Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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26. To ask the Minister for Agriculture, Food and the Marine his interaction with the European Union regarding an increase in the intervention price of dairy products; and if he will make a statement on the matter. [41251/15]

Simon Coveney (Cork South Central, Fine Gael)
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In early September I presented a six point plan to address difficulties in the dairy and pig sectors to the EU Commissioner and my EU ministerial colleagues.

This Plan suggested 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 called for the restoration 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.

Another key request was increasing the advance of the Basic Payment and other elements of Direct Payments Scheme and from 16th October 2015 to 70%, to alleviate cash flow difficulties. In addition to these more immediate concerns I made it clear that from my perspective, it would be necessary to give longer term consideration at EU level to responses to volatility issues.

I am pleased to note that the final decision at Council in September took significant account of Ireland’s requests. Unfortunately a temporary top-up in the intervention price for SMP did not enjoy the support of all Member States. However 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 allowing 70% advance in the single farm payment, the provision of increased funding for promotion and the provision of almost €14m in targeted direct aid for farmers can go some way towards alleviating the worst effects of the current market downturn.

The Common Market Organisation Regulation provides that when necessary, reference thresholds shall be updated in accordance with the ordinary legislative procedure in the light of developments in production and markets. The Commission, supported by a number of member states, have been reluctant to engage in such a review, preferring to utilise enhanced supports in other areas. Furthermore, they have made it clear that the legislative procedure under which this would be undertaken would entail an 18 month lead in time. In circumstances where it was not possible to obtain member state approval for a temporary increase in threshold prices the prospects of securing approval for a longer term increase in such prices are remote.