asked the Minister for Agriculture and Food if the 4 per cent from the temporary linear suspension scheme in 1987-88 and the further 1.5 per cent temporary suspension of quota in 1988-89 are meant to be a permanent feature of milk quotas; and if not, when the temporary suspension will be waived.

While the 5.5 per cent reduction in quotas which was agreed at the Council of Ministers in December 1986 has been extended up to the end of the 1991-92 milk year, it still remains as a temporary suspension and is not a permanent cut in quotas. In fact, the regulation to give effect to the extension of the quota regime to 1991-92 will specifically provide that the Council may during that period adjust the extent of the reduction in the light of market developments.

When this scheme was negotiated in 1986 was it known that there would be a possible extension? Were farming interest groups aware that by 1991 there would have been a 40 per cent cut in the yearly compensation per gallon of milk?

I was not present at those negotiations when the scheme was introduced. I understand that it was introduced as a temporary suspension which could be capable of being renewed. For that reason, the French Minister and I particularly, have insisted on a clause being inserted in the new regulations which gives effect to the extension which provides — and I want to make this very clear — that during the extended period the Council of Ministers may decide to revise the extent of the reductions in the light of the internal and external market outlook and the stock situation. We got Council agreement that this would be temporary and if the conditions in the milk market particularly continue to come under control, a number of us at the Council of Ministers will be insisting that the temporary will be meanwhile set.

What about the 40 per cent reduction in cessation?

Of course there is a reduction but by comparison with the compensation paid for permanent cessation it measures up fairly well. What we are talking about over a five year period would be a rate of compensation of £1.59 a gallon for temporary suspension and the compensation for permanent cessation over seven years is £1.61 per gallon. There is no real difference.