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Thursday, 12 Dec 2013

Written Answers Nos. 1-21

Agrifood Sector Issues

Questions (6)

Michael McNamara

Question:

6. Deputy Michael McNamara asked the Minister for Agriculture, Food and the Marine the progress made to date on joint agricultural development and agribusiness investments in Ethiopia and Ireland; other opportunities being explored for agribusiness in Africa; and if he will make a statement on the matter. [53133/13]

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Written answers

Ireland has strong links with Ethiopia which have been developed over many years. Eighty five percent (85%) of employment in Ethiopia is currently provided by agriculture, therefore it is clear that the continued development of sustainable agriculture production systems and the development of a vibrant agri-food industry in Ethiopia represent huge opportunities to provide food and livelihood security for many millions of Ethiopians.

In this regard I believe that Ireland’s agri-food sector has a role to play in assisting Ethiopia reach its full potential. During the 3rd Africa Ireland Economic Forum, held in Dublin in October this year, I met my counterpart from Ethiopia, Mr Tefera Derbew, to discuss current developments in the agri-food sectors in Ireland and Ethiopia. At this meeting we signed a joint Statement of Intent which encourages enhanced cooperation between Ireland and Ethiopia in the areas of agriculture, in particular continued cooperation in the areas of Agricultural Research and Training.

In follow up to this at the end of October 2013 Teagasc signed a Memorandum of Understanding with the Ethiopian Institute of Agricultural Research which provides for further close collaboration between the two bodies.

Ethiopia is one of nine Key Partner Countries for Ireland’s overseas aid programme administered by Irish Aid. In 2012, Irish Aid’s bilateral programme spending in Ethiopia was €26 million. Irish Aid also provided funding to agencies including Concern, Goal, Self Help Africa, Trócaire and UN organisations in Ethiopia, bringing our total funding for Ethiopia to over €32 million.

In addition as the Deputy may be aware in 2012 the Tanaiste and I launched the Africa Agri-food Development Fund (AADF). The Fund aims to develop partnerships between the Irish Agri-Food Sector and African countries to support sustainable growth of the local food industry, build markets for local produce and support mutual trade between Ireland and Africa.

One project which has received funding from the Fund is MaGrow, a technology which uses magnetic inserts to improve spraying/irrigation equipment used for crop spraying. The project aims to develop a manufacturing facilities and jobs in both Ireland and Ethiopia. To date AADF funding has been approved for the start-up phase of the project which includes a comprehensive business plan and production of prototype to be followed by field trials in Ethiopia. AADF funding will also be considered the further stages of the project.

I will continue to encourage Irish private sector agri-food enterprises to look at the potential of Africa in the coming years to develop cooperation and trade.

Questions Nos. 7 to 10, inclusive, answered orally.

Food Harvest 2020 Strategy

Questions (11)

Bernard Durkan

Question:

11. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which the objectives set in the context of Food Harvest 2020 are being met to date; his expectations in this regard in the medium to long term; the extent to which he envisages greater opportunities for Irish and European food producers in the future; and if he will make a statement on the matter. [53069/13]

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Written answers

I am confident that the industry developed targets set out in Food Harvest 2020 are achievable and can be met. The main targets in the Food Harvest report are by 2020 to increase the value of:

- Primary output in the agriculture, fisheries and forestry sector by 33%;

- Value added production by 40%;

- Agriculture, food (including seafood) and drink exports by 42%;

In addition, a 50% increase in milk production and a 78% increase in the volume of aquaculture production is envisaged.

Progress on these targets and the 215 recommendations in the Food Harvest report are monitored and reviewed on an ongoing basis by the Food Harvest High Level Implementation Committee (HLIC). The HLIC, which I chair, consists of the senior officials of all state agencies involved in the agriculture, food and fisheries sector. Their third report “Milestones for Success 2013 ”, published in September, showed that the sector had achieved growth in excess of 25% (primary production), 20% (value-added) and 13% (exports) by the end of 2012, compared to the baseline period.

