Written answers

Wednesday, 21 October 2009

Department of Agriculture and Food

Dairy Industry

9:00 pm

Photo of Andrew DoyleAndrew Doyle (Wicklow, Fine Gael)
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Question 276: To ask the Minister for Agriculture, Fisheries and Food the amount of revenue raised in 2005, 2006, 2007 and 2008 from the milk check levies for, An Bord Bainne, development levies, dairy research, the Dairy Council, Government services and the National Milk Agency; if he has reviewed the tax on production of milk at a time of below cost payments to dairy farmers; and if he will make a statement on the matter. [37588/09]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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The National Milk Agency is a statutory body established under the Milk (Regulation of Supply) Act 1994 to regulate the supply of milk for liquid consumption throughout the state and to ensure all year round supply. The Agency is self-financing and raises funds by means of a levy on milk purchased for liquid consumption. The levy was increased from 0.127 cent per litre to 0.145 cent per litre with effect from 1 June 2008. The levy finances the annual running costs of the Agency.

Under the Milk (Miscellaneous Provisions) Act, 1979 as amended, a fee of € 0.001 per litre is imposed on all milk intended for manufacturing or for the preparation of drinking milk. The fee contributes to the cost of providing the food safety inspection service and other work involved in the administration of EU market management schemes and is a requirement under EU legislation.

Under the Bovine Diseases Levies Act 1979 as amended, all milk received for processing from a herd is subject to a levy at a rate of €0.0006 per litre.

The total receipts from the above levies for the years 2005, 2006, 2007 and 2008 are set out in the table.

LevyBasis for collection2005€m2006€m2007€m2008€m
Dairy Inspection FeeMilk (Miscellaneous Provisions) Act 1979 (as amended)5.0844.8695.1584,867
Bovine DiseaseLevyBovine Disease (Levies) Act 1979 (as amended)5.6535.3753.2652.890
The National Milk AgencyMilk (Regulation of Supply) Act 19940.5620.5830.5840.626

The National Dairy Council and An Bord Bainne are both private enterprises. This Department has no function in relation to their sources of funding. Tax on the production of milk is a matter for my colleague, the Minister for Finance.

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