Enda Kenny
Question:99 Mr. Kenny asked the Minister for Agriculture and Food her plans to develop the renewable energy sector; and if she will make a statement on the matter. [33808/05]
Other Questions.
Alternative Energy Projects.
The Minister for Communications, Marine and Natural Resources has overall responsibility for energy policy and is primarily responsible for the promotion and development of renewable energy, including biofuels. Nonetheless, the development of the biofuels industry is a cross-sectoral issue impinging on several policy areas, for example, those related to environment and fiscal policy as well as energy policy, and involving several Departments and agencies. My Department has been represented on a number of interdepartmental groups considering the issue and there has also been direct contact between my Department and the Department of Communications, Marine and Natural Resources.
I am acutely aware of the central role which agriculture can play in the provision of necessary raw materials for the production of biofuels. These raw materials can include oilseed rape, wheat and sugar beet for the manufacture of liquid transport biofuels, forestry by-products for wood biomass, and other farming by-products, such as meat and bonemeal and tallow, for energy-heat generation and biodiesel, respectively.
Factors such as the increasing cost of oil, the need to reduce carbon dioxide emissions and the opportunity for farmers to explore alternative land uses following Common Agricultural Policy reform, mean that the potential of this area must be fully explored. For the purposes of contributing to the development of policy on biofuels, my Department in conjunction with COFORD and Teagasc, has examined the potential of energy crops, wood biomass and farming and food by-products.
In general, the production of energy crops for biofuels will have to be demand-led and production by farmers will only occur if the economic returns are greater than those offered by traditional crop enterprises. The production of liquid biofuels from energy crops is not economic at current oil price levels. However, the scheme announced by the Minister for Communications, Marine and Natural Resources, for mineral oil tax relief on pilot biofuel projects has stimulated the production of oilseed rape for biofuel. The exploitation of wood resources for energy purposes, mainly for heat or electricity generation, offers significant potential. Sustainable Energy Ireland has recently announced a pilot scheme to grant aid the installation of wood-fired boilers.
I am anxious to encourage further research to assist the development of the biofuels industry. Teagasc has already done some valuable work in this area and I also arranged for research projects on biofuels and other non-food uses of crops to be included in the latest call under my Department's research stimulus programme. The outcome of this call is not yet available but the nature of the projects to be funded will depend on the proposals received.
Is the Minister of State satisfied with the existing energy crop scheme being administered by the Department? Has consideration been given by either the Department or the Government to changing the legislation to ensure a minimum amount of biofuel in both petrol and diesel which is the case in continental Europe? The Minister of State referred to sugar beet but I was surprised he did not refer to waste disposal, whether that be slurry or chicken litter. This will become a huge problem once the nitrates directive is implemented. What steps, if any, are being taken by the Department of Agriculture and Food, to investigate this matter?
I read with interest Deputy Naughten's speech at the Ard-Fheis on this issue. I notice that most if not all the issues he raised in his document were ones we have been encouraging for the past year. In reply to the Deputy, the scheme for relief on excise duty, which is operated by the Department of Communications, Marine and Natural Resources, is very successful and some of the projects are situated in my county.
A number of projects are administered in conjunction with the Minister, Deputy Noel Dempsey, and his Department. A scheme for wood burning boilers is about to be introduced, as is a scheme for biomass harvesting machines. In answer to the Deputy's question about alternative crops, we are also putting together a scheme for the use of willow which will be announced soon. This will encourage the growing of 500 hectares of willow and grant aid will be provided. Some of the issues raised by Deputy Naughten last weekend and again in the House today are being dealt with by the Government and we are way ahead of his thinking.
Will the Government change the legislation? I remind the Minister of State of the waste issue. Has that been ignored in the Department?
On the waste issue, my colleague, the Minister, Deputy Coughlan, made an announcement today and it will be in the Deputy's pigeonhole soon.
The Deputy represents a county with a lot of pigs and poultry.
Like many of the other matters to which the Minister referred, we have been waiting for 12 years for——
For a big increased grant aid for the farm waste management scheme that we have delivered.