The CAP and CFP reforms, concluded during the Irish EU Presidency, provide a sound policy framework for the sustainable development of the agri-food and fisheries sector to 2020 and beyond. A range of State-led measures targeted at improving competitiveness and sustainability have been implemented, for example Enterprise Ireland’s Lean Business offer, the Teagasc/Farmer’s Journal BETTER Beef Farms; and Bord Bia’s Origin Green and Food Works initiatives.

Strong industry support and buy-in for the Food Harvest targets and vision is critical to success. Industry investment in processing, innovation and developing new markets proves the confidence, drive and ambition of Irish food companies. At primary level, farmers have shown an increased focus on efficiency and sustainability.

Opportunities exist to increase our exports to countries such as China, Russia, Africa, South East Asia and the Middle East, as demonstrated during my recent trade mission to the Gulf States. In addition, there will be opportunities arising for increased market access from the negotiation of Free Trade Agreements with Canada, USA, India, Japan, Thailand and Vietnam. I therefore believe that the agri-food and fisheries sector is well placed to meet the Food Harvest targets, and to make a substantial contribution to Ireland’s export-led economic recovery.

Aquaculture Licences Applications

Questions (12)

Martin Ferris

Question:

12. Deputy Martin Ferris asked the Minister for Agriculture, Food and the Marine the reason for the delay in processing licences for oyster and salmon farmers whose livelihood is threatened by lack of current, appropriate licensing. [53106/13]

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Written answers

The delay in processing these applications has arisen for a number of reasons, primarily the location of aquaculture operations in Natura 2000 areas.

The European Court of Justice declared in case C418/04 that, by failing to take all the measures necessary to comply with Article 6(3) of Directive 92/43 (Habitats Directive) in respect of authorisation of aquaculture programmes, Ireland had failed to fulfil its obligations under that Directive.

In the negotiations to address the judgment a process was agreed with the European Commission which would lead to full compliance by Ireland with the relevant EU Directives. This process includes the following steps:

- a detailed data collection in 91 Bays/Estuaries;

- detailed analysis of raw data collected;

- setting of Conservation Objectives by the National Parks and Wildlife Service (NPWS) in respect of each site;

- carrying out Appropriate Assessments of each licence application/fishery plan against the detailed Conservation Objectives set; and

- determination of Licences/Fisheries on the basis of the Appropriate Assessment and other relevant factors.

The data collection programme is substantially complete. Analysis of the data, together with the setting of appropriate conservation objectives by the NPWS, will enable all new, renewal and review applications to be appropriately assessed for the purpose of ensuring compliance with the EU Birds and Habitats Directives. This work represents a significant financial, administrative and scientific investment by the State in resolving this issue.

Conservation objectives had been set in relation to a significant number of bays and Appropriate Assessments have been carried in five bays (Castlemaine, Dundalk, Lough Swilly, Donegal Bay and Roaringwater). I am pleased to inform the Deputy that as a result of the above process I have made aquaculture licence Determinations in respect of applications in Castlemaine. A number of licensing determinations in respect of Roaringwater Bay have been made and others are imminent at this time.

My Department continues to make every effort to expedite the determination of aquaculture licence applications having regard to the need to comply with all relevant national and EU legislation.

Agriculture Schemes Payments

Questions (13)

Martin Ferris

Question:

13. Deputy Martin Ferris asked the Minister for Agriculture, Food and the Marine if he will amend the system in his Department to facilitate the release of 75% of rural environment protection scheme and agri-environment option scheme payments to all farmers in December and not hold up payments until the whole file is completed as any retention will be deducted from the remaining 25%; and if he will make a statement on the matter. [53108/13]

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Written answers

Area-based schemes under the Rural Development Programme, 2007-13, are subject to EU Regulations which require detailed administrative checks on all applications, including cross checks with the Land Parcel Identification System, to be completed before payments can issue. These rigorous procedures, together with on-farm inspections, apply to a number of scheme payments including the Rural Environment Protection Scheme (REPS) and the Agri-environment Options Scheme (AEOS), and are necessary to ensure that applications meet the scheme conditions and cross-compliance requirements.

