Dáil Éireann debate -
Thursday, 2 Feb 2017

Vol. 937 No. 2

Other Questions

Agriculture Scheme Payments

Charlie McConalogue

Question:

6. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine the reason his Department failed to meet its commitment to make GLAS and AEOS payments in December 2016; the total number of GLAS 1 and GLAS 2 farmers who have received 85% of their total 2016 payment; the number of farmers who have passed all payment approval checks and are awaiting their 2016 payment; the total number of GLAS and AEOS recipients who have yet to receive payment; and if he will make a statement on the matter. [4902/17]

Deputy Charlie McConalogue

Will the Minister explain why his Department failed to meet its commitment to make GLAS and AEOS payments on time in December 2016 and outline the number of GLAS 1, GLAS 2 and AEOS applicants who have received 85% of their payments to date and when the remaining applicants can expect payment?

Deputy Michael Creed

The green low-carbon agri-environment scheme, GLAS, and the previous agri-environment scheme, the agri-environment options scheme, AEOS, provide valuable support to farmers to deliver environmental benefits and public goods which will enhance Ireland's agricultural sustainability credentials into the future. They provide support to Irish farmers aimed at enhancement of biodiversity, water quality and mitigation of future impacts of climate change while allowing Irish farmers to improve their agricultural practices in a sustainable manner. To date, support valued at over €120 million has been provided to Irish farmers in respect of 2016 payments under these schemes.

The number of farmers active in GLAS is almost 37,500, of which 25,825 are in GLAS 1 and 11,667 are in GLAS 2. Almost 20,000 farmers in GLAS 1 and almost 8,700 farmers in GLAS 2 have successfully completed the GLAS prepayment checks in respect of the 2016 scheme year and a first payment instalment of 85% has issued in these cases. The balancing payment due to farmers who have received 85% of their 2016 payment will issue later in the year when the last of the required on-the-spot inspections have been initiated. The most recent payments issued on 30 January 2017, with €4.2 million issuing to just under 1,200 participants.

The year, 2016, was an exceptionally busy one as an additional 11,500 farmers were processed to approval in GLAS 2 and a further 14,000 new applications were submitted under tranche 3 and are currently being processed to approval stage with a view to increasing the overall numbers in the scheme to in excess of 50,000 scheme participants from 1 January 2017. It is acknowledged that payment targets have not been fully met, with under 3,000 GLAS 1 and under 6,000 GLAS 2 payments remaining to be fully processed. This is due, in the main, to unanticipated outcomes of the checks required to be carried out on each individual application.

Outstanding payments under both GLAS 1 and GLAS 2 are delayed due to a variety of issues, including declaration of incompatible parcel usage on the basic payment scheme, BPS, application for a chosen GLAS action; changes in parcel boundaries on which a GLAS action is chosen, including splitting or merging of parcels; an applicant no longer claiming a parcel on their 2016 BPS; incomplete documentation such as incorrect information on low-emission slurry declaration; incomplete interim commonage management plans; and incompatible data and parcel history on Department databases.

Additional information not given on the floor of the House

Just over 8,615 farmers in the agri-environment options scheme are due a payment in respect of 2016. Payment has issued to 6,020 AEOS farmers, with almost 2,600 remaining to be paid. As in the case of GLAS, the AEOS 2016 payments are issued in two parts, with an advance payment of 85% and the remaining 15% issuing thereafter. The most recent payments issued on 31 January 2017, when over €850,000 issued to just under 350 participants. Payments will continue to be made on a regular basis as files are cleared.

Outstanding payments under AEOS 2 are largely delayed due to rechecks which must be completed on payments made for all scheme years before the final contract payment can be processed.  Outstanding payments under AEOS 3 are delayed by stocking density checks. Farmers had until 31 December 2015 to meet their stocking density on commonages and a density check must be completed before payment can issue.

I also point out that a number of payments under both schemes are held up due to incomplete documentation and all participants are reminded to submit any outstanding documentation as soon as possible to facilitate payment. Payments under both schemes will continue on an ongoing basis as issues are resolved and cases are cleared for payment.

Deputy Charlie McConalogue

It is unacceptable that it is now February 2017 and some 9,000 of the farmers who were promised by the Minister and his Department under the farmers charter that they would receive 85% of their GLAS payments in October last year have still not received their first payment. I asked the Minister for specifics on why this has happened. According to the Minister's reply, the Department was unable to process approximately 9,000 of the 37,000 applications because there were errors or issues with them. Farmers only learn about such errors or issues after they have failed to receive their payments. I do not accept that there could be 9,000 applications in respect of which administrative errors arose such that the Department has been unable to process them thus far.

Perhaps the Minister will elaborate on what IT issues fed into the delay in terms of processing payments. What are the IT problems and why were they not identified and dealt with sooner by the Minister? Many of the farmers concerned are due an average payment of €4,500, which they had banked on having before Christmas but they still have not received their payments. This matter needs to be sorted out immediately. I would also welcome a full explanation today from the Minister in terms of his oversight of this mess.

Deputy Michael Creed

I assure the Deputy that my departmental officials, administrative and IT, are working flat out to resolve this issue. I am not pointing the finger at anybody. When my Department hit the "pay" button in respect of GLAS, some applications did not get through the system. In terms of what needs to happen now, all of the outstanding applications will have to be scrutinised. The problems presenting relate to compatibility between GLAS actions and plots submitted under basic payment scheme applications and so on. Very often a bespoke IT solution is required to address these issues. It is, unfortunately, a slow process but the issues are being worked through as quickly as possible. Neither I nor my Department has a vested interest in delaying payments to farmers. We are working flat out to resolve this issue.

