Brendan Smith (Cavan-Monaghan, Fianna Fail)

I fully appreciate the concerns expressed by Deputies Creed and Sherlock and other colleagues on both sides of the House regarding the serious difficulties facing the dairy sector. I am aware of these difficulties having spoken to farmers and processors in the various sectors. We have argued with the Commissioner at Union level that we need to use the market mechanism measures effectively regarding the quantities produced and the price paid. If we do not remove product from the market, normal supply and demand will maintain the downward pressure on prices.

I only became aware of the outcome of this morning's meeting as I entered the House and I did not have time to include it in the reply to Deputy Sherlock. A total of 7,686 tonnes of butter were accepted for intervention, including 2,103 tonnes of Irish butter or approximately 28%. A total of 22,789 tonnes of skimmed milk powder were taken into intervention, including 5,674 tonnes from Ireland or approximately 25%. The Commission maintained the refund level in regard to export refunds for both. It is important that quantities taken into intervention were purchased.

The Council of Ministers is due to meet next Monday and I will put forward the case strongly again to the Commissioner and the Commission about the need to continue to use the market mechanism measures as the most effective way to deal with price and the quantities taken in under all management measures.

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