All of the 29,253 REPS 4 and the 13,746 AEOS 1 and 2 applicants who are eligible to receive a payment in 2013 have to be subjected to a full administrative check before the first phase of payment (75%) can be released. All of these administrative checks have been completed and payments commenced in November and will issue on a continuous basis until all payments are complete. In a certain number of cases the administrative checks raised issues and queries which require detailed examination. Department staff are working to resolve these as quickly as possible. Many of these cases, will, however, require the applicants’ to supply further information such as soil tests before payment can issue.

The LPIS Review exercise which will be completed shortly, resulted in area changes for some applicants, but has not held up the 75% payment in respect of either the REPS or the AEOS schemes and any impacts are being taken into account at either the 75% or 25% payment stage. The balancing payment of 25% is issued when all of the required control inspections are completed which is again laid out in the EU governing regulations. It is anticipated that these balancing payments will commence in mid December for all of those applicants whose files are in order. A total of €148 m will be spent on REPS and €51m on AEOS by the end of the year, in accordance with the budget allocation for these schemes.

Bord na gCon Remit

Questions (14)

Éamon Ó Cuív

Question:

14. Deputy Éamon Ó Cuív asked the Minister for Agriculture, Food and the Marine the steps he has taken to address issues of concern regarding corporate governance in the Irish Greyhound Board; and if he will make a statement on the matter. [53074/13]

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Written answers

Bord na gCon is a commercial state body, established under the Greyhound Industry Act, 1958, to control greyhound racing and to improve and develop the greyhound industry. Operational matters are the responsibility of its board and CEO.

The Board is also responsible for ensuring that the organisation has systems and procedures in place to ensure adherence to best practice in regard to corporate governance. Bord na gCon is required to act in accordance with its statutory obligations, the “Code of Practice for the Governance of State Bodies” and with Government policy.

As Minister for Agriculture, Food and the Marine I am responsible for appointing the Chairman of Board na gCon. The position of Chairman of Board na gCon was vacated on 16th February 2011 following the retirement of the then Chairman. Recognising the importance of the role of Chairman, one of my earliest decisions, taken shortly after my appointment as Minister for Agriculture, Food and the Marine was, on 12th April 2011, to appoint the current Chairman.

In terms of oversight, my Department monitors the compliance of Bord na gCon with its responsibilities in a number of ways, including by meeting with Bord na gCon at least bi-annually to discuss matters of mutual interest, and obtain assurance in relation to compliance with corporate governance standards. Issues arising from this forum are dealt with as required.

In addition, the Chairman of Bord na gCon, in accordance with the paragraph 13.1 of the “Code of Practice for the Governance of State Bodies” is required to submit a comprehensive report covering a wide range of governance issues and confirms the Group’s compliance with the Code. Any non-compliances must be explained, if they arise, and the appropriate corrective actions outlined.

In relation to governance, Bord na gCon is required to have an Internal Auditor and an Internal Audit Committee and fulfils this requirement.

Furthermore, the Annual Report and Accounts of Bord na gCon are independently audited by the Comptroller and Auditor General. The Comptroller and Auditor General reports by exception if the statement of internal financial control does not reflect Bord na gCon’s compliance with the “Code of Practice for the Governance of State Bodies”. Officials from my Department examine the Annual Reports, the C&AGs report, the Chairman’s Report to the Minister (referred to above) and instigate follow-up action as appropriate.

On the basis of a model adopted with a number of agencies under the aegis of my Department, including Coillte, BIM and HRI, I recently announced my intention to commission a review of Bord Na gCon.