I wish I were in a position to give a definitive timeline for when it can be resolved. I assure the Deputy it is not an issue of resources within the Department, nor is it an issue of pointing fingers. The issues that arose when the payments did not proceed are such that we have to eyeball every application that did not go through. We have to identify the reason each payment did not go through and then find IT solutions to enable payments to go through.

Deputy Charlie McConalogue

I would have believed that the whole idea of having an IT system was to have one that is fit for purpose such that it does not have to be revisited every time one comes up against a problem. One should not need to come up with bespoke amendments to the IT system to try to deal with the job that must be done by it. As I stated, there are 9,000 farmers in GLAS still awaiting payment, and there are 4,000 farmers in the AEOS whom I understand have not been paid yet. These are farmers whom the Department promised would be paid back in October. To say this is not a resources issue just does not stand up. To say the position on the IT system is acceptable does not stand up either. If the Department had been seeking to pay the moneys back in October and the Minister had been working to ensure this, these issues would have been spotted then. It was only after the payment was not made that the Minister sought to inform farmers there was a issue and to try to rectify it.

Farmers are waiting for 85% of their payments. Is it possible that the Minister could seek sanction from the European Union to pay the farmers the 85%, for which they are so desperately waiting, and then work through the issues that exist? The Minister is telling me the applications have to be eyeballed one by one and that the resources are all in place to do so. Unfortunately, this will go on for weeks or months unless the Minister gets a handle on it and finds a mechanism to pay the farmers, many of whom are in desperate financial circumstances because they were expecting to be paid months ago.

Deputy Michael Creed

For the record of the House, the number of applicants awaiting AEOS payments is not 4,000; it is 2,600.

I fully accept the concern of anybody awaiting payment. In many respects, when one is explaining one is losing. I must be fair to the staff in the Department. We must be fair to everybody, including staff and farmers. Farmers are owed their money. We are contractually bound to pay them and will do so. We are working through a difficult set of circumstances, however, and it is not a resource issue. It is neither an administrative resource issue nor an IT resource issue. We simply have to eyeball each of the individual applications that are presented as a challenge to get them through our system. We are doing that. Staff are working flat out on it. It is a logistical issue, not a resource issue. I appreciate that the Deputy wants to spin a narrative of under-expenditure and deliberate under-expenditure. With regard to the difficulty that farmers are in at present, I acknowledge that if one is waiting for several thousand euro it presents a difficulty. I assure the Deputy that we are doing everything we can to resolve this matter.

An Ceann Comhairle

Before proceeding to the next question, let me point out that if every question runs over time, Members further down the list will not get an opportunity to pose their questions. Each Member present is as well able to read a clock as I am and, therefore, I appeal to them to have regard to the allocated time.

Greyhound Industry

Maureen O'Sullivan

Question:

7. Deputy Maureen O'Sullivan asked the Minister for Agriculture, Food and the Marine further to Question No. 563 of 13 December 2016 and in view of the huge drop in public interest and race meetings, his views on whether it is acceptable to support the greyhound industry with Government funding; and his views on whether funding should be cut in line with the drop in figures attending this sport. [4876/17]

Deputy Maureen O'Sullivan

My question follows up on a question from December. It considers the extent of Government funding for the greyhound industry, particularly in light of falling attendance rates at greyhound race meetings.

Minister of State at the Department of Agriculture, Food and the Marine (Deputy Andrew Doyle)

Bord na gCon is a commercial State body, established in 1958 under the Greyhound Industry Act 1958 chiefly to control greyhound racing and improve and develop the greyhound industry. Greyhound racing is a traditional industry that plays an integral role in rural society and the economy. Successive Governments have recognised the importance of both the greyhound and horse racing industries for our country and have supported them through legislation and policy initiatives down through the years.

In 2010 a report by Jim Power Economics, commissioned by  Bord na gCon, estimated that the greyhound racing industry was responsible for sustaining in excess of 10,000 full and part-time jobs directly and indirectly, many in rural communities, and injected an estimated €500 million into local economies. The greyhound breeding industry is very export orientated, with over 75% of greyhounds now running in the UK being Irish bred.

Since 2002, well in excess of 10 million people have attended greyhound racing meetings. Annual attendances at greyhound race meetings have declined over the course of the recession. Greyhound racing was not immune from the impact of the downturn and, in particular, the reduction in consumer disposable income, emigration and the collapse in the construction industry. Over the period of the recession, Government support for the industry was reduced significantly, which coincided with the effects of the economic downturn.

Bord na gCon has informed me that consumers and fans of greyhound racing are now consuming the sport differently. With the growth in social media and online distribution of racing generally, audience engagement is expanding. The board states attendance at greyhound stadia has stabilised in more recent times and saw an increase of 1% in 2016.

Deputy Maureen O'Sullivan

Between 2006 and 2016, the Government gave almost €140 million to the greyhound industry. Although there was a slight decrease in the allocation during the recessionary budgets, since 2014 the allocations have been on the increase. I include 2015 and 2016. In 2006, some 1.25 million people were attending per annum but since 2008 the number has been decreasing. In 2015, some 600,000 people attended. The number of meetings has also decreased by over 500. Sponsorship is falling, as is the number of greyhound owners.

