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Common Agricultural Policy Negotiations

Dáil Éireann Debate, Tuesday - 6 November 2012

Tuesday, 6 November 2012

Questions (90)

Éamon Ó Cuív

Question:

90. Deputy Éamon Ó Cuív asked the Minister for Agriculture, Food and the Marine if he will confirm that all decisions on Pillar 1 and 2 of the common agricultural policy will be made at the same time; when the details of the proposed Pillar 2 proposals are due to be published; and if he will make a statement on the matter. [48450/12]

View answer

Oral answers (17 contributions)

I am glad this question was asked because there has not been enough discussion of Pillar 2 and related decisions.

The likelihood is that there will be some element of sequencing in the CAP reform negotiations and not all decisions will be taken at the same time, although political agreement on a deal will most likely cover all of the key elements both for Pillar 1 and for Pillar 2.

As the Deputy will be aware, there are two separate and parallel negotiating processes in play on this dossier.

Certain elements of CAP reform, largely related to funding, are being dealt with as part of the negotiations on the multiannual financial framework for the EU budget. These elements will be decided by Heads of State and Government, and a special meeting of the European Council has been convened for 22 and 23 November for this purpose. That meeting may in fact go on for three or four days. The European Parliament must give its consent to any agreement reached.
In parallel, the European Agriculture and Fisheries Council will take the decisions on the other policy elements of CAP reform in full co-decision with the European Parliament. The Council is now scheduled to meet on 28 and 29 November and the intention of the Cyprus Presidency is to seek what is known as a “partial general approach” on all the CAP reform regulations at that meeting, in other words, the position of the Council to prepare for the discussions with Parliament.
The Commission published its proposals for Pillar 2 of the Common Agricultural Policy in October of last year as part of a package of seven legislative proposals for reform of the CAP after 2013. While I can provide the Deputy with further information on these should he wish, I suspect his main concern relates to the amount of funding available for Pillar 2 and the distribution of that funding. The Commission proposal is to provide €90.9 billion in funding for rural development over the seven year period from 2014 to 2020, and this forms part of the multi-annual financial framework, MFF, negotiations that will be up for decision by Heads of State and Government later this month. The draft regulation on rural development proposes that these funds will be distributed between member states on the basis of objective criteria and past performance. The Commission has yet to publish concrete proposals on distribution or to provide full details of the criteria and weightings it is planning to use.
Additional information not given on the floor of the House
I have been pressing the Commission for some time to come forward with concrete proposals for distribution of Pillar 2 funds. I believe it is unrealistic to expect member states to sign up to proposals for the allocation of Pillar 1 funds without knowing the Commission’s intentions on the second pillar. I have serious concerns that the envisaged use of a combination of past performance and objective criteria to determine distribution of Pillar 2 funds will reduce our allocation. I believe an objective criteria approach cannot provide a solution that will address the concerns of all member states and should be abandoned. Allocation of Pillar 2 funds should be based on past performance only, as measured over the entire 2007 to 2013 rural development programming period. Any adjustment beyond that should use the same methodology as the Commission has proposed for Pillar 1.
I am also pressing for Pillar 1 and pillar 2 funds to be considered together, and for the pragmatic approach being employed for direct payments to be used for rural development as well. The latter would be consistent with the complementary nature of the two pillars within one Common Agricultural Policy. In addition, no member state with below average Pillar 2 payments per hectare should lose in any redistribution, and no member state should lose under both pillars. As Ireland receives lower than average payments per hectare for direct payment and rural development funds combined, I see no justification for any reduction.

I am sure the Minister would agree that the so-called objective criteria can be somewhat less than objective depending on how they are written. I am sure he does not accept that and will be trying to get these so-called objective criteria written in such a way that they will favour Ireland. Does the Minister accept that Pillar 2 payments are of greater importance proportionately to areas of less fertile land? Can he confirm there will be a disadvantaged area scheme and a rural environment protection scheme under Pillar 2? Will there be a mandatory minimum this time that must be used for Leader-type actions? In other words, the Leader-type actions will be taken out of this Pillar 2 fund. On the previous occasion, a mandatory amount was required to be devoted to that type of non-farm activity. Can the Minister confirm if that will be the case this time and indicate what level is proposed?

