Lyon welcomes £3 million boost for Scottish dairy farmers

3.50.01pm BST (GMT +0100) Thu 22nd Oct 2009

George Lyon, Liberal Democrat MEP for Scotland, has welcomed millions of pounds of extra investment from the European Union in Scotland's dairy sector. Today, Mr Lyon voted in the European Parliament for an extra £250 million for hard pressed dairy farmers and for emergency powers to be granted to the Commission so the funds can be paid out as quickly as possible.

The European Agriculture Commissioner Marion Fischer Boels, has indicated that the money is likely to be given to Member States in National Envelopes. It is estimated that the UK's share of the new money will be around £25 million, of which Scotland would receive around £2.7 million.

The Commissioner argued for the emergency powers as the best way to get the new funds to farmers without delay. She suggested in the debate that she was hoping the money could be paid by Christmas provided it is agreed by Finance Ministers at their next meeting on 19th November.

Commenting, Mr Lyon said:

"I am pleased the European Parliament has backed the Commissioner's proposal for emergency powers. This will enable us to ensure that the funding package for the dairy industry is paid out as soon as possible, helping to alleviate some of the financial burden that is being felt by many hard pressed dairy farmers.

"This small funding boost could make a big difference to dairy farmers who have been hit hardest by the huge drop in the milk price over the last year. It is now up to the Scottish Government to come up with a scheme that targets those producers who are in a real crisis situation.

"I don't want to see this money frittered away or held up in some Scottish Government bank account for months on end. Ministers must agree plans with the industry on how to get this cash to the dairy farmers who really need it as quickly as possible."