asked the Minister for Agriculture if he will give an assurance to the Dáil that there will be no reduction in Ireland's national milk quota; and if he will make a statement on the matter.

156.

(Limerick West) asked the Minister for Agriculture the position as regards the possible further reduction in milk quotas for Ireland; and if he will make a statement on the matter.

I propose to take Questions Nos. 37 and 156 together. Against the background of a serious imbalance in the milk sector, rapidly rising stocks and a critical budgetary situation, the EC Commission has recently made proposals to weaken the effectiveness of the Community's intervention mechanism, to cut the overall level of milk quotas and to apply the quota system more rigorously. While it is clearly in our interests that the problems of the milk sector be solved as rapidly as possible, I have made it clear that the present package as a whole is not acceptable to us. In the negotiations I will be seeking to ensure that the Irish quota is not reduced on a permanent basis.

Is the Minister of State aware of the solemn assurance given to this House on 4 April 1984 by the Minister, Deputy Deasy, that our quota would not be reduced and that we would have priority for expansion and that the Minister has already capitulated in that regard? Is he further aware that we are the only country who are under quota this year? It is outrageous for the Minister to have suggested in recent public statements that in some way we should contribute to the lessening of this quota. Is the Minister still satisfied that we have a special case in Europe?

Of course I am satisfied. The Minister has been arguing that case, and Members are inclined to forget his success in this area. During the negotiations on this scheme the vast majority of the Council made it clear in the most blunt terms possible that, in the light of the worsening milk situation and political difficulties which our 1984 deal created for other member states, they would not agree to any derogation for Ireland on this issue. The choice was between trying to block this proposal which, if successful, would have blocked the whole price package and would have led to draconian action by the Commission aimed at reducing prices, or accepting it in the context of an otherwise favourable package. The latter was the only realistic option. The scheme which was agreed provided that national quotas will be reduced by 2 per cent from 1 April 1987 and by a further 1 per cent from April 1988.

Is the Minister of State aware that the Minister has already capitulated by conceding a reduction of 3 per cent in our quota, despite the fact that we got an assurance in this House that there would be no reduction? Is our case being made in Brussels having regard to the fact that we have the lowest milk yield and the lowest yield per acre?

I am quite happy with the Minister's efforts in Europe on behalf of our farmers.

The Irish farmers are unhappy with the Minister's performance, particularly this year, when New Zealand, a non-EEC country, was allowed an increased share of the United Kingdom market because of bilateral, not GATT, arrangements, since two of her agents were found guilty of blowing up the Rainbow Warrior. Is the Minister satisfied with that type of negotiations?

I am satisifed and so are the Irish farmers that the Minister is doing a first class job in Europe.

That concludes Question Time.