Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

The preliminary output estimate for the end of the final milk quota year, based on returns to my Department by the milk purchasers and taking into account the relevant butterfat adjustment, is that Ireland will finish 4.34% over quota. This represents a superlevy bill in the region of €69 million.  While the confirmed final position will not be available until August, when all flexi-milk is distributed and all returns have been received, the figure is not likely to deviate much from that estimate.

As in previous years, responsibility for collecting the superlevy liability rests with the milk purchaser. The milk purchaser must remit the collected moneys to my Department before 1 October in order that it will be in a position to pay the European Commission before 30 November. However, new arrangements recently introduced by the Commission allow member states to facilitate the payment by milk producers of the superlevy liability in three annual instalments, without interest. The first instalment must be collected by the milk purchaser and paid to my Department by 1 October and the two subsequent payments must be paid by similar dates in 2016 and 2017. I certainly see that this facility will be of immense value to the dairy sector in helping to lift the cash flow burden of having to pay the superlevy bill in full this year.

Officials in my Department are putting procedures in place for the collection of the first instalment before end of September and the introduction of a scheme to collect the remaining instalments in September 2016 and September 2017. I expect to be announcing the details of the scheme in the very near future. Under the proposed scheme, the Department will, on receipt of a formal application from a milk producer wishing to participate, raise a debt against that milk producer for the outstanding amount of superlevy due and facilitate the payment in three annual instalments. Milk producers wishing to avail of the scheme will be asked to apply through their milk purchaser and the scheme will, at the outset, involve the establishment of a contract between the milk producer and the Department, where the value of the debt being raised and the conditions that must be complied with are set out. I am satisfied that this approach strikes the balance between offering flexibility to farmers, while also safeguarding the Exchequer.

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