§ Mr. Colin Shepherdasked the Minister of Agriculture, Fisheries and Food what compensation will be payable to dairy farmers who are obliged to accept compulsory reductions of quota in the event that, at the end of the period for obtaining the overall reduction of quota by voluntary means, the required 2 per cent, has not been achieved; and if he will make a statement.
§ Mr. GummerUnder Community rules, we would be required to make compulsory cuts in producers' quotas if the reduction in our national quota could not be fully met by quota purchased under the Community outgoers scheme. This would mean that some of the Community funds made available to finance the scheme would remain unspent. The Council of Ministers in December agreed that such funds may be used to pay direct compensation 513W to producers for compulsory cuts in quota. Alternatively, they may be used to buy quota under a national outgoers scheme for re-allocation to specified categories of producer. In the event that it proves impossible to secure the full uptake of the Community outgoers scheme, we will of course consult fully with the industry before deciding which of these options should be chosen.