Jim O'Keeffe (Cork South West, Fine Gael)
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Question 488: To ask the Minister for Agriculture and Food the arrangements she proposes to put in place to deal with the future sale or lease of milk quota; when the new regime will apply; the way in which she proposes to protect the interests of small farmers who have their quota leased; the persons with whom she is consulting on this matter; and if she will make a statement on the matter. [27238/06]

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 are progressing with the ongoing consultation process on the detailed arrangements to give effect to my decision. This has comprised of meetings with the relevant farm organisations and with representatives of the milk-processing sector and individual co-ops. The issue of future milk quota policy has also been discussed with the participating farm organisations at the partnership negotiations.

I will shortly bring forward more detailed proposals on the design of an appropriate transfer mechanism. Further consultations will take place before finalising the new system, and the operational details will be announced in good time to allow for all parties concerned to make appropriate plans before the start of the 2007/2008 milk quota year.

The concerns of all dairy farmers are being considered in this process, including those with leased quota.