Ms Anne Randles:

It will not be significant but it will certainly reduce it by a small percentage point. At this stage and given that we are facing a historical superlevy bill, it is something to push for.

The reduction in a superlevy is very much a political decision. There are a number of other member states which will be facing into it. These member states are what we call the dairy member states - Germany, Denmark, the Netherlands and Ireland. They would be the key ones along with perhaps Poland. All of these countries must collaborate and insist that a solution is found. We believe there is a certain element of responsibility at EU level because there has been a long lead-in time to the abolition of quotas. Much emphasis was put on the issue of a soft landing as a responsible way of arriving at the situation we are in, yet in the last year of quota we find ourselves possibly facing the historically highest superlevy bill throughout Europe, and not just in Ireland. It is possible that the Commission will be receiving one of the highest level of receipts from the superlevy under this particular budget heading on the last year the quota exists.

This is a period of transition. It is a long lead-in time and farmers have been investing and have been encouraged to invest for a new era in dairy production within Europe. On that basis, there is an element of responsibility at European level to accept that action needs to be taken not to hamper the investment that has gone on in the industry in Europe in response to a political decision to remove quotas.