Billy Timmins
Question:3 Mr. Timmins asked the Minister for Agriculture and Food the submissions he made to the mid-term review of Agenda 2000; when he expects this review to be published; and if he will make a statement on the matter. [14160/02]
Priority Questions. - Agenda 2000.
I met Commissioner Fischler on 27 February 2002 to put forward my views in relation to the mid-term review of the Agenda 2000 agreement. I told Commissioner Fischler that, since the Agenda 2000 agreement was intended to last for the seven year period 2000 to 2006 and since farmers and other operators in the agri-food sector need a stable policy framework within which to conduct their business, the fundamental aspects of the agreement should be preserved. I also set out my views on various options for change being contemplated by the Commission and other member states. The review is expected to be published on 10 July next.
The Agenda 2000 agreement was beneficial to Irish agriculture. It is my intention to protect the benefit of that agreement to the greatest extent possible in the negotiations on the review.
What did Commissioner Fischler say in his reply to the Minister? Did he give any indication that he would take the Minister's suggestions on board or did he indicate what road he might take? Can the Minister confirm that the mid-term review will be published in mid-July? If it is published, when will agreement on it be reached? Is the Minister aware that there is concern in the agriculture sector at the suggested decoupling of livestock premia by the introduction of area aid payments? If this course is followed, it will almost certainly lead to a reduction in direct payments for livestock farmers.
In the best tradition of bilateral meetings, I received a sympathetic hearing from Commission Fischler. He had a clear understanding that in the final outcome of Agenda 2000 there was a legitimate expectation that the agreement lasted for seven years, up to 2006. There was provision for a review but not for a fundamental change to it. I made that point clear. The Commissioner said he would publish his proposals in the early summer but the US published its farm Bill and that will have a large bearing on world trade, which will impact on the European Union. His proposals were, therefore, postponed until 10 July. I expect they will be published on that date.
The Deputy is correct that there are rumours emanating from Brussels in relation to decoupling. That would be serious for Irish farming. If people get paid an area based payment without the need to have livestock, that will inevitably lead to a decline in numbers of livestock with a consequent reduction in jobs in processing. There is also a worry about shifting payments from the direct payments pillar to indirect payments through community, Leaders or REPS payments.
We will fight the good fight on behalf of Irish farmers to ensure that the amount of money paid to them will continue when the review is complete.
Has the Minister seen the comments attributed to the German Chancellor that direct payments should be abolished? If so, has he a view on them? Did he inform the Taoiseach of them? Will the Taoiseach raise the matter at today's pre-summit meeting in Seville? There is a great deal of concern in the agriculture sector about this review. It will be published in July and, according to the Minister, finalised by the end of the year. The issue should be finalised before the Nice Treaty referendum. It will cause great concern and difficulty and should be finalised. If memory serves, the last Government gave a commitment that it would not accept the decoupling.
I am aware of the suggestion made by the German Chancellor in relation to direct payments. I reject his suggestion. Direct payments are extremely important to Irish agriculture. They comprise approximately 56% of farm incomes and amount to €1.4 billion per annum. By any standard that is a huge amount of money to be circulated to individual farmers. We will insist that the direct payment system and the extent of payment continue.
With regard to decoupling, it at least has the advantage that it would not be under threat in the WTO round because it would be confined to the green box. I cannot answer the Deputy's question about when the negotiations on the mid-term review will be complete. Negotiations take a long time in Brussels and although I would like if they were finished before the next referendum on the Nice treaty, I doubt that will happen. Offices in Brussels tend to close for holidays in July and August, but the referendum is not expected until October. I am aware of the concerns expressed by the Members of the House and I have explained them to Commissioner Fischler. I will work to ensure the best possible outcome for Ireland, just as I did during the Agenda 2000 negotiations.