Michael Moynihan (Cork North West, Fianna Fail)
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Question 1: To ask the Minister for Agriculture; Fisheries and Food if he has raised the issue of a European wide milk quota rather than a national quota in view of the fact that the European Union will be under quota this year; and if he will make a statement on the matter. [28022/11]

Simon Coveney (Cork South Central, Fine Gael)
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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.

Michael Moynihan (Cork North West, Fianna Fail)
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I thank the Minister for the information he has provided. He is fully aware of my opinion on this matter which is a serious issue in County Cork and across the country. Did he receive solid support from the French Minister for Agriculture in their discussions last Friday? According to the information available earlier this year, France was among the countries which were unwilling to enter into further negotiations on a European wide milk quota. The Minister referred to flexibility on butterfat potentially facilitating an increase in milk quota of between 1.5% and 2% this year. Is this is a serious possibility? While we must be responsible in advising farmers to remain within the milk quota, a number of policy decisions in recent years have placed farmers in an impossible position this year in terms of the amount of stock they have as they gear up for 2015 and beyond. As the Minister correctly noted, the farmers in question are taking a progressive approach. I ask him to elaborate on the views expressed by the French minister and the likelihood of achieving a butterfat correction.

Simon Coveney (Cork South Central, Fine Gael)
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To be clear on this matter, there is no appetite in France to reopen the milk quota negotiations on the soft landing. We are asking the French minister to consider agreeing to a butterfat correction, which would not be popular among French farmers. The overriding concern for France and Germany is to retain the milk quota regime as it stands until 2015. They believe any flexibility or loosening of the current arrangement could lead to a reduction in milk prices as a result of increases in supply. We do not share that assessment. While there is not a strong appetite in France or Germany for revisiting the milk quota issue, we have, for the first time, secured a response which suggested both countries would consider constructively the issue of a butterfat correction. Such a correction would be very helpful in terms of this year's milk quota but would not offer any solutions in the two subsequent years. We will continue to pursue this issue, working with the French and trying to convince the German Minister for Agriculture who has been absolutely resistant on this matter, even on the possibility of a butterfat correction. While we have much diplomatic work to do to make progress on this issue, there is no shortage of effort on our part.