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Thursday, 27 Oct 2016

Written Answers Nos. 21-40

Food Harvest 2020 Strategy

Questions (21)

Bernard Durkan

Question:

21. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which he remains satisfied of achieving the targets set in Food Harvest 2020 and Food Wise 2025; if he has identified the need to review any such targets; if he foresees the need for positive incentivisation in any areas; and if he will make a statement on the matter. [32283/16]

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Written answers

The main targets set out in the Food Harvest report published in 2010 were, by 2020, to increase the value of primary output by 33% and agri-food exports by 42% (both from a 2007-09 average baseline); and to increase value added production by 40% (from a 2008 baseline). In addition to these value increases, the dairy industry targeted a 50% increase in milk production by 2020, to be progressed following the abolition of milk quotas in April last year. 

Progress on those targets was monitored and reviewed on an ongoing basis. The fourth annual report “Milestones for Success 2014”, published in September 2014, showed that the sector had achieved very significant progress on these targets and illustrated the manner in which the Food Harvest 2020 vision of 'smart, green, growth' is being attained. The latest data available show growth of 34% and 32% for primary production and exports, respectively, versus the baseline period.

Food Wise 2025, the new ten year strategy for the agri-food sector published in July last year, is the successor to the Food Harvest strategy. It identifies the opportunities and challenges facing the sector and provides an enabling strategy that will allow the sector to grow and prosper. Food Wise includes more than 400 specific recommendations, spread across the cross-cutting themes of sustainability, innovation, human capital, market development and competitiveness; as well as specific sectoral recommendations.

If these recommendations are implemented, the expert committee which drew up the Food Wise 2025 Strategy believes that the following growth projections are achievable by 2025: increasing the value of agri-food exports by 85% to €19 billion; increasing value added in the sector by 70% to in excess of €13 billion; and increasing the value of primary production by 65% to almost €10 billion. With regard to employment, Food Wise foresees the creation of 23,000 additional jobs in the agri-food sector all along the supply chain from primary production to high value added product development. Realising these growth projections will be challenging, but I am confident that they can be achieved. 

The implementation process for any strategy is vital for its success. I chair the Food Wise High Level Implementation Committee (HLIC), with high level representatives from all the relevant Departments and State agencies. The committee reviews progress on detailed actions on a quarterly basis, in order to identify and solve problems quickly. Stakeholders regularly present to the committee meetings on their priorities for particular sectors or themes and by the end of this year, the HLIC will have reviewed in detail progress on the five cross-cutting themes and the twelve individual sectors outlined in Food Wise 2025.

The agri-food commitments in the Programme for a Partnership Government align closely with Food Wise 2025. My Department has 65 detailed commitments in the Programme for Partnership. The Food Wise strategy for the sector contains detailed recommendations aimed at improving value added and productivity at farm and food industry level through a focus on sustainability, efficiency, knowledge transfer and innovation.

In July this year, I launched the first annual progress report of Food Wise 2025: Steps to Success 2016. Food Wise Steps to Success showed that, of the 330 detailed actions which were due to commence in 2015 or 2016, 28% have been achieved or substantial action has been undertaken; and a further 67% have commenced and are progressing well. I believe that this is a good start and I will press on to get as many actions as possible completed within the next year.

Brexit Issues

Questions (22)

Jackie Cahill

Question:

22. Deputy Jackie Cahill asked the Minister for Agriculture, Food and the Marine the immediate actions being taken to alleviate the initial effects of Brexit, particularly in the area of horticulture, an area that has already seen significant job losses due to Brexit. [31806/16]

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Written answers

The UK's decision to leave the EU has undoubtedly given rise to enormous challenges for the Irish agri-food sector.  We have seen that the most immediate impact has arisen from changes to Euro-Sterling exchange rates, and that the horticulture sector has been particularly affected. 

A number of actions are being taken to try to mitigate these immediate impacts.

Bord Bia and Enterprise Ireland have being providing practical guidance to SMEs.  Bord Bia recently announced a number of measures, covering areas such as managing volatility impacts, providing consumer and market insight, deepening customer engagement and extending market reach, which are aimed at helping companies to maintain their competitiveness.  Similar support is being provided by Enterprise Ireland.