Could the Minister clarify whether the Irish Greyhound Board has published its 2015 accounts? If so, are they available publicly? Is the Government compensating for the drops in attendance, the number of meetings, sponsorship and the number of owners by increasing the funding? Could the Minister of State clarify the number employed in the industry? The figure of 10,000 from 2010 seems a little excessive. How much do the Irish Greyhound Board and the Irish Coursing Club contribute to the welfare of the greyhounds that are abandoned?

Deputy Andrew Doyle

The basic premise of the Deputy's question is that if something is sinking, one should just pull away money. There are problems in the greyhound industry. During the term of the last Dáil, the agriculture committee produced a report on it and made recommendations. One point made was that we need new robust legislation, which will be introduced shortly. I hope to have it agreed by the Cabinet so it can be forwarded to the current agriculture committee for pre-legislative scrutiny. It will provide for better governance, financial structures, control and regulation. Greater consumer participation is required but this must be based on confidence. If we simply say we should pull the money in the industry because it is in decline, it is contrary to most principles. If something is in need of assistance, we should continue to support it so that, in time, it can operate independently. This is a critical juncture. It is up to all participants and the greyhound industry itself to engage in this and ensure the industry has a future.

As for the numbers, maybe there is a question over the figure from 2010, but the industry is certainly still a significant contributor to rural communities.

Deputy Maureen O'Sullivan

In 2015, the then Minister, Deputy Simon Coveney, said in reply to a parliamentary question that €100,000 was received by the Irish Coursing Club from the Irish Greyhound Board. I hope the Irish Coursing Club and the Irish Greyhound Board are very much separated. I know greyhound owners who keep their dogs for racing do not agree with live hare coursing, yet their fees are going towards supporting it. This has to be clarified.

Live hare coursing started in Clonmel last week. RTE showed a clip of it. It said before showing it that it would be too disturbing for some viewers. It showed a censored version. When some people rang up to find out why it was censored, they were told the footage was too bad to show. If the full, uncensored clip had been shown, it would have shown the greyhounds tossing the hares and mauling them. It would really have shown what live hare coursing also includes.

I hope that on foot of the Minister of State's report, there can be a separation between the two bodies. How much exactly has the Irish Greyhound Board given to the Irish Coursing Club over recent years in loans and payments?

Deputy Andrew Doyle

On the last question, I do not have the figures off the top of my head but I can certainly obtain them for the Deputy. I did not attend the national coursing championships in Clonmel but I understand no hares were killed in them. Whether that answers the Deputy's question, I do not know.

If the Deputy was to ask the coursing club and the greyhound board whether they wanted to stay separate, they would probably agree with her, in that they want clear and distinct lines between their roles and functions. Some greyhound owners might prefer there to be no live coursing, but others do not. Animal protection is governed by other legislation, by the way, primarily in animal health and welfare legislation.

Coursing is not everyone's cup of tea, but it is part of the tradition. It is easy to sit up here in Dublin and judge people, but people in Dublin do things that are not always compatible with country life either, and I do not hear people in the country being quite so judgmental.

Acting Chairman (Deputy Eugene Murphy)

I will reiterate the Ceann Comhairle's comments. I will be strict on times. Deputies have 30 seconds each to introduce their questions, the Minister or Minister of State has two minutes to reply, and then there are four minutes - one, one, one and one - for the supplementaries. The last time that I was in the Chair for questions, we did not get to four Deputies' questions because people ran over their time. I ask that both sides co-operate so that we can get through as many questions as possible.

Fish Quotas

Pat the Cope Gallagher

Question:

8. Deputy Pat The Cope Gallagher asked the Minister for Agriculture, Food and the Marine if he will withdraw and cancel the consultation process relating to the sharing arrangements between the refrigerated sea water, RSW, pelagic fleet and polyvalent fleet in view of the fact that the basis for the review was the 14% increase (details supplied); and if he will make a statement on the matter. [4848/17]

Deputy Pat The Cope Gallagher

This question is self-explanatory. Even if a mistake had not been made by the International Council for the Exploration of the Sea, ICES, in its advice to the European Commission, I would be tabling this question, but the issue has grown more urgent than ever before thanks to the reduction of 9% in the updated advice. If that reduction does not happen this year, it will happen next year.

Deputy Michael Creed

The north-east Atlantic mackerel scientific assessment by ICES includes information from a number of sources, including catch data, tagging data and three survey indices. During preparations by ICES for the upcoming benchmark, an error was discovered in the calculation of the northern trawl survey index for 2016 that resulted in values being overestimated. Thus, the assessment conducted during the 2016 ICES working group and used as the basis for the 2017 advice released on 30 September 2016 overestimated the stock size.

Updated northern trawl survey index values have been calculated and a new assessment and forecast have been carried out by ICES. Based on this work, new advice for 2017 was issued by ICES on Thursday, 26 January. According to the Marine Institute, the updated advice is 9% lower than the initial advice for 2017, that is, 926,936 tonnes versus 1,020,996 tonnes.

The original advice for 2017 was for a 14% increase on that for 2016 and it was on this that the 2017 coastal states agreement was based. Subsequent to that agreement, Ministers confirmed the EU total allowable catch, TAC, and individual EU member state quotas at the December Fisheries Council. That decision has been given legal effect by the new TAC and quota regulations for 2017.

