Marcella Corcoran Kennedy (Laois-Offaly, Fine Gael)
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137. To ask the Minister for Agriculture, Food and the Marine if he is in a position to negotiate for the abolition of the superlevy fine; and if he will make a statement on the matter. [29315/15]

Simon Coveney (Cork South Central, Fine Gael)
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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, arrangements recently introduced by the Commission, following consistent requests from Ireland and other Member States for some relief for farmers with super levy bills 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 have introduced the scheme at national level and co-ops and farmers are currently processing applications with a view to returning them to my Department.

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. On-going 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 that this mix of measures, can help to mitigate the impact of the superlevy.