Dáil Éireann Debate, Wednesday - 4 December 2013
138. Deputy Michael McCarthy asked the Minister for Agriculture, Food and the Marine his plans on the delivery of 50:50 co-financing to provide a combined EU-national annual budget of €660 million under Common Agricultural Policy Pillar II measures; and if he will make a statement on the matter. [52202/13]
View answer139. Deputy Michael McCarthy asked the Minister for Agriculture, Food and the Marine the action he will take in the context of the rural development plan 2014-2020 to address the income concerns of many farmers who depend on schemes, including disadvantaged areas, agri-environment options, REP scheme, suckler cow and sheep payments, which are vital supports and maintain the viability of farmers in vulnerable sectors and regions; and if he will make a statement on the matter. [52203/13]
View answer140. Deputy Michael McCarthy asked the Minister for Agriculture, Food and the Marine the steps he is taking to ensure that there is provision, under the rural development programme, to provide farm investment aid to support modernisation efficiencies across all sectors, including assistance for farm restructuring and competitiveness, through young farmer and other programmes; and if he will make a statement on the matter. [52204/13]
View answer141. Deputy Michael McCarthy asked the Minister for Agriculture, Food and the Marine the steps he is taking to ensure a strong Pillar II rural development programme, as part of the overall Common Agricultural Policy agreement, which is vital for vulnerable sectors and regions, particularly in disadvantaged areas; and if he will make a statement on the matter. [52205/13]
View answerI propose to take Questions Nos. 138 to 141, inclusive, 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.
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.
