Thursday, 13 Nov 2014

Written Answers Nos. 85-93

Sugar Industry

Questions (85)

Terence Flanagan

Question:

85. Deputy Terence Flanagan asked the Minister for Agriculture, Food and the Marine his strategy for creating new jobs in the sugar industry; and if he will make a statement on the matter. [43531/14]

Written answers

Minister for Agriculture, Food and the Marine

By way of explanation I would like to give the Deputy a short background to this issue. In 2011 I met with two separate groups which had conducted feasibility studies into the possibility of establishing a new sugar/bioethanol facility in the country. The figures published by the interested groups who are investigating the possibility of building a new facility, indicate that the overall capital costs involved could range from €250 million to €400 million, depending on what type of facility will be constructed.

I informed both groups at the time and many times since in the Dáil and through the media, that any venture to develop a combined sugar/bioethanol production facility in Ireland, would have to be a viable commercial proposition, and supported by a business case which is sufficiently robust to attract the funding from investors for the very substantial capital investment required. I clearly informed both groups at the time that it was my job to look for agreement at EU level to allow for the growing of sugar beet for the manufacture of sugar, at the earliest possible date.

In this connection, I secured agreement as part of the overall CAP reform package at the last EU Council of Agriculture Ministers, which I chaired in June 2013, to abolish all sugar quotas by 30 September 2017. This agreement removes, with effect from 1 October 2017, the current EU quota barrier for operators in Ireland or other Member States, wishing to re-establish a sugar industry.

At the time, this agreement was welcomed by those parties who are interested in seeking to re-establish a sugar industry here. It is now up to those same entities to move the project forward and to garner sufficient commercial and financial support to turn their plans into a viable reality. I hope this explains the position.

Beef Imports

Questions (86)

Anthony Lawlor

Question:

86. Deputy Anthony Lawlor asked the Minister for Agriculture, Food and the Marine if his attention has been drawn to the fact that carcass beef is being imported into Ireland from the United Kingdom; if so, if he will confirm the quantity that is being imported and if it is being boned and exported as Irish beef; and if he will make a statement on the matter. [43560/14]

Written answers

Minister for Agriculture, Food and the Marine

In the year to date, 13,473 tonnes of beef has been imported into Ireland from the United Kingdom. In comparison, we have exported 151,755 tonnes of beef to the UK in the same period. Harmonised EU rules require mandatory traceability and origin labelling for beef from slaughterhouse to point of sale to consumers with the objective of providing maximum transparency for the marketing of beef. Compulsory beef labelling requires food business operators to label fresh, frozen or minced beef with specific information to enable the product to be traced back to the animals from which it was derived and must include details of the slaughterhouse and de-boning hall in which the animal was processed as well as the country in which it was born and reared. Beef imported into Ireland for deboning, and subsequently re-exported, must meet the same compulsory labelling requirements.

Single Payment Scheme Payments

Questions (87)

Brendan Griffin

Question:

87. Deputy Brendan Griffin asked the Minister for Agriculture, Food and the Marine when a 2012 and 2013 single farm payment will issue in respect of a person (details supplied) in County Kerry; and if he will make a statement on the matter. [43561/14]

Written answers

Minister for Agriculture, Food and the Marine

The 2012 Single Farm Payment/Disadvantaged Areas Scheme application of the person named was selected for a ground eligibility inspection. This inspection identified discrepancies between the area declared and the area found, resulting in an over-declaration in area of between 3% and 20%. Based on the Terms and Conditions of the schemes, this resulted in the 2012 payments being based on the found area having been reduced by double the difference between the area found and the area claimed. Advance and Balancing payments due under the 2012 Single Payment Scheme issued on 25 October and 3 December 2012 respectively.

The person named appealed the decision of the inspection and was notified of the outcome of the review, which was to uphold the original decision, on 18 January 2013.

The person named appealed this outcome to the independent Agriculture Appeals Office. The Agriculture Appeals Office upheld the decision of the Department and the person named was notified of this decision on 24 January 2014. The person named was also notified that if they considered that they had been unfairly treated the matter could be raised with the Office of the Ombudsman.

A review of the land parcels declared by the person named under the 2013 Single Payment Scheme revealed that a land parcel declared by the person named contained ineligible features. Following an appeal from the person named, a Department inspector visited the holding and cleared the lands in question as eligible. Payment due for 2013 Single Payment will issue to the person named shortly .

The person named was supplied with new maps when notified of the outcome of the inspection in a letter dated 25 September 2014 and advised of the right of appeal to the independently-chaired LPIS Appeals Committee. To date no such appeal has been lodged.

