Simon Coveney (Cork South Central, Fine Gael)

This is not the first time Deputies Moynihan and Kirk have raised this issue, understandably so, because it is an important one.

In the past year my Department and I have been extremely active in raising at every appropriate opportunity the question of an adjustment to the milk quota regime. We have made determined efforts to secure a soft landing for all member states in the lead-up to milk quota abolition in 2015, as envisaged in the 2008 CAP health check agreement. I have discussed the matter extensively with other EU Agriculture Ministers, including in bilateral meetings with my Danish, French, German, Estonian and Finnish counterparts. Furthermore, officials from my Department have raised the issue at EU level meetings and at bilateral meetings with other member states. We will continue to pursue it at every opportunity.

Among the options being discussed in relation to a soft landing are the front-loading of the remaining quota increases, a reduction in the super levy fine that may be imposed, a further reduction in butterfat correction levels, or a type of EU flexi-milk arrangement which would operate provided EU production overall was within quota. Most attention has been focused on the butterfat correction which would be the most straightforward option from a procedural position. In December a coalition of member states involving Ireland, Denmark, the Netherlands, Belgium and Cyprus formally put a specific proposal to the Special Committee for Agriculture for an adjustment to the butterfat correction mechanism.

Unfortunately, the Commission has consistently resisted attempts to reconsider this issue, as it has resisted attempts to revisit the outcome of the 2008 CAP health check generally. That view is supported by a number of member states which, unfortunately, are influential ones. I have spoken about this on numerous occasions. While it is important to recognise that there will be no magic solution to milk quota problems we may have in the remaining weeks of this quota year, farmers must do everything they can in the next ten days or so to remain within quota.

We will continue to pursue this agenda next year, proactively and aggressively at times. There will be a review of the milk health check towards the end of this year. I assure Members that the country will lead the discussions in an effort to try to alter the soft landing policy that is not currently delivering a soft landing for at least six EU member states.

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