Written Answers Nos. 1-25
10. Deputy Thomas Pringle asked the Minister for Agriculture, Food and the Marine if he will introduce a premium of €20 per ewe to assist sheep and hill farmers; and if he will make a statement on the matter. [2295/16]
View answerThe sheep sector is an important component of our agriculture sector and the third largest farming sector in Ireland with over 34,000 producers. 2015 proved to be another good year for the sheep sector. A combination of higher carcase weight (up 1.9%) and higher factory prices (up 1.5%) meant that output value of the sector increased by over 3%. Total sheepmeat exports increased by an estimated 5% to €230 million between 2014 and 2015. At farm level, prices reached highs not seen in five years and thankfully these strong prices have continued into this year.
Sheep farmers will continue to benefit under the same wide range of schemes and supports that are available to farmers in other sectors. This includes, inter alia, the Basic Payments Scheme, which itself took into account payments under the former Grassland Sheep Scheme, and various schemes under the Rural Development Programme (RDP) 2014 -2020 that have been designed to support the sheep sector. Many sheep farmers continue to be significant beneficiaries from the Areas of Natural Constraints (ANC) scheme. The ANC Scheme is worth €195 million annually to some 100,000 farmers and in excess of €1.3 billion over the life time of the RDP. The GLAS scheme in the RDP will also benefit sheep farmers, many of whom qualify for priority Tier 1 access to GLAS as a result of their Priority Environmental Assets, which include Natura land and Commonage.
Increased provision has been made for improving efficiency and profitability in sheep production under Knowledge Transfer Groups. It is expected that the sheep Knowledge Transfer Groups will commence in the first quarter of 2016. A range of capital supports for sheep farmers is also available under the TAMS II scheme including grant aided support for sheep housing and both mobile and fixed handling equipment for sheep.
In relation to a further direct payment per ewe, such a coupled payment would generally come from the CAP “pillar 1” direct payments funded by the EU. This would involve cuts in other farm payments as the overall pillar 1 funding envelope is strictly defined. A nationally funded payment would raise issues of exchequer funding availability and would also have to pass a strict EU state aid test. Finally, funding under CAP pillar 2 / RDP is already being provided as outlined already. Any consideration of further funding for the sheep sector under the RDP could only be considered within an overall review of RDP implementation when a full examination is undertaken of the performance of all existing measures and any emerging priorities.
Growth in the sheep and hill farming sector will come from an increase in consumer demand and export market opportunities as well as from improved technical efficiencies. My Department continues to search for new markets in cooperation with Bord Bia, Irish Embassies abroad and the meat industry. Last year Commissioner Hogan set up the Sheepmeat Reflections Group to examine the sheep sector and the support it needs going forward in order to continue to make an important contribution to agricultural output and to fragile economic areas. Ireland is participating fully in the new group and it is hoped that their deliberations will contribute to ensuring the sustainability of the sector into the future.
11. Deputy Seán Kyne asked the Minister for Agriculture, Food and the Marine in view of the high level of traceability on Irish farms, if beef factories have full traceability of beef; if 30-month old beef is not being sold as premium beef under 30 months old by beef plants; Bord Bia's role in investigating issues of traceability of Irish beef; and if he will make a statement on the matter. [2299/16]
View answerPrimary responsibility under EU law for the safety and traceability of food placed on the market lies with food business operators (FBOs). The role of National Competent Agencies is to verify compliance with this requirement. This is done through a combination of inspecting establishments and auditing the food safety management systems which operators are required to have in place. These controls are applied at different stages in the food supply chain. Regulation (EC) No. 178 of 2002 sets out the general principles and requirements of EU food law and stipulates that FBOs at all stages of production, processing and distribution within the businesses under their control, must ensure that the requirements of food law are satisfied. In regard to traceability, the regulations require that FBOs must have systems in place to identify any person from whom they have been supplied with a food. They must also have a system in place to identify the other businesses to which their product has been supplied. This is commonly referred to as the ‘one step forward, one step backward’ traceability system.
Prior to acceptance for slaughter all bovines must be properly registered on this Department’s Animal Identification and Movement system (AIM) and accompanied by its passport. AIM provides beef plants with the animal’s date of birth of birth, sex, breed, movement history and TB test records.
My Department has a permanent veterinary presence at all its approved slaughter plants. Controls at plants only engaged in secondary processing are carried out at a frequency based on an annual risk assessment. An annual audit of imported products is also carried out in each Department-approved plant, which includes checks on physical identity, labelling and documentary checks for product originating both in EU Member States and third countries. Labelling and documentary checks also form part of the routine checks conducted by the Department.