This review is being undertaken to ensure that the governance and administrative structures supporting the industry remain appropriate and fully effective in the modern operating environment. It will assess the current legislative framework, governance structures, the structure and size of the board, and a number of other matters.

Tenders for the review were sought through a public procurement process, a preferred bidder has been identified and I am happy to report that it is expected that the contract will be signed shortly.

Fish Quotas

Questions (15)

Thomas Pringle

Question:

15. Deputy Thomas Pringle asked the Minister for Agriculture, Food and the Marine if he will indicate his intended position at the December Fisheries Council meeting in relation to member states that do not catch their total allowable catch in the nephrod fishery in Irish waters; and his views that it is sustainable that member states that are not active in a fishery should continue to receive a total allowable catch. [53135/13]

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Written answers

The annual fishing opportunities for the Community’s fishing fleets are traditionally agreed at the December Fisheries Council. This year, the arrangements for 2014 are due to be negotiated at the Council scheduled for 16th, 17th and 18th of December. The levels of Total Allowable Catch (TAC) and the quotas for Ireland will again be determined at that meeting following negotiations with Member States and the EU Commission.

The process of preparing for the Council has been under way since the publication of detailed proposals for TACs and quotas of key stocks of interest to Ireland on the 30th of October. The Commissions’ proposal for Nephrops in the Irish Sea was, however, only received on the 22nd of November. In preparing for the Council I have engaged in consultations, with the assistance of the Marine Institute and BIM, with the industry and other stakeholders here in Ireland as well as with other Member States in regard to stocks of common interest. I have also had direct engagement with the authorities in the UK, which involves Northern Ireland. The latter are particularly important when it comes to nephrops. There have also been protracted discussions in Brussels and these have continued this week in preparation for Council next week.

The Commission’s proposals are based on formal advice received from ICES, the independent international body with responsibility for advising on the state of fish stocks. It also takes account of the views of the (STECF) Scientific, Technical and Economic Committee for Fisheries, which gives the Commission its views on the economic, technical and social impacts of the scientific advice.

Specifically with regard to nephrops, Ireland has stocks in both Area VI and Area VII. The latter is of vital importance to the Irish fishing industry and Commission proposal on the table is for a cut of 24% on the 2013 quota. In financial terms this would cost the Irish fleet over €10 million. The proposal appears to be based on a narrow interpretation of the ICES advice and does not take into consideration the fact that traditionally landings are significantly below the TAC. This is the second most important fishery to Ireland after mackerel, and I am not accepting such a drastic and unwarranted cut.

Under utilisation of quotas by some Member States is a fact, the effect of which is that actual landings have been at or below the scientific advice for a number of years. Given this, and allied with the over restrictive interpretation of the advice, reducing the TAC as proposed by the Commission is, in my view, unnecessary and overly precautionary. I will work closely with my UK colleagues to make the strongest possible case in order that the proposed level of reduction is not implemented.

International Agreements

Questions (16)

Maureen O'Sullivan

Question:

16. Deputy Maureen O'Sullivan asked the Minister for Agriculture, Food and the Marine in relation to the recent meeting of the EU Committee of Permanent Representatives where the majority of EU member states consented to send a letter to the EU Parliament to ask its consent for the conclusion of the protocol to the Fisheries Partnership Agreement between the EU and Morocco, if his attention has been drawn to the social, political and economic consequences this protocol will have for Western Sahara, and particularly the issue of problematic fishing practices by Spanish fleets; and if he will make a statement on the matter. [48869/13]

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Written answers

Ireland has always been a firm supporter of the right to self-determination of the people of the Western Sahara and the Irish Government remains firmly committed to this principal. When the process on the new agreement began and the Commission was seeking a mandate, Ireland sought that any agreement should be more transparent and should include clearer geographic reporting on the benefits of the Agreement in the Western Sahara.

