Éamon Ó Cuív (Galway West, Fianna Fail)
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Question 9: To ask the Minister for Agriculture; Food and the Marine if he has raised the issue of a European wide milk quota in recent meetings with EU Agriculture Ministers; the steps he has taken in securing a butterfat correction quota increase of 1.5% and 2%; if he has specifically discussed the issue on a bi-lateral basis with any other EU agriculture Minister; if so, when and with whom; and if he will make a statement on the matter. [39813/11]

Shane McEntee (Meath East, Fine Gael)
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The Department has continued to be very active in recent months in raising the question of an adjustment to the milk quota regime at political and official level and at Commission level, in a determined effort to secure a soft landing for all member states in the lead-up to the milk quota abolition in 2015.

Among the options discussed regarding a soft landing are the front-loading of the remaining quota increases, a reduction in the super levy, a further reduction in butterfat correction levels or a kind of EU flexi-milk arrangement which would operate, provided EU production overall was within quota. Most attention has been focused on the butterfat correction and in recent weeks a coalition of member states involving Ireland, Denmark, the Netherlands, Belgium and Cyprus, has 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 agreement in an overall sense. This is a view which is supported by a number of member states, some of whom are firmly against any further adjustment to the health check agreement. It is also the case that only a minority of member states is likely to be adversely affected by the current quota restrictions and therefore persuading a qualified majority to agree to an adjustment of the current regime represents a significant challenge. There are currently no signs of a breakthrough in this regard.

With a super levy being an increasing likelihood as we head towards quota abolition, all dairy farmers must carefully plan their production activities and pay close attention to the limitations imposed by the quota regime if they are to avoid potential super levy fines.

Michael Moynihan (Cork North West, Fianna Fail)
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I thank the Minister of State for his reply. I have raised the point on many occasions in the past months. I refer to the targets in Food Harvest 2020. Only for the quota there would have been an increase in milk production this year by 20% to 25% because of the volumes of milk produced. Farmers have made significant efforts since July to pull back on milk production.

There was some hope held out over the past months on the butterfat quota. What is the likelihood of further negotiations early in the new year with the Commissioner and the Ministers for Agriculture in other member states to discuss the front-loading of the butterfat adjustment? This would alleviate a very serious problem which will arise on 31 March 2012.

Shane McEntee (Meath East, Fine Gael)
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As the Deputy said, there has been frustration in the farming community earlier in the year, last April, May and June, when many young farmers were badly caught. They had been told to go into milk production and were given grants and advice but halfway through the summer they had no quota left. They were given no relief of any description. At that stage when everybody was lobbying, only two or three countries had joined with Ireland in seeking a solution. However, I note a list of countries have joined that lobby and it is crucial that both our MEPs and all politicians, regardless of party, fight that case. There is a massive world-wide demand for milk products and Ireland is in a position to produce them. It is a great shame even for the EU to be losing out on revenue at a time when most countries are suffering economically. We have to pick up this issue on 1 January and make a strong argument. Butterfat seems to be the main issue.

Michael Moynihan (Cork North West, Fianna Fail)
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The new Presidency of the European Union will begin in January and this might create the possibility of some light at the end of the tunnel.

Shane McEntee (Meath East, Fine Gael)
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One would always hope for light at the end of the tunnel but I do not think farmers can take anything for granted. Many farmers have decided to dry up cows and to fatten them. Anyone who has ever received a super levy bill will never get a second one. The Deputy is correct that from 1 January 2012 we should join forces with as many countries as possible to pursue the matter in the interests of production.

Michael Colreavy (Sligo-North Leitrim, Sinn Fein)
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In my discussions with people in the Northern Ireland Assembly I find there is a deep understanding and appreciation of the Government's concerns about the milk quota. I find it difficult to understand why we do not deal with the milk quota issue on an all-island basis and why we should not be able to secure some concessions very quickly for the whole island.

Shane McEntee (Meath East, Fine Gael)
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The Border exists and this has created some loopholes in regulations. However, the rules are very strict. The farmers in Northern Ireland avail of the scarcity of milk in England and they perhaps would not appreciate us swallowing up everything. I understand why the Deputy asks that question. It seems a disgrace that there is a scarcity of milk across the water in England while we are not allowed produce it here. Rules are rules but we have to work together.