Written Answers Nos. 357-72
359. Deputy Seamus Kirk asked the Minister for Agriculture; Food and the Marine having regard to the targets set out in Harvest 2020, if his attention has been drawn to the disincentive if land ownership transfers to family members, under the stamp duty and gift and inheritance framework; if he has any plans to bring this matter up with the Department of Finance; and if he will make a statement on the matter. [40553/12]
View answerI am aware of the importance of improving land mobility and of encouraging greater transfer of land, and of the existing challenges in this regard. In order to assist meeting the ambitious targets set out in Food Harvest 2020, new taxation measures were introduced in last year’s budget aimed at improving land mobility and farm consolidation, and encouraging transfers to younger, more progressive farmers. Two measures are of particular note in this regard;
1. Reduced stamp duty rate applying to farm transfers
2. Restructuring of Capital Gains Tax (CGT) retirement relief
1. Reduced stamp duty rate applying to farm transfers
There was a reduction in the stamp duty rate applying to the sale on agricultural land from 6% to 2%. In addition, half the rate (1%) is now applicable on transfers to close relatives until the end of 2014. This change substantially reduced the stamp duty payable on transfers of farm land by gift or by sale. The measure promotes inter-generational transfer, as the cost of lifetime transfer to transferees who do not qualify for the young trained farmer stamp duty relief has been reduced considerably.
2. Restructuring of Capital Gains Tax (CGT) retirement relief
Budget 2012 restructured the retirement relief available on Capital Gains Tax in order to incentivise the earlier transfer of farm assets to the next generation, and to encourage the sale of land by those farmers with no successors. As of 1st January 2014, for those farmers aged 66 and over, an upper limit of €3m will be introduced on family transfers, compared to an unlimited amount currently. On non-family transfers, the current upper limit of €750,000 will be reduced to €500,000. Applying the new limits from 1st January 2014 allows farmers already aged 66 and over to plan the orderly transfer of assets in advance of that date.
It is important to remember that these new measures do not mean that a farmer has to cease farming altogether beyond the age of 66, but it allows them to plan for a phased gradual transfer of assets to the next generation.
Retirement relief was restructured in order to encourage farmers around the normal retirement age, who have successors, to transfer their land and holdings to young, innovative, ambitious, prospective farmers. This measure encourages an improvement in the age profile of farmers, and should ensure that farmland is put to more productive use. It should be noted that there has been no change to the very important 90% agricultural relief on Capital Acquisitions Tax (CAT). This means that farms worth up to €2.5 million will continue to be fully exempt from CAT with regard to transfers to a child.
363. Deputy Regina Doherty asked the Minister for Agriculture; Food and the Marine if his Department still grants leave of absence; and if not, the reason this is not considered as a neutral cost saving exercise; and if he will make a statement on the matter. [40589/12]
View answerMy Department grants leave of absence on an unpaid basis in accordance with the regulations which govern such leave. Each application for such leave of absence is considered on its own merits.
364. Deputy Martin Ferris asked the Minister for Agriculture; Food and the Marine if he will provide the most recent statistics on the number of farmers receiving less than €5,000 in single farm payment, the number receiving payments below €50,000, the numbers receiving more than €50,000, the numbers receiving more than €100,000; and if he will make a statement on the matter. [40616/12]
View answerThe numbers of farmers in receipt of payments under the 2011Single Payment Scheme in the categories requested were as follows:
|
Band |
No of farmers paid SPS in 2011 |
|
Greater than 99,999.99 |
243 |
|
50,000 - 99,999.99 |
1,804 |
|
5,000 - 49,999.99 |
69,543 |
|
0 - 4,999.99 |
52,193 |
365. Deputy Bernard J. Durkan asked the Minister for Agriculture; Food and the Marine if, arising from recent protests by farming representatives, he is satisfied that the various supermarket chains are fully committed to a fair price structure for the producer and that the use of loss leaders is not used as a means of price reduction at a time of economic difficulty; and if he will make a statement on the matter. [40638/12]
View answerThe negotiation of commercial contracts is essentially a matter for the contracting parties. Prices paid for products in the marketplace are a function of a number of market forces.
The Programme for Government contains a specific commitment to enact fair trade legislation in the retail sector so as to ensure balance between various players in the grocery goods sector. This comes under the remit of the Minister for Enterprise, Jobs & Innovation – Richard Bruton TD. I understand that legislation is currently being prepared by the Office of the Parliamentary Draftsman, at the request of his Department, to allow for the introduction of a statutory Code of Practice to regulate particular practices in the grocery Trade.
At EU level the high level group on better functioning of the Food Supply Chain has asked the Expert Business to Business Platform to make recommendations on a Community wide approach. The Platform has drafted guidelines of good practice but has not yet reached agreement on implementation. Discussions are continuing.
366. Deputy Bernard J. Durkan asked the Minister for Agriculture; Food and the Marine the extent to which he continues to monitor the labelling of various food products with particular reference to indicating the country of origin in respect of meat, fish and poultry products; and if he will make a statement on the matter. [40639/12]
View answerThe Minister for Health has overall responsibility for the general food labelling legislation and the new EU food information regulations were adopted by the Council of Health Ministers.
