With the permission of the House we will take Question No. 3 first.
Priority Questions
Food Harvest 2020
Shane McEntee
Question:3 Deputy Shane McEntee asked the Minister for Agriculture, Fisheries and Food the marketing budget in place to deliver on the marketing objectives outlined in Food Harvest 2020; to outline An Bord Bia’s short term priorities in this regard; and if he will make a statement on the matter. [41012/10]
Food Harvest 2020 sets out a roadmap and framework for smart, green growth of our agrifood, fisheries and forestry sectors. In the food area in particular, the report identifies the importance of marketing what Ireland has to offer. This means creating very strong links for those who buy our products between food, high environmental standards and sustainable production.
These factors fit well with the growing consumer awareness of the environment, animal welfare and ethical production methods. They can offer a key advantage, provided that we can demonstrate to our international customers we really do produce food in a sustainable way throughout the food chain and do meet the highest internationally recognised standards.
The idea of going further and creating an umbrella brand for Irish food and drink, based to a large extent on the sound environmental credentials, has potential. However, I recognise, as indeed did the Food Harvest 2020 Committee, that realisation of a brand would involve detailed consideration and planning as well as considerable realignment of industry, producers and State resources. There are also considerations regarding EU state aid rules which do not allow marketing of agricultural produce based on origin alone, and it would be premature to put multi-annual budgets for a brand in place at this stage.
Bord Bia is carrying out research into possible branding models and "co-opetition", a model of co-operation where competitors may achieve efficiencies by working together at particular points of the supply chain and which is mentioned in the report.
With the recommendations of the food harvest report in mind, I have allocated €2.5 million to Bord Bia in 2010 for special marketing initiatives. Bord Bia is also working on a new sustainability initiative to further consolidate the market position of quality assured Irish beef and the accreditation and audit work involved is being funded from within a €4.3 million special fund for quality assurance in Bord Bia's budget for 2010. From January 2011, the environmental performance of the 32,000 farms participating in the Bord Bia beef quality assurance scheme will be tracked on an ongoing basis to objectively demonstrate its green production credentials. The board is currently completing the process of accreditation to the international recognised specification, in association with the Carbon Trust in Britain. It is understood to be the first scheme of its type in the world to incorporate an objective assessment of the carbon footprint and will enable Irish beef farmers to demonstrate that they are improving their environmental credentials and increasing productivity.
Additional information not given on the floor of the House.
Among the Bord Bia marketing research, development and promotion initiatives in 2010 to support the food, beverages, seafood and horticulture sectors which will advance the marketing recommendations in Food Harvest 2020 are the following:
Marketplace 2010 in Croke Park in February 2010, which brought together buyers and Irish companies for 3,863 pre-arranged meetings to identify business potential and which has so far resulted in annualised sales of €8.5 million. In addition, participation in 17 key international trade fairs in 2010 is providing firms with a cost-effective way of engaging with buyers and retailers. At the small business end the Bord Bia Vantage Small Business Centre of Excellence and the marketing assistance programme for SMEs with an annual turnover of between €100,000 and €3.5 million under which 156 companies were awarded grants totalling €882,000.
A second round of the Bord Bia marketing fellowship programme, in association with the UCD Michael Smurfit Graduate Business School, has taken place this year as recommended by Food Harvest 2020. This involved the recruitment of 25 graduates with upwards of three years sales and marketing experience, who have been assigned to 12 international markets for a 12 month period. A fellowship alumni programme has also been developed this year.
I thank the Minister for that reply. I asked the question because as we are all aware, agriculture and our exports are growing and the need for quality food across the world will become more in demand as time goes on. This is my first time to ask a question as spokesperson in this House but when I went home to start farming at 15 years of age when we joined the European Union, Bord Bia was always looked up to and it did a great deal of good work. I asked the question because I want to know if the Minister is happy that the funding Bord Bia gets is being put to good use and that we are implementing the right measures to promote Irish agriculture.
I am aware there was a food fair in Brussels at which all 27 member countries were invited to host a stand. Ireland ended up with a stand with an empty bottle of Beamish and a list of the numbers of pubs in the area. When people looked into the matter to know the position the organisers said that they were told that because of cutbacks——
That issue would merit a specific question of its own.
