Martin Ferris
Question:56 Mr. Ferris asked the Minister for Agriculture and Food the way in which his Department's allocation in the Estimates for 2004 will be spent. [29527/03]
Ceisteanna – Questions (Resumed). Priority Questions. - Departmental Estimates.
The Abridged Book of Estimates for 2004, which was published recently, provides for gross and net allocations of €1.39 billion and €935.1 million, respectively, to the Department of Agriculture and Food. The gross Estimate includes a sum of approximately €108 million for forestry, responsibility which will transfer to my Department. The gross allocation for 2004 is €62.2 million, or 5% higher than the corresponding 2003 figure. However, when account is taken of the reduced expenditure requirements related to BSE in 2004 arising from the improved disease situation, the gross expenditure provision for my Department for 2004 is approximately 8% higher than in 2003.
The increased Exchequer funding, when considered alongside the expenditure of a further €1.6 billion on EU-funded agricultural measures, including direct payments to farmers, will bring total expenditure by my Department to approximately €3 billion in 2004.
The expenditure provision for my Department will be used principally to promote environmentally friendly and sustainable farming as well as a consumer-oriented food industry, to prevent the spread of disease and to facilitate the transition to the single payment system arising from the reform of the Common Agricultural Policy. The allocation for the REPS next year is €260 million, which is up €70 million, or 37%, on 2003 and provides for a 28% increase in average payments. This will facilitate a significant increase in the number of participants in the scheme in 2004.
The provision for compensatory payments in the disadvantaged areas, which are linked to compliance with good agriculture practices, is €231.5 million. The allocation for on-farm investments, notably farm waste management, is approximately €52 million or 70% up on this year's levels.
Funding for forestry next year has been increased by 31% to €108 million. This will fund up to 12,000 hectares of planting next year and provide funding for ancillary activities, such as forest roads and research.
These allocations reflect the Government's commitment to further enhancing environmentally friendly farming practices as outlined in the partnership agreement Sustaining Progress.
Additional information not given on the floor of the HouseThe provision for food safety, animal health and welfare is approximately €191 million for 2004. This is 26% lower than this year's allocation but this reflects positive developments in the BSE situation and not any diminution in the Department's efforts in these areas. The improvement in the disease situation is most welcome and is important for the future development of the industry.
I am satisfied that the 2004 allocation provides appropriate resources for the schemes and programmes operated by my Department to enable it to continue to provide a high quality service to the agriculture, forestry and food sectors in 2004.
I thank the Minister for his response. Would he agree that research constitutes one of the main shortfalls in the 2004 provisions for the Department? This shortfall will ensure that vital facilities, such as the Teagasc centre in Ballinamore, will continue to be lost. We have seen the repercussions from last year's shortfall, which resulted in fewer facilities being provided to the farming community by Teagasc. Will the Minister comment on the loss of the Ballinamore Teagasc office, given the all-Ireland dimension of its geographical position? Would he agree that funding for the Department needs to be radically improved and redirected to meet the challenges presented by current reform of the CAP? I welcome the decoupling elements of the reform package but the Minister should ensure that the necessary funding is made available to shape a new strategy for Irish agriculture. That would allow farmers to make the most of the new regime, as well as contributing towards substantial investment both for marketing and research, as well as programmes to facilitate change in land use.
There is a substantial increase in the investments for next year over last year across a wide range of areas. That is being done to ensure that Ireland remains competitive in the enlarged EU Single Market and having regard to increased international competition through the World Trade Organisation. Similar funding is being made available for current spending by Teagasc in 2004. However, there will be a carryover to next year of capital from the sale of some of its assets this year, which it will be free to use in line with decisions of the Teagasc authority. Last year, Teagasc had to streamline some of its activities, including the famous centre in Ballinamore, County Leitrim. It is in the best interests of Teagasc, but more particularly farmers, that they should have streamlined research and advice from Teagasc.
In addition, Enterprise Ireland provides substantial funding for in-house research and development in food plants. The universities have a substantial budget for research and development in food, some of which comes from the Science Foundation. A few weeks ago, I visited the food faculty at University College, Cork, when additional funding of €21 million was provided by the Science Foundation into research, together with the university's medical faculty. I accept the Deputy's point that it is essential that Ireland puts the maximum effort into marketing, market research and support for its primary industry going into the future.