It is obvious I am not supposed to have——
If I recall correctly, the rainbow coalition Government removed that scheme.
The Minister is wasting energy; we have heard what she had to say.
We have announced a new scheme today.
All I received was what I got directly from Brussels. What progress has been made in encouraging wind farms? Many farmers in a part of my constituency whom I will not name have signed up for years to have wind farms put in place but the regulations are such that they have not allowed it to happen. The people who are building the wind farms are now in Scotland instead of Ireland. The Minister of State, Deputy Browne, made a strong point at the beginning of his analysis that the Department of Agriculture and Food is only one of a number of Ministries involved in alternative energy. Can those Ministries be brought together to ensure there is direct action to compensate for the present high price of oil?
The wind turbine issue is a matter for the Minister for Communications, Marine and Natural Resources, Deputy Noel Dempsey. Having been in that Department for the best part of two years, I am very much aware of the importance of such projects.
It is an alternative farm income.
It is very much part and parcel of farm incomes. Indeed, in my county and many counties farmers have received planning permission in that regard and many of the wind turbines have been erected. There are difficulties with connection to the grid and the cost factor, and the Minister for Communications, Marine and Natural Resources, Deputy Noel Dempsey, is working on that.
On the three Ministers involved, I do not wish to sound smart but I got three documents from the Fine Gael Party at the weekend, one from Deputy O'Dowd, one from Deputy Mitchell and of course an important one from Deputy Naughten, all of which related to alternative energy, and the same problem exists in the Fine Gael Party.
To enlighten the Minister of State, I did not speak about alternative energy.
The Deputy should have.
My attention was on the Minister of State, Deputy Brendan Smith.
Will the Department look beyond pilot schemes? The Minister of State, Deputy Browne, mentioned 500 hectares of willow. Does he see biofuel, willow or any of the other options as being worth more than a pilot scheme? Will he state when a pilot scheme finishes and when he can release the potential of the sector rather than keeping a lid on it?
I have had direct discussions with farming organisations and farmers. Willow growing is not viable at present. We, therefore, decided to run with a pilot scheme of 500 hectares which is grant-aided substantially and we will see how that works. If that is successful——
What is the timeframe?
——obviously the pilot scheme will become——
There is no timeframe.
We will provide the land.
Rural Environment Protection Scheme.
Jimmy Devins
Question:100 Dr. Devins asked the Minister for Agriculture and Food if she is satisfied with progress under REP scheme 3 and the consultation process on REP scheme 4. [34113/05]
REPS 3 was launched in June 2004 and by July 2005 we had exceeded the previous record level of participants in the scheme. There are more than 48,000 farmers in REPS and the numbers are rising steadily. We hope there will be approximately 50,000 farmers in the scheme by the end of the year and I expect further significant growth in 2006. Last year we spent approximately €208 million on REPS and this year we have spent over €240 million. We are likely to spend close to €270 million by the end of the year.
In addition to monetary benefits for farmers, REPS has brought many benefits to the environment, especially in REPS 3 where there is a greater emphasis on biodiversity. Cleaner farmyards, new hedgerows, newly planted trees and nature corridors are visible signs of what REPS has delivered. Other benefits, like cleaner water and better pollution control, are not so visible but are just as important.
The challenge we now face is to build on past successes and bring forward proposals for REPS 4 that will continue to deliver in environmental and economic terms for the years ahead. We need a scheme that will continue to deliver value for money, both for the farmer and for the Irish and EU taxpayer.
REPS 3 was introduced following a consultation process that was open to all stakeholders. The process was generally held to be very successful and the European Commission was particularly complimentary about it. I hope we can achieve the same good results with the consultative process for REPS 4.
There is limited time to carry out this process, however. The Commission has indicated that member states should submit their draft rural development plans by the middle of next year if the approval process is to be finished in time to introduce new schemes in January 2007. To meet this timeframe, the Minister asked stakeholders to let her have their written submissions by 9 December and she intends to convene an open forum early in the new year. It is important that we stick closely to our schedule if we are to have a new scheme available to farmers once the current one has come to an end.