Agriculture Scheme Administration

Questions (88)

Brendan Griffin

Question:

88. Deputy Brendan Griffin asked the Minister for Agriculture, Food and the Marine if additional staffing resources will be made available by his Department to process single farm payment and disadvantaged areas scheme applications that were selected for remote sensing eligibility inspections; and if he will make a statement on the matter. [43601/14]

Written answers

Minister for Agriculture, Food and the Marine

EU Regulations governing the administration of the Single Farm Payment/Disadvantaged Areas Schemes, and other area based schemes, require that full and comprehensive administrative eligibility checks, including in some cases either Ground or Remote Sensing (satellite) inspections, be completed before any payments issue. Eligibility checks are required to ensure that the actual area claimed in the application form corresponds to the area farmed by the applicant, that there are no dual claims of land and that ineligible land or features are not included for aid purposes.

Both the administrative and inspection checks ensure that the Land Parcel Identification System, underpinning the direct aid payments worth in excess of €1.5bn annually, is accurately maintained. In addition, these checks are required to protect the annual drawdown of the EU funds and to avoid disallowances.

My Department is required to carry out an annual round of inspections, both in the field and by means of Remote Sensing, to ensure the eligibility of land declared to draw down payments. The basis of these inspections is governed by EU legislation and there are minimum numbers that must be conducted each year.

Land eligibility checks must be carried out on at least 5% of applicants. In response to concerns about the impact of on-the-ground inspections on farmers, 6,715 cases or some 85% of the required 2014 inspections are initially being carried out without the need for a farm visit as the information needed is acquired using the technique of remote sensing via satellite.

The EU Regulations governing Remote Sensing inspections also require that where it is not possible to make an accurate determination on the eligibility of a parcel or parcels of land by means of an assessment of the available satellite imagery, a field inspection must be undertaken to verify the eligibility of the land.

To date inspection results have been received and processed for 5,762 of the 6,715 cases selected for a remote sensing inspection. My Department continues, on a daily basis, to process outstanding inspection cases to finalisation with the intention of issuing any payments due as soon as possible.

In relation to the issue of additional staffing resources, my Department continuously reviews staffing resource requirements and, where available and deemed necessary to meet a specific need, resources are re-deployed to meet such a need.

Agriculture Scheme Payments

Questions (89)

Éamon Ó Cuív

Question:

89. Deputy Éamon Ó Cuív asked the Minister for Agriculture, Food and the Marine when payments under the single farm payment scheme and the disadvantaged area scheme will issue for 2014 in respect of a person (details supplied) in County Galway; the reason for the delay with these payments; and if he will make a statement on the matter. [43624/14]

Written answers

Minister for Agriculture, Food and the Marine

The person named submitted a 2014 Single Farm Payment/Disadvantaged Areas scheme application on 9 May 2014. EU Regulations governing the administration of these schemes require that full and comprehensive administrative checks, including in some cases Remote Sensing (i.e. satellite) inspections, be completed before any payments issue.

The EU Regulations also require that where it is not possible to make an accurate determination on the eligibility of a parcel or parcels of land by means of an assessment of the available satellite imagery, a field inspection must be undertaken to verify the eligibility of the land.

The application of the person named was selected for a Remote Sensing inspection. Initial processing of this inspection identified a requirement to verify the eligibility of land declared by means of a field inspection.

On completion of this inspection the results will be finalised with the intention of issuing any payment due as soon as possible. In the event that any queries arise officials in my Department will be in contact with the person named.

Tax Reliefs Application

Questions (90)

Bernard Durkan

Question:

90. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine if his attention has been drawn to the concern of members of the farming community who are concerned that the incentive to hand over land to younger farmers provided for in budget 2015 discriminates against family members in favour of non-family members; and if he will make a statement on the matter. [43641/14]

Written answers

Minister for Agriculture, Food and the Marine

Taxation policy is primarily a matter for the Minister for Finance. However I have on-going contact with Minister Noonan to ensure that tax policy reflects the Government’s commitment to agriculture. In this regard I am pleased that the Minister and I could facilitate the Agri-taxation Review, which was published as part Budget 2015. It gave us a unique opportunity to examine a critical element of Government support to the agriculture sector in the context of the strategy of expansion and increasing exports under Food Harvest 2020.

The Review provides a strong evidence base for continued assistance to the primary sector through taxation measures and it is a clear strategy with specific policy objectives for the future. The Government’s commitment to agriculture is evidenced by the immediate implementation of the majority of the Report’s recommendations in Budget 2015, including 12 new measures, which form part of a strategic policy response to the opportunities and challenges ahead.

One of the taxation policy objectives identified by the Review is to assist succession. The age profile of Irish farmers is increasing and it is recognised that there are many social and economic reasons why succession management is a challenge for farmers. Assisting succession and the transfer of farms has been a central part of the Government’s agri-taxation policy and Budget 2015 included a number of measures to maintain and strengthen that support, specifically:

- The retention and targeting of Agricultural Relief from Capital Acquisitions Tax to active farmers or to those who lease out land long-term.

