Simon Coveney (Cork South Central, Fine Gael)
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As I mentioned earlier in my response to a similar question, my officials and I have raised the quota issue with the Commission on a number of occasions in recent months. Indeed, I used the opportunity provided by my attendance at the Council of Agriculture Ministers in March to ask the Commission to consider whether a more flexible approach might be adopted for the limited number of Member States, including Ireland, likely to have a super levy problem in the run up to 2015. I also raised the matter in a bilateral meeting with Commissioner Ciolos prior to the Council meeting. I intend to continue to raise the issue with Member State colleagues and with the Commission. However, the Commission has resisted attempts to revisit this issue, and there is, in any event, no guarantee that a majority of Member States will support calls for a more flexible milk quota regime.

Against this background, I should emphasise that the primary responsibility for producing within quota, and for ensuring the avoidance of super levy, rests with individual milk producers. It is up to dairy farmers, who are familiar with the rules of the quota regime, to make the right decisions and to protect themselves from exposure to potentially very damaging fines. The rules are very clear, and were confirmed as recently as last December by the European Commission when it came to the conclusion that the soft landing was on track and that there was no need to revisit the quota elements of the 2008 Health Check agreement. The remaining annual quota increases are therefore the only available mechanism for increasing quota in the period leading up to quota abolition in 2015, and all dairy farmers must take this on board as they plan the development of their enterprises.

Irish dairy farmers must continue to operate on the assumption that no further changes will be made to the quota arrangements agreed in the context of the CAP Health Check.

Finally, the provision of additional processing facilities is a matter for the industry itself. My Department has in the past supported investment in this area through the Dairy Investment Fund. However, I do not envisage the establishment of any similar funding arrangement in the foreseeable future, having regard to the exigencies of the public finances.