I thank the Minister of State, Deputy Browne, for the comprehensive reply. I agree that REPS 3 has brought great benefits to Irish farming and to the wider community. The increase in farmer numbers is proof of that.
I have two supplementary questions for the Minister of State. First, is REPS 3 still available? My second question relates to the proposed introduction of REPS 4. I welcome the consultation process and point out that the Minister, Deputy Coughlan, and the two Ministers of State have always been open to dialogue with all stakeholders in agriculture. How long does the Minister of State expect the consultation process will take before the introduction of REPS 4?
As of now, REPS 3 remains open. Farmers can still join that scheme and be assured of a full five-year contract under the existing rules and at the existing payment rates. While REPS 3 will certainly close in December 2006, it might close sooner or the rules might change. REPS 1 was due to end in December 1999 but six months prior to that date, the Commission decided that anybody joining it from then on had to undertake to switch over to REPS 2 on their first anniversary. This time the Commission has not disclosed its intentions but it would not be altogether surprising if something similar happened. Therefore, we advise farmers who intend to join REPS to get in as quickly as possible.
On the consultative process for REPS 4, the Commission has advised all member states that if they want to implement the new rural development plans for the start of 2007, they need to have their plans with Brussels by the middle of next year. Obviously the Commission is facing a very big task as not only will 25 countries send in plans but some countries with a federal or regional structure may submit several. For that reason, any delay in putting Ireland's plan together must be avoided.
Furthermore, we must do everything possible to ensure that the plan we put forward will be acceptable. If we are forced to change our proposals, there is every risk that the process shall not be finalised by the end of 2006. The closing date for submissions is 9 December and we encourage interested parties to make their submissions as quickly as possible.
I appreciate that the REP scheme is beneficial. It certainly has helped where the position of farm incomes has been serious. How are the regulations implemented because some farmers are visited by inspectors and are excluded from the scheme for minor issues that have no real bearing on the farming structure?
Recently I came across a case which was serious from the point of view of the family concerned. The man's health has broken down, he failed to meet the REPS regulations and he is getting no payment whatsoever. All payments are stopped because the REPS payments must be recovered before anything else is done.
I am informed that the level of penalties in REPS is low, under 3%. From my representations to the REPS section, I find that the officials are usually helpful and supportive and usually iron out any difficulties. If the Deputy has specific instances in mind, perhaps he will pass them on to us and we will see what we can do to help him.
On REPS 3, or indeed its successor, has there been communication between the Minister of State's counterpart in Northern Ireland as to interpretation, which, when he refers to the Commission, does not give the entire detail? Although it gives general guidelines and general requirements, does the Minister of State agree that there is a certain amount of discretion at national level and would it be an idea to ensure there is harmonisation between the northern and southern implementation of REPS 3 so that farmers, North and South, will be able to look at a common standard and receive common results?
To date each country has put in its own plan. Our plan in respect of REPS 3 has been complimented as one of the best submitted and I am sure we will try to achieve the same standard in the case of REPS 4. I will investigate the possibility of having discussions with representatives from Northern Ireland — I am easy on that.
Would the Minister of State consider favourably the removal of hedgerows by farmers or their sons under the rural environment protection scheme to allow them to construct houses on their land? The planners in my county do not want any hedgerow removed and they are turning down the planning applications of young couples as a consequence. It is very unfair, particularly where the landowners are prepared to replant a hedgerow to facilitate the process.
The same applies in Roscommon. It is happening all over the country.
I only have experience from my county——
A good county.
It has not as many hedges as we have in Roscommon.
Usually, if one applies to the REPS section in Johnstown Castle beforehand——
Another good place.
——it will give one permission to do as outlined. As Deputy Howlin will know, there is a policy in Wexford such that if a hedgerow is removed, it must be replaced farther in from its original location. A replacement condition applies to planning in my county — I do not know the position in other counties. An agreement is usually reached with the REPS planners on hedgerows.