- The retention and enhancement of Retirement Relief from Capital Gains Tax, including two new measures:

- The extension of the eligible letting period of a qualifying asset to 25 years.

- For transfers other than to a child under Retirement Relief, as a once-off measure until the end of 2016, the inclusion of conacre lettings as eligible.

- The retention of the current stamp duty exemptions on transfers of land, including the extension of Stamp Duty Consanguinity Relief, i.e. relief to related persons, on non-residential transfers to the end of 2017.

I am confident that the package of measures introduced in Budget 2015, the most substantial package of this kind ever introduced in a single budget, will lead to a more efficient and productive sector.

These and other taxation measures to assist succession do not discriminate against family members.

Dairy Sector

Questions (91)

Brendan Smith

Question:

91. Deputy Brendan Smith asked the Minister for Agriculture, Food and the Marine the proposals he has put to the European Commission in relation to the need to provide adequate market support measures for dairy products arising from the Russian ban on EU exports; and if he will make a statement on the matter. [43686/14]

Written answers

Minister for Agriculture, Food and the Marine

The EU agri-products ban by the Russian Federation earlier this year has direct and indirect impacts for the EU and Irish dairy sectors. At an EU level, two distinct camps can be identified; those for whom the Russian ban has an immediate and substantial effect and other countries mostly in Western Europe where the effects are less immediate. The Russian ban continues to have an acute effect for the Baltic Countries and Finland in particular. Member States, such as Ireland, who have lower dairy exports to Russia are affected indirectly as additional product is now available on EU and global markets.

The volume of total EU product displaced as a result of the Russian ban is less significant when viewed in terms of total production, but is quite substantial in terms of the impact on the overall traded sector for EU dairy produce. In this respect the Russian ban can be seen to have exacerbated an already softening global dairy outlook with an increasing supply profile which is not matched by increases in demand. I have emphasised at one meeting of the Council of Ministers that this is an EU wide problem which requires an EU wide response.

The Russian ban has been discussed on a number of occasions at Council, including at an Extraordinary Council meeting organised by the Italian Presidency in early October. The Private Storage Aid schemes for butter, cheese and SMP, which I fully supported were introduced in September. This measure is currently suspended for cheese as the uptake was not in the main from Russian ban affected countries. Whilst the long-term fundamentals of global dairy market are strong and the EU dairy sector is well placed to gain from expanding global population and demand current forecasts suggest we are facing into a period of medium term price volatility arising from, inter alia, the Russian Ban. In this context I have called for the deployment of all available market tools as appropriate.

I have also made it clear that EU agriculture should not be disproportionately affected by a decision based on EU foreign and security policy considerations and the costs of addressing the resultant market imbalance should not be borne solely by the CAP budget.

My opinion is that based on appropriate and timely market analysis the preference should be clearly biased towards a pre-emptive rather than a reactionary response in terms of ensuring that the Irish and EU dairy sector can continue to remain competitive globally. I believe that there are an exceptional set of circumstances influencing matters right now and therefore exceptional responses should be considered. I expect that this issue will continue to feature heavily on the Council of Ministers' agenda over the medium term until such time as a solution is forthcoming.

Agriculture Scheme Payments

Questions (92)

Michelle Mulherin

Question:

92. Deputy Michelle Mulherin asked the Minister for Agriculture, Food and the Marine the status of the single farm payment and area aid payment in respect of a person (details supplied) in County Mayo; if it will be expedited; and if he will make a statement on the matter. [43688/14]

Written answers

Minister for Agriculture, Food and the Marine

The person named submitted a 2014 Single Farm Payment/Disadvantaged Areas scheme application on 13 May 2014. EU Regulations governing the administration of these schemes require that full and comprehensive administrative checks, including in some cases Remote Sensing (i.e. satellite) inspections, be completed before any payments issue.

The application of the person named was selected for a Remote Sensing eligibility inspection. This inspection has been completed. Processing of payments due will now be finalised and will issue shortly to the nominated bank account of the person named.

Farm Safety

Questions (93)

Mattie McGrath

Question:

93. Deputy Mattie McGrath asked the Minister for Agriculture, Food and the Marine in view of his campaign for greater farm safety, if he will review the decision of his Department to provide grants for mobile cattle crush machinery in view of the inherent health and safety risks associated with such machinery; and if he will make a statement on the matter. [43695/14]

Written answers

Minister for Agriculture, Food and the Marine

I have recently introduced a targeted Safety Scheme to assist farmers to upgrade the standard of safety on their farms. In that Scheme, I have specifically provided for the purchase of mobile cattle crushes, because of their value in helping to control large animals safely. However, it is important that this type of equipment is designed to the correct specification, as laid down by my Department, and securely fixed when in use. The required specification will be published shortly on my Department’s website and all grant-aided investments will be required to adhere to the requirements set out there.