John Deasy (Waterford, Fine Gael)
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Question 1021: To ask the Minister for Agriculture, Fisheries and Food how the €11 million from the EU's agricultural budget 2010 for dairy farmers will be awarded; if the amount of payment will be determined by herd size or block grant; and if he will make a statement on the matter. [38287/09]

Michael Creed (Cork North West, Fine Gael)
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Question 1028: To ask the Minister for Agriculture, Fisheries and Food if he will provide details of the €280 million dairy fund recently announced by the EU Commissioner to provide direct support to dairy farmers; how it is envisaged this fund will be allocated; the criteria for inclusion in the scheme; the amount of money that will be made available to each member state; and if he will make a statement on the matter. [38410/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I propose to take Questions Nos. 1021 and 1028 together.

At the Agriculture Council on 19 October Commissioner Fischer Boel announced that she would propose to make available an additional €280 million from the 2010 budget to help the dairy sector, as an exceptional measure. This would be possible under the new Article 186 powers which are expected to be agreed at the Agriculture Council on 19 November. The proposed additional funding of €280 million must first be agreed at the Council of Finance Ministers, also on 19 November. When those two items are agreed the Commission will then be in a position to make proposals for implementing the funds.

While there are no detailed proposals yet, the Commission has indicated that the funds might be allocated as a national envelope calculated through a distribution key based on national milk production, subject to quota limits. Based on Member States' declared dairy production in the year 2008/09, Ireland's share of the 280 million would be approximately €10.7 million. There will be discretion for member states in the allocation of the funds but the Commission has suggested that they should be distributed on the basis of objective and non-discriminatory criteria.

When the Commission proposals are finalised I will consider how the funds will be administered in Ireland.