Regarding the sale of over 30 month old beef as under 30 month old beef by beef plants, I have no evidence that any such practice is engaged in by beef processors. I am satisfied that the full system of traceability across all chains of supply and production ensures that the beef industry operates to the highest standard of traceability which is necessary to ensure the placing of Irish beef as a premium product in many markets across the world.
In relation to the role of Bord Bia, whilst they have no statutory role in the traceability of beef there are currently over 52,000 producers and 120 processors and packers certified members across all the Bord Bia Quality Assurance Schemes. They are inspected regularly by Bord Bia before they can be certified and allowed use of the Quality Mark. Each processor receives one announced and one unannounced Bord Bia Meat Processor Quality Assurance Scheme audit every 24 months. The MPQAS scheme has over 500 requirements that typically require 2 auditor days in a beef abbattoir/boning hall situation.
As part of the Quality Assurance Scheme processors must have in place a documented product identification and traceability procedure/system which must permit full traceability at all stages of all processes and along the supply chain from an original Bord Bia certified herd of origin to the customer.
12. Deputy Thomas Pringle asked the Minister for Agriculture, Food and the Marine if European Union quotas are decided on historical fishing track record, how Lithuania secured a horse mackerel and mackerel quota in Irish waters; and if he will make a statement on the matter. [2296/16]
View answerThe fishing opportunities available to vessels, including within the Irish Exclusive Fishery Zone (EFZ) for 2015 are set out on a stock by stock basis in Council Regulation (EU) 104/2015 dated 19 January 2015 as amended by Council Regulation 2015/523 of 25 March 2015, Council Regulation 2015/960 of 19th June and Council Regulation 2015/1961 of 26 October.
The TAC and Quota Regulation for 2016 is currently in draft format awaiting publication.
For 2016 Lithuania has received an allocation of 140t of mackerel in ICES Zones VI, VII, VIb, XIb, these waters which include areas within the Irish Exclusive Fishery Zone. For Horse Mackerel in this area it has received a zero allocation.
For 2015 Lithuania has received an allocation of 1273 tonnes of mackerel in ICES Zones VI, VII, VIb, XIb, these waters which include areas within the Irish Exclusive Fishery Zone. For Horse Mackerel in this area it has received a 1,253 tonne allocation.
In addition to the TACs and quotas set down each year by the Fisheries Council, under the rules of the Common Fisheries Policy (CFP), a Member State may also exchange quotas with other Member States in a particular year. Details of fishing opportunities available to Member States in EU waters in recent years are available on the Maritime Affairs and Fisheries Directorate General website. Lithuania has availed of the swaps process to secure Mackerel and Horse mackerel in Atlantic North Western Waters.
Lithuania received a swop for 2015 in respect of Horse Mackerel in ICES area VI, VII, having received that quota from another Member State, which could be fished in ICES Areas VI and VII which includes Ireland's Exclusive Fisheries Zone. This data is provided on FIDES, the official EU Database of fishing opportunities. The FIDES database shows that Lithuania had a quota of 553 tonnes of Mackerel in ICES Zones VI, VII, VIb, XIb of which 544 tonnes has been caught. Lithuania also has a quota of 8,503 tonnes of Horse Mackerel in IIa, IVa, VI, VIIa-c, VIIe-k, VIIIa, VIIIb, VIIId, VIIIe. The FIDES database for 2016 is not yet available.
13. Deputy Éamon Ó Cuív asked the Minister for Agriculture, Food and the Marine the status of the roll-out of the green low-carbon agri-environment scheme including the expected expenditure in 2016; the estimated expenditure for the period 2015 to 2020; if applicants under tranche 2 will be accepted subject to eligibility; and if he will make a statement on the matter. [2305/16]
View answerI am pleased to say that 2015 has proved to be the most successful year ever in the development and implementation of any agri-environment scheme. The level of interest in the GLAS scheme has seen some 26,000 applications approved in first tranche of the GLAS scheme and the submission of more than 14,000 further applications under Tranche 2 of the Scheme which closed in mid-December 2015.
At the end of December 2015, my Department began processing a first instalment of the 2015 part-year payments for GLAS Tranche 1 participants. This payment is in respect of the three month period 1 October -31 December 2015 for those applicants with a 1 October start-date, and with actions which were payable in 2015.
Some 17,500 GLAS farmers received a first instalment of their 2015 payment in December, with an average payment of €650 per applicant. The Department is continuing to process applications which are eligible for a 2015 part-year payment and further payments will be processed by the end of January. The balancing payments in respect of 2015 payments are scheduled to be processed in May 2016 when all GLAS 2015 inspections have been completed. This 2015 part-year balancing payment will include the GLAS+ payments for eligible applications.
