Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 206: To ask the Minister for Agriculture and Food her views on the allocation of a special funding package from the national reserve for dairy farmers with quotas of less than 30,000 gallons; and if she will make a statement on the matter. [11194/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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Allocations of milk quota may be made from the national reserve according to objective criteria but the provision of financial assistance for the sale or purchase of quota is not permitted under EU regulations. Generally, the volume available from the national reserve for permanent allocation each year is limited by the amount of quota that is returned to the reserve that year from certain categories of exiting producers. In recent years, in allocating the reserve, priority in the permanent allocation of quota has been given to small-scale producers dependent on and committed to dairying. Allocations are made on the recommendation of the milk quota appeals tribunal. This has enabled the granting of some 5,000 litres on average per annum to some 2,000 producers.

If it were decided to change the current priority allocation system and instead allocate the reserve to all farmers with less than 30,000 gallons, the effect would be less targeted and would simply allocate quota to substantially more producers who would each get substantially less quota. This would be contrary to the objectives set for the use of the reserve.