It is expected that the matter may be considered, probably informally, at coastal state level involving the EU, Norway and the Faroe Islands. At European level, the right of initiative rests with the European Commission. If there is support for amending the TAC at coastal state level, it will require a formal agreement. Following any such revised agreement, an amendment to the EU TAC and quotas would require a proposal from the European Commission and the European Council's adoption of the amending EU regulation. The Commission has not yet commented publicly on the new advice and a new ICES benchmark assessment for north-east Atlantic mackerel is due next month.

Additional information not given on the floor of the House

Any amendment to the EU TAC and Ireland's mackerel quota that may be determined by the EU Fisheries Council will be taken into account as part of my consideration of the review. This review relates to the allocation between the RSW pelagic segment and the polyvalent segment in respect of the increased mackerel quota for Ireland in 2017 over that in 2016. It is important to note that I have not made any decision at this time to change the allocations between the segments. All relevant issues will be carefully evaluated and consideration given to submissions made in this consultation before I decide if any amendment to the policy is justified for the proper and effective management of the mackerel fishery.

Deputy Pat The Cope Gallagher

Sadly, I have not received an answer to my question on what the Minister intends to do. However, I will have a further minute, so perhaps he might let me know.

If the reduction proceeds, it will set a dangerous precedent in law and departmental authority and fishermen will not be able to take anything for granted when planning in future. They make significant investments and create jobs at sea and ashore. They must have something definite. New boats are being bought and others are being refurbished.

The departmental consultation was based on the premise that there would be an increase this year. I do not agree with that. Even if there is an increase, it will be deducted twice over next year. This process is flawed, so what will the Minister do about it? Will he be pragmatic and take the immediate decision to scrap the consultation in light of the major mistake in Europe?

Deputy Michael Creed

Notwithstanding the mistaken advice, the revised advice still provides for an increase in the quota.

Separately, I received a submission from a producer organisation, PO, in respect of a review of the sharing of mackerel quota, in particular the proposed increase for 2017. On foot of that proposal and correspondence, of which I received much, I decided to put the proposal into formal consultation. Nothing that might emerge from that process, for example, that the level of increase is less than originally anticipated, is sufficient grounds to walk away from it. I propose to allow the consultation process to run.

Deputy Pat The Cope Gallagher

Does the Minister fully appreciate that the mackerel quota has been built up by RSW vessel owners, who have made major financial investments? Does he agree that the polyvalent fleet has seen an increase of 200% over the years? He needs to be realistic. What is his preferred choice? Do we revert to the quota under the revised ICES advice or will he propose to Europe to leave it until next year, which would be a double-edged sword? Absorbing this year's reduced quota as well as next year's would be almost impossible.

Deputy Michael Creed

The initiative on this matter rests firmly with the Commission.

Deputy Pat The Cope Gallagher

The Minister must-----

Deputy Michael Creed

We have no clear indication as to what it might do. It might seek to revise the TAC and quota arrangements for 2017 or leave it until the next coastal states negotiations in September-October.

I acknowledge the Deputy's points about the pelagic sector. I have an open mind, and so I should, about the consultation process that is under way. I am not predisposed towards any outcome. I received a submission and I decided to put this matter forward for formal consultation. I am sure that the Deputy's points mirror many of those that will be raised in that consultation process.

While I am going into this with an open mind, the matter is up for formal consultation in light of the submission that I received, and it would be inappropriate to comment further until we see all of the submissions that are received.

Questions Nos. 9 and 10 replied to with Written Answers.

Areas of Natural Constraint Scheme Data

Thomas Byrne

Question:

11. Deputy Thomas Byrne asked the Minister for Agriculture, Food and the Marine the total number of farmers in County Meath that enrolled in the areas of natural constraint, ANC, scheme; the process of reviewing qualifying areas for the areas of natural constraint scheme; if his Department has completed the mapping exercise in County Meath; when the maps will be published; the consultation that will be undertaken with farmers in County Meath on the review; and if he will make a statement on the matter. [4928/17]

Deputy Thomas Byrne

I am seeking to know the number of farmers who are eligible for ANC payments and the impacts of the review on County Meath's farmers in particular.

Deputy Michael Creed

Article 32 of EU Regulation 1305/2013 requires all member states to implement a new system for designating eligible areas under the ANC scheme from 2018 at the latest. Currently, eligible land under the scheme is designated by reference to criteria such as stocking density, family farm income, population density and the percentage of the working population engaged in agriculture. Under the 2015 ANC scheme, 1,319 holdings in County Meath were eligible for the scheme.

Under the new system of designation that must be introduced in 2018, eligible areas will have to be designated on the basis of biophysical criteria. The criteria set out in the legislation are low temperature; dryness; excess soil moisture; limited soil drainage; unfavourable texture and stoniness; shallow rooting depth; poor chemical properties; and steep slope. My Department has commenced work on this project and relevant technical experts are sourcing and analysing the data in respect of the new criteria. This analysis will identify areas deemed to be facing natural constraints, which will in parallel be subjected to a refinement process. Once this process is complete, the draft data will provide the basis for the identification of eligible areas for ANC. It is envisaged that stakeholders will be consulted as this process develops.

