I propose to take Questions Nos. 41 and 62 together.
According to records held in my Department, some 79 poultry flocks are involved in the production of hatching eggs, with a further 33 involved in rearing these birds to laying age. The EU's State Aid rules constrain the financial assistance that can be provided by Member States to food business operators, including poultry producers. Usually, such assistance is linked to avian health or welfare considerations.
For example, Council Directive 99/74/EC prohibits the use of conventional cages within the EU, and comes into effect from 1 January 2012. Production thereafter will only be allowed in ‘enriched cages' or non-cage systems, i.e. either free-range or barn systems, including organic systems. The Directive lays down specific requirements that must be delivered by enriched cages, including provisions regarding space, nesting, perches, litter, feed trough and aisle width.
Mindful of the additional costs this will place on producers, earlier this year I introduced the Poultry Welfare Scheme which will assist producers meet the new animal welfare standards for poultry production. Under the scheme, €16 million is being made available for conversion to enriched cages, free-range or barn systems. The scheme will provide for grant-aid at a standard rate of 40 per cent for investments in new laying hen structures, conversions and upgrades.
It is important that the industry post January 2012 is fully compliant with the new standards and is in a position to compete, both domestically and with imports. The provision of aid reflects the importance placed on the maintenance of the highest standards of animal welfare in the laying hen sector and this will serve as a valuable selling point for Irish producers. It will help to preserve and protect the excellent reputation of the Irish laying hen producer sector in the future.
I understand a number of applications for grant aid under the scheme have been received and are currently being processed in the Department's On Farm Investment Division in Johnstown Castle, Wexford. The closing date for applications is 30 June 2011 with all work to be completed by 31 December 2011.
