The implementation of the nitrates directive is, in the first instance, a matter for the Minister for the Environment, Heritage and Local Government. Ireland is legally obliged to put into effect an action programme for the further implementation of the nitrates directive. The European Court of Justice, in its judgment of 11 March 2004, held that Ireland had not fulfilled its obligations under the nitrates directive by reason of its failure to establish and implement an action programme in accordance with Article 5 of the directive. It is open to the court, on the application of the European Commission, to impose substantial fines against Ireland if early action is not taken to give full effect to the directive by establishing and implementing an action programme.
Furthermore, the terms of the action programme need to be finalised at an early date given that continued EU co-funding of major schemes such as REPS, disadvantaged areas compensatory allowances, early retirement and forestry is conditional on satisfactory implementation of the nitrates directive. The directive is also EU legislation with which farmers must comply under the single payment scheme.
While Ireland must meet its obligations under the directive, it is my objective and that of my colleague, the Minister for the Environment, Heritage and Local Government, to ensure that it is implemented in a way that will not impact adversely on the viability of Irish farmers or impose unnecessary restrictions or obligations on them. A draft action programme prepared by the Department of the Environment, Heritage and Local Government, in conjunction with my Department and in consultation with Teagasc, was presented in December last to representatives of the main farming organisations and other stakeholders. Written submissions on the draft action programme have been received from 70 stakeholders, including all the main farming organisations. A revised draft is now being prepared and will be conveyed to the farming organisations in the near future.
The implementation of the nitrates directive has been the subject of discussion between officials of both Departments and the farming pillar under Sustaining Progress. Together with the Minister for the Environment, Heritage and Local Government, I will meet farming organisations in the near future to discuss the matter further. The Government is committed under Sustaining Progress to using the flexibility in the nitrates directive to seek European Commission approval for organic nitrogen limits of up to 250 kg per hectare a year to be allowable in appropriate circumstances. When the draft action programme has been submitted to the Commission, Ireland will also submit a derogation proposal designed to take account of the unique characteristics of Irish agriculture. The objective will be to achieve approval for appropriate derogation arrangements in a manner that underpins the future of our commercial agriculture sector.
In keeping with other commitments in Sustaining Progress, I have already taken significant steps to address the possible costs at farm level of the implementation of the draft action programme. At the beginning of the year I made changes in the farm waste management scheme and the dairy hygiene scheme which will make these measures more accessible to a greater number of farmers and increase their monetary value. With effect from 1 June, I introduced changes to the rural environment protection scheme which will deliver an average increase of 28% in payments to participating farmers. In addition, the scheme of capital allowances for expenditure on farm pollution control has been extended to the end of 2006.
