John Deasy (Waterford, Fine Gael)
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Question 366: To ask the Minister for Agriculture and Food the proposals regarding the sale of quotas from 1 April 2007; the proposed timescale involved; and if she will make a statement on the matter. [16032/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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In March I announced my intention to move to a more open market system for transferring milk quotas, which will come into effect on the 1st 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.

My Department and I have completed the first stage of consultations with the farm organisations and with representatives of the milk processing sector. We are now in the process of undertaking a comprehensive analysis of the issues raised and the options for dealing with them, with a view to designing an appropriate transfer mechanism. My aim is to have the new system in place before the start of the 2007/2008 milk quota year.