asked the Minister for Agriculture and Food if he will outline his Department's policy on the practice by certain farmers of leasing cows where milk quotas are in danger of being exceeded; if he intends to take any action to stop this practice; and if he will make a statement on the matter.

Under the quota arrangements the leasing of cows is permitted where a legal leasing agreement has been drawn up which provides that (i) the leased cows are transferred to the lessee's holding, (ii) the milk from the leased cows is produced on the lessee's holding and (iii) the milk produced is delivered to the lessee's purchaser.

If a cow leasing arrangement is entered into which breaches any of the aforementioned conditions then the milk delivered on foot of such an arrangement will be regarded as having been made by the lessor and will be subject to the normal super-levy penalties if it brings the total of his deliveries above his quota and a super-levy liability applies in the purchasing area concerned.

Will the Minister state what the procedures are for ensuring that the rules are complied with? Have there been any breaches of the regulations and what were the penalties?

There have been breaches. Those conditions are notified to every purchaser, that is, every co-op. Where any information is conveyed directly to the Department or through the purchaser immediate action is taken. The penalty where it arises is a standard levy penalty of £1.10 per gallon. I assure the Deputy that where breaches have occurred penalties have been imposed.