It is important to note that these part-year payments are purely in respect of actions that were applicable to 2015 and cannot be used as a basis to extrapolate the average value of a GLAS contract over a full year. Farmers will only see the full value of their contracts when payments are calculated for 2016, the first full year of their five-year contracts. Current indications are that for Tranche 1 participants , the average value will be of the order of €4,200, not including GLAS Plus payments. In respect of GLAS Plus, the latest estimates indicate that some 1,400 participants from the first tranche have combined eligible actions which exceed the maximum annual payment of €5,000. These will therefore qualify for GLAS Plus and on average stand to see their annual payment increase to around €6,500.
The second tranche of GLAS closed for submission of applications in mid December. This second tranche has resulted in a further 14,000 applications to GLAS and my Department is currently assessing these applications in line with the requirements set out in the scheme Terms and Conditions to ascertain which applications can be approved for GLAS. I expect all eligibility checks to be completed shortly and farmers notified in writing of the outcome of their applications by the end of January.
Given the level of interest so far in the Scheme, as manifested in the higher than expected response to the first two tranches of GLAS, I am very satisfied that our overall target of 50,000 participants will be fully achieved. The level of applications to GLAS under both tranches in 2015 will result in the funding committed to the Scheme for 2016 being fully utilised and if the level of interest shown to date is maintained, I would expect that the full budget allocated to GLAS under the Rural Development Programme 2014-2020 will be utilised.
14. Deputy Éamon Ó Cuív asked the Minister for Agriculture, Food and the Marine if he will introduce a sheep direct payment as suggested by some farm organisations; and if he will make a statement on the matter. [2307/16]
View answerThe Teagasc Annual Review and Outlook for 2016 indicates that in 2015, the direct costs of production per kilo of lamb carcass produced on the least profitable sheep farms are almost 45 percent higher than the costs per kilo on the most profitable mid season lamb enterprises.
Supports for the sector include direct payments, but also necessarily include a range of measures under the Rural Development Programme to support environmentally sustainable production, and also improve efficiency and profitability on farm to help to address this efficiency gap. These include the Basic Payments Scheme, which incorporated payments under the former Grassland Sheep Scheme, provided exclusively for the sheep sector.
In addition, a range of schemes under the Rural Development Programme (RDP) 2014 -2020 have been designed to support the sheep sector. Sheep farmers continue to be significant beneficiaries from the Areas of Natural Constraints (ANC) scheme. The ANC Scheme is worth €195 million annually to some 100,000 farmers and in excess of €1.3 billion over the life time of the RDP. In addition, the GLAS scheme will benefit sheep farmers, many of whom qualify for priority Tier 1 access to GLAS as a result of their Priority Environmental Assets, which include Natura land and Commonage.
Increased provision has also been made for improving efficiency and profitability in sheep production under Knowledge Transfer Groups. It is expected that the sheep Knowledge Transfer Groups will commence in the first quarter of 2016. A range of capital supports for sheep farmers is also available under the TAMS II scheme, including grant aided support for sheep housing and both mobile and fixed handling equipment for sheep. My Department also funds the activities of Teagasc, Bord Bia and Sheep Ireland in the areas of research, advice, education, breed improvement and marketing and promotion.
In relation to a further direct payment per ewe, such a coupled payment would generally come from the CAP “pillar 1” direct payments funded by the EU. This would involve cuts in other farm payments as the overall pillar 1 funding envelope is strictly defined. A nationally funded payment would raise issues of exchequer funding availability and would also have to pass a strict EU state aid test. Finally, funding under CAP pillar 2 / RDP is already being provided as outlined already. Any consideration of further funding for the sheep sector under the RDP could only be considered within an overall review of RDP implementation when a full examination is undertaken of the performance of all existing measures and any emerging priorities.
The sheep sector is an important component of our agriculture sector and the third largest farming sector in Ireland with over 34,000 producers. 2015 proved to be another good year for the sheep sector. A combination of higher carcase weight (up 1.9%) and higher factory prices (up 1.5%) meant that output value of the sector increased by over 3%.
Total sheepmeat exports increased by an estimated 5% to €230 million between 2014 and 2015. At farm level, prices reached highs not seen in five years and thankfully these strong prices have continued into this year.
Growth in the sheep and hill farming sector will come from an increase in consumer demand and export market opportunities as well as from improved technical efficiencies. My Department continues to search for new markets in cooperation with Bord Bia, Irish Embassies abroad and the meat industry. Last year Commissioner Hogan set up the Sheep meat Reflections Group to examine the sheep sector and the support it needs going forward in order to continue to make an important contribution to agricultural output and to fragile economic areas. Ireland is participating fully in the new group and it is hoped that their deliberations will contribute to ensuring the sustainability of the sector into the future.
