John Cregan (Limerick West, Fianna Fail)
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Question 425: To ask the Minister for Agriculture, Fisheries and Food his plans to make the promised EU support funding for dairy farmers payable directly to individual farmers rather than through cooperatives; and if he will make a statement on the matter. [40422/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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At the Agriculture Council on 19th 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 19th November. The proposed additional funding of €280 million must first be agreed at the Council of Finance Ministers, also on November 19th. When those two items are agreed the Commission would 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.