Pat Deering (Carlow-Kilkenny, Fine Gael)
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Question 552: To ask the Minister for Agriculture, Food and the Marine the plans he has and steps he will take to correct the unfair situation in which a new entrant into dairy farming can get free quota but an existing supplier has to buy it; and if he will make a statement on the matter. [3584/12]

Simon Coveney (Cork South Central, Fine Gael)
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Food Harvest 2020 lays down an ambitious but achievable 50% growth target for the dairy output by 2020. I consider the attraction of new entrants to the sector to be an important dynamic in achieving this goal and re-energising the dairy sector, and it is in this context that I have put in place a mechanism for setting aside a small portion of the additional quota available each year for new entrants.

In November 2008 the Council of Agriculture Ministers, as part of the transition to a non quota market situation, agreed to increase Member States' milk quota allocations by an immediate 'across the board' 2% and by 1% per annum over the period 2009 to 2013. Following detailed consideration with stakeholders, including industry representatives, on how best to utilise annual 1% allocation it was decided that one quarter of the increase should be set aside for a major initiative aimed at attracting new entrants into milk production. Consequently over the last three Milk Quota years my Department has organised a scheme for the allocation of Milk Quota to New Entrants to dairy farming, based on 0.25% of the additional allocation.

The successful applicants were carefully chosen based on their own circumstances and their potential viability as dairy farmers. They each had to submit a comprehensive five year business plan and all applications were subjected to a rigorous assessment by a group of independent assessors. The successful applicants are required to attend training courses facilitated by Teagasc and provide financial statements on an annual basis to the Department. I consider this Scheme to be an outstanding success and plan to run it again this year and next year.

In respect of the existing milk quota holders they have received, in addition to the 'across the board' 2% increase added to their quota in 2008, a 0.75% compounded increase over the last three years plus the positive effects of a downward adjustment in the butterfat coefficient which equates to a possible further 2% rise in their quotas. They have received all of these increases at no cost. Against this background I do not accept that the current mechanism of setting aside a certain volume of milk quota, free of charge, for the purpose of attracting new entrants into dairy farming can be construed as unfair.