15. Deputy Thomas Pringle asked the Minister for Agriculture, Food and the Marine if he will work towards a suckler cow premium of €200 per head in order to ensure that beef farmers can remain in business; and if he will make a statement on the matter. [2297/16]
View answerThe Irish suckler cow herd is a vital element of the Irish beef sector and supports for the sector include direct payments, in addition to a range of measures under the Rural Development Programme to improve efficiency and profitability on farm and to support environmentally sustainable production to help to address the challenge of profitability . These include the Basic Payments Scheme as well as various other support schemes.
The Beef Data and Genomics Programme, or BDGP, was launched on 5th May 2015. It is part of Ireland’s Rural Development Programme 2014-2020. There is funding of €300 million available within the scheme and it builds on my Department’s previous Beef Data Programme and Beef Genomics schemes.
The BDGP aims to (i) address widely acknowledged weaknesses in the maternal genetics of the Irish suckler herd, (ii) reduce the Greenhouse Gas intensity of Ireland’s beef production and (iii) make a positive contribution to the future viability of suckler farmers and the national suckler herd.
To achieve these objectives my Department has drawn up six requirements that farmers must meet in order to draw down payment from the scheme.
Participants will also be required to genotype animals on their farms which have been selected by the ICBF (Irish Cattle Breeding Federation). Farmers will also then be required to undertake a replacement strategy to ensure that a certain percentage of the animals on their herd at particular deadlines are of 4 or 5 star rating on the Euro Star ratings system. It should be noted that most farmers are already well on the way to meeting the requirement for replacement animals on their herds, with significant numbers of 4 and 5 star animals already in scheme participant’s herds.
Participants in the programme will receive a payment of €142.50 for each of the first eligible 6.66 hectares and €120 for each of the remaining hectares up to the maximum payable area. The payment rate of €142.50 is the maximum amount which could be provided based on the cost incurred and income foregone associated with the actions under the BDGP, as negotiated with the European Commission, and it would not be possible to arbitrarily increase the payment.
My Department, in conjunction with the ICBF and Teagasc, have recently completed a series of nationwide information meetings for participants in the scheme. All of these meetings were very well attended, with applicants asking questions regarding the scheme requirements to the panel of experts in attendance as well availing of the opportunity to have one-to-one engagement with Department and ICBF staff.
It is my view that this scheme is the best mechanism by which support can be specifically targeted at suckler farmers to ensure that they can develop their farm business in order to meet the challenges of profitability in this sector.
In addition to the BDGP my Department has developed a number of schemes, which suckler farmers can avail of and which will allow them to develop their farms to ensure a viable future in suckler farming. Under the Rural Development Programme funding has been made available for Knowledge Transfer (KT) where farmers will receive a total payment of €750 per annum. The Beef KT programme is an excellent way for farmers to enhance their enterprises and bring about efficiencies to their production systems. In addition under TAMS, supports have been made available for a range of capital investment on farms including for example animal housing which will allow suckler farmers to invest in their farms and I have also targeted supports for young farmers wishing to invest in their farms in the form of the Young Farmer Capital Investment Scheme. Schemes such as these are a vital aid to ensure that suckler farmers can continue to farm into the future and develop profitable enterprises, and demonstrate a clear commitment by my Department to such farmers.
16. Deputy Éamon Ó Cuív asked the Minister for Agriculture, Food and the Marine his views on the move by the ABP Food Group to take a 50% stake in Slaney Foods; the effect this will have on competition in the beef and lamb processing sector; and if he will make a statement on the matter. [2308/16]
View answerThe State, through the Competition and Consumer Protection Commission, has an existing and well established infrastructure for oversight of competition matters and for dealing with allegations of anti-competitive practices or abuse of a dominant position.
I understand that acquisitions or mergers of organisations with turnover exceeding certain statutory thresholds are required to be notified to that body or the EU Commission, which conduct an assessment to determine whether there will be any “substantial lessening of competition”. The acquisition referred to by the Deputy will be subject to the relevant statutory requirements under competition law. I as Minister for Agriculture can have no role in adjudicating on this matter.
However as with any matter to be considered by an authority there is a well established regulatory process for the assessment of this sale referred to by the Deputy to ensure that consumers or other businesses do not suffer or that the merger or acquisition does not lead to a reduction in competition.
17. Deputy Martin Ferris asked the Minister for Agriculture, Food and the Marine why beef exports to the United States of America were worth only €11 million in 2015, when predictions were that sales there would amount to €50 to €100 million. [2277/16]
View answerMy Department’s role in relation to market access for beef is to ensure that Ireland’s control systems meet the veterinary and animal health requirements of the importing country.
In that context Ireland was the first EU Member State to gain access to the US market in January 2015 , and remains the only Member state to have such access.
