Tom Fleming (Kerry South, Independent)
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411. To ask the Minister for Agriculture, Food and the Marine for an update on the European Union €800 million superlevy package intervention plan to help dairy farmers who have experienced collapsing incomes, regarding proposals to increase the intervention price on milk powders, and the provision of aid to provide private storage for cheese products, until market prices improve; and if he will make a statement on the matter. [37435/15]

Simon Coveney (Cork South Central, Fine Gael)
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The €600m package consists of a number of measures which are intended to help primary producers in the dairy and pig sectors through current price difficulties, the bulk of which, at €420m is a direct aid payment. The relevant EU legislative provisions providing for this direct aid payment came into force in the last fortnight and provide that Member States have the flexibility to distribute this aid through the most effective channels at their disposal. It is a clear requirement of the provisions regarding this aid that the funds need to be distributed on the basis of objective and non-discriminatory criteria and also needs to ensure that farmers in the relevant sectors are the ultimate beneficiaries of the targeted aid.

I have discussed these matters with representatives of the dairy sector, most recently at the dairy forum on 29 September. I took the opportunity to update stakeholders regarding progress to date and to seek their opinions regarding how best to distribute this aid. Any decision on distribution obviously had to await the adoption at EU level of the relevant legislative provisions. In addition officials in my Department have also had discussions with representatives of the Irish pig sector. I am currently considering various options and intend to announce final decisions regarding the aid levels and mechanisms in the very near future.

In respect of the other areas mentioned by the Deputy, i n early September I presented a paper offering possible solutions to both the EU Commissioner and my EU ministerial colleagues, which included utilising the provisions of Article 219 of the CMO Regulation to temporarily increase the threshold prices, with particular reference to skimmed milk powder. I also made calls for numerous other measures in the areas of Aids to Private Storage for cheese, which was introduced by the Commission in September 2014 but discontinued shortly after. In addition I called for the existing aid rates in the PSA schemes for butter and SMP to be reviewed immediately.

I am pleased to note that the final decision at Council took significant account of Ireland’s requests. The improved PSA scheme for SMP, which will include longer periods for storage as well as the improved aid rates, the re-introduction of PSA for cheese, the provision of increased funding for promotion and the provision of the aforementioned almost €14m in targeted direct aid for farmers can undoubtedly go some way towards alleviating the worst effects of the current market downturn on primary producers. The PSA schemes are now open to producers and I expect that the Irish dairy sector will be availing of these.

In addition, the provision allowing 70% advance in the single farm payment and I am pleased to note that the vast bulk of these payments have been paid.