Deputy Thomas Byrne

The Minister stated that 1,319 holdings in County Meath were currently eligible. It is vital that they continue to be eligible. Will the Minister give a commitment that no farmer in County Meath will lose out as a result of the review?

Deputy Michael Creed

I can give a statement of my ambition, but there are clearly defined European Commission criteria that officials in my Department are obliged to apply in respect of lands across the country.

Of course it is my ambition that what we have, we hold. There will be a consultation process and engagement with stakeholders. We hope we will be in a position to ensure that everybody who has a payment at the moment will hold it. However, as to whether I can guarantee that, of course I cannot, but I suspect it is highly likely that the overwhelming majority of people will retain the payment. That is the premise from which I started on this process. The Commission has set down revised criteria and we must apply them to the process that is under way across the entire European Union. We are working to ensure that people who have a payment and designation will hold them.

Deputy Thomas Byrne

Farmers in my constituency would like more of a commitment rather than an ambition because they are under severe pressure at the moment. The Minister must do everything in his power.

Deputy Michael Creed

That is my ambition.

Deputy Thomas Byrne

Yes, but the Minister must do everything in his power to turn that ambition into reality because the situation at the moment is not good enough. We must ensure farmers can have some level of security in terms of the bit of help the payment provides. The Minister is not doing that at the moment.

Deputy Michael Creed

I had a similar debate with Deputy McConalogue earlier. As I said, my ambition is to try to ensure that every farmer who has a payment retains it, whether that is in County Meath, County Donegal, County Cork, County Tipperary, County Kilkenny, County Wicklow or anywhere else. It is a critical part of agricultural income and household budgeting in respect of the farmers concerned and for obvious reasons, therefore, we are anxious to hold what we have.

Appointments to State Boards

Clare Daly

Question:

12. Deputy Clare Daly asked the Minister for Agriculture, Food and the Marine the steps he has taken to ensure that the Irish National Stud will abide by the code of practice in appointing a new chief executive which is currently under way, in view of the controversy over the reappointment for a third term of a person as CEO of Horse Racing Ireland, despite the code of practice for the governance of State bodies stipulating a single, non-renewable term for CEOs of such bodies. [4855/17]

Deputy Clare Daly

This question comes on the back of the debacle on the reappointment of Brian Kavanagh as CEO of Horse Racing Ireland. As the Minister is aware, the position of CEO of the Irish National Stud is currently up for grabs and I hope the Minister can reassure me that the code of practice for governance of State bodies, in particular with regard to stipulation of a single non-renewable term, will be invoked in this situation because there is a perception at large that there is a bit of a clique in operation at the moment.

Deputy Michael Creed

I appreciate the image Deputy Daly wishes to portray but I assure her it is far from the reality. The Irish National Stud is a commercial State body. The appointment of a chief executive officer is a matter for the board of the Irish National Stud, subject to the consent of the relevant Ministers. I understand a recruitment competition is currently under way.

The Deputy will be aware that the board has its own obligations in relation to compliance with corporate governance standards. My Department has arrangements in place to monitor the activities of State bodies and ensure compliance with the code of practice for the governance of State bodies.

I understand the current CEO of the Irish National Stud has announced that he is stepping down from the position. I am aware that he has done an excellent job as CEO of the stud and I wish to add my voice to the many tributes that are rightly being paid to him. I understand that the INS board may request a temporary extension to the current CEO's contract to facilitate a smooth transition to a new CEO and I am open to considering that in line with Government policy and guidelines. I am sure the Deputy would wish to acknowledge the CEO's contribution as well.

Deputy Clare Daly

I do not think the Minister knows what I would or would not like to do. Horse racing has been called into serious disrepute due to the handling of the previous CEO's appointment. I am concerned to ensure that such a debacle is not repeated in this instance. I take heart from the fact the Minister has told me the position will not be filled by the current CEO who has just finished his term of office. I remind the Minister that the code of practice is there for very good reasons. Only a very small number of CEO positions are filled beyond the five or seven year term. Is the Minister saying the current CEO will not take up the new position and has not put his name forward for reappointment? The Minister mentioned he wishes to ensure a smooth transition but I do not know why provision was not made for that, given that the incumbent was well aware when his contract was due to terminate. Will the Minister assure us the transition period would only be for a matter of a month or two? Anything more than that would call into question governance issues and compliance with the code of practice.

Deputy Martin Heydon

I am a bit disturbed that Members of Parliament are asking questions based on the perception of a clique being in operation. We in this House have a duty to deal much more in reality than perception. On that basis and in light of what the Minister has just said, I put on record my appreciation to the outgoing CEO for a remarkable contribution to the running of the National Stud. One only has to look at the figures in terms of tourism, the equine industry and the overall figures relating to the state the National Stud was in when he took it over compared to the way he leaves it now. It is a credit to him and he deserves great credit for that.

Deputy Michael Creed

I thank Deputy Heydon for his comments. He addressed far more eloquently than I the track record of the outgoing CEO. It is insightful to look at the state of the National Stud when the CEO was appointed and its current financial state. Actions speak louder than words and his actions have been a tribute to the industry, which he leaves in a far better state than he found it. I acknowledge his contribution.

Appointments are, in the first instance, an issue for the board. The CEO has indicated that he does not wish to apply for the position. There will be a recruitment campaign and in order to ensure a smooth transition, we are open to considering a transition period. That is something which will be negotiated with the board. I do not envisage that being a problem.

