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Rural Development Programme Funding

Dáil Éireann Debate, Wednesday - 20 November 2013

Wednesday, 20 November 2013

Questions (168, 172)

Nicky McFadden

Question:

168. Deputy Nicky McFadden asked the Minister for Agriculture, Food and the Marine the position regarding the delivery of 50:50 national co-financing to complement the EU rural development funding; if the income concerns of farmers who depend significantly on pillar II rural development payments will be adequately addressed; and if he will make a statement on the matter. [49722/13]

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Willie Penrose

Question:

172. Deputy Willie Penrose asked the Minister for Agriculture, Food and the Marine the co-financing funding that will be available from the Government under the rural development plan between 2014 and 2020 under which approximately €330 million per annum is available from the EU; if consideration is being given to include measures that will be supported in terms of investment aid, land mobility and agri-environment in such a plan; and if he will make a statement on the matter. [49789/13]

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Written answers

I propose to take Questions Nos. 168 and 172 together.

The European Council agreement on the Multi-annual Financial Framework (MFF) provides a total of €2.19bn, or some €313m per year, for Ireland under Pillar 2 of the CAP for the period 2014 - 2020. The development of a new Rural Development Programme under Pillar 2 will be a key support in enhancing the competitiveness of the agri-food sector, achieving more sustainable management of natural resources and ensuring a more balanced development of rural areas.

A general EU co-financing rate of 53% is set out in the draft Rural Development Regulation but this rate may rise to a maximum of 80% for measures such as farm and business development, co-operation activities, and LEADER projects. Environmental type measures may be co-funded up to 75%. The total Exchequer funding that will be required to draw down the available EAFRD funding will depend on the types of measures included in the new Rural Development Programme and on the co-financing rates applied to these measures.

There are a number of conditions attached to Ireland’s allocation of €313 million per annum. The draft Regulation provides that at least 5% of EAFRD funding must be reserved for LEADER while the draft Common Provisions Regulation provides that 6% of EAFRD funding must be set aside to a national performance reserve. The funding set aside to the performance reserve will be allocated to each Member State following a performance review in 2019. The draft Rural Development Regulation also sets out that 30% of the total EAFRD amount must be reserved for environmental operations and climate change mitigation and adaptation measures. In addition to these considerations, transitional funding for commitments arising from the current RDP and continuing into the start of the new programming period will be included in the budgeting process for the coming years.

Work is currently ongoing in my Department to design the new Rural Development Programme (RDP) for the period from 2014 – 2020. In designing the new RDP, my Department must take account of the range of requirements set out in the draft Rural Development Regulation and the need to support key policy aims for the agri-food sector in the light of the Food Harvest 2020 strategy. In undertaking this work, a number of ex-ante analyses are being undertaken and a public consultation process has also taken place.

While final decisions in relation to what measures are to be included in the new RDP have not yet been made, my Department is in ongoing contact with the Department of Public Expenditure and Reform in relation to the overall financing that will be required. I expect to make decisions in relation to the measures to be supported under the new RDP by the end of this year, and to submit a draft programme to the Commission in early 2014.

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