Ireland considers that the new agreement addresses concerns raised. We welcome the introduction of provisions to the Protocol on the planning and reporting duties of Morocco in respect of the regional distribution of funds, especially with regard to the expected economic and social benefits and the geographical distribution of these benefits.

Ireland has joined with like minded Member States, and has asked the Commission to inform the Council comprehensively and regularly on the returns received by the West Saharan population as a result of the agreement. It must be ensured that the West Saharan Sahrawi population is also given an appropriate stake, and a stake that is in line with their interests, in the financial resources ensuing from the agreement. The EU Commission has also advised that it considered that the agreements is consistent with the reform of the external dimension of the EU Common Fisheries Policy in that it places strong emphasis on scientific advice, economic profitability, good governance and respect of international law. EU Fishing activity is restricted to the surplus resources in all fisheries thus ensuring sustainability of the fish stocks.

Ireland joined with Germany and Austria in a Statement emphasising the importance of having regard to human rights & self determination in terms of the implementation of the agreement. The European Parliament voted on Tuesday on the Conclusion of the Protocol with 310 votes in favour, 204 votes against, 49 abstentions. It is expected that the Protocol will be adopted by Council in the near future.

Plant Science

Questions (17)

Clare Daly

Question:

17. Deputy Clare Daly asked the Minister for Agriculture, Food and the Marine the steps he has taken for developing plant science here. [52921/13]

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Written answers

The reply is as follows.

Research

My Department remains committed to funding plant science through our competitive funding programmes: Stimulus and CoFoRD (Competitive Forest Research for Development Programme). My Department’s industry derived strategic research agenda called ‘Stimulating Sustainable Agricultural Production through Research and Innovation’ contains a dedicated chapter on Crops (tillage) and a section on grassland management and breeding and, almost exclusively, this agenda informed the content of the Department’s last two research calls. Furthermore, a strategic research agenda on Forestry research is nearing completion which will focus on all aspects of forestry research including tree breeding.

Cereals

The Irish tillage sector has benefitted significantly from developments in plant science in recent years. Over the last thirty years or so the average commercial gains in the yield of cereals on Irish farms has been between 1% and 2% annually. Half of this gain has been due to the selection of superior varieties for Irish conditions through intensive testing in my Department’s Crop Evaluation Programme. Cereal yields here are now among the best in the world.

The same intensity of progress in the sphere of plant science has taken place in Irish grassland production. Some of the most successful grasses used in our high performing pastures have been bred by Teagasc and there are further improved varieties, uniquely suited to our conditions, in the pipeline.

Potatoes

Ireland has enjoyed much success both here and abroad in producing new improved potato varieties. Teagasc is the main potato breeder in Ireland and its breeding programme has been particularly successful. In its partnership with Irish Potato Marketing, 39 varieties have been released and at least 25 of these are still being marketed commercially in Europe, North Africa and the Middle East. The variety Rooster, released in 1990 and probably the best-known of the Teagasc-bred varieties, now accounts for 56% of the total potato area grown in Ireland

Horticulture

In the horticultural area, the bulk of work in the development of plant science occurs in either Teagasc or the various Universities. The Teagasc research programme in this area is mainly concentrated on the management, screening and evaluation of a range of ornamental species for suitability as cut foliage.

Forestry

In partnership with a number of other organisations, my Department also supports the forest genetic resources aspects of plant science through grant aid funding for the work of Teagasc on the improvement of alder and birch, the work of the Future Trees Trust on the improvement of ash, birch, oak, Spanish chestnut and sycamore and the involvement in the work of the European Network on Forest Genetic Resources.

Teagasc

Teagasc have a group of plant scientists and biotechnologists based at Oak Park in Carlow, employing the latest plant science technologies for the improvement of crops for Irish agriculture, with the work targeted at those likely to have the biggest impact on the agricultural sector with a view to supporting the objectives of Food Harvest 2020. Currently the work is focussed on; the development of genomic selection in Perennial Ryegrass, improving disease resistance in cereals, accelerating the rate of genetic improvement in potatoes through the development of marker assisted selection and the production of biomass from marginal lands.

