cessation scheme, if introduced, would reduce production in each country by 3 per cent. Then there is the national cessation scheme where each country would be allowed to redistribute 3 per cent of its milk production. Discussions have been going on for some time in this country, overseen by ICOS, the umbrella organisation for the co-operative movement, to try to draw up a scheme nationally. However, I am afraid difficulties have arisen and I hope that the problems can be overcome. At the moment some co-operatives feel that the national scheme which has been proposed would not satisfy their needs, and word has come from the Commission that it would not accept a scheme along the lines which have been proposed. We have difficulties both at home and with the Commission. It would be my earnest wish that we would get a national cessation scheme in place as quickly as possible so that there would not be a demand, if the worst came to the worst, for a Community cessation scheme.

(Limerick West): Is the Minister over-optimistic when he states that he gets comfort from the minutes with regard to the decision taken when the super-levy was introduced? From what countries does he see support coming in his opposition to these proposals?

I am not talking about optimism or pessimism; I am talking about realism. The discussions have only just started and I am explaining the basis for our case. We are basing it on the minutes of the super-levy agreement.

As regards the countries who support us, I would not say that any country supports us at the moment but the discussions are at a very early stage. A number of other countries feel that they should have exemption from the EC cessation scheme and these include, as far as I can remember, Spain, Portugal, Italy, Greece and Luxembourg. They all have different reasons for their wish to be excluded from the scheme. It will be months before we know what the outcome is likely to be.

(Limerick West): Well into the summer?

It will definitely be early summer, in my view.

Does the Minister consider that if there were a national cessation scheme it should be within the confines of the co-operative areas? The experience on the last occasion was that there was an outflow of milk from my county where the disease eradication programme was not so developed. Secondly, even if there were an EC cessation scheme, would the Minister not agree that countries outside the EC, for example, the United States, the USSR and Australia, are going to increase their milk production and create problems in the Community?

In reply to the first question, the reasons outlined by the Deputy are precisely why the Commission will not agree to the type of scheme that we are formulating or attempting to formulate. They will not agree to a scheme based on a co-operative area. It must be a truly national scheme covering all co-operatives and milk purchasers in the country. On the other hand, the co-operatives do not want the Commission proposal because, as the Deputy says, it could quite likely lead to an outflow of milk from areas such as the Deputy's in the northern part of the country to the larger co-operatives in the south. The fact is that more people in the Deputy's part of the country would give up milk production and there would not be sufficient people there with the money to purchase the milk, whereas people in the richer parts of the country would have the money to purchase the milk. There is the dual difficulty which I have outlined.

As regard the Deputy's second question, I am very disturbed that other countries are not doing what the EC have been doing — that is, curtailing the production of milk. It is rather pointless that in the western world where there is a vast surplus of milk, the United States and New Zealand in particular are encouraging increased production which is bound to create serious problems for all of us on the world markets. I should like to see a certain synchronisation of milk production between all these countries and the member states of the Community.