Billy Timmins (Wicklow, Fine Gael)
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Question 71: To ask the Minister for Agriculture and Food her plans to encourage dairy partnerships; and if she will make a statement on the matter. [14163/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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Since the introduction of milk production partnerships, MPPs, in 2002 the regulations have been reviewed regularly to ensure the balance between the special treatment afforded to partnerships and the restrictions on their formation is appropriate to the circumstances of the sector. I am satisfied this objective has been met.

While the number of standard MPPs is still quite low, I am satisfied the partnership format will make a very significant contribution to the sector by allowing dairy farmers operate at a viable level and to have a satisfactory balance between work and family life.

There are now 250 new entrant-parent MPPs operating and this format is giving young trained farmers a worthwhile stake in the family enterprise. This will enhance the prospects of their continuing on with a career in dairying in the longer term which is vital to the whole industry.

In regard to 2005, I have increased the off-farm income limits for both standard and new entrant-parent MPPs and have streamlined the application process by removing the pre-partnership land transfer rule and easing the pre-partnership production rule. In this year's milk quota restructuring scheme, I changed the quota access conditions for new entrant-parent MPPs. Now all but the largest producers will be able to form such partnerships with an eligible son or daughter but the new entrant ceases to have priority access to quota when the combined quota of the parent and new entrant reaches 500,000 litres. This will make the system fairer and further enhance the impressive contribution that the new entrant-parent format has made to the sector. I will continue to examine the partnership model and explore further options for its development to ensure that the format is used to the maximum advantage of the dairy sector.