Dáil debates

Wednesday, 29 June 2011

1:00 pm

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)

I appreciate the Deputy's approach on this. We all have a responsibility to speak to farmers and farming organisations in blunt terms. They are already aware of the reality and know that we are very unlikely to get a political solution to this issue this year. Therefore, farmers need to act accordingly, but many are not doing that. Many of them are just pressing ahead, on the assumption that there will be a resolution or they are trying to factor in the fact that they may have to accept some form of super levy fine, perhaps paying 28 cent per litre. On the basis that they are currently getting 33 cent a litre, they would be making 5 cent per litre by producing above quota. That is a hugely irresponsible choice on the part of farmers. They should not take that route, because we cannot guarantee prices of 32 cent or 33 cent per litre into the future. They are playing with fire in this regard, particularly if prices were to change and farmers had made their calculations on the basis of paying a super levy for producing over quota, making the country over quota. I do not want the kind of farmers we need to deliver the output increases we all seek after 2015 to be put out of business because of fines that must be imposed on them in the next few years.

That said, we can and will pursue a political solution to this issue. It makes sense politically to look for a solution in the short term that does not involve a vote in Council or does not involve having to return to look for co-decisions. The Dutch, in particular, favour a further reduction in butterfat correction levels because the Commission could implement that without having to seek a vote on it. France and Germany, in particular, are very resistant to providing more flexibility on milk quota between now and 2015 because portions of the farming population in those countries are uncomfortable with the idea of abolition of quotas at all in 2015.

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