Michael Creed (Cork North West, Fine Gael)
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Question 1029: To ask the Minister for Agriculture, Fisheries and Food if he will explain the new quota buy-back arrangements announced by the EU Commission; the impact this will have on super-levy payments; if the new scheme is compulsory for all member states; and if he will make a statement on the matter. [38411/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Quota buying-up schemes are provided for under Article 75 of Council Regulation (EC) No. 1234/2007, which states that Member States may, in the interests of restructuring or of improving the environment, buy back quota from producers who wish to permanently exit milk production, and either leave such quota in the national reserve or sell it on to other producers at the same price.

The Commission has proposed that such bought-back quota would not be used to reduce super levy liability at a national level as would generally be the case with "spare" national reserve quota, but rather that it would be ring-fenced, and in the event of super levy being payable, the amount of the levy corresponding to the bought-back quota could be diverted into restructuring measures, i.e. used domestically instead of being paid to the Commission.

From an Irish perspective, quota buy-back schemes have not been a feature of the quota regime, and because this proposal retains the voluntary character of such schemes, it presents no difficulty for Ireland.