Can the Minister give an absolute assurance to the House that in the event of Ireland being in the Presidency of the European Union when the final decisions are made on the CAP, no decision will be made on anything, in particular on Pillar 1, until the decisions are made simultaneously? I do not mean they would all be put through on the nod on the final day, but real decision-making should not take place on Pillar 1 until we are absolutely clear on what is in Pillar 2. Can the Minister confirm whether the Government will be able to provide the co-funding for the payments that will be provided by the European Union so that we can be assured of 100% drawdown of European money?

On the last question, I can assure the Deputy that it is my full intention that we are not leaving any money behind in Brussels, as farmers would say. Ireland has been one of the better countries in the EU at ensuring that has been and is the case, under previous governments and this one. There is one matter on which I cannot give the Deputy an assurance because it is a decision for Heads of State and Government, although I will be influencing the Irish position. The Heads of State and Government will decide the budget for Pillar 1 and Pillar 2 within the overall budget. The Heads of State and Government will also decide how that is distributed between member states. The build-up to the meeting of the Heads of State and Government will be very important for CAP and the overall budget we will get. That will not be a decision for Ministers for Agriculture.

Our task, with the European Parliament, will be to decide the mechanisms for spending that money following decision on the matter by the Heads of State and Government.

I am working with the Taoiseach to ensure Ireland gets fair treatment in relation to Pillar 2. I suspect that one of the reasons for the uncertainty and ambiguity around the amount of money to be allocated under Pillar 2 is that this issue will be one of the negotiating tools of the overall multi-annual financial framework discussions. It should not be forgotten that the Common Agricultural Policy represents only 38% of the EU budget and that the Cohesion Fund and research and innovation fund are also big pots of money.

During the political negotiations on the allocation of the overall budget, which will take place in a few weeks time, I will try to ensure Pillar 2 funding is not used as a bargaining chip to try to get agreement on other allocations, including Cohesion Funds, and to ensure Ireland does not lose out in this regard. We are working hard to ensure this will be the case.

On the disadvantaged areas scheme, I envisage there will be a future DAS, although eligibility and qualification for same may change somewhat. As regards a rural environment protection scheme, we will have to wait and see what money is available in that area. A minimum amount of money will be required for Leader-type schemes.

The Minister used the phrase "to try to ensure" in his reply, which gives enough wriggle room to turn a jumbo jet. Perhaps he will clarify whether it is the intention of the Minister for Public Expenditure and Reform to ensure he will succeed in his attempts to get the level of funding necessary to match the European funding?

It is the Taoiseach, rather than the Minister for Agriculture, Food and the Marine, who leads those negotiations.

I am speaking about Irish Exchequer funding to match European funding.

The Taoiseach also leads those discussions. As such, he can ensure the Minister for Agriculture, Food and the Marine gets the money. Rather than telling us he intends to try and all the rest of it, perhaps the Minister will say whether it is the position of the Minister for Public Expenditure and Reform that he will match the European funding provided, regardless of the amount involved.

I accept what the Minister had to say in regard to the multi-annual financial framework. What I asked, however, was whether the Minister can assure the House that if Ireland is in the chair at the time of the negotiations on the multi-annual financial framework, the decisions in regard to Pillar 1 and Pillar 2 will be made at the same time. In other words, there should be no conclusion of the negotiations on Pillar 1 until such time as the situation in relation to Pillar 2 has been clarified.

I am not sure whether the Deputy is seeking clarification around the amount of money we can spend or on how we can spend it. I cannot give any assurances on behalf of the Minister for Public Expenditure and Reform. He can speak for himself. My job is to ensure Ireland gets sufficient money and full drawdown under EU schemes.

Is there not Cabinet policy on the matter?

I intend to ensure we do so through the budgets which we will put together over the next few years.

On the matter of overall agreement on CAP and ensuring agreement on Pillar 1 and Pillar 2 is reached at the same time, I assume what the Deputy is seeking is that we do not have half-agreement on CAP in terms of agreement on Pillar 1 allocations only. It is the intention of the Irish Presidency to finalise the entire CAP package, pillars 1 and 2.

Will that occur at the same time?

Yes. We need to work on achieving a conclusion during Ireland's Presidency, which will not be easy in terms of the amount of time available to us. We intend getting final agreement on pillars 1 and 2 at the same time, which it is hoped will be around May of next year.

Was a minimum amount sought for non-farm Pillar 2?

What is the percentage?

I think it is between 5% and 10%. I will forward the correct figure to the Deputy.

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