Mary Coughlan (Donegal South West, Fianna Fail)

I recently announced my intention to move to a more open market system for transferring milk quotas, which will come into effect on 1 April 2007. I made this decision because the current restructuring model will not meet the future needs of the industry and a more effective response is required to meet future competitive pressures.

This is crucial given the growing competition faced by the sector both internally in the EU and in our international markets. These competitive pressures will increase as we move towards the conclusion of a new WTO agreement. I want to ensure that the Irish dairy sector is well prepared for these challenges while having the capacity to secure its share of global growth in demand for dairy products.

In making my announcement I made it clear that the new system would continue to operate at co-op level and that it could be organised through an exchange system, through direct sales between individuals, between brokers-agents or through the marts. Quota could be sold with or without land and leased with land, with a variety of partnership options being allowed. I specifically said that the detailed arrangements would be prepared in association with the stakeholders and my Department has already commenced that consultation process.

When the initial stage of the consultation process is completed in the next few weeks, I will consider how best to proceed with a view to having the detailed arrangements in place at the earliest possible date. In announcing my intention to reform the existing system a full year in advance of the effective date of implementation, I was anxious to provide adequate time to consider all the relevant issues and to alert farmers that new arrangements were under consideration.

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