Simon Coveney (Cork South Central, Fine Gael)

I can understand that people are trying to find imaginative solutions to this problem. We have examined whether it is possible to transfer surplus quota from Northern Ireland to the South. Unfortunately, although I would rather it was otherwise, Northern Ireland is considered a different country and jurisdiction from the Republic of Ireland and, whether we like it or not, it is not possible to do bilateral deals under the European policy on milk.

We are constantly looking for new or clever opportunities to solve the super levy problem. From the Europe point of view, for example, we are examining the possibility of front-loading the remaining quota increases into one year, which is not a runner at present; a reduction in the super levy fines, which is also not a runner; and a further reduction in the butterfat correction levels, which is the one we are pursuing most proactively at present. We believe it is the only one on which we have a chance of potentially getting agreement this year.

We are also examining a far more flexible approach which would see the overall quota as a European quota rather than a quota for individual countries. Last year, even though countries such as Denmark and the Netherlands had significant super levy fines imposed on them, Europe as a whole was approximately 5% under quota. This is the same problem as we have with Britain. Britain is consistently under quota while we are consistently on the edge. We were less than 0.5% under quota last year, and that was after a severe pull back for the last two or three months of the year.

If the Deputies have suggestions, they should keep forwarding them to me and we will consider each of them. I had heard that there was some discussion about trying to come to an arrangement with Northern Ireland to find an all-island solution and putting that case to the Commission. We responded to that and put feelers out to the Commission to see if it would consider it, but we did not make much progress. It would set a very awkward precedent for the Commission in terms of other European countries trying to do similar things. We need to find a solution to Ireland's current difficulty that we can sell across the European Union. Unfortunately, that has not yet happened to the extent that it solves our problem.

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