Vol. 559 No. 2
37 Dr. Upton asked the Minister for Agriculture and Food the reason for spending cuts in his Departmental budget for 2003, particularly in education, research and advisory services, development aid and on-farm investment; if he will seek the reversal of these cutbacks; and if he will make a statement on the matter. [25962/02]
The overall Estimates for 2003 were framed against a background of changing economic and budgetary circumstances and prudent management dictates that we will have to manage our activities carefully within available resources. Specifically, the 2003 gross provision for the Department of Agriculture and Food is €1.218 billion which, after projected receipts, gives a corresponding estimated net expenditure allocation of €842.2 million. While the 2003 gross provision for my Department of €1.218 billion is lower than the latest projected outturn for this year, it is nevertheless, a very considerable sum of money.
However, in addition to the Estimates provisions, my Department is also responsible for the payment of further substantial sums of EU funds on various agricultural measures, including direct payments to farmers. These large sums, which do not appear in the Department's Vote, amount to €1.6 billion. Therefore, the total combined expenditure by my Department next year comprising Exchequer and EU funding is projected to be approximately €2.8 billion. This is a very high level of public expenditure and underlines the continuing strong commitment of the Government to the Irish agri-food sector.
The change in the Department's gross Estimate in 2003 over 2002 reflects the fact that some expenditures in 2002, such as agri-monetary compensation, foot and mouth disease costs and retrospective compensatory allowances in mountain areas, will not recur in 2003 and that the relatively positive outlook for animal disease should also lead to expenditure reductions. Similarly, the lower 2003 appropriations-in-aid figures also reflect that some items in the 2002 appropriation figures were non-recurring.
While funding for Teagasc, Bord Bia and Bord Glas has been reduced, the 2003 allocations, nonetheless, represent increases of 30% and 50% since 1997 in the case of Teagasc and Bord Bia. The 2003 allocation for Teagasc will involve the rescheduling of its capital programme over a longer period, but I am satisfied that the funding provided will enable it to continue to provide an excellent service to the agri-food and rural sectors.
I disagree with the Minister about the budget in which little comfort was to be found for the farming community. The overall budget dropped by 9%, as the Minister knows. I am particularly concerned about areas such as research and development, and farm investment. If we drop our input into research and advisory services, there will be less commitment to farming. Why should young farmers remain in the sector if there is not a good on-farm investment scheme? As the Minister has said, we have heard enough negative comments from the farming bodies, so there will be many reasons to pull out of farming. Does the Minister have a view on the need to sustain a budgetary commitment to farm education, research and training?
Approximately the same amount of money has been earmarked for agriculture in the budget for 2003 as in 2002, which is €2.8 billion. Some €1.6 billion of that came from Europe and some more in appropriations-in-aid, but the net voted expenditure was €842 million. I would like to have obtained more and so would my colleagues, but we have had to cut back. The Teagasc budget has been cut back but mainly in the area of capital expenditure. That is a pity in many ways but Teagasc will have to reschedule its business. I was glad to have obtained additional money, especially for the upgrading of agricultural colleges over the last few years. That was a good investment.
A few of them closed down.
There was an increase in the numbers attending colleges over the past year. I visited Ballyhayes College recently where they have done a fabulous job. It is a very good thing for those colleges. In fact, in Clonakilty, as well—
It did not close down.
—we were able to make sure that was kept open, refurbished and modernised.
I could show the Minister a few that have closed, though.
There has been an increase in the number of students going there. Generally, support for agriculture and farming has been maintained, and I am pleased about that.
That concludes priority questions and we now come to other questions, starting with Question No. 38.
