Milk Quotas: No "scorched earth" policy

By Des Maguire and Paul Mooney

The legal implications of the proposed new milk quota changes will be examined in Brussels next week at talks between Department of Agriculture and EU Commission officials.

The talks take place against a background where the market for dairy farms has been thrown into total confusion by the absence of detailed information on the proposed changes. (See page 4)

But the secretary general of the Department of Agriculture John Malone strongly denied this week that there is a legal vacuum in the rules governing current quota transfers.

And he said farmers who are wondering whether leases should be continued or abandoned at present or whether to sell or not should not make any hasty decisions between now and March 31 next. Following the present consultations with Brussels the Department will clarify the position as soon as possible.

However decisions should be informed by the situation which will apply after 2000 and clear signals have been given, he said.

John Malone stressed that the Department had no intention of pursuing a "scorched to earth" policy in relation to the owners of dormant quota.

"Options will be provided for those wishing to exit milk production whether through selling or leasing quota and there will have to be an orderly transition," he said.

Mr. Malone was speaking at the Dairy Farmer 2000 Awards sponsored by the Irish Dairy Board and the Irish Farmers Journal.

"The new rules will come into operation from 1 April 2000 and it is intended that they will be backed by primary national legislation," he said.

"They cannot come into effect before then simply because the Council regulations apply from that date," he said "Neither can they be retrospective.