Written answers

Wednesday, 11 March 2015

Department of Agriculture, Food and the Marine

Milk Quota

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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80. To ask the Minister for Agriculture, Food and the Marine if he will provide the estimated cost of the super levy fine on Ireland for 2015; the steps taken by him to have this reduced; and if he will make a statement on the matter. [10664/15]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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81. To ask the Minister for Agriculture, Food and the Marine considering the likely decision of the Commission to spread the super levy fine over an extended period, 2015 to 2017, for milk suppliers, combined with European Union regulations insisting on each member state paying the super levy fine in full by 30 November 2015, if his Department has a scheme in place to proceed for this deferral; the way he will deal with the upfront payment, which will crystallise this year; and if he will make a statement on the matter. [10665/15]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I propose to take Questions Nos. 80 and 81 together.

The end of January 2015 milk quota position, which is the latest currently available, shows that Ireland is an estimated 5.47% over quota, when account is taken of the butterfat content of the milk deliveries. This figure continues a downward trend in the over-quota position, coming down from 7.15% in October to the current position. While this downward trend is welcome, it is still very high and if it were to remain at this level to the end of March, Ireland would incur a super levy penalty in the region of €88m. Each 1% over quota attracts a penalty of about €16m.

As the Deputy is aware I have, on numerous occasions, called on the Commission to take action to mitigate the impact of super levy fines, primarily via utilisation of an adjustment to the butterfat coefficient, as this would not have required an amendment to existing regulations. Unfortunately , there was no realistic prospect of any movement on the super-levy or on the butterfat adjustment given the level of opposition of MS who did not share our views on this matter.

The Commission has, however, in recent weeks, come forward with a proposal aimed at introducing an instalment facility for farmers who are facing a super levy liability. This proposal was approved at the Management Committee today Wednesday, 11 March and Ireland voted in favour of the proposal. My officials are working out the practicalities of implementing this scheme now that it has been approved at EU level.

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