Three Co Tipperary farmers who brought a test challenge against new milk quota regulations, including restrictions on the transfer of quotas, failed in their Supreme Court appeal yesterday against the High Court dismissal of their claims.
None of the three, Mr Nicholas Philip (Martin) Maher of Cashel, Mr Malachy Brett of Fethard and Ms Rita Ryan of Tipperary, are milk producers and all have leased their quotas.
The five Supreme Court judges found the new regulations could be made by the Minister for Agriculture and there had been no infringement of the farmers' property rights.
In his judgment the Chief Justice, Mr Justice Keane, said the policy choices of individual EU states on the milk superlevy scheme had been "reduced almost to vanishing point".
The quota regulations arose from EU concern about the extent of quotas held by people no longer producing milk. The Minister introduced regulations (Statutory Instrument 2000), which meant those people might have to resume milk production or have their quotas sold at a price the Minister decided.
Mr Justice Keane said the appellants claimed the High Court had erred in holding the Minister was merely executing principles and policies laid down in EU regulations. A Department official had said Ireland had difficulties with the milk quota scheme due to the large number of small and medium-scale dairy producers.
Leasing of land and quota represented 9 to 10 per cent of the national quota. A further 6 per cent was leased annually without land. This meant much of the profit from milk production was transferred from the milk producer to the quota owner who, in most instances, was not producing milk.
There was general consensus the new regime should reinforce the position of milk producers, favouring small and medium scale producers and facilitating a permanent transfer of quotas at reasonable cost.