Deputy Clare Daly

It is a matter for the board, subject to the Minister's approval. I am pleased the Minister said the outgoing CEO will not continue in the position. The recruitment process is already well under way. The gentleman's contract has expired. The question I asked the Minister is how long he is prepared to extend the contract and when can we expect the vacancy to be filled in line with the code of practice for appointments to State boards, which specifies that a different person would take up the position.

Deputy Michael Creed

I am prepared to consider that. I have yet to receive a formal request from the National Stud in respect of that matter. If such a request comes before the Department, it will be considered on its merits.

Horse Racing Ireland

Clare Daly

Question:

13. Deputy Clare Daly asked the Minister for Agriculture, Food and the Marine further to Parliamentary Question No. 549 of 24 January 2017, the reason two persons, both with connections to the biggest player in the horse racing industry, have recently been appointed to the board of Horse Racing Ireland, particularly in view of the fact that one of the key objectives of the revised guidelines on appointments to State boards is to increase access and widen the pool from which potential appointees to State boards are drawn and the broadening of State board membership is another key objective. [4856/17]

Deputy Clare Daly

It is a pity the board did not contact the Minister before the expiry of the deadline. This question also relates to Horse Racing Ireland, which was the subject of much attention over the debacle surrounding the reappointment of Brian Kavanagh. We had the board members before the Oireachtas Joint Committee on Agriculture, Food and the Marine and to say they made an absolute show of themselves is probably a gross understatement. It was quite clear that what the board requires is strong independent intervention and for there to be independent regulation of the industry. Subsequent to that, why did the Minister appoint to the board two people with a very developed connection to Coolmore rather than individuals with an independent background?

Deputy Michael Creed

Horse Racing Ireland, HRI, is a commercial State body established under the Horse and Greyhound Racing Act 2001, and is responsible for the overall administration, promotion and development of the horse racing industry.

I can confirm that the recent appointments to the HRI board were made in accordance with the guidelines on appointments to State boards. They were advertised on www.stateboards.ie and the appointees were considered by the Public Appointments Service, PAS, to meet the  detailed criteria for their roles on the board. 

Deputy Clare Daly

I am not sure whether the Minister is choosing to misunderstand or if he just does not get it, but the reality is that there is a deep crisis within horse racing and an urgent need to have a capable, strong Horse Racing Ireland board. That is obvious and well known. The people the Minister appointed happen to be people with very developed connections to Coolmore Stud. There is a belief, which is not an abstract one, that there is an excessive influence by big players in the market. The Minister might like to comment on some of the crises around horse racing, for example, the foal levy, which is crippling small owners. There was an important court case in Naas last week where an owner who had won a case was met by the top legal establishment, if one likes, who was marshalled there by Horse Racing Ireland, to get the decision overturned. We know, for example, that it has a big impact on small owners.

The Minister might like to comment on the fact that it is widely known that foals at a major stud in Kildare are registered in the UK where the fees are lower and an arrangement for a contribution is made to HRI despite the fact that under regulations, any foals born in Ireland must be registered in Ireland. Unhelpful and wrong practices are taking place and the Minister needs strong people on the board. Why is he putting in insiders to police themselves?

Deputy Michael Creed

I know the Deputy has some form in terms of questioning the outcomes of court proceedings. I do not propose to trespass on the findings of the courts on such matters in recent days other than to acknowledge the outcome. There is separation of powers, which the Deputy may not wish to recognise but I do.

There are 13 members of the board of HRI and the board is representative of all sectoral interests, including workers in the industry, race courses, trainers and owners. The board is so constructed as to ensure there is an adequate voice available to all the interested parties. The Deputy has come in here and unfairly and without substantiation cast aspersions on the most recent appointees to the board. I think the Deputy should reflect on this. She has made scurrilous, spurious and unsubstantiated allegations against two board members and I do not intend to dignify them other than to say that the appointments were made in accordance with the Public Appointments Service and in accordance with the criteria laid down.

Acting Chairman (Deputy Eugene Murphy)

We are in a very privileged position here in that we can come in and ask very serious questions. That is our job, but we must also be careful about mentioning any names or making allegations in the House. I am always very hesitant to prevent people from putting across their point of view, but we must also respect other people who are not here to stand up for themselves.

Deputy Clare Daly

No points were made against the individuals personally. What I put to the Minister as the Minister who appointed them is that he has a requirement to secure independent oversight of an industry that is self-regulatory and, in fact, non-regulatory. I did not pass any judgment. Under the foal levy, small owners have to pay a 3% levy to HRI that is based not on the fee they paid, but on the advertised fee, which means that small people are being fleeced for the enrichment of HRI while the big boys, who dominate the HRI board and do so now in even greater numbers, are not affected because the ceiling is set at €30,000. If the Minister thinks everything in the industry is great, I put it to him that he is about the only one in the country who does.

Deputy Michael Creed

I told the Deputy, who chose to ignore it, about the not insignificant fact of the outcome of a court finding last week in respect of this matter.

In respect of the appointees, a clear skill set requirement was communicated to the Public Appointments Service as to the appropriate people required in respect of the industry. I am absolutely satisfied that the people who were appointed are more than well qualified to bring a unique and very valuable set of skills in respect of corporate governance and affairs and human resources experience to the board, of which the Deputy has been very critical in the past arguing that it did not have sufficient knowledge in the area of corporate governance.