The Food Information for the Consumer Regulation (1169/2011/EC) extended explicit compulsory origin labelling requirements to meats other than beef, with the detailed rules to be adopted in implementing acts by 13 December 2013, following an impact assessment by the Commission. The Regulation also adopts rules on compulsory labelling where the origin or place of provenance of a food is given and where it is not the same as its primary ingredient. Insofar as meat as an ingredient is concerned, these rules are subject to the adoption of implementing acts, which must themselves take account of an impact assessment to be carried out by the Commission and reported to the European Parliament and the Council no later than 13 December 2013. It is not expected that any subsequent implementing legislation will be effective until 2014.
The Food Safety Authority of Ireland has overall responsibility for enforcement of food labelling regulations. My Department’s responsibility only extends to carrying out annual traceability and labelling audits at all approved beef processing plants and cold stores. In addition, my Department conducts inspections to monitor compliance with poultrymeat labelling provisions at processor, wholesaler and retailer level including the requirement to indicate country of origin on fresh and frozen poultrymeat (whole and cuts) in loose and prepacked form.
The requirements for the labelling of fishery and aquaculture products are set down in Council Regulation (EC) No. 104/2000, on the common organisation of the markets in fishery and aquaculture products, and Commission Regulation (EC) No. 2065/2001, laying down detailed rules for the application of Council Regulation (EC) No. 104/2000 as regards informing consumers about fishery and aquaculture products. These regulations were transposed by the European Communities (Labelling of Fishery and Aquaculture Products) Regulations, 2003 (S.I. No. 320 of 2003).
Enforcement of this legislation may be carried out by sea fisheries officers from the Sea Fisheries Protection Authority and by officers authorised under the European Communities (Labelling, Presentation and Advertising of Foodstuffs) Regulations, 2002 (S.I. No. 483 of 2002). Officers in this latter category include Environmental Health Officers and inspectors of Office of Director of Consumer Affairs.
367. Deputy Bernard J. Durkan asked the Minister for Agriculture; Food and the Marine the extent to which he has had discussions with producer representatives in the pig industry with reference to matters arising from meeting extra accommodation costs associated with animal welfare legislation with particular reference to the ability of producers to meet the deadlines of 1 January 2013, if he will use his influence with the planning authorities and the banking sector to ensure a coordinated effort; and if he will make a statement on the matter. [40640/12]
View answer368. Deputy Bernard J. Durkan asked the Minister for Agriculture; Food and the Marine the extent, if any, to which he has had discussions with pig producers, the banking sector and local authorities with a view to the coordination of efforts to comply with animal welfare legislation which requires extra expenditure by the compliance date of 1 January 2013; and if he will make a statement on the matter. [40641/12]
View answerI propose to take Questions Nos. 367 and 368 together.
The pig sector remains the third largest individual component of the agri-food sector, with production, prices and exports all growing significantly during 2011. Prices have continued to increase during 2012 and are currently at record levels, some 12.53% ahead year on year, or 18c per kilo higher. The industry faces a number of challenges in the short and medium term and my Department will continue to assist the sector to resolve these issues.
New EU Animal Welfare rules set down new standards in relation to the housing of sows and will come into force on 1 January 2013. A significant number of producers have undertaken the necessary work required in order to upgrade their facilities in order to comply with the new rules.
Notwithstanding this, my Department is aware of the scale of the challenge facing pig farmers in respect of the new requirements. To this end, the Department introduced a Targeted Agricultural Modernisation Scheme (TAMS) for Sow Welfare in June 2010, with a total of €13 million being set aside under this scheme. It follows two earlier schemes in 2005 and 2007 which made payments of €6.36 million to 64 applicants.
Following discussions with producers and the evidence of the initial stages of the scheme my Department modified and improved some elements of the scheme. Grant-aid is now available at a rate of 40% to eligible producers with a maximum investment ceiling of €500,000 for the first sow house, with further amounts of €300,000 for each of the next three houses. Applications from 47 producers with a value in grant terms of €4 million were received prior to the enhancement of the scheme. Since the revised scheme was launched a further 37 applications have been received with a grant value of €7.1 million. This latter number includes a small number of the initial 47 which were withdrawn and resubmitted under the more favourable terms. The penultimate tranche closed yesterday with a final closing date for applications of 31 October 2012.
I, together with officials from my Department met with the IFA during the summer to discuss a number of issues including the new animal welfare measures. My officials continue to engage with all relevant stakeholders with a view to ensuring Ireland’s compliance with the requirements by the January 2013 deadline. My Department is in regular contact with banking representatives and has encouraged them to discuss requirements with sectoral agri-food interests. It is of course important that those seeking credit present a suitable business case with detailed cash flow projections. In this context the Department also facilitated contacts between Teagasc and the Banking sector to encourage seminars and training in relation to credit application. Any farming enterprises that feel they have not been treated fairly in relation to access to credit can contact the Credit Review Office, who will review their case.
