Jerry Cowley (Mayo, Independent)
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Question 305: To ask the Minister for Agriculture and Food if she will fight the case against the proposed milk quota restructuring scheme for 2007 to guarantee retention of the current 220 million litres in the western region; and if she will make a statement on the matter. [17335/06]

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 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. In making my announcement I made it clear that the new system would continue to operate at Co-op level.

Michael Ring (Mayo, Fine Gael)
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Question 306: To ask the Minister for Agriculture and Food if a person (details supplied) in County Mayo who purchased quota in the reference years of 2001 and 2002 is entitled to get the full amount back from the national reserve by way of additional entitlements. [17336/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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The person named submitted an application for an allocation of entitlements from the Single Payment Scheme National Reserve under Category B. Category B caters for farmers who, between 1 January 2000 and 19 October 2003, made an investment in production capacity in a farming sector for which a direct payment under Livestock Premia and/or Arable Aid schemes would have been payable during the reference period 2000-2002. Investments can include purchase or long-term lease of land, purchase of suckler and/or ewe quota or other investments. The person named has been deemed successful under Category B of the reserve based on 40 ewe premium quota rights purchased in 2002. My Department has issued a formal letter setting out the details of the allocation. Ewe Premium quota rights could be purchased for a little as €1.50 per unit in 2002 or, indeed, they could have been obtained free of charge from the National Reserve. For this reason an allocation from the National Reserve in respect of an investment in ewe premium quota rights is limited to 50% of the appropriate Ewe Premium rate. Since the person named purchased the ewe quota in 2002, one-third of the benefit, in terms of extra ewe premium for 2002, is already reflected in the single payment established for him. The allocation from the National Reserve therefore equates to two-thirds of the extra ewe premium at 50% of the rate. If the person named is dissatisfied with my Department's decision he now has the opportunity to appeal the decision to the Independent Appeals Committee. An appeals application is available from any of my Department's offices or on the Department website at www.agriculture.gov.ie.