Seán Fleming (Laois-Offaly, Fianna Fail)
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453. To ask the Minister for Agriculture, Food and the Marine the reason he did not succeed in obtaining a concession regarding the super levy fines that were levied on Ireland in 2015, in view of the fact quotas were being eliminated in that year; the reason transition arrangements were not put in place, which are now costing farmers €69 million; and if he will make a statement on the matter. [21836/15]

Seán Fleming (Laois-Offaly, Fianna Fail)
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454. To ask the Minister for Agriculture, Food and the Marine the arrangements he has put in place for farmers to pay the super levy on a staged basis over a number of years to avoid the large cash flow implications of paying super levy fines all in one go; and if he will make a statement on the matter. [21837/15]

Simon Coveney (Cork South Central, Fine Gael)
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I propose to take Questions Nos. 453 and 454 together.

The milk quota regime ended on March 31st. The abolition of milk quota presents a massive opportunity for the Irish dairy sector and one which we should look forward to with confidence. The fact that producers will face a super-levy bill in relation to the final year of the system is obviously unwelcome. However, the rules governing the imposition of a super levy were set by regulations agreed at EU level. It was not possible for me on a unilateral basis to adjust these super levy rules.

However, new arrangements recently introduced by the Commission, following consistent requests from Ireland and other Member States for some relief on the super levy bills being experienced by milk producers, allow Member States to facilitate the payment by milk producers of this super levy liability in three annual instalments, without interest. The first instalment must be collected by the milk purchaser in the normal way and paid to my Department before 1 October 2015 and the two subsequent payments must be paid by similar dates in 2016 and 2017.

I certainly recognise the severe financial hardship that is being placed on milk suppliers because of high levels of super levy and for that reasonI have taken the decision to avail of this new arrangement.

Officials in my Department are currently finalising procedures for the collection of the first instalment before end of September 2015; and the introduction of a Scheme to collect the remaining instalments in end September 2016 and end September 2017. I expect to be announcing the details of the scheme in the very near future.

It is worth mentioning at this stage that I have also been proactive in other areas in terms of ensuring the right balance of measures are in place to ensure that Irish dairy farmers can enter the new quota free era with confidence. Ongoing contact has been maintained with the Minister for Finance to ensure that existing and future taxation policy reflects the Government’s commitment to agriculture. Of interest to dairy farmers here will be the announcement in last October’s budget to provide for income averaging over five years when it comes to paying income tax bills. I have also ensured that priority has been given to measures for the dairy sector in the Rural Development Plan. In addition, I have impressed upon the Irish banks the need to show flexibility in their dealings with farmers experiencing temporary cash flow difficulties in 2015.

I am satisfied now that this mix of measures, the worst impacts of the superlevy have been mitigated to the greatest extent possible and that the dairy sector can look to the future with confidence.