Improving access to credit is a priority on the business agenda and is an issue which the Government is addressing in a comprehensive and co-ordinated manner. To address the issue the Department of Jobs, Enterprise and Innovation will shortly launch both the Temporary Partial Credit Guarantee Scheme and a Microenterprise Loan Fund for small business. While primary production in agriculture, horticulture and fisheries are excluded from the scope of the Credit Guarantee Scheme in the light of particular restrictions under the De Minimis State Aid rules, these enterprises may be eligible under the Microenterprise Loan Fund provisions.
I am also working to improve access for Irish pigmeat to 3rd Country markets, and indeed in 2011, exports of Irish pigmeat to international (non-EU) markets increased by 25% to 43,000 tonnes. I can assure you that my Department and its agencies will continue to work closely with the industry to ensure that it can continue to develop and grow in accordance with the targets in the Food Harvest 2020 Report.
370. Deputy Bernard J. Durkan asked the Minister for Agriculture; Food and the Marine if his attention has been drawn to any particular trends whereby the banking sector has reduced or in some cases removed overdraft or other lending facilities available to the farming community resulting in a diminution of the viability of farm enterprises and as a result the wider economy; if his attention has been further drawn to the extent to which such facilities have been with drawn or reduced over the past three years; and if he will make a statement on the matter. [40643/12]
View answerI and my Department are in regular contact with farm bodies, various national banks and the Banking Federation concerning the availability of credit to farmers. I am aware that, like many other sectors, farmers are finding it difficult to get credit due to the strict assessments introduced as a result of the global financial crisis. The banks do provide information online, via the Irish Banking Federation, as to the type of information that they require when making a decision on a loan request in the agriculture sector, however, farmers who are not satisfied with the service provided by their banks can ask for an internal review by the relevant bank and if they are still not satisfied can apply to the credit review office to have their case reviewed. Despite concerns, a relatively small number of cases from the Agri-Food sector have come before the Credit Review Office.
Over the last year some of the banks have been involved in organising information sessions and conferences to explain the credit facilities available in the sector and just this month one of the pillar banks announced its intention to expand its lending activity in the agri-sector. Nonetheless, I will continue to meet with relevant parties, including the Irish Banking Federation, on a regular basis to discuss all credit-related issues.
371. Deputy Bernard J. Durkan asked the Minister for Agriculture; Food and the Marine the extent to which the potato crop has been negatively affected by weather conditions in the current year; if he will intercede with the European authorities and the banking sector with a view to ensuring the survival of the sector; and if he will make a statement on the matter. [40644/12]
View answerPotato yields have suffered due to the very wet weather over the summer period. In addition, quality has also been negatively affected. There are significant problems with blight in this year’s crops due to high disease pressure coupled with grower’s inability to spray at the appropriate times during the severe wet weather. In many cases harvested potatoes are also showing signs of rot and other wet weather conditions. Increased production costs associated with the poor weather and rising input costs for growers will have to be carried by a significantly lower marketable yield.
These poor yields are being offset somewhat by higher prices. In addition, improved weather has provided good harvesting opportunities over recent days. Unfortunately, the EU Commission does not provide funding to compensate for losses that arise due to this type of adverse weather conditions. My Department and other State agencies will continue to work with potato growers and the industry to ensure the long-term viability of the sector.
372. Deputy Bernard J. Durkan asked the Minister for Agriculture; Food and the Marine if he is satisfied that sufficient measures are in place and any necessary steps are taken through the medium of the common agricultural policy to ensure the viability and the future development of the food producing sector throughout Ireland and European Union and furthermore any subsequent discussions in the context of the World Trade Organisations are not allowed to undermine or weaken the CAP; and if he will make a statement on the matter. [40645/12]
View answerI believe there is a good commitment within the EU to a strong agri-food sector and an increased recognition of the importance of the sector’s contribution to the achievement of economic, social and environmental objectives. In developing the EU2020 strategy for recovery and growth in Europe, Heads of State and Government in the European Council recognised this contribution concluding that “a sustainable, productive and competitive agricultural sector will make an important contribution to the new strategy, considering the growth and employment potential of rural areas while ensuring fair competition”.
The three key principles underpinning the EU Commission’s proposals for reform of the Common Agricultural Policy are to preserve food production potential in the EU, to ensure sustainable management of natural resources and to maintain viable rural areas. In those circumstances, I am satisfied that there is good support to ensure the viability and future development of the food industry throughout Europe.
My own view is that food security in the European Union is the essence of what the new Common Agricultural Policy is about. Growing populations and increasing demand for protein-based foods, which is what we predominantly produce in Ireland through the dairy and meat industries, present a significant opportunity not only to continue, as the EU has been, to promote a sustainable way of producing food from an environmental and climate point of view but also to produce greater volumes of food. I will continue to make the case for sustainable intensification of food production, which is what agriculture should be all about.
As to the WTO Doha Development Round, talks are stalled at present and the prospects for conclusion of an agreement are uncertain at this point in time. Nevertheless, I will continue to maintain pressure to secure an acceptable outcome from these negotiations that does not undermine the development of European and Irish agriculture.
