asked the Minister for Agriculture the plans if any, he has to repeal the Milk (Regulation of Supply and Price) Act, 1936 in view of its incompatibility with the common organisation of market for milk and milk products of the EC.

162.

(Limerick West) asked the Minister for Agriculture the present position in regard to the continuance in operation of the Dublin and Cork district milk boards; and if he will make a statement on the matter.

I propose to take Questions Nos. 10 and 162 together. The EC Commission have indicated that they consider certain aspects of the operations of the Dublin and Cork milk boards contrary to the principle of the common organisation of the market in milk and to the Treaty of Rome. My Department have responded that these arrangements are necessary and justified in view of our highly seasonal pattern of milk production. However, without prejudice to this view and having consulted with the trade interests involved, the Department have furnished to the Commission an outline of alternative arrangements which might be more acceptable to them. Discussions on the details involved are expected to take place shortly between Commission representatives and Department officials.

Legislation to repeal or amend the Milk (Regulation of Supply and Price) Acts, 1936 and 1941 will be necessary to give effect to the new arrangements.

Is the Minister aware that an inequitable situation prevails in the farming community because there are two captive areas in which farmers get a selected price for their milk? The ordinary commercial farmer gets 78 pence as against £1.10. Does he realise this is creating inefficiency in the districts where this system operates?

That is the Deputy's point of view which I do not altogether share.

Is the Minister in agreement with me?

No.

(Limerick West): He is.

The Minister is agreeing that I am correct.

As we are being lectured almost daily about the importance of being good Europeans, will the Minister not agree it is very bad for our image in Europe to continue to drag our feet and not get ourselves in order on this matter?

I think we will and the Deputy is very familiar with what is being done now in this regard. I am glad we are coming to a satisfactory solution to what looked to be a very thorny problem. It would be in the interests of the milk suppliers and, indeed, the householders that a satisfactory solution acceptable to the EC would be found. One of the problems I could foresee in the future would be that if the chaos which seemed to be looming came about door-to-door sales of milk might be discontinued in certain areas and there might be a massive drop in milk consumption. I am happy that our Department and the Commission are in close discussion at the moment and I hope a satisfactory solution will be found quickly.

(Limerick West): In view of the ongoing talks with the EC Commission, will the Minister outline to the House if the legislation which he has stated is necessary is being prepared in the eventuality of agreement?

The Deputy may take it that all the necessary steps are being taken.

(Limerick West): It is being prepared?

Yes.

(Limerick West): At the moment?

That is a bit premature. In conjunction with any repealing of legislation we may very well have to bring new decisions before the House.

(Limerick West): So the position is that it is not being prepared?

Could the Minister——

I am passing to the next question.