Six plants are approved to export, and as with any new market it takes time to build reputational brand and a customer base and the real time to assess its value is when these are bedded down.
More than 11 billion kilos of beef is consumed annually in the United States, making it the largest consumer of beef in the world and the opportunities for importers are significant, but contingent on the usual market dynamics, including those relating to price, currency, domestic demand and alternative sources of beef.
In volume terms, by the end of December the figures for exports of beef from Ireland to the US had risen to an estimated 1,800 tonnes which would have an approximate value of €11.5 million. This represents an exceptionally strong start to this trade considering that the first exports only went in March 2015 and some of the plants were only approved for export as recently as September. Also trade is confined to the market for intact cuts as we currently await approval to export beef intended for grinding. Another factor is that US beef prices have fallen back from the peaks recorded in the early part of 2015 which makes beef imports less competitive.
More importantly the relatively high prices available for beef in Europe in 2015 meant that US buyers may have been priced out of the market as Irish exporters chose to send product to more valuable markets in the UK and on the continent. While the volume of beef exported to the UK in 2015 was largely the same as the previous year, it rose in value to represent 54% of the exported beef from Ireland compared to 47% in 2014. This of course is helped by a strong sterling and weak euro.
My department will continue to engage with competent authorities in international markets. In 2015 the Canadian beef market opened to Ireland and other Member States and markets in Iran Oman and the Maldives opened to Irish beef exports. I also concluded an extension to our market access to the Philippines, where up to the end of quarter three there had been €11 million of beef exports from Ireland, making us the second largest exporter of beef into the Philippines. Furthermore we are currently in the process of trying to secure beef access to other third countries including China, Korea, Vietnam and Mexico. It is my intention to continue to focus on developing as many third country markets as possible in order to provide exporters as many commercial opportunities as possible in a competitive global marketplace.
18. Deputy Éamon Ó Cuív asked the Minister for Agriculture, Food and the Marine the estimated expenditure under the beef data and genomics scheme in 2016; and if he will make a statement on the matter. [2306/16]
View answerThe Beef Data and Genomics Programme was launched on the 5th of May 2015 and forms a part of Ireland’s Rural Development Programme that runs from 2014 to 2020. The programme has funding of €300 million euro over its lifespan. The programme builds on previous investment in suckler farming through schemes such as the nationally funded Beef Data Programme and the Beef Genomics Scheme. Suckler farming is the only sector in the RDP with its own targeted RDP scheme.
The principal objective of this scheme is to encourage the introduction of higher genetic merit animals into the National beef herd. This will reduce the greenhouse gas intensity of beef production in Ireland by improving production efficiency on suckler farms. My Department received 29,780 applications, having extended the closing date by an additional week to 5 June 2015.
Approval letters were issued to scheme participants in August. At the same time a detailed ICBF report on all applicants’ herd profiles was sent. Approximately 3,000 herds have withdrawn from the scheme, though some of these have subsequently asked to re-enter. Withdrawals from a scheme such as this are, of course, not unusual, particularly when one considers the simple application procedure and the high volume of applicants. There are eligibility issues with a further five hundred applicants, which are being examined and finalised.
The EU Regulations governing the administration this programme require that full and comprehensive administrative checks, including in some cases on farm inspections, be completed before any payments issue. In order to be eligible for a payment in respect of the 2015 scheme year, applicants must have submitted at least 60% of the required survey data and completed 90% of the required genomic sampling and must also have passed the required administration checks and any on farm inspections.
Payments commenced on target in December and the initial payment run saw 16,000 applicants paid a total of €30.2 million. The first pay run in 2016 resulted in a further €1.4 million issuing to 750 farmers. Payments will now continue on an ongoing basis as compliance is verified.
In order to be eligible for payment in 2016 participants must complete the required data notifications, carry out the required genotyping and also participate in the general BDGP Training and complete a carbon navigator with a trained advisor. The 2016 budget for the programme is €52 million. This will both provide for payment of the outstanding 2015 cases and also for those that verify compliance with the 2016 scheme requirements later this year.
19. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which he has studied the recent submissions from the Irish Farmers' Association regarding price competition in the beef sector; the extent to which Irish beef competes on supermarket shelves in the United Kingdom and in other jurisdictions; and if he will make a statement on the matter. [2303/16]
View answerIn my role of Minister I am and always have been conscious of the value of communication with all stakeholders in the beef sector. Improving communications between stakeholders is the reason I established the Beef Roundtable which continues to meet and discuss relevant strategic issues affecting the sector. However I have also been very clear that the Roundtable cannot act as a substitute for normal commercial engagement between suppliers and processors and there should always be ongoing continuing engagement between those parties on market issues, including those relating to specification.