Question No. 14 replied to with Written Answers.

Fishery Harbour Centres

Thomas P. Broughan

Question:

15. Deputy Thomas P. Broughan asked the Minister for Agriculture, Food and the Marine if funding will be provided to carry out a dredging programme at Howth Harbour, County Dublin in 2017; if he will provide an update on the draft report from a €150,000 site investigation project which was commissioned in 2015, received in March 2016 and assessed by his Department's engineers in quarter 2 of 2016; and if he will make a statement on the matter. [4846/17]

Deputy Thomas P. Broughan

I have asked the Minister and his predecessor about Howth Fishery Harbour Centre for the past two or three years. Silting of over 2 m has occurred. The former Minister made some plans and €150,000 was made available for the site investigation works as part of the development programme. We heard that these were finished at the end of March. I remember asking the former Minister before the general election about when action would be taken. We need a foreshore licence and the dumping programme. When is the Minister going to do it?

Deputy Michael Creed

Howth Fishery Harbour Centre is one of the six designated fishery harbour centres which are owned, managed and maintained by my Department under statute. I am happy to advise the Deputy that between the years 2011 and 2016, as part of my Department's fishery harbour and coastal infrastructure development programme, in excess of €6.7 million has been invested in maintenance, development and upgrading works at Howth Fishery Harbour Centre, notwithstanding the challenging economic environment in which we operate. I will shortly be announcing further support under the 2017 capital programme.

With regard to the possibility of a dredging project in Howth Fishery Harbour Centre, I advise the Deputy that the report from a site investigation works, which was commissioned in 2015, was received by my Department in March 2016. The report included vital information on the nature of the material to be dredged in any future dredging project. The information revealed from the site investigation report indicated that certain of the dredge material would not be suitable for conventional disposal at sea.

In June 2016, a firm of consulting engineers was engaged to prepare a report on a potential dredging project at Howth to include the possible scope of the project, various disposal options for the dredged material at Howth and permitting requirements. This report is scheduled for completion in the first quarter of 2017. A draft preliminary report indicating initial dredge quantities and cost estimates is expected by end February 2017. Depending on the outcome of this process, and as is the case for all developments in the six fishery harbour centres, any possible future dredging project at Howth Fishery Harbour Centre will be considered under future capital programmes on the basis of available Exchequer funding and competing priorities.

Deputy Thomas P. Broughan

Is it possible to include it in the 2017 capital programme? It is badly needed. It has not been dredged since 1981 or 1982 so we are talking about nearly four decades. I remember showing the former Minister's father around when he was a Minister. It came up even then as one of the issues nearly 20 years ago. Howth Harbour users action group has been in contact with the Department over many months to ask that this be done. Howth is the key fishery port on the east coast with a synchrolift repair yard and a lot of activity, but we could have much more activity on the fisheries and marine front, particularly marine tourism, if this work was done.

The Minister said he would put money into the fisheries local action groups, FLAGs, programme. We are in the north east FLAG. Is is possible that some of the works the Minister is talking about could be done as part of that?

Deputy Michael Creed

The FLAGs have independent jurisdiction over how they allocate the funds. I do not wish to prejudge their take on this but I suspect that the expenditure in respect of dredging would be far in excess of the funding they have available - I think it is €2.7 million across all the FLAGs for 2017. They are making a call for projects. I met with representatives from all the marine interests in Howth before Christmas and they made a very compelling case. It is complicated by the preliminary findings and the contamination. We will make announcements in the capital programme for 2017. I suspect it is probably too early on the dredging side. There is a substantial volume of work to be done and I hope we would be in a position to continue some improvement works in Howth, but perhaps not the dredging project.

Agriculture Cashflow Support Loan Scheme

Jackie Cahill

Question:

16. Deputy Jackie Cahill asked the Minister for Agriculture, Food and the Marine if he will provide an update on the low cost loan scheme that was announced in the budget; and if he will make a statement on the matter. [4838/17]

Deputy Jackie Cahill

The low cost loan scheme announced in the budget is most welcome relief for farmers under severe financial pressure. Is there a timescale for when the Minister expects that money to be released to farmers?

Deputy Michael Creed

I was pleased to announce the launch of the agriculture cashflow support loan scheme on Tuesday. One of my priorities has been to address the impact of the change in the sterling exchange rate and lower commodity prices in some sectors, which have caused cashflow difficulties for farmers. The scheme was developed in co-operation with the Strategic Banking Corporation of Ireland, SBCI, which has confirmed that AIB, Bank of Ireland and Ulster Bank will distribute the loans making €150 million available to farmers throughout Ireland at interest rates of 2.95%. It will provide farmers with a low cost, flexible source of working capital and will allow them to pay down more expensive forms of short-term debt, ensuring the ongoing financial sustainability of viable farming enterprises.

This loan scheme forms part of a “three pillar strategy” in response to income volatility, which I announced as part of budget 2017. Along with tax measures and farm payments, it will alleviate some of the pressures being caused by the recent market difficulties, which have been compounded by the uncertainty around Brexit.

The loans will be available to all livestock farmers, tillage farmers, horticulture producers, including mushroom growers, and others involved in primary agricultural production, including poultry producers. The loans will be for amounts up to €150,000 for up to six years. The interest rate at 2.95% will represent a significant saving for farmers when compared with other forms of short-term unsecured finance currently available. The loans will be flexible with interest-only facilities of up to three years.

