Simon Coveney (Cork South Central, Fine Gael)

I thank Deputy Moynihan for keeping this issue on the agenda. He has been very consistent in raising the concern that the soft landing strategy of the European Union simply is not working for Ireland, and that we should pursue changes to that policy which will allow our Ireland more flexibility between now and the end of 2015, when milk quotas are abolished, to allow for growth in that sector and avoid superlevy fines at the end of this milk quota year, which ends next March.

I am glad to update the House on the efforts we are continuing to make. We are lobbying the Commission and the agriculture ministers of different countries at every opportunity, the most recent being a bilateral meeting with the French agriculture minister, Mr. Le Maire, in Paris last Friday. This was a major issue on the agenda, along with other Common Agricultural Policy, CAP, and Common Fisheries Policy, CFP, issues. I am glad to say that France will be a key ally for us on the major issues of Irish concern in both the CFP and the CAP.

The superlevy is a problem. We are nearly 3% over quota so far this year. It is a huge problem in counties such as Cork where dozens of farmers are already over quota. The last thing we want is progressive farmers to be slapped with significant super-levy fines next year. This is a major concern because it is a serious possibility at present. Unfortunately, we do not have a political way out because there is no traction in the proposal to move from a country based quota system to a European Union quota. This objective, which is being pursued by the Fianna Fáil Party, is not a runner at present.

The issue we are pursuing and on which we are most likely to get some traction is agreement on a butterfat correction. If we secured some flexibility in this area, Ireland would be able to increase its quota this year by between 1.5% and 2% in addition to the 1% we receive under the soft landing policy. We have not yet secured agreement on this matter and may not do so. For this reason, the message to farmers from me and my Department is clear; they must try to operate within the quota that has been allocated. Many farmers are responding to this message. At the end of both May and June, Ireland exceeded its quota by 6%, relative to the time of year. The figure has declined to slightly less than 3%. Despite the progress that has been made, I remain concerned. We will redouble our efforts to secure some flexibility to ease the pressure on dairy farmers who are seeking to expand. As of yet, we have not found a solution.

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