Common Agricultural Policy Negotiations

Questions (18)

Éamon Ó Cuív

Question:

18. Deputy Éamon Ó Cuív asked the Minister for Agriculture, Food and the Marine when he will make an announcement in relation to Pillar 1 of the EU Common Agricultural Policy 2014-2020; when he will convey details of the selected options under Pillar 1 of the CAP to the EU; if the level of national co-funding for Pillar 2 will be announced at that time; the percentage of Pillar 2 funding it is proposed to spend on Leader type actions; and if he will make a statement on the matter. [53075/13]

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Written answers

In respect of Pillar 1 of the CAP I initiated a process of consultation in July 2013 with all relevant stakeholders and interested parties to ascertain their views on the most appropriate application of the Direct Payments Regulation in Ireland. I and my officials are currently giving careful consideration to all of the responses. I hope to be in a position to make decisions across the range of alternatives by the end of 2013. In general, Member States are required to notify Commission about decisions by 31 August 2014.

As regards Pillar 2, work on the development of the next rural development programme is already well under way. An initial consultation process was launched in 2012, and written submissions were received from over 80 stakeholders. These submissions have been analysed by the Department and have fed into the development of SWOT and needs analyses. A second consultation was held in July 2013, where stakeholders attended a full day workshop. Based on the outcome of these processes, the drafting of a new programme is being advanced by the Department, and it is intended that further stakeholder consultation will form part of this.

A general 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 to be included in the new Rural Development Programme and on the co-financing rates specific to these measures.

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 and also with the Department of Environment, Community and Local Government in relation to the level of EAFRD funding to be reserved for LEADER under the new RDP. 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.

Fish Quotas

Questions (19)

Martin Ferris

Question:

19. Deputy Martin Ferris asked the Minister for Agriculture, Food and the Marine if his attention has been drawn to the fact that the EU calculation of fishing quotas is not supported by adequate research and that in these circumstances the calculations of maximum sustainable yields is unreliable; and if he will make a statement on the matter. [53107/13]

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Written answers

The annual fishing opportunities for the Community’s fishing fleets are traditionally agreed at the December Fisheries Council. This year, the arrangements for 2013 are due to be negotiated at the Council scheduled for 16th and 17th of December. The levels of Total Allowable Catch (TAC) and the quotas for Ireland will again be determined at that meeting following negotiations with Member States and the EU Commission. The Fisheries Council will also decide on the fishing effort, which determines days spent at sea, available for the Irish fleet in the Irish Sea and off the north-west coast for 2014.

The Commission’s proposals are based on formal advice received from ICES, the independent international body with responsibility for advising on the state of fish stocks. It also takes account of the views of the (STECF) Scientific, Technical and Economic Committee for Fisheries, which gives the Commission its views on the economic, technical and social impacts of the scientific advice. .

As a general principal, Ireland is committed to having Total Allowable Catches set at levels that can produce Maximum Sustainable Yield (MSY) by 2015, where possible and by 2020 at the latest. This is consistent with the newly reformed Common Fisheries Policy. A core objective of the Common Fisheries Policy is to ensure exploitation of living aquatic resources that provides sustainable economic, environmental and social conditions". Under the ongoing reform of the CFP, the goal of attaining fishing mortality rates that are consistent with delivering maximum sustainable yield by 2015 has been set. While achieving this through the regulation of catches (TACs) may be relatively straight-forward in the context of a single species fishery; in multi-gear, multi-species and multi-fleet fisheries using single species, TAC constraints are complex and challenging.

The basis for Ireland’s assessment of the biological impacts of the Commission’s proposal for fixing 2014 fishing opportunities is the Stock Book. The Stock Book is produced annually by the Marine Institute and provides up to date scientific information, including ICES advice, on the state of the fisheries resources exploited by the Irish fleet. The Stock Book has been published by the Marine Institute since 1993 and has evolved considerably in that time period. It continues to evolve in a changing fisheries advisory environment.

