9 Mr. Morley asked the Minister for Agriculture, Food and Forestry when his Department will commence its review of the milk scheme; the plans, if any, he has for advocating a B quota; and his views regarding the phasing out of quotas. [7827/96]

24 Dr. O'Hanlon asked the Minister for Agriculture, Food and Forestry when his Department will commence its review of the milk scheme; the plans, if any, he has for advocating a B quota; and his views regarding the phasing out of quotas. [7823/96]

38 Mr. O'Leary asked the Minister for Agriculture, Food and Forestry when his Department will commence its review of the milk scheme; the plans, if any, he has for advocating a B quota; and his views regarding the phasing out of quotas. [7826/96]

44 Éamon Ó Cuív asked the Minister for Agriculture, Food and Forestry when his Department will commence its review of the milk scheme; the plans, if any, he has for advocating a B quota; and his views regarding the phasing out of quotas. [7824/96]

50 Dr. Moffatt asked the Minister for for Agriculture, Food and Forestry when his Department will commence its review of the milk scheme; the plans, if any, he has for advocating a B quota; and his views regarding the phasing out of quotas. [7822/96]

62 Mr. Ellis asked the Minister for for Agriculture, Food and Forestry when his Department will commence its review of the milk scheme; the plans, if any, he has for advocating a B quota; and his views regarding the phasing out of quotas. [7828/96]

66 Mr. E. O'Keeffe asked the Minister for Agriculture, Food and Forestry when his Department will commence its review of the milk scheme; the plans, if any, he has for advocating a B quota; and his views regarding the phasing out of quotas. [7825/96]

I propose to take Questions Nos. 9, 24, 38, 44, 50, 62 and 66 together.

While the existing legal basis for the EU milk quota regime extends to the year 2000, the European Commission has indicated that a review of quota and related price policy will begin in 1997. I have already indicated in the Council of Ministers that I favour early consideration of the future dairy policy regime, so that our dairy farmers and the industry generally will be in a position to plan for the future.

By way of preparation for such discussions at EU level, I have already set up a high level group broadly representative of the industry to work with my Department in considering the dairy policy options best suited to Ireland's future needs. In this context, the B quota idea will obviously be looked at, as will other possible adaptations to the existing dairy regime.

I do not wish to pre-empt the outcome of this work by advocating any particular policy change at this stage. Following the work of the high level group I hope to be able to put forward ideas to the Commission to be taken into account in the review to which I have referred.

The Minister of State will be aware that Professor Sheehy, a prominent agricultural economist, suggests that the milk quota system will be phased out within five years.

What plans does the Department have to deal with that matter and when can we expect to see an analysis of the advantages and disadvantages associated with abolishing the system given that we are in a position to produce milk far more efficiently than practically any other country because of our grassland-based system?

The dairy expert group prepared a tough agenda of work for itself but unfortunately it has been disrupted by the BSE scare. Its work will require a major commitment. It will bring forward its proposals as soon as possible.

This year or next?

As the milk quota system is due to be reviewed by the EU in 1997, we will have to be ready. The process is ongoing. There has been speculation that by the end of the year 2000 there will not be quotas and beef exports to third countries will not be subsidised. All these matters will have to be considered in a major review of the milk quota system. It is recognised that this is necessary because people are suffering. They are unable to expand, to produce more and are being penalised. The system has worked from the point of view of price, but expansion has been curtailed.

In the event of the quota system being retained, will the Minister of State ensure that priority is given to small dairy holders, particularly those dependent on a proper quota to ensure viability? There is a large number of such holders in the Ulster counties especially. Will he ensure that priority is given to those with quotas of less than 30,000 gallons?

Will the Minister of State name the members of the expert group and indicate if a deadline has been set for the presentation of its report?

Existing policy favours smallholders. As Deputy O'Hanlon is aware, under the dairy investment programme a 60 per cent grant is available to suppliers with quotas less than 15,000 gallons. Under the special subsidy restructuring scheme 75p per gallon is available to suppliers with quotas of less than 22,000 gallons. I agree with the Deputy that as smallholders with quotas of less than 30,000 gallons are under most threat, they should receive preferential treatment under any future EU policy. I will make this point strongly to the expert group.

I do not have the names of the members of the group, but will supply them to Deputy Ellis. It will have to report soon otherwise we will not be ready when the system is reviewed by the EU in 1997. I hope it will report by the end of the year, although a specific date has not been set.

That concludes Question Time for today.