Dáil Éireann debate -
Wednesday, 28 Apr 1999

Vol. 503 No. 7

Priority Questions. - Agenda 2000.

Willie Penrose

Question:

21 Mr. Penrose asked the Minister for Agriculture and Food the method his Department will pursue in all the national envelope amounts in beef and dairying which are now available to the member states from the year 2000 as a result of the Agenda 2000 proposals; if he will ensure that the discretionary pool of money will be utilised to cater for the categories of farmers which have fared badly from the current EU farm support system; and if he will make a statement on the matter. [11072/99]

Mr. Walsh

The Agenda 2000 agreement provides for some compensation for the 20 per cent reduction in the institutional price for beef to be provided through a national envelope which will be phased in over three years beginning on 1 January 2000. The level of national envelope will increase from £8.2 million in 2000 to £25.7 million in 2002. While the detailed rules for expenditure of the national envelope funds have not yet been adopted by the European Commission, I expect that member states will have considerable discretion as to how they spend these funds. I intend to consult the farming organisations on the optimum use of the funding before I arrive at any decision on the allocation of the national envelope. This consultation process will begin when the detailed rules are published by the Commission.

With regard to the dairy sector, compensation payments for milk under Agenda 2000 will commence from 2005. I will, therefore, examine various options for payment from the national envelope for milk in the intervening period.

Mr. Penrose

The Minister will be acutely aware of my interest in this matter over recent years. A large number of beef and dry stock farmers were left out of the equation; nobody recognised or cared about them. Will the Minister give an undertaking that he will lead a campaign on this at European level? I am worried that this could be allowed to drift. Consultation is needed and everybody should be consulted. Will he ensure that the EU will not impose regulations which would circumscribe the discretion of member states? Will he give a cast iron guarantee that he will lead this debate in Europe so that Ireland will have maximum discretion on how it spends its national envelope?

Will he ensure that small and young farmers who are trying to eke out a living benefit because these categories must be targeted? Will he further ensure that beef farmers, particularly heifer producers, will get a decent share of the national envelope? They were thrown to the wolves during the last round of negotiations and were almost wiped out. Let us not wipe them out, let us recognise that they are there.

An Leas-Cheann Comhairle

Deputy, I am concerned about the time and the number of questions we get through.

Mr. Penrose

So am I, because I have tabled ten other questions. Will the Minister ensure that all farm organisations are consulted? Will he guarantee that the Irish Cattle Traders & Stockowners Association will be consulted in regard to the distribution of the national envelope? I want a guarantee and I am entitled to that no matter who tries to stop me.

Mr. Walsh

I have already entered discussions in regard to the disbursement of the national envelope. I will give the Deputy an absolute guarantee that we will get the widest discretion as a member state in terms of spending the national envelope. A national envelope is very useful to iron out anomalies and gaps left by the old regime. At the same time, in terms of the payments which have been approved, Ireland obtained a slaughter premium for all animals, including heifers and live cattle which are exported. This will be very helpful to the finishers and heifer producers about whom the Deputy is concerned. We will then supplement that benefit with the aid of the national envelope so that we can be of as much help as possible to the people who did not benefit the last time. I give the Deputy an absolute commitment on that.

We are in a partnership arrangement and consult fully with the social partners. The ICTSA will be included in consultations and the Deputy will be happy to know that I have already arranged a meeting next week with its national president. I spoke to him at a major meeting on the beef industry in Tullamore last night and our meeting was confirmed there.

Mr. Connaughton

I agree with the sentiments expressed by Deputy Penrose but would caution that—

An Leas-Cheann Comhairle

Deputies should just ask questions. The purpose of Question Time is to elicit information from the Minister.

Mr. Ring

That is difficult. We ask questions but we do not get information.

An Leas-Cheann Comhairle

I am concerned at the small number of questions we have covered. Twenty minutes are allocated for Priority Questions but we have not yet completed four of them. I ask Members to abide by Standing Orders and to ask a question of the Minister.

Mr. Farrelly

Members have to develop their points.

Mr. Connaughton

I will be bound by your ruling, a Leas-Cheann Comhairle, and I have many questions for the Minister. Will he repeat what he said about the size of the national envelope for the first three years? Even with a total of £25 million, it will be difficult to spread it over a wide area. I make a plea not only for heifer farmers but for sheep farmers, who were badly sidelined and let down in Agenda 2000. Everything possible should be done for them. Will we have absolute discretion to spend the national envelope as we wish?

Mr. Walsh

Yes, the reasoning behind the national envelope was to give member states discretion in spending their allocations of money. The down side of the scheme is that member states which are financially stronger would be in a better position than smaller member states to help their industries. We did not want too much distortion in that regard. The national envelope will increase from £8.2 million next year to £25.7 million in 2002.

Mr. Farrelly

Taking into consideration that heifer producers are not receiving nine month, ten month or 22 month payments, will the Minister make a commitment that, in distributing the slaughter premium, those producers will receive a decent amount? They are disqualified from the earlier premia received by beef, bullock and steer producers. There are not many heifer producers left, and many went out of business because they were unable to compete.

Mr. Walsh

As a result of CAP reform there will be a substantial increase in the amount of direct payments to farmers. It stands at 56 per cent to 57 per cent of farm income at present and will increase. My colleague, the Minister of State, Deputy O'Keeffe, mentioned the industry earlier. There is a major onus on the industry at producer level to produce the beef that is required to have a margin from beef production as well as from direct payments. This matter was addressed at last night's Teagasc conference on beef in Tullamore. It was encouraging that farmers were still at the conference at 9 p.m., seeking additional information about grass utilisation, etc.

Mr. Farrelly

What about the question I asked?

Mr. Walsh

A new slaughter premium of £63 for adult cattle, payable on steers, young bulls, heifers and culled cows, will also apply to live exports to third countries. Having consulted the social partners, we will then use the national envelope to see whether we can supplement that payment in a number of areas which were left out in the past.