asked the Minister for Agriculture and Food the steps he intends taking to ensure a better ratio between winter and summer milk production; and if he will make a statement on the matter.

The problem of seasonality of Irish milk production is one which can only be solved by the industry itself. In relation to manufacturing milk, processors can adopt measures to encourage their producers to supply milk on a less seasonal pattern. For example, as is already the case with a number of creameries, bonus payments can be made for deliveries during the winter months.

As regards liquid milk, the present arrangements involving the milk boards have worked satisfactorily to ensure regular supplies and that shortages do not occur in the winter months. As the boards have been deemed by the European Community Commission to be contrary to Community Law, arrangements are now being made for the establishment, in their place, of a National Milk Agency to regulate the supply of liquid milk throughout the country. The relevant legislation is currently being prepared and will be presented to the Oireachtas shortly.

Arising from the Minister's reply, would he not agree that the Department of Agriculture should take the initiative in this regard, having regard to the situation that develops when there is a glut of milk production at a particular time resulting in employees in the industry being laid off for three or four months of the year? If the initiative were taken it would help in the matter of diversification of food products by the various co-operatives.

The Deputy will note from a previous reply that I have been encouraging constantly the various concerns to engage in a diversification programme. Where they have done so it has proved to be very successful in their own interest and in the national interest. So far as seasonality generally is concerned, producers whether of liquid milk or manufacturing milk, have found that they are able to gain premium prices at all times so that producers are not in any way disadvantaged even with current seasonal patterns which are a natural consequence of the climate and soil. Obviously, we will have more grass production in June, July and August than we will have in November and December.

Arising from the Minister's reply and in view of the fact that he mentioned that legislation to bring the national milk purchasing agency into being is being considered for the next session, would he clearly state to the House and confirm categorically that that legislation will be introduced in the next session? Would he acknowledge that it is extremely urgent in view of the seasonality difficulties in production?

I can acknowledge that, and that is why I requested that this legislation would be brought forward urgently. The Deputy will be aware that it was as a consequence of the European decision that this matter became necessary. I will endeavour to ensure, so far as possible, with the draftsman's office of the Attorney General that it is ready for presentation to the House as soon as possible. I hope that it will be early in the next term.

It is extraordinary that the Minister should say that it is a matter for the industry in his opening remarks. Would he not agree that it is the Government who should create various favoured climates for other developments — I am not talking about the weather — and should his Department not be directly involved in creating a favourable financial climate to give the incentive to farmers to vary their seasonality because of the knock-on effect not only on milk but right through to the production of beef?

It is precisely because not only my Department but also the Government, of which I am a member, have been concerned to create the right climate to enhance profits that we have seen the profitability in this sector over the last three or four years. I should like to tell the Deputy that it is not the intention of this Government to intervene in an area where private enterprise, involving farmers, processors and producers, has proved to be so successful. That is not our approach to Government in this instance.

May I ask the Minister if he would accept that the need for a replacement agency, such as the National Milk Agency, has been clearly outlined to his Department over the past two years, that he was, in fact, aware of the need to introduce the legislation necessary to set up this agency and that he indicated, almost two years ago, that the setting up of the agency was imminent? Does the Minister intend that the procedures would be expedited and that we will not have to wait for another long period, conscious of the great damage being done to the industry in the absence of that agency?

I can tell the House that the draft Bill to set up the agency has been prepared and that consultations are taking place with all sides of the industry. We are expected to complete those shortly. If some amendments to the draft Bill are necessary as a result of the consultations which are taking place they will be sent to the draftsman. I can tell the Deputy, as far as the Government are concerned, we have advanced it to the point of being ready to present it.