Éamon Ó Cuív (Galway West, Fianna Fail)
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9. To ask the Minister for Agriculture, Food and the Marine the milk superlevy bill imposed on Ireland; the arrangements made for paying this superlevy on a phased basis; and if he will make a statement on the matter. [18459/15]

Éamon Ó Cuív (Galway West, Fianna Fail)
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This question is about the superlevy. The Minister might let us know the extent of the superlevy fine imposed on Ireland. Farmers are very anxious to know when the so-called three year scheme for repayment will be put in place. How will it operate? Has the door been absolutely closed to amelioration in respect of the outrageous superlevy being imposed on this country at the point of abolition of milk quotas?

Simon Coveney (Cork South Central, Fine Gael)
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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.

Éamon Ó Cuív (Galway West, Fianna Fail)
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I am glad that we are getting some clarification on the issue. Bearing in mind the raising of the debt and the question of liability, would it be possible for the milk purchaser to take the money in 12 equal instalments between this year and next year and forward-pay part of the debt by 1 October to the Department? In other words, the purchasers, particularly if they are co-operatives, would give a free loan for six months. Thus, rather than the farmer having to come up with all of the money between now and 1 October, the purchaser could allow a period of year. Would this be allowable under the rules, as long as the Department received the money from the purchaser?

Simon Coveney (Cork South Central, Fine Gael)
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To be clear, many farmers have already paid the money. It has been taken out of their milk cheque. They asked for it to be taken out and have paid on a monthly basis. Some farmers, depending on the arrangement between them and the purchaser, will have to pay a lump sum, or a lump sum will have to come out of their milk cheque. Others have been calculating their liability.

We all hate the superlevy. I hate it and the fact that we have to pay it. It is a nonsense that when the objective is to wean countries off the quota, there is actually a date before which there is a full quota and after which there is no quota and in respect of which people are punished by superlevy fines when quotas have actually been removed. It makes no sense and we did our best to change it. We got a majority of countries in the European Union to support us, but we did not have a qualified majority. Some of the bigger countries blocked our proposal. We appealed to the new Commissioner arguing that, although there had to be a superlevy because we could not change it, we should at least examine repayment options that would allow for the making of payments over a three year period. Farmers and co-operatives were anticipating this and had started deducting payments in anticipation of a superlevy fine. Many farmers, therefore, will not have a big lump sum cash flow problem. If they do, we have allowed purchasers, or co-operatives in most cases, to put repayment mechanisms in place. As long as my Department receives the lump sums it needs by each appointed date in the next three years, we can finance it after this.

Éamon Ó Cuív (Galway West, Fianna Fail)
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Let me outline what seems sensible to me. I accept that some people, particularly those who do not have a big superlevy bill, will pay in full, but it depends on cash flow. Young farmers, for example, might be under pressure. People's circumstances vary. What I am saying is that if purchasers and producers wanted it, they could say they would take the money in 36 equal instalments, starting from 1 May, and that as long as the Department received the money from them on 1 October every year, it would be happy. Is that correct?

Simon Coveney (Cork South Central, Fine Gael)
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Absolutely. The arrangements between farmer and purchaser are flexible. As long as we receive the lump sum each year, we will be repaid. Let us be clear: my Department has to pay the Commission in full this year, but we are to get our money back in the next three years. Co-operatives should be talking to their members, as they are, about how best to manage cash flow so as not to cause difficulties for foreigners. There is the flexibility about which the Deputy is talking.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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Deputy Martin Ferris who submitted Question No. 10 is not present.