As regards the IFA’s recent submission referred to by the Deputy, I must reiterate that as with any Minister for Agriculture in the EU, I can have no role in influencing commodity prices in Ireland. The State, through the Competition and Consumer Protection Commission, has an existing and well-established infrastructure for oversight of competition matters and for dealing with allegations of anti-competitive practices or abuse of a dominant position.
I understand that acquisitions or mergers of organisations with turnover exceeding certain statutory thresholds are required to be notified to that body, who will then initiate an assessment to determine whether there will be any ‘ substantial lessening of competition’. The acquisition referred to in the IFA’s submission will be subject to the relevant statutory requirements under competition law.
As regards the UK, Bord Bia estimates that in 2015 , Ireland exported approximately 272,000 tonnes of beef , worth €1.1b to the UK. Irish beef is listed in three of the major supermarket chains in the UK, Tesco, ASDA and Sainsbury’s. The weakness of the Euro versus sterling ensures that Irish beef remains competitive in Northern Ireland and Britain, and this is reflected in the fact that Ireland remains by far the single biggest exporter of beef to that market. With regard to the price differential between Irish and UK cattle, a number of factors have been identified to explain why Irish-born cattle command lower prices than their British equivalents. These include a British consumer preference for indigenous product as well as additional transport and processing costs in supplying that market.
Further a field, Irish beef exports saw strong growth last year, increasing by 6% to €2.41b compared to €2.28b in 2014. Access to new international export markets including the US, Canada, Oman, the Maldives and Iran was secured by my Department last year and work is currently underway to open the Chinese, South Korean, Vietnamese and Mexican market to Irish beef exports. I am optimistic that we will also soon obtain approval to export manufactured beef to the American market.
We must remain conscious of the fact that Irish beef is currently listed with more than 75 high-end retail chains all across the European Union. This broad portfolio of customers has made a substantial contribution to higher returns for Irish beef in recent years and reflects the success of Bord Bia’s differentiation and premiumisation strategy, which focuses on the key attributes of Irish beef, namely environmental sustainability, grass-based production systems, full traceability, quality assurance at all stages and superior eating quality.
20. Deputy Clare Daly asked the Minister for Agriculture, Food and the Marine if he has considered the contribution to flood-risk by non-native shallow-rooted trees, soil compaction by clear-felling with heavy machines and deep vertical drains on uplands; and if will discuss this matter with Coillte to develop a plan for mitigation. [2200/16]
View answerWork such as the Pontbren Project in Wales and the Forest Research/Confor report entitled The Role of Productive Woodlands in Water Management demonstrate the role appropriately sited and well-designed and managed forests and woodlands play in reducing and controlling floodwater. The primary mechanisms are canopy interception, the use of water by the trees themselves, and the higher water infiltration rates and greater storage capacity within forest soils. While these mechanisms vary depending on the type of forest and the season, they underline the importance of this landuse as part of any wider solution to floodwater control.
The Deputy's question appears to relate to conifer forests in upland areas. Such forests form a key component of Ireland's forest industry, supporting local livelihoods, rural development and downstream employment. Such areas also deliver a range of eco-system services and other benefits, including carbon sequestration and amenity and recreation. In tandem, as demonstrated in the aforementioned Confor report, these areas also play a role in reducing floodwater. The regulation by my Department of various forest activities within all upland forests, both Coillte and private, including the construction of forest roads, thinning, felling and replanting, is centred around the protection of the environment, avoiding unsuitable practices and strengthening protective measures, such as the introduction of water setbacks at the reforestation stage.
Meanwhile, any proposed afforestation within uplands (and elsewhere) is subject to a variety of silvicultural and environmental checks and standards, including cultivation and drainage standards, to ensure that any new afforestation does not pose an undue risk to the environment and does not exacerbate floodwaters.
Coillte Teoranta was established as a private commercial company under the Forestry Act, 1988 and day-to-day operational matters, such as the management of their forest estate, are the responsibility of the company. However my officials are in regular contact with Coillte and other forest owners in relation to several environment issues, such as the protection of Hen Harrier and Freshwater Pearl Mussel. The regulatory process involved in assessing applications for the aforementioned forest activities also entails the provision of information and specifications in relation to individual proposals, enabling the Forest Service to arrive at a decision whether or not to issue approval, based on the protection of the environment, including floodwater control.
