Written answers

Wednesday, 29 March 2006

Department of Agriculture and Food

Milk Quota

11:00 pm

Photo of Martin BradyMartin Brady (Dublin North East, Fianna Fail)
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Question 77: To ask the Minister for Agriculture and Food her plans for the future operation of the milk quota system here. [12211/06]

Photo of John DeasyJohn Deasy (Waterford, Fine Gael)
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Question 87: To ask the Minister for Agriculture and Food her plans for the allocation of milk quota; and if she will make a statement on the matter. [12041/06]

Photo of Billy TimminsBilly Timmins (Wicklow, Fine Gael)
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Question 90: To ask the Minister for Agriculture and Food her proposals on the allocation of milk quota; and if she will make a statement on the matter. [12046/06]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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Question 113: To ask the Minister for Agriculture and Food her plans for the transfer of the milk quota; and if she will make a statement on the matter. [12234/06]

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 121: To ask the Minister for Agriculture and Food her plans for the reform of milk quota; and if she will make a statement on the matter. [12042/06]

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North, Fine Gael)
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Question 133: To ask the Minister for Agriculture and Food her plans to revise the allocation of milk quota; and if she will make a statement on the matter. [12050/06]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 77, 87, 90, 113, 121 and 133 together.

I recently announced my intention to move to a more open market system for transferring milk quota which will come into effect on 1 April 2007. I made this decision because the current restructuring model will not meet the future needs of the industry and a more effective response is required in order to meet future competitive pressures.

This is crucial given the growing competition faced by the sector both internally in the EU and on international markets. These competitive pressures will increase as we move towards the conclusion of a new WTO agreement. I want to ensure the Irish dairy sector is well prepared for these challenges while also having the capacity to secure its share of global growth in demand for dairy products.

In making my announcement, I made it clear that the new system would continue to operate at co-op level and that it could be organised through an exchange system, through direct sales between individuals, between brokers-agents or though the marts. Quota could be sold with or without land and leased with land, with a variety of partnership options being allowed.

My Department has commenced its initial consultation process and when this is completed in the next few weeks, I will consider how best to proceed with a view to having the detailed arrangements in place at the earliest possible date. In announcing my intention to reform the existing system a full year in advance of the effective date of implementation, I was anxious to provide adequate time to consider all the relevant issues and also to alert farmers that new arrangements were under consideration.

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