Simon Coveney (Cork South Central, Fine Gael)

This question has been asked on many occasions by my colleague. We are already doing a great deal on this issue. I have met a series of Ministers on a bilateral basis to try to build a coalition on the need to change policy. The so-called soft landing approach is not working for Ireland or for the Netherlands, Denmark, Luxembourg and a number of other countries that are also over quota and will incur super levy fines. There must be recognition of that. It is, perhaps, more difficult to make the argument for that when milk prices are weakening, as they are at present. We are into the high producing months of the year in terms of milk volume and we are seeing a softening of milk prices, which is a diplomatic way of saying that milk prices are reducing slightly, due to the large volumes of milk produced. However, I am still fully committed to arguing, and to reassuring other countries, that we must do something to change the current approach to managing milk quota between now and 2015 if we are to avoid a dramatic increase in milk volumes over a relatively short period of time, which is not in anybody's interest.

In the meantime, we can do a great deal to ensure there are new markets for our extra milk. In 2015, milk production could increase within 12 months in Ireland by approximately 15%. That is why I have been very active in places such as Algeria, which spent €35 million buying Irish cheese last year, and China, which is predicting a 43% increase in dairy consumption between now and 2019. We need to go to these countries and put supply contracts in place so we have an outlet for the large volumes of the high quality milk we will be producing after 2015. That is an exciting prospect. It offers huge opportunities and potential for growth, expansion and wealth creation, but it must be managed in a way that does not result in over-supply and a dramatic reduction in price.

A twin track approach is necessary. First, we must find new markets and develop them. That is happening. Second, we require a different political solution for the phasing out of quotas over time from the current proposed policy.

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