21. Deputy Helen McEntee asked the Minister for Agriculture, Food and the Marine his efforts at the European Council of Ministers and his engagements with the European Commission to ensure a concerted European Union approach to tackling fertiliser prices; his efforts to support crop-production enterprises which are encountering historically high fertiliser prices and difficult market prices for produce; and if he will make a statement on the matter. [2201/16]
View answerThe Irish Fertiliser Industry does not currently manufacture nutrients in Ireland. The industry is almost entirely reliant on the importation of nutrients which are subsequently sold on as straights or blended into compound products. The predominant nutrient form used in the Irish context is Calcium Ammonium Nitrate (C.A.N) with over 80% of Nitrogen used in this form. Fertilisers are the second highest input cost on Irish farms after feedingstuffs. Fertiliser usage has seen a downward trend on Irish farms over the past 20 years and this is likely to be linked to enhanced efficiency of use, environmental controls and price increases.
Europe as a whole is also dependent on imports to meet the demand. Approximately 20% of supplies are imported into Europe. Fertiliser price, primarily nitrogen, is strongly linked to the price of natural gas, with the fuel input constituting over 75% of Nitrogen manufacturing cost. As a result, most fertilisers are produced in areas where local oil supplies are available at low cost. As a result the Middle-East, North Africa, Russia and the USA still maintain a competitive advantage over Europe in the manufacture of Nitrogen. While fuel prices have decreased considerably in recent times, it remains more economical to manufacture Nitrogen in regions outside of the European Union where natural gas is produced and pricing is more competitive. Phosphates and Potassium are also in limited supply within Europe. Rising global demand for fertiliser has also increased pressure on supplies across Europe. Currency exchange rates also impact and with the Euro trading weakly against the dollar this has contributed to the upward pressures on fertiliser prices.
22. Deputy Richard Boyd Barrett asked the Minister for Agriculture, Food and the Marine if he is aware of suggestions and examples of other countries where reforestation of the uplands with native species is a key measure in mitigating flooding; and if he will make a statement on the matter. [2205/16]
View answerMy Department is aware of work done in other countries on the role of native woodlands, alongside other types of forests, in flood mitigation, in both upland and lowland areas.
My Department operates a Forestry Programme that provides funding for the creation and management of a wide range of forest and woodland types, in order to realise the variety of environmental, economic and social benefits and services forest development brings. This programme incorporates experiences gained in other countries across a range of areas, including flood control. Various measures under the programme can be used strategically as part of a wider response to control flood water within a catchment. These include the following:
- The Afforestation Scheme, available from my Department under the current Forestry Programme, can be used to deliver a variety of forest types, from more productive-focused forests to agro-forestry plantations to more biodiversity-focused native woodlands. Grant aid under the scheme is designed to cover the cost of establishment, and annual premiums are payable for up to 15 years. The Afforestation Scheme can deliver a range of forest and woodland types in both upland and lowland areas, delivering floodwater management as one of many 'eco-system services'.
- The Native Woodland Conservation Scheme, which can be used to convert conifer forests alongside watercourses, into native woodland. This scheme provides grant aid (along with a 7- year premium, for private woodland owners) to undertake the appropriate restoration of existing woodlands, and also, the conversion of conifer forest to native woodland, typically at reforestation stage. Converting existing conifer forests into native woodland at strategic points along watercourses, accompanied by drain-blocking and other site restoration measures, can help reduce the risk of flooding by providing areas for inundation during periods of high flow.
- The Environmental Enhancement of Forests Scheme, which is due for launch in 2016, will provide financial support to forest holders to enhance the environmental functioning of existing forests, by funding measures such as the creation and enhancement of water setbacks and the appropriate blocking-off of existing forest drains.
Various work abroad, such as the Pontbren Project and the Forest Research/Confor report on the role of productive woodlands in water management, demonstrate the role of appropriately sited, well-designed and managed woodlands and forests in the control of floodwater.
23. Deputy Clare Daly asked the Minister for Agriculture, Food and the Marine if he has taken note of the findings of the Pontbren Project in Wales which found that the re-instatement of native trees and hedgerows on uplands substantially reduced flooding lower down; and if he will apply the lessons of this project in an Irish context and encourage Irish farmers to take similar steps to those taken by that in Pontbren project. [2199/16]
View answerReducing floodwater is a complex multi-faceted issue, and appropriately sited and well-designed and managed woodlands and forests can play an important role as part of any wider solution within catchments.
My Department is aware of the experiences of the Pontbren Project as referred to by the Deputy, which relates primarily to native woodland. My Department is also aware of other findings, such as those outlined in the recent report compiled by Forest Research and Confor in the UK, which explores the role of productive woodlands in water management. The Pontbren Project and the Forest Research/Confor report both explore ways in which appropriately sited and well-designed and managed woodlands and forests can contribute to the control of floodwater, through canopy interception, the use of water by the trees themselves, and the higher infiltration rates and greater storage capacity within forest soils. While these different mechanisms vary depending on the type of forest and the season, they underline the importance of forest land use as part of any wider solution to floodwater control.
