Dáil Éireann Debate, Thursday - 30 October 2008
7 Deputy Joe Carey asked the Minister for Agriculture, Fisheries and Food if he will provide a status report on the Common Agricultural Policy health check negotiations; the potential impact the proposals will have on the agricultural sector here; and if he will make a statement on the matter. [37503/08]
View answerThe Common Agricultural Policy health check dossier was presented to Ministers at the informal Council meeting that was held in May. A full first round examination of the text of the dossier has been completed by the working groups. Most of the technical and linguistic issues have been addressed. Trilateral meetings took place at the meeting of the Agriculture and Fisheries Council on 29 and 30 September to identify three main priorities for each member state. It is intended that the debate on the political issues will commence in October, at the special committee on agriculture and at a series of high-level working groups. Further trilateral discussions took place at a meeting of the Agriculture and Fisheries Council in Luxembourg on Monday night and Tuesday morning of this week. The discussions aimed to further refine the outstanding political issues. The negotiations are entering a decisive phase. The French Presidency remains confident that the proposals will be adopted as a package at the November meeting of the Agriculture and Fisheries Council. The health check proposals, which have been described as a fine tuning of the 2003 reform of the Common Agricultural Policy, concentrate on three areas. The implementation of the single payment scheme is being reviewed. Various market management measures, including the milk quota regime, are also being reviewed. The Union is working on its response to the new challenges of climate change, bioenergy, water management and biodiversity.
The impact of this package of measures on Irish agriculture will depend on what is agreed at the end of the negotiations. During that process, I will try to achieve the best possible outcome for Ireland and for our agriculture sector. I outlined the issues which are of concern to Ireland to the Commissioner, Ms Fischer-Boel, the French Presidency, Commission officials and to my colleagues in other member states. I will continue to take an active role in the discussions at every opportunity and to reiterate our priorities.
During the meeting of the Agriculture and Fisheries Council in Luxembourg on Tuesday of this week, I had a productive and constructive private meeting with the Commissioner, Ms Fischer-Boel, and the President of the Agriculture and Fisheries Council, Mr. Barnier. We discussed Ireland's main priorities during the Common Agricultural Policy health check. I explained that my key concerns pertain to milk quotas and additional modulation. I stressed the need for a genuine soft landing in the milk sector when milk quotas come to an end. A predictable set of steps will have to be followed at that stage to allow farmers, and the industry as a whole, to plan for the future. I emphasised the need for progressive quota increases. I specifically requested that additional quota allocations for Ireland be front-loaded, in light of Ireland's capacity to increase production progressively. I asked the Commissioner to make adjustments to the butter fat calculations to facilitate the release of higher levels of quota in 2009.
Additional information not given on the floor of the House.
I outlined to the Commissioner my opposition to the substantial increase in modulation that is proposed. I sought an increase in available EU funding for special sectoral measures to assist farmers. Many member states, including Ireland, cannot fully utilise the funding allocated for the single farm payment scheme because of the complex and restrictive rules governing it. Therefore, I am seeking greater national discretion in the use of these funds. If agreed, this would release these unspent funds, in effect, and provide additional money for necessary measures to assist farmers. A consultative process with key stakeholders was established to advise on the main issues arising in the health check. The output from this will feed into Ireland's position in the negotiations.
I see Mr. Barnier has indicated an anxiety to complete the health check during the French Presidency. Does the Minister think that is realistic? Does the Minister agree with what is on the table regarding modulation? I am interested in this particularly in the context of the Irish sheep sector. I suspect a nod and wink game is being played between the Minister and the Commissioner; the Minister will publicly oppose the increased modulation, but on the basis that it will salvage the sheep sector, he will take credit for it out of the other side of his mouth. No robbing Peter to pay Paul is acceptable in the context of the single farm payment modulation proposals. We need something for the sheep industry but not by taking from one farmer's pocket to put it into another's. Returning here and hiding behind Commissioner Fischer Boel's coat tails on modulation will not be acceptable.
My second question is serious and coming from where he does in terms of the milk industry and processing companies in his area the Minister will be very familiar with it. Global dairy markets are in a tail spin. While much of the debate on the CAP health check is on increased quotas, would the Minister agree that the political imperative is to put some kind of floor price on dairy produce? Skimmed milk powder and butter prices are down almost 50% in 12 months. It is an alarming situation and predictions on price per litre will cause carnage not just at farm gate but also in the processing industry. Will the Minister use the health check to advance that agenda of imposing a floor price on dairy produce?
On the French Presidency's optimism or expectations on when the health check should be completed, there was an Agriculture and Fisheries Council on Monday and Tuesday of this week. The next meeting is on 18 and 19 of November and we have pencilled in another day for the end of November, around the last Friday of November. From speaking to other member states and the French Presidency, their expectation is that very substantial progress will be achieved by 19 November. We have all been advised for some time of the expectation of another council meeting before the end of November should the health check discussions not be finalised on 19 November. Earlier in the week we had our second trilateral meeting with Commissioner Mariann Fischer Boel and with the Presidency, as have all other member states. The first meeting took place a few weeks earlier. We clearly outlined our total opposition to the proposals contained in the Commission papers for a very serious rise in modulation rates. We have consistently outlined our position, both in the Council of Ministers at the full plenary meetings and in our trilateral discussions.
In discussions officials of my Department and I have had with the dairy industry, processors and farming organisations, the views of the farming organisations diverge on the need for additional milk quota. Unfortunately, demand for daily products in Europe has decreased, which has resulted in lower prices for farmers. That has arisen due to increased exports from the US and New Zealand. Another ingredient in the decreasing prices has been currency fluctuations. I believe, and we have argued strongly with the Commission, that Ireland has the capacity to use additional milk quota. The processors and the dairy industry, apart from the dairy farmers, are——
I want to allow another supplementary question.
What about getting a floor price rather than more quotas?
The Minister might answer that with the next supplementary question.
On the modulation issue, I am reassured to a certain extent by the Minister's statement on the move from pillar one to pillar two. Is there a political appetite in the Council of Ministers for the rate of change from pillar 1 to pillar 2 as envisaged by the Commission proposal? My second question is on climate change proposals. There is a view that the basis of measurement of greenhouse gas emissions from agriculture is predicated on a faulty methodology. Will the Minister examine that methodology and request an independent, scientific analysis of it? It will have far-reaching effects on Irish agriculture and that is the reason for my question.
On Deputy Creed's earlier point on the market mechanism measures, the Commission has strongly pushed for their removal. We have argued trenchantly that the aids to private storage and intervention measures are absolutely essential to ensure that this mechanism will kick in should there be a surge in supply from other continents or a dramatic reduction in demand. In our trilateral discussions we highlighted that issue, that the dairy industry needed those market mechanisms because it gives some stability to the industry in planning. In recent times, say last year, thankfully those measures were not needed.
Either Deputy Sherlock or one of his Labour Party colleagues has a question on climate change. At a recent Council of Ministers meeting I asked that a specific item be included on climate change as it affects agriculture. I spoke to Deputy Sherlock's colleague, Deputy McManus on this issue. A significant demand is being made on agriculture. The Department provided substantial funding through the stimulus of the FIRM fund where widespread research has been undertaken in the past few years and is undertaken. Teagasc, with other authorities, has done extensive research in this area. It goes into the whole area. There has been substantial progress in recent years in reducing emissions but that may not always be given the currency it should.
