'Ahern must honour PPF commitment on quota relief'

Macra na Feirme president Seamus Phelan said the Taoiseach must proceed with the Government's undertaking to introduce tax relief for the purchase of milk quota at today's meeting of the social partners and the Government on the Programme for Prosperity and Fairness.

Mr Phelan said the commitment to introduce the relief was one of the key farming elements of the PPF which was agreed in February 2000.

The Government has claimed that the EU is blocking relief because it would

constitute state aid.

"It is now time to proceed with this relief which is vital for young farmers," said Mr Phelan.

"If there was any doubt about such an initiative it should have been pointed out at the time", he said.

"£100m of milk quota was purchased from the restructuring scheme last year. This tax relief on milk quota could constitute a saving of £20m for young Irish farmers," he added.