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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Milk Quotas.

Temporary leasing of milk quotas

Summary

O'Keeffe challenges the postponement of a one-year quota-leasing scheme, citing prior discussions and its potential to help producers facing quota difficulties. O'Kennedy says a representative review group will report urgently on whether and when to introduce it, including for the current quota year; he argues the review must protect young and small producers and prevent leasing from undermining the national pool and clawback.

Jim O'Keeffe Mr. J. O'Keeffe Fine Gael

asked the Minister for Agriculture and Food if his attention has been drawn to the widespread disquiet because of his decision to postpone the introduction of a scheme for the temporary one year leasing of milk quotas; and his views on whether the decision should be revised.

Comment on this

I announced recently that I am setting up a working group comprised of representatives from the industry, AFT/ACOT and the Department to review the various operations of the quota system. I am requesting the group, as its first task, to report to me urgently on how and when we should introduce a system of temporary leasing of quotas on an annual basis. The group's interim report on this issue should be made in sufficient time to enable me to decide whether I should introduce the scheme for this quota year.

Comment on this
Jim O'Keeffe Mr. J. O'Keeffe Fine Gael

Does this indicate that the Minister may change his mind and permit the introduction of such a scheme for this year if the review group so recommend? The Minister indicated he was postponing a decision.

Comment on this

The Deputy's question suggested that I had indicated my mind at this stage in respect to this matter.

Comment on this
Jim O'Keeffe Mr. J. O'Keeffe Fine Gael

The Minister did.

Comment on this

I said I was postponing implementation of it pending a review. I did not say I was opposed to it or for it but that I was postponing implementation pending a review by this representative group. There is no question of my changing my mind.

Comment on this
Jim O'Keeffe Mr. J. O'Keeffe Fine Gael

We shall not get into semantics. The Minister indicated in Waterford that he was setting up a review group to report to him.

Comment on this
Seán Treacy An Ceann Comhairle Independent

This must not lead to argument.

Comment on this
Jim O'Keeffe Mr. J. O'Keeffe Fine Gael

I am glad the Minister is responding to the criticism. Does he accept that there have been, in fact, meetings between his own Department, the co-operatives and all the farming organisations arising out of which on 3 March last this issue was agreed in principle by the Department, the ICOS and all the farm bodies and that in that situation the relevance of a further review group is not immediately obvious?

Comment on this

There I must take issue with the Deputy. Everybody of whom I am aware has welcomed the review group.

Comment on this
Jim O'Keeffe Mr. J. O'Keeffe Fine Gael

On this issue.

Comment on this

All interests. The purpose of this review group is to manage the consequences of decisions taken before I became Minister for Agriculture and Food. These consequences are having major implications for the primary producers, young farmers and small producers. It is for that reason that I have decided to get all the interest groups together, not always in agreement automatically with each other, to look into this matter and report back to me with recommendations before September. I have told them that I want a report on this.

Comment on this

Would the Minister not agree that a review scheme such as this would require very careful examination? The one year leasing could be very dangerous and could disrupt many producers. It is important that a number of years be built into it.

Comment on this

As Deputy Leonard has said, the view is held widely among young farmers and small farmers with an adequate quota. They are very concerned to ensure that there would be no way of avoiding the restructuring and clawback for a national pool introduced last year. I have a very strong sympathy with the small producers and the young producers.

Comment on this

Hear, hear.

Comment on this

I hope that this review will enhance their position.

Comment on this
Jim O'Keeffe Mr. J. O'Keeffe Fine Gael

I hope it will lead to any further problems being ironed out which were not ironed out at the previous meetings. Does the Minister accept that this temporary one year leasing scheme which has been introduced by member states of the EC can be quite an effective management instrument in the situation of further quota difficulties developing in the current year, which is highly likely?

Comment on this

Where I introduced a scheme for the creation of a national pool for young farmers and small producers and that scheme was dependent on a certain reduction of milk for leasing——

Comment on this
Jim O'Keeffe Mr. J. O'Keeffe Fine Gael

A 25 per cent clawback.

Comment on this

——yes, the clawback — and when that could be frustrated by temporary leasing, and the interests of both young farmers and small farmer, frustrated, I thought it appropriate that the matter be looked at very seriously. I hope that after a few months I shall have a recommendation from this all-party group, which will involve also Macra na Feirme who have very strong views in favour of what I am saying.

Comment on this
Jim O'Keeffe Mr. J. O'Keeffe Fine Gael

There is a way around that.

Comment on this

In view of the Minister's sympathy with the young farmers' point of view, would be not agree that under——

Comment on this

Young farmers and small producers.

Comment on this

——and small, would he not agree that under the present regulations with regard to clawback it is not right that they should relate to inherited quotas?

Comment on this

I have as the Deputy will appreciate, the utmost sympathy with young farmers and small farmers. They recognise that. Macra na Feirme have indicated to me their total endorsement of what I am doing. They have gone public on that. I do not see that anything I have done so far has done other than promote their interests. I want to ensure that I can do that this year also.

Comment on this

I was talking about inherited quotas.

11.

Comment on this