My Department operates a Forestry Programme that provides funding for the creation and management of a wide range of forest and woodland types, in order to realise the variety of environmental, economic and social benefits and services forest development brings. Various measures under the programme can be used strategically as part of a wider response within a catchment. These include the following:
- The Afforestation Scheme, which can be used to deliver appropriately sited, and well-designed and managed forests and woodlands ranging from more productive-focused forests to agro-forestry plantations to more biodiversity-focused native woodlands. Grant aid under the scheme is designed to cover the cost of establishment, and annual premiums are payable for up to 15 years. The Afforestation Scheme can deliver a range of forest and woodland types in both upland and lowland areas, delivering floodwater management as one of many 'eco-system services'.
- The Native Woodland Conservation Scheme, which can be used to convert conifer forests alongside watercourses, into native woodland. This scheme provides grant aid (along with a 7- year premium, for private woodland owners) to undertake the appropriate restoration of existing woodlands, and also, the conversion of conifer forest in to native woodland. Converting existing conifer forests into native woodland at strategic points along watercourses, accompanied by drain-blocking and other site restoration measures, can help reduce the risk of flooding by providing areas for inundation during periods of high flow.
- The Environmental Enhancement of Forests Scheme, which is due for launch in 2016, will provide financial support to forest holders to enhance the environmental functioning of existing forests, by funding measures such as the creation and enhancement of water setbacks and the appropriate blocking-off of existing forest drains.
Total funding for forestry development in 2016 is €114 million, which represents an increase from the 2015 budget which stood at €111 million. I would encourage landowners to take up the schemes available and to develop forests on their lands, particularly in parts of the catchment where the strategic positioning of woodlands and forests of different types can help to slow down the flow of water to flood-prone areas.
24. Deputy Seán Kyne asked the Minister for Agriculture, Food and the Marine if the recent sale of Slaney Meats to ABP Food Group will further reduce competition in the beef sector; if the Consumer and Competition Protection Commission should investigate the presence of monopoly situations in the beef sector and in the rendering sector; and if he will make a statement on the matter. [2300/16]
View answerThere are currently 30 licensed beef export slaughter plants in the state operated by 16 companies. Many reports on the Irish beef industry over the years have referenced the necessity for the consideration of the issue of rationalisation within the industry. With regard to whether the matter referred to by the Deputy will further reduce competition in the beef sector; that ultimately will be a matter to be decided by the relevant authorities with responsibility for the issue of competition.
The State, through the Competition and Consumer Protection Commission, has an existing and well established infrastructure for oversight of competition matters and for dealing with allegations of anti-competitive practices or abuse of a dominant position. However as with any matter to be considered by an authority there is a well established regulatory process for the assessment of this sale referred to by the Deputy to ensure that consumers or other businesses do not suffer or that the merger or acquisition does not lead to a reduction in competition.
As part of this process the examination of the proposed takeover will involve either a one or two stage investigation by the relevant authorities, which, depending on the level of turnover of the two organisations, will involve the EU Commission or the Competition and Consumer Protection Commission, or both. At the end of the process the authorities may unconditionally clear the merger, approve the merger subject to remedies or prohibit the merger if no adequate remedies to the competition concerns have been proposed by the merging parties. I am satisfied that this process will ensure a thorough and independent assessment of the impact of the proposed takeover on the Irish beef industry and that any issues with regard to competition in this sector will adequately addressed within this process.
25. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine if the dairy sector can compete effectively on the global and European Union markets given the abolition of milk quotas; if any significant factors have arisen which will impact on the sector; if he is satisfied in regard to future opportunities for the dairy industry; and if he will make a statement on the matter. [2304/16]
View answerIreland is strongly positioned as a competitive producer of dairy. It has enviable natural resources, adaptable and resilient producers, a strong international reputation, an effective dairy processing sector and a strong core of research infrastructure and expertise. A recent report from Bord Bia estimates that Irish dairy exports increased by 4% to €3.24Bn in 2015. Some 42% or €1.36 billion went to international markets beyond our traditional UK and EU partners’ markets. This represents a very strong performance against the background of somewhat depressed international dairy markets during 2015.
Factors contributing to global price volatility in 2015 included the Russian Ban and the softening of Chinese demand on one side, coupled with increased production among key global producers including the EU on the supply side. The longer term demographic and demand perspectives remain positive, but 2016 will be a challenging year.
EU market supports, including intervention, are available to operators, the dairy package agreed by the Council of Ministers in December 2015 included an additional direct payment to dairy farmers, and my Department will continue to provided support to the sector through Rural Development Schemes such as TAMS, and by providing funding to bodies such as Teagasc, AHI and ICBF to improve efficiency at farm level.
