Mary Coughlan (Donegal South West, Fianna Fail)

I totally refute the Deputy's little petty political snipe. It would be much more overcoming and overbearing if I had not done something about the dairy industry. That industry has decreased its capacity during the past nine years by 11,000 farmers. If we are to have a sustainable dairy sector, we need to do something about it. Two years ago I made an announcement in consultation with all the stakeholders to examine restructuring. I indicated at that time that I would re-evaluate the outcome, but the outcome was disappointing. It is on this basis that I have reviewed the policy, and the policy must be the preparedness of this industry to deal with the outcome of the WTO talks, increased competition — we are only half way through the Luxembourg Agreement — and the absolute necessity to sustain dairy farming here. It is on that basis that I introduced a more open market system. I am allowing a year for time to consult and to prepare farmers. On the basis of the outcome last year of 3.4%, my view is that we will not see anything near that this year on the basis of the current restructuring scheme.

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