Michael Creed (Cork North West, Fine Gael)
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Question 131: To ask the Minister for Agriculture, Fisheries and Food the position regarding milk quotas for the past milk quota year; the possibility of eliminating penalties for over-production in view of imminent quota increases, the failure within the EU to fill its milk quota and the global demand for dairy products; and if he will make a statement on the matter. [19595/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The position regarding milk deliveries for the 2007/2008 milk quota year is currently being finalised, and the expectation is that the country will be over quota. In accordance with EU law, a levy will therefore be payable by over-quota producers attached to milk purchasers in whose areas quota was exceeded. Although any levies arising in respect of the 2007/2008 milk quota year will incorporate reallocations made to take account of non-delivery of milk by some producers, once calculated they cannot be eliminated. In this regard the decision earlier this year by the Council of Ministers to increase EU milk quotas by 2 per cent applies only from 1 April 2008, and so does not provide an opportunity to eliminate levy liability in respect of the 2007/2008 milk quota year. The filling of milk quota at EU level and the global demand for dairy products are central to the Health Check of the 2003 CAP reform as it affects the dairy sector. The Government's position is that, with milk quotas due to be abolished in 2015, an ambitious annual quota expansion is necessary in the interim in order to facilitate a "soft landing" for producers.