The organisers said they were told that because of cutbacks Ireland had neither the staff nor the stock to put on display at the fair. I ask the Minister to look into that because I would not like to think that that would ever happen again.
I want to congratulate Deputy Shane McEntee and his colleagues. I mentioned that already to Deputy Andrew Doyle. We look forward to working with them in regard to this particular sector.
I thank Deputy McEntee for his compliments regarding the work of Bord Bia. It is an internationally recognised brand for Ireland and it does excellent work. I have the opportunity at times to travel abroad and support its work in different markets. Two weeks ago I attended the SIAL exhibition in Paris where 14 Irish companies participated in the Bord Bia stand, which was hugely important and extremely successful. It was attended by one of the largest number of trade visitors — people with purchasing power — and meetings were organised with different Irish companies through the good offices of Bord Bia.
On the last question about a particular marketing focus in Brussels, I am not sure if Bord Bia had been invited to participate. I will come back to Deputy McEntee with the answer I got at the time but Bord Bia is involved in a huge range of food promotions throughout Europe and further afield on a yearly basis. Its calendar of events is extremely impressive. It will not attend every single event because there is more merit in participating in some events than others. It is recognised throughout the world for being an efficient, lean organisation and I know from my experience of travelling to promotions abroad with the company that we get access to important decision makers and people with huge purchasing power also.
We will revert to Question No. 1.
Grant Payments
Andrew Doyle
Question:1 Deputy Andrew Doyle asked the Minister for Agriculture, Fisheries and Food the efforts he is making to overcome the delays to the processing of single farm payments which has delayed payments to farmers; and if he will make a statement on the matter. [41011/10]
I can confirm that my primary objective in relation to processing payments under the single farm payment and disadvantaged areas scheme this year is to ensure that as many payments can be made to as many farmers as quickly as possible subject to the necessary requirements of those two schemes being met. For that reason, I set out a very ambitious payments schedule for commencement of payments under the various direct payments between September and the end of the year as follows: 22 September — 75% advance payment under the disadvantaged areas scheme; 18 October — 50% advance under the single payment scheme; 20 October — 25% balancing payment under the disadvantaged areas scheme; 1 December — 50% balancing payment under the single payment scheme; and 8 December — payment of the new grassland sheep scheme.
Despite the difficult circumstances, my Department has adhered strictly to this schedule and it is my firm intention to do so again for the payment of the single farm balancing payment commencing on 1 December and the grassland sheep scheme payment on 8 December. It was vitally important that certainty be provided regarding the timing of payments, and it was also important to individual farmers and to rural Ireland as a whole to maintain payments at the maximum permitted level over that period.
Despite the record number of altered maps received from farmers this year and the consequent need to revise the area information on the land parcel identification system in order that the requirements of the governing regulations are met, my Department has paid almost €700 million to more than 110,000 farmers under both the single payment and disadvantaged areas schemes in the month since payments commenced.
It is often forgotten that under EU rules, the earliest permissible date for payment under the single payment scheme is 1 December. This year I made a special case to the European Commission, taking account of the past two difficult years endured by the farming community, and secured agreement to make an advance payment of 50% from 18 October. This is the fifth successive year that Ireland had paid an advance of the single farm payment, an achievement which is unprecedented. There is no doubt that Ireland is one of the first member states to release single payment funding and the record of the Department in processing applications since the introduction of the single payment scheme, SPS, in 2005 and making advance payments is equal to the best record of any member state.
The total number of farmers paid under the single payment scheme in the first two weeks alone is 110,438 with an amount totalling €519 million. When account is taken of the additional amounts paid under the disadvantaged areas scheme, payments to date have reached almost €700 million, a significant figure under any circumstances. This underlines the initiatives that I have taken to achieve my objectives of maximising payments. One of the initiatives came from my decision to include the provision of advance payments under the disadvantaged areas scheme as well as the SPS. In a significant change, the Department has been able to pay those farmers whose applications are fully processed and clear on a weekly basis. I also brought forward the date for the balancing payment for the disadvantaged area scheme. In addition, it has also been possible to make full or partial payments to those farmers whose only difficulty is non-digitised maps, with payment being made on those parcels of land that are digitised and cleared. This meant that thousands of farmers received payment much earlier than would normally have been the case.