Data collection and evaluation to support the advice provides is collected by Ireland and other Member States involved in a fishery. I consider that the EU should support increased funding for data collection and I am strongly pursuing increased EU funding for this area under the new European Maritime and Fisheries Fund currently under negotiation at EU level.

Agriculture Schemes Payments

Questions (20)

Seán Kyne

Question:

20. Deputy Seán Kyne asked the Minister for Agriculture, Food and the Marine when the mapping of forage hectares will be completed for Irish farmers; his views that these annual mapping issues are causing a lot of concern to farmers; if he acknowledges that some lands in REP scheme or agri-environmental schemes over a number of years are liable to become overgrown and lead to penalties under overdeclaration rules; and if he will make a statement on the matter. [53140/13]

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Written answers

Payments to farmers under EU Direct Schemes amount to over €1.5 billion annually. Approximately 130,000 farmers benefit from these schemes and these supports will continue under the next CAP, recently agreed by the Irish Presidency. Financial controls are operated by the EU Commission on the management of EU funded schemes paid out by Member States as part of the Clearance of Accounts process. If the Commission believes the scheme does not fully adhere to EU regulations, a financial correction can be imposed. The EU Commission has been auditing schemes in operation in Ireland over a five year period and has concluded that some farmers have declared land eligible and sought payment on land that contains ineligible features such as houses, farmyards, roads, rivers, scrub etc. This has occurred under all land based schemes including REPS. Cognisance is, however, taken where lower stocking rates apply under certain agri-environmental schemes.

At a meeting between the Department of Agriculture and the EU Commission in July 2013, the Commission indicated that this practice of claiming on ineligible features has to be regularised, to avoid Ireland being significantly penalised by the Commission. In order to avoid a significant financial correction, which would see the overall Single Farm Payment Scheme reduced for all farmers, including those fully compliant with the scheme, a review of land eligibility has been undertaken by my Department, this review will be completed within the next few weeks.

As part of that review, 950,000 eligible land parcels (belonging to approximately 130,000 farmers) are being examined; ineligible features have been identified in some cases (a minority) in the context of the 2013 payment scheme. In the vast majority of cases, it does not appear that farmers have over-claimed and most farmers have applied the rules correctly. While it is not possible until the review is complete to provide final figures on over-claims by farmers, it is clear that over 90% of the farmers reviewed to date have either no reduction or a very minimal reduction.

As the review progresses, letters are issuing to farmers indicating that there is a discrepancy with regard to their eligible land declared and the farmers in question are being offered a desk review (within the Department) of the decision in the first instance and an independent review if they are not satisfied with that outcome. An independent review panel is being chaired by Padraig Gibbons and will deal with appeals in an efficient and timely manner to avoid any undue delay to the processing of payments.

It is important to note that while this review is underway, payments to farmers under the Single Farm Payment Scheme and the Disadvantaged Areas Scheme are on track and on a par with 2012. A 50% advance payment issued under the Single Farm Payment scheme to farmers in October and 120,000 farmers were paid their SPS balancing payment this week amounting to €560m. To date, almost €1.4 billion has been paid to farmers under the two schemes.

EU Funding

Questions (21)

Martin Ferris

Question:

21. Deputy Martin Ferris asked the Minister for Agriculture, Food and the Marine if he will commit himself to matching funding, 50-50, for Pillar 2 schemes under the Common Agricultural Policy. [53109/13]

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Written answers

The European Council agreement on the Multi-annual Financial Framework (MFF) provides some €313m per year, or a total of €2.19bn, for Ireland under Pillar 2 of the CAP for the period 2014 – 2020.

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 European Agricultural Fund for Rural Development (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. Finally, the draft Rural Development Regulation 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. As part of this process, I have met with a number of stakeholders, including the Irish Farmers Association.

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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