Local view for "http://purl.org/linkedpolitics/eu/plenary/2006-11-13-Speech-1-159"
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"en.20061113.19.1-159"2
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"The reason for maintaining the strict milk quota system is that the quotas that are presently in effect allow for a greater volume of milk production than what the EU consumes internally.
From 2007 on, direct payments to milk producers have to be kept completely separate from production, that is, payments will be received not by the milk producer but by the one who owns a milk quota during the reference period, in the form of a lump sum based on land area.
Under current rules, the milk quota system will remain in force until 2014-15. Commissioner Fischer Boel stated that in the context of the review, we should look at the question of quotas, but she did not give any concrete details.
Maintaining the quota system is the sole guarantee of market and price stability. Without quotas, production would rise significantly, and the resulting surpluses would bring down prices, which would very easily stifle small producers. At the same time, without support only the most competitive industries would be able to compete with the pressure from imports or to succeed on the export market.
In Hungary, milk production is steadily declining due to problems of efficiency; in spite of the fact that purchase prices are not falling, we are using only around 70% of the Community quota allocated to us. Unfortunately, in contrast to Western European practice, producers here do not own the processing establishments.
If the quota system were abolished, the proportion of imported products would rise, making the problems of competitiveness among Hungarian producers even more evident, and the fall in domestic production would probably accelerate. For all these reasons, I do not support the abolition of the milk quota system."@en1
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