Additional information not given on the floor of the House.
I have also implemented a provision, for the first time, where farmers not in receipt of their full advance payment can receive a supplementary advance payment following the re-digitising of their land parcels. In the past, such farmers would have to wait until 1 December before they could be paid their additional payment as well as their balancing payment. This is an important new development and in line with my primary focus of issuing payments to farmers as soon as they became eligible for payment.
Furthermore, as my Department became aware that the number of farmers submitting maps was showing a significant increase over previous years, arrangements were made during the summer to increase the digitising resources available to it. As a result, more maps have been digitised this year than in 2009 and almost double the average of previous years. The completion of the digitising work will remain my top priority until each and every map is updated to ensure that the area is clearly defined for payment. I also arranged that additional resources were made available from within my Department to assist in the application processing, particularly dealing with telephone queries from farmers.
I do acknowledge that some farmers have not received the full amount of their advance payment because the maps submitted by them this year have not as yet been digitised. In that context, I must point out under the legislation governing the implementation of the single payment scheme it is only permissible to pay applicants in respect of eligible land. In many cases this year applicants have identified ineligible areas on maps sent to my Department which is then obliged to have these amendments digitised onto the land parcel identification system. This means that the ineligible areas entered by farmers on the maps submitted to my Department must be re-digitised onto the land parcel identification system. That task is highly technical and must be carried out to a very high standard to preserve the integrity of the system.
This year has proven to be a particularly challenging one from the point of view of keeping the land parcel identification system up to date. I wish to set out the scale of the task. By the time the processing of the 2010 applications is completed, it is expected that my Department will have processed and digitised maps received from more than 70,000 farmers. This compares with a figure of 30,000 for 2009 and an average of 22,000 maps in recent years. On average, each farmer submitted two maps with the 2010 application forms. It is for this reason, despite the allocation of additional resources, that the digitising of the maps submitted is taking a longer period than in previous years.
The question has been asked as to the importance of the land parcel identification system, which records details of all land declared under all the area-based schemes. I must emphasise that it is essential that it is fully accurate and up to date, given the fact that it underpins total expenditure in excess of €1.8 billion annually. The system must take account of changes to areas submitted by farmers. Any failings or shortcomings in the land parcel identification system would leave this country open to the very real risk of significant EU disallowances. I am certain that everyone will agree that such a risk cannot be countenanced and I will do everything within my power to avoid compromising the value of direct payments to Irish farmers.
There has been some comment on the need to react earlier. This is easy to say but does not reflect the unprecedented number of maps requiring updating and re-digitising and the extra two months required to input the huge level of additional information into the system. Data capture, which would normally take place by July, was completed in September. In addition, the digitising of land parcels requires certain skills and knowledge and there are very few skilled operators. Therefore, it is not a situation where further staff could be readily be recruited from outside. This year, all aspects of the processing of the single payment scheme took longer than in previous years given the number of farmers who made alterations to their applications particularly relating to the changing of eligible areas.
While, as I already acknowledged, some farmers have not been paid the entire amount of their advance of the single farm payment, the existence of non-paid cases at this early stage of processing — only two weeks after payment commencement — is a feature of the processing of applications in each year and it normally takes a number of months to process all cases to finality. Every year there are farmers whose payments take time to process.
I must stress again that the payment of €700 million to 110,000 farmers achieved in the few short weeks since payments commenced is a significant achievement. The situation is kept under constant review, with a view to maximising payments and meeting the milestones set out in my ambitious schedule. I can assure farmers that my Department is unstinting in its efforts — for example, during the last week alone, my Department has issued 15,630 payments amounting to €25 million and these efforts will continue.
The remainder of the reply will be in the Official Report
A Leas-Cheann Comhairle——
Two minutes are allocated to replies. I have given the Minister three minutes but I do not think he was even halfway through his reply.