Organic Farming.
John Carty
Question:101 Mr. Carty asked the Minister for Agriculture and Food her views on the prospects for the organic food sector here. [34109/05]
The organic production sector in Ireland is still very small by European standards, although in recent years the market for organic food has shown strong growth. Bord Bia estimated the value of the market to be approximately €38 million at retail level in 2003, and it seems an annual growth rate of approximately 10% should be achievable in the short term.
I am hopeful the production sector can develop because the circumstances have never been more favourable. Decoupling has created a new set of circumstances in which our farmers have the freedom to farm in response to market demands. In this more market-oriented scenario, there is real scope for organic production to expand. The new rural development regulation reflects the emphasis which the European Union places on organic farming. In addition, the EU organic section plan adopted during the Irish Presidency of the European Union clearly puts organics on the agenda and identifies it as a tool that can be used and adapted to contribute to the solution of many pressing issues.
Every country has its own advantages, and I firmly believe there are significant opportunities for Ireland in producing and processing organic food. Irish agriculture is predominantly grass-based, with high levels of production in the dairy, beef and lamb sectors. The profile of our organic sector is very similar. However, we are still heavily reliant on imports of organic fruit, cereals and vegetables and I hope some conventional producers will consider the opportunities that exist for import substitution.
My Department already provides substantial incentives to encourage farmers to take up organic farming. Through the rural environment protection scheme, almost €4 million was paid directly to organic farmers in 2004. Since the scheme began in 1994, it has delivered some €31 million to the sector. Under the current scheme, an organic farmer with 55 hectares is eligible for an annual payment under REPS 3 of €18,505 per year for the first two years, and €13,555 each year for the rest of his or her time in the scheme. As a further incentive to encourage conventional farmers to venture into organic production, the scheme now allows them to convert part of the farm instead of the entire holding, as was previously the case. REPS 3 will be followed by REPS 4 in 2007, and I recently launched a consultative process regarding the new scheme. I urge all organic stakeholders to make submissions on how they feel the rural environment protection scheme can best support the organic sector.
Additional information not given on the floor of the House.
My Department also operates the scheme of grant aid for the development of the organic sector, which supports investment both on-farm and off-farm. For on-farm investments, grant aid can be given for 40% of the cost up to a maximum grant of over €50,000. For off-farm investments, the maximum grant is over €500,000.
Today's consumers like to know where the food they buy is produced and their preference in general is for local food. They also demand quality, convenience and value. Therefore, locally produced organic food should have an extra appeal to consumers. With the growth in direct selling, via farm-gate sales, box schemes and farmers' markets, outlets exist for organic producers and processors to market their products locally.
I thank the Minister of State for his comprehensive report on this issue. Does he believe the lack of interest in organic farming is because of the small profit margin in the sector? Deputies Naughten, Wilkinson and I were in Spain last week representing the Joint Committee on Agriculture and Food. We discussed this issue with the relevant Spanish ministry and ascertained that the lack of interest in organic farming in Spain is because of the small profit margin. Will the Minister of State comment on this?
It looks like the Fianna Fáil Parliamentary Party does not get many opportunities to talk about agriculture.
(Interruptions).
Thirteen questions have been tabled today.
We are interested.
Has the Minister of State taken any steps to address the problem associated with the labelling of products at country markets, which will damage the viability of many of them? Is he aware of the problem and has he received any submissions thereon? What action will he take to protect the viability of country markets?
Let me respond to Deputy Johnny Brady, who is a very active, progressive and excellent chairman of the Joint Committee on Agriculture and Food——
Hear, hear.
——and also of the Fianna Fáil committee on agriculture. As he knows, supply and demand will determine the price of organic food, as is the case in respect of every other type of produce. Farmers' markets are a continuing and very important outlet for organic produce.
On Deputy Naughten's point, a submission has been made to the Department in regard to the labelling requirement. What has been suggested is not correct and is not being introduced. I did not receive any particular submission even though I expected one from one Member of this House.
Written Answers follow Adjournment Debate.