asked the Minister for Agriculture the plans he has to increase the sheep population.

By providing a greater degree of security and profitability for sheep production, the EC common organisation of the market for sheepmeat — introduced in 1980 — has been the major influence in bringing about a significant increase in the national sheep flock in recent years. This policy, along with national policies aimed at improving breeding, carcase quality, marketing and presentation, will continue to provide scope for further expansion. Expansion must, however, be on an orderly basis entailing a greater awareness by producers and factories alike of the need to respond to market requirements.

(Limerick West): Could I ask the Minister if in his policy statements he would stress the opportunities in sheep production, particularly for dairy and cereal farmers whose output is now hampered by European Community decisions with regard to quota restrictions etc?

I must point out that there are no quotas on beef. We can produce as much as we want. I hope there will not be in the foreseeable future. However, there are quotas on milk. Might I point out that it is not a case of quantity in the sheep industry? It is just as important and probably more important that it should be a case of quality. We have tremendous export potential and tremendous markets if the quality is right. Far too often in the past it has not been right. We have a tremendous potential in the French market, in particular, which we cannot take up fully because the quality is not up to the French demand.

As regards quantity, the number of sheep has increased by 23 per cent since 1980. That, surely, is a dramatic and very significant increase but at this stage we should be more concerned with quality rather than quantity.

Will the low interest Euro loans be available to farmers who, for one reason or another, are getting out of beef and milk production and going into sheep and if those loans will also be available to farmers for sheep housing?

The answer to the Deputy's question is, quite straightforwardly, yes. The £35 million Euro loan is specifically aimed at areas such as sheep production.

When will the new grading system for land be introduced?

I wish it had been introduced some months ago. We put a proposal to the farming organisations whereby the producer would contribute a very small amount to the running of that classification scheme. Unfortunately, they have not seen fit to agree to their contribution. The bringing in of that classification scheme has been held up because of that. We feel it is in the producers' own interests that there should be a classification scheme. Therefore, the producers should be willing to make some contribution. It is unfortunate that they have not agreed. I believe they should and will. The sooner the better.