There is very important information that Deputies will appreciate when they read the record. It is valuable information.
It is an important subject.
That can be done by way of a tabular statement appended to the Minister's answer.
We acknowledge the fact that the advance has been given for five years in a row, but that is because farmers have been in such dire straits with regard to their incomes. My question was about the efforts being made to overcome the delays in processing. There are major challenges associated with digitising maps, which is one part of it. There is a letter in the Irish Farmers' Journal today which best summarises the complicated, convoluted cross-compliance criteria between the single farm payment scheme and REPS. There are people whose land is not part of the land that has been digitised on the maps. Unfortunately, the letter states that the authenticated name and address of the sender are with the editor. However, it is pertinent and explains clearly the complicated process in which we are engaged. Did the Minister consider the challenges and problems outlined in this letter? There will be outstanding cases and, no matter what the statistics, there will be unjustified and indefensible delays in some people's payments — which may, apart from anything else, affect their REPS payments.
We do not set the criteria for these schemes, which are European Union-wide. In the space of a few short weeks, more than 110,000 farmers have been issued with payments totalling €700 million.
We knew from the early part of this year there would be additional requirements from Europe with regard to mapping, land parcel identification and so on. In recent years, individual farmers may have sold sites, built new farm buildings and so on, so there are differences in the eligible areas. At the beginning of this year, to set this process in motion and ensure we do not draw penalties upon ourselves, as a Department we sent out more than half a million maps to all single farm payment recipients and asked the farmers to send back amended maps if required. I stress, in case I may be misconstrued, that the overwhelming majority of farmers who had to send amended maps had more than enough eligible land, although there may have been changes such as a new roadway or a site used to build a house for a son or daughter.
More than 70,000 of the applicants returned maps — a total of more than 250,000 — to the Department. Many of the 40,000 people who submitted their single payment scheme application online sent their maps by post. More than 70,000 farmers sent in hard-copy single payment or disadvantaged area scheme applications and, in many instances, the maps were sent separately from the applications. Many maps also came in late. Thus, the collation of the maps had to be done first, followed by the inputting of the data. It was only then, after the initial processing was done, that we knew the extent of the digitisation work that was required.
It must have been expected that this would be an issue. The Minister mentioned that a large number of people had an adequate amount of land even though there was a discrepancy. These could have been fast-tracked.
We should not use the word "discrepancy"; perhaps "change".
Yes. Based on what is in the letter I mentioned, although I appreciate that I cannot discuss it directly, it seems there is a conflict between the rules and criteria set out for the single farm payment and those for REPS, which could leave some people high and dry. It is best summarised in the letter, and I ask that the Minister consider this, or a group of people will be left in limbo at the end of the year when everything else has been processed.
If a person writes to the Department or to me, he or she will get a response, and we will take up any issue. I must point out that there are no discrepancies. The administration of the single farm payment, the disadvantaged area payment, the new upland sheep payment and the REP scheme must be done in accordance with the criteria laid down by the European Union. We are not going to compromise administered schemes and risk the imposition of a penalty.
The date laid down in European law, which must be adhered to unless one has a derogation, is 1 December. Of the annual single farm payment total of under €1.3 billion, more than €500 million has been already paid six weeks in advance of the closing date. I assure the Deputy——
That is poor consolation for farmers who are waiting for money and have commitments they must meet. They have no money.
Deputy Coonan, these are priority questions.
Deputy Coonan——
The Minister should not allow those whose names are not appended to a priority question to ask questions.
That type of misrepresentation does us no justice. The Department brought in——
It is not misrepresentation.
Deputy Doyle is well capable of asking the questions, and I will answer them. Deputy Doyle said that this could have been expected. In anticipation of the extra workload, we had arranged for extra resources from a personnel point of view and from the company that does mapping work on contract for the Department.
We must make progress.
We should recognise, as should every public representative in the House, that 90% of farmers have received a payment under these schemes. That is an important message that Deputies should be promulgating——
Ten percent are going out of business.
——instead of trying to undermine a successful scheme.
We are well over time on this question.
Do you have a roadmap, a Leas-Cheann Comhairle?