In addition, I announced a number of measures in Budget 2017 that will financially underpin my Department's Brexit mitigation efforts through strategic investment in key areas of the Department, its agencies and in the agri-food sector.  In particular, funding for capital investments in the commercial Horticulture sector will be increased to €5 million in 2017.  The Horticulture sector will also have access to the €150m low interest cash flow support loan fund, providing access to highly flexible loans for up to six years, for amounts up to €150,000, at an interest rate of 2.95%. 

I will continue to keep the situation under review, including through discussions with the recently-established Consultative Committee on Brexit, which includes representatives from the horticulture sector. This Committee met for the second time last week, and will continue to facilitate an ongoing exchange of dialogue with my Department as the situation in relation to Brexit unfolds.

Food Labelling

Questions (23)

Mick Wallace

Question:

23. Deputy Mick Wallace asked the Minister for Agriculture, Food and the Marine if he is satisfied with the level of compliance by Irish beef vendors with EU Parliament and Council Regulation 1760/2000 and SI 435 of 2000; if these labelling regulations apply to loose cuts of beef as well as pre-packaged beef; the measures carried out to enforce these regulations with regard to individual butchers; if his attention has been drawn to any incidents of false labelling of beef in the past year, or the concerns of consumers regarding the origin of the beef they are buying; and if he will make a statement on the matter. [32197/16]

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Written answers

Compulsory beef labelling rules have been in place for many years and require food business operators to be able to trace fresh or frozen with specific information to enable the product to be traced back to the batch of animals from which it was derived.  This applies to pre-packaged and loose beef sold in the State.

Under mandatory beef labelling rules, food business operators (FBOs) are required to label beef products with the country of the slaughterhouse and its approval number, the country of the cutting hall and its approval number and the origin of the beef, or the countries in which it has been born, reared and slaughtered, if these activities have not taken place in the same country. This information must be present up to and including the point of sale to the consumer. 

Operators may supplement the mandatory information on place of rearing and slaughter (and origin) with additional information concerning the provenance of the meat, provided it is not contradictory to the mandatory indications and is not misleading. 

The Minister for Health has overall responsibility for general food labelling legislation but my Department plays a role in the labelling of food together with the Food Safety Authority of Ireland (FSAI) and Environmental Health Officers. Under EU law primary responsibility for the safety and traceability of food placed in the market place lies with food business operators.

Authorised officers enforce the Beef labelling Regulations at different stages of the food chain under service contract to the Food Safety Authority of Ireland. Officers are authorised by the Department of Agriculture,  Food and the Marine  (veterinary inspectors in export-approved meat plants), by local authorities (veterinary inspectors in abattoirs and meat processing plants producing solely for the domestic market), by health boards (environmental health officers in retail butcher shops and meat distribution centres and other officials appointed by the appropriate authority).  Environmental Health Officers are also authorised under the General Labelling Regulations.

My Department has a permanent veterinary presence at all its approved slaughter plants. Controls at stand-alone secondary processing plants are carried out at a frequency which is based on an annual risk assessment for each plant. An annual audit of imported products is carried out in each Department approved meat plant.  In addition, labelling and documentary checks form part of the routine checks conducted by Department officials.

I understand that HSE has reported to FSAI that in 2015 Environmental Health Officers of the HSE carried out 2, 214 assessments for compliance with the beef labelling legislation S.I. 435 of 2000 as amended. I am also informed that in June 2016 FSAI took a successful prosecution for six offences related to breaches of food legislation. These included falsely declaring Irish origin for beef imported from Poland, Lithuania or Germany;  the application of false Irish slaughter and cutting plant codes used on packaging labels and having an inadequate beef traceability plan. The FBO was found guilty of six charges, fined a total of €16,000, with €10,000 as an agreed contribution to costs.

During 2015 and 2016 to date I understand that the FSAI has issued three prohibition orders citing breaches of legislation related to meat labelling and traceability were. Prohibition Orders are issued if the activities (handling, processing, disposal, manufacturing, storage, distribution or selling food) involve or are likely to involve