The SBCI has demonstrated its commitment to the agriculture sector and has worked with my Department to get this product to the market in a timely manner. I welcome the participation of the main banks, which will ensure nationwide coverage for the scheme. The fact that most farmers will have an existing relationship with the participating banks should facilitate the loan application process. Normal lending assessment criteria will apply although the loans will be unsecured in nature, thereby facilitating a more straightforward application process. Potential applicants should note that the loans will be disbursed on a first-come, first-served basis and will need to be allocated by late summer 2017 to comply with the requirements attaching to the European Union funding.

Acting Chairman (Deputy Eugene Murphy)

Four Deputies are offering and they are all entitled to speak. I ask them for their co-operation, starting with Deputy Cahill, whose question it is. I will then call Deputies Heydon, Deering and Aylward.

Deputy Jackie Cahill

I welcome the announcement of the scheme. I asked the Minister when he expected the first of the money to be released to farmers and how that can happen. He said it was to be on a first-come, first-served basis. I believe the scheme will be oversubscribed and some people will be left waiting at the door. Unfortunately, the ones under the most financial pressure could be the ones left outside because their relationship with the financial institution might not be the best. I do not know about the fairness of a first-come, first-served basis and it could work out very unfairly.

I hope the scheme does not get buried in paperwork. There are significant difficulties with the payment of TAMS 2 at the moment owing to IT problems in the Department. I hope this scheme will be able to work in a far more friendly way and that the money can be given quickly to farmers so that they can reduce their debt and help them with their cashflow.

Acting Chairman (Deputy Eugene Murphy)

I thank the Deputy.

Deputy Jackie Cahill

I hope the scheme does not get into an administrative mire and I have reservation about the first-come, first-served basis.

Acting Chairman (Deputy Eugene Murphy)

I know I pushed the Deputy somewhat even though it is his question. However, I promised to get in the other three Deputies and I ask them to keep their comments short.

Deputy Martin Heydon

I will be very short; I appreciate the opportunity to get in. I thank the Minister for his reply. Following on the point made there, I ask the Minister to clarify the flexibility for those farmers who, as I mentioned earlier, might be in financial difficulty. Surely the bank would be very happy to see them coming to make an application for this scheme, which might allow them to restructure debt. When the Minister mentions flexibility, does he mean one might be able to restructure more expensive debt with this lower interest rate?

In recent years it has been very difficult for farmers, particularly beef and tillage farmers, working off significant merchant credit. They build up the bill all year and the big cheque at the end of the year is supposed to clear it. Unfortunately, there have been a few years where the cheque has been insufficient, resulting in the debt rolling on at a high level. Will this scheme also cover that merchant debt?

Deputy Pat Deering

I thank the Acting Chairman for letting me in. I welcome this fund and it is important that as many as possible apply to the fund. I know that in my part of the country the banks will be making funds available next week. If Deputy Cahill gets stuck in Tipperary, he is more than welcome to come to Carlow for funding.

In the event that it is oversubscribed, is it planned to develop a similar fund in future? This is a very innovative way to get cashflow to farmers and it should be developed further for the future.

Deputy Bobby Aylward

Further to Deputy Cahill's question, could this scheme cover the purchase of stock? Many farmers have asked if it could be used for the purchase of cows or even cattle for fattening. Could the scheme be open for that?

Acting Chairman (Deputy Eugene Murphy)

I ask the Minister to answer the four questions in one minute.

Deputy Michael Creed

I am satisfied that this will be a really good scheme. The Central Bank reported that the cost of credit in the first quarter of 2016 was significantly out of kilter with our EU counterparts. That is a significant input cost. This scheme is a response to that and it also addresses some Brexit-related challenges.

I am somewhat taken aback by the volte-face from the Opposition benches. Two weeks ago certain Deputies - not Deputy Cahill - more or less rubbished the scheme as offering nothing to farmers.

Deputy Charlie McConalogue

It should be complementing the tillage crisis.

Deputy Michael Creed

I very much welcome the volte-face. I point out to Deputy Cahill that it is available in high-street banks such as AIB, Bank of Ireland and Ulster Bank. In reality there is no other way to deal with it other than on a first-come, first-served basis and I advise farmers to engage.

The terms and conditions of the scheme are as constructed. For farmers paying high interest in overdraft facilities or paying credit card rates to cover merchant credit, this is an opportunity to substitute one with the other, which will improve cashflow and enable them to do the other things the Deputies mentioned.

Acting Chairman (Deputy Eugene Murphy)

I have to stop the Minister.

Deputy Michael Creed

There is sufficient flexibility to deal with that. That is the point Deputy Heydon mentioned.

Acting Chairman (Deputy Eugene Murphy)

We must move on.

Deputy Michael Creed

I say to Deputy Deering that we will have to wait to see the success of it. I think it will be successful and success generates its own problems. That is something we will revisit at a later stage.

Acting Chairman (Deputy Eugene Murphy)

I thank Deputy Cahill, in particular, for his help and co-operation with that last question. I thank other Deputies for making their points briefly. I thank the Minister, the Minister of State and all the Deputies who participated in putting questions to the Minister.

Written Answers are published on the Oireachtas website.

Sitting suspended at 5.05 p.m. and resumed at 5.25 p.m.