Afforestation Programme
Sean Sherlock
Question:2 Deputy Seán Sherlock asked the Minister for Agriculture, Fisheries and Food if the commitment to establish a minimum 10,000 hectare annual planting target is being met as outlined in the programme for Government; and if he will make a statement on the matter. [41015/10]
The renewed programme for Government contains a number of commitments with regard to forestry, one of which is to increase the annual level of forestry planting to 10,000 ha. per annum.
To make progress towards that objective, provision of €116.5 million was made in 2010 to facilitate an increase in planting from 6,648 ha. in 2009 to 7,000 ha. this year. Current indications are that this increased planting target is on course to be met and may be even slightly exceeded. Planting levels in recent years had declined significantly each year from a peak of 23,710 ha. in 1995 to a low of 6,249 ha. in 2008. This decline can be attributed to a number of factors, including the reluctance of farmers to plant good, agriculturally productive land with trees, alternative land use options with generous grants and premiums, and the cessation of new planting by the State forestry company, Coillte Teoranta. Modest increases have been experienced in 2009 and 2010, reflecting an increased interest in forestry among farmers.
Following a successful spring planting season, I recently announced approval for another 1,500 ha. of forestry planting for the autumn planting programme. There was a very strong response from applicants, demonstrating the high level of interest among farmers and their appreciation of the many benefits associated with forestry. In recent years my Department has undertaken significant promotional activities to encourage increased farmer participation in forestry, highlighting the economic, social and environmental benefits of forestry. Together with Teagasc, we have assisted in the formation of 16 forest owner-producer groups to encourage farm forest owners to co-operate on various aspects of forest management. These promotional activities, together with the opportunities presented by the current high timber prices and the developing wood energy sector, have all contributed to an increased interest in planting new forests, and this will help us to achieve significant annual forestry planting.
All aspects of public expenditure are being examined at present, and forestry is no different in this regard. I am very much aware of the concern expressed by farming and industry sources about the adequacy of the capital allocation of €89 million for the forestry programme in the capital review, Infrastructure Investment Priorities 2010-2016, which was published during the summer. While this amount is only indicative, it will nevertheless inform the Estimates process. As part of the Estimates process, the Department is reviewing its available capital resources, which are capped at €350 million, to ensure that priority needs and commitments are met.
As the Deputy will be aware, there are also ongoing discussions at both Departmental and Cabinet level on the formulation of the budget for 2011. I can assure the Deputy that the Government remains committed to ensuring the continuation of the afforestation programme at a rate and in a format that maximises the use of scarce financial resources.
I welcome the Minister's response, but I ask him to forgive me if I missed something in his reply. Will the Government achieve a target of 10,000 ha. this year: yes or no?
The figure of 10,000 ha. is indicative. We did not have an obligation to reach this level, although I would have liked to do that. However, it is likely that we will exceed the target of 7,000 ha., and I am delighted with that. We released 1,500 ha. in the past few weeks, and we had subscriptions for the equivalent of 3,600 ha. Thus, a demand exists, which we have identified. I will meet officials from the forestry section tomorrow morning in Wexford when we will discuss the excess. At present it seems likely that we will exceed the 7,000 hectares about which I am happy in the current climate.
I wish to consider the matter from two perspectives. Would the Minister of State acknowledge that ensuring the target is met would potentially capture in the private forestry sector up to 160,000 tonnes of CO2? According to the private forestry sector, if the State were to purchase carbon credits for that amount, it would cost approximately €46 million. While the 10,000 hectares is an aspirational figure, would the Minister of State acknowledge that we should move beyond aspirations at this stage? There is a clear need in a very productive sector to ensure that the investment will yield a multiplier of the benefits in the longer term.
Regarding the carbon sequestration, the €46 million figure is applicable to 2008 and there has been a significant reduction in the CO2 produced owing to the downturn in the economy. However, I have made that argument at the various meetings I have attended and am aware of it. As the Minister of State with responsibility for forestry I am seeking to target the 10,000 hectare total. The budget is the big issue and I am obliged to review forestry funding. Everything needs to be looked at and discussed ahead of the budget. I hope the budget will give me an adequate allowance that will allow me to reach that target, but at this time I cannot commit to a 10,000-hectare programme.
