Dr. Muiris Ó Céidigh:

To make it clear how we actually, operate, the National Milk Agency forms an opinion, before it registers a contract, as to whether there is adequate compensation to cover the economic cost of winter milk production. At the outset, we set up, through agreement among ourselves because very diverse interest groups are involved, a set of working guidelines as to how that will be done, and there is a set of parameters for that. We look at this in two stages during the year, the first being in October and thereafter it comes up for renewal in July. Historically, a premium has been paid for the five winter months and members can see the graph in the annual report showing how the liquid milk is attracting higher pay and how this has been consistent since 1995. This is one power we have and the system has maintained itself. However, when one experiences a year such as the one we have had at the end of last year and the beginning of this year, we do not have the power to deal with that type of emergency.

That said, we did not merely put out a press release but wrote to every multiple and processor in the country making the point, because we have no control over retail or wholesale prices. However, we attempted to put into the public domain, as well as that of the processors and the retailers, the point that this issue had arisen. The point was that if they were interested in securing supplies going into 2014, which is the subject under discussion, and in having a domestic supply of fresh milk, this was a matter we wanted them to bear in mind. To this end, we got an independent agency, Teagasc, to produce the Patton report, which we gave to them. We got very little response, comprising responses from two multiples, but nothing indicating they intended to do anything radically different. That is what is happening in that regard.

We have submitted a request on our proposals for additional powers regarding evidence, etc. in order that when we inspect a place, the presumption is reversed. In other words, it is up to them to prove to us that the milk is being used for something else other than liquid. We have inspected the non-registered people and have prosecuted people who have not registered with us. In this context, there were no imports when we were established and this is an issue we are chasing. Moreover, it is an important issue for the agency and for the industry as a whole, particularly for producers.

Deputy Ó Cuív mentioned some other issues, including the groceries order and below-cost selling. I believe the answer to that is we must get rid of below-cost selling, as well as this known value item, KVI, thing, and now there is an opportunity to so do. My other colleagues will want to answer some other questions.