Brendan Smith (Cavan-Monaghan, Fianna Fail)
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1586. To ask the Minister for Agriculture, Food and the Marine if he considered a request from an organisation (details supplied) on the urgent need to provide financial assistance to dairy farmers; and if he will make a statement on the matter. [25966/16]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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1613. To ask the Minister for Agriculture, Food and the Marine his views on the recent request of an association (details supplied) to provide immediate financial aid to dairy farmers; and if he will make a statement on the matter. [26334/16]

Michael Creed (Cork North West, Fine Gael)
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I propose to take Questions Nos. 1586 and 1613 together.

Dairy markets at Irish, EU and international level, have been experiencing difficulties for nearly two years, due to a combination of increased global supply, the effects of the Russian ban on the import of EU products and reduced global demand, notably in China regarding dairy products. The Commission has responded to these difficulties through the deployment of support measures provided for under the CAP, at first in an ad-hoc manner and then in the form of two wider packages of measures, in September 2015 and March 2016. Ireland has played a key role in shaping these responses.

Despite the two packages of measures, the market difficulties continued into the middle of 2016.

The Commission presented a further package of measures at the Agri-Fish Council on 18 July. The main component is a fund of €500 million, which is in turn comprises two elements:

- The first is a €150 million EU-wide measure that will compensate farmers for reducing their milk output in the final quarter of 2016 compared to the same period in 2015 (at a rate of 14c/kg). The detailed rules regarding this measure were agreed at EU level on August 25th and the Commission have provided the legal provisions to give effect to this measure in early September 2016. At national level, the scheme is in the process of implementation via cooperatives. The closing date for applications from producers was yesterday, September 15th

- The second element of the EU July 2016 package is a €350 million fund that will be allocated to Member States in the form of national envelopes, which Member States can use in accordance with their domestic circumstances. Whilst eligibility criteria will apply, Member States are afforded a large degree of flexibility in terms of the measures they might adopt. Ireland’s allocation from the fund will be €11.09 million. Member States will be required to notify the Commission by 1 November 2016 of the measures to be adopted.

It should be clearly noted that the above represent two distinct and separate policy responses at EU level. Availing of one element of the package at national level is not conditional on participation in the other measure. The Voluntary Supply Management Scheme, details of which were published recently on my Department website and relayed to cooperatives, through whom the scheme will be administered, is an EU wide scheme. The exceptional adjustment aid represents a national envelope, which stipulates various eligibility criteria that can be utilised as a basis for disbursement. Details on how Ireland will utilise this latter aid element have not yet been finalised and the matter is subject to ongoing consideration in consultation with the EU and National stakeholders. Issues such as dealing with liquidity concerns, strengthening co-operation, supporting quality schemes and providing training in financial management all offer possibilities for meaningful and innovative interventions.