Tom Sheahan
Question:4 Deputy Tom Sheahan asked the Minister for Agriculture, Fisheries and Food if the Renewed Programme for Government commitment to increase the level of new forest plantation to 10,000 hectares per annum is still achievable; and if he will make a statement on the matter. [41013/10]
The commitment contained in the renewed programme for Government recognised that there had been considerable difficulty in recent years in maintaining a substantial afforestation programme. Planting levels peaked in 1995 at 23,710 hectares but declined significantly thereafter, reaching a low of 6,249 hectares in 2008 owing to a number of factors I outlined earlier.
I recently announced approval for an additional 1,500 hectares of forestry planting for the autumn planting programme. There was a very strong response from applicants demonstrating the high level of interest among farmers and the appreciation of the many benefits associated with forestry.
The Deputy will be aware that all aspects of public expenditure are subject to more in-depth critical scrutiny than heretofore and forestry is no different in this regard. I am very much aware of the concern expressed by farming and industry sources about the adequacy of the capital allocation of €89 million for the forestry programme in the Capital Review — Infrastructure Investment Priorities 2010-2106, published during the summer. While this amount is indicative only it will, nevertheless, inform the Estimates process. I can assure the Deputy that the Government remains committed to ensuring the continuation of the afforestation programme at a rate and in a format that maximises the use of scarce financial resources.
I thank the Minister of State for his answer. I would like to outline a few matters before I put another question to him. I recently met forestry industry representatives who informed me that they have markets for an additional 50% of product this year and that their product is at a premium this year. In one day a harvesting machine harvests 1 hectare of trees, which take 35 years to grow. We need to take afforestation very seriously.
A question please, Deputy.
The Minister of State referred to the unwillingness of farmers but I put it to him that the forestry inspectors are considerably more unwilling than farmers are.
I did not say that.
He said farmers were not willing to plant.
There were a number of issues in 2006.
Allow the Deputy to continue.
At present I have considerable anecdotal evidence of inspectors going slightly over the top. There is a belief that the Minister of State's recent announcement of the 1,500 hectares was clearing the deck for savage forestry cuts in the budget but I hope that is not the case. I want to point out how important it is.
A question please, Deputy. This is Question Time.
The Bacon report commissioned by the Department provided the evidence that for every €1 invested in forestry——
A question please, Deputy.
——there is a return of €1.59 to €1.60 to the Exchequer. In light of the importance of forestry the Minister of State must not let it slip down the ladder in the budget negotiations and provide the funding because 1 hectare a day——
I am not sure there is any question there.
——that can be harvested takes 35 years to grow. It is a no-brainer.
There were several questions there, a Leas-Cheann Comhairle. The Deputy used the term "savage cuts". I am acutely aware of the importance of the forestry sector to getting the economy back on track and it is one of the indigenous industries on which I would like to see focus in the upcoming budget in order to increase the return from the sector. The Deputy spoke about the 50% increase in demand. As we know the biomass sector has established itself in recent years. At the National Ploughing Championships I was pleased to meet so many representatives of companies that had established themselves. Many companies employing up to six people are now operational in the sector. I accept there is significant pressure with regard to thinnings.
We are also trying to encourage the establishment of producer groups. Teagasc has been involved in setting up 16 different producer groups across the country, which are very important in creating critical mass and reducing the costs applicable. Many of our plantations are small ones and the rental cost for harvesting equipment is very high. We are hoping to have a co-ordinated approach in various regions across the country that would help in that regard.
The Deputy did not ask me about the roads but I have also asked for a review of the how we fund them. I have met many industry representatives and we have had detailed discussions ahead of any decisions that would be made on our proposals for the budget.
Funding for the roads is very important for the forestry industry. Can any incentives be provided to owners of the private forests that are not being harvested given that there is market for an additional 50% of product?
