§ Mr. Barry JonesTo ask the Secretary of State for Wales what measures he proposes to assist dairy producers in Wales. [69538]
Mr. Jon Owen JonesThe long term future of the dairy sector will depend to a large degree on the outcome of the negotiations on Agenda 2000. The current legal authority for milk quota is due to expire on 31 March 2000. The commission's Agenda 2000 proposals for the reform of the CAP dairy regime include: the extension of the milk quota regime from 2000 until 2006; a 15 per cent. cut in support prices over the first four years of that period; the introduction of direct payments; dairy cow premiums, to 97W compensate producers for the price cuts; and an overall increase of 2 per cent. in the amount of quota at Community level.
An industry-led Action Plan for the dairy sector will be published shortly, with the support of the Welsh Office and the Welsh Development Agency.
In future this will become the responsibility of the National Assembly.