I do not have a response to that but I will check with my officials, whom I will meet in Wexford tomorrow morning. I have asked them for a review of the roads because in many cases industry representatives have told me they only need 50 m to 100 m of road and in many cases we are grant-aiding up to 300 m of roads, which means that I could get up to six roads grant-aided as opposed to one. I have asked for that matter to be reviewed. I am reviewing all aspects of forestry and I want to assure those listening to the debate and those who will read the transcript that we are committed to maximising the potential of forestry and protecting it in the future.
Common Agricultural Policy
Noel Coonan
Question:5 Deputy Noel J. Coonan asked the Minister for Agriculture, Fisheries and Food his views on the recently leaked document on Common Agricultural Policy and to indicate, on foot of the proposals, the efforts he has made, and plans to make, to develop strategic alliances at a European level in order to deliver on Ireland’s objectives for a reformed CAP; and if he will make a statement on the matter. [41014/10]
I would prefer to avoid direct comment on a leaked document. It is at most a draft and may change as it goes through the inter-services consultation process within the Commission. That said, in so far as the draft communication reflects the main issues that have been under discussion in the CAP debate over recent months, I can outline the following.
My overarching view is that we need a strong and adequately resourced CAP after 2013 to ensure security of food supply, to maintain family farming in Europe and, above all, to promote competitiveness and innovation. I support continuation of the current two-pillar structure. I also remain committed to full decoupling. It has been a success for Ireland and is the best way of underpinning the incomes of small family farms, while allowing them respond to market opportunities.
With regard to funding, I note the Commissioner's intention to achieve a more equitable distribution of funds between member states, as expressed during his recent visit to Ireland. I am prepared to look at the various options but all member states must be realistic on this. I am opposed to an EU-wide flat-rate payment because of the wide variations in the type and cost of farming across the EU. Instead we need to start with the current distribution mechanism and work from there. In so doing it is vital that we use the most accurate basis for comparing funding levels, that is to say eligible area.
Ultimately I want a distribution mechanism that is fair, that underpins competitiveness and sustainability and supports the viability of Irish farming and that takes into account the wide diversity and differing costs of farming across the EU. This argument applies equally to distribution of the direct payment funds in pillar 1 of the CAP and the rural development funds in pillar 2.
With regard to any proposals for redesign of direct payment models, I favour allowing member states considerable flexibility in this area, as is currently the case. The agri-ecological and social conditions of farming vary hugely within the Union and Ireland needs to have the flexibility to apply the payment model that best suits our conditions. In that regard, while there may be positives for Ireland in the increased emphasis on delivery of public goods from farming, we must bear in mind that, under cross-compliance, EU farmers are obliged to comply with the statutory management requirements of 18 EU regulations to qualify for payment. These requirements cover the broad spectrum of animal health and welfare, respect for the environment and the sustainable management of our natural resources and contribute substantially to the production of public goods from farming.
There are suggestions that payments in respect of less favoured areas should move from pillar 2 to pillar 1. The key issue is whether the funding moves with the measure. I have a strong preference for retaining LFA payments in pillar 2 where they can be targeted at those most in need. Not all member states utilise the option to pay LFA payments and it is difficult to understand in those circumstances the move from discretionary payments in pillar 2 to obligatory payments in pillar 1.
As to the market support measures for the future, I favour the continuation of market support measures at safety-net level, together with some flexibility to adapt or enhance them as needs arise. We will also need to examine additional measures to address the much increased volatility of markets.
Additional information not given on the floor of the House.
On rural development policy, we need to focus on the twin goals of competitiveness and sustainability. Measures that are directed at investment and which promote competitiveness perform a key role in encouraging efficiency and innovation in farming. They should be maintained and enhanced so that farmers can improve their performance and deal with structural issues arising for example from the ending of milk quotas. Consistent with our green growth objectives we must also have a strong agri-environment actions in our rural development policy including targeted payments for public goods, support for the development of bio-energy on farms, and for innovative actions to mitigate greenhouse gas emissions. Our off–farm rural development actions should be consistent with this while focusing on genuinely rural areas and emphasising job creation.
As to building up strategic alliances in relation to the CAP reform process, there has been a high level of activity and debate regarding the future CAP among member states over the past two years. My Department and I have participated actively in all of these discussions with a view to building up alliances and pressing the Irish viewpoint. In addition to representing the Irish view at formal and informal meetings of EU Agriculture Ministers, I have had bilateral meetings with the Commissioner and with colleagues from a number of other member states. For instance, I travelled to Poland and Hungary last July to meet my Ministerial counterparts and earlier to Finland. I had discussions in Dublin last month with my German ministerial colleague and with Commissioner Ciolos and I have arranged meetings with my French and UK colleagues for the coming months. These contacts are proving very productive in deepening our understanding of each others positions and in establishing support for the Irish position in the negotiations.
At official level, too, we have engaged actively with our colleagues in other member states, the Commission and the European Parliament, with bilateral meetings, contacts, sharing of information and analysis and discussion of policy positions. This work has proved very effective in explaining the Irish context and viewpoint and in gaining understanding and acceptance of the Irish position. It will continue as the negotiations progress.
I thank the Minister for his detailed reply, much of which we agree with. This is my first time dealing with CAP reform during Question Time and I would like to continue in a vein of support because this is an area of vital national interest and it is important that we achieve the best possible result. I refer to the proposals in the report of the Joint Oireachtas Committee on Agriculture, Fisheries and Food going forward. I look forward to working with the Minister from that point of view.
What are the Minister and the Taoiseach doing about seeking support from their colleagues in the Union regarding the CAP to secure major benefits for Ireland from our allies in Europe? The first part of the problem is to ensure the budget for the CAP is not tampered with and is, at least, maintained because it represents a huge opportunity for the agriculture industry bearing in mind the global population will increase by 1.5 billion by 2012. The Minister of State referred to the production of biofuel crops earlier and anaerobic digestion. Food security is important. The leaked document would lead one to believe that the EU will allow greater co-financing by national governments. What do the Minster and the Government think of that, given the constraints on our domestic budget?
I thank Deputy Coonan for his support and I look forward to working with him and his colleagues.
With regard to our allies, the first discussion I had on CAP post-2013 was at the September Council meeting in 2008. There have been numerous discussions on this issue at Council meetings since then at which I have advocated the Irish position strongly and in a positive manner. I have outlined this to the House and to the joint committee. Naturally, I have met colleagues separately outside the formal Council meetings and we have discussed the CAP on numerous occasions. I recall bilateral meetings in Poland and Hungary last July about this issue. We do not share views on all aspects of the policy but we share a strong view on the need to have an adequate budget, to which the Deputy correctly referred. I also visited Finland and the German Minister was in Dublin recently. I have meetings set up with the British Secretary of State for Environment Food and Rural Affairs, Ms Caroline Spelman, and Mr. Bruno Le Maire, the French Minister of Agriculture and Fishing. We have worked with like-minded member states to build up alliances.
The Taoiseach has used the opportunity at every Heads of Government meeting to outline the case for a properly and adequately resourced CAP. On the morning the EU Agriculture Commissioner attended a meeting of the Oireachtas Joint Committee on Agriculture, Fisheries and Food, we had a meeting with the Taoiseach where he outlined the view again that there was absolute support on the part of the Government for the adequate resourcing of the CAP post-2013.
I thank the Minister for his response. It is important that our MEPs play an active role in this as well.
Does the Minister endorse the proposals in the report of the Oireachtas Joint Committee on Agriculture, Fisheries and Food?
I have not had the opportunity to read the document yet. Hopefully, I will get an opportunity over the weekend but I am sure it is positive. Whenever I have appeared before the committee, all members have shared the same views and priorities. Bart Brady, former assistant Secretary General in the Department, contributed to the work carried out by the joint committee and he is one of the eminent experts in the Union on CAP.
We ensure that we use every opportunity to outline the necessity for a properly resourced CAP. The Taoiseach does so, as do I, at every Council meeting. It is important and none of us can ever emphasise enough that the CAP is about food security for all the citizens of Europe, the protection of rural communities, the management of our natural resources and ensuring family farming survives in Europe and the citizens of Europe have access to affordable food and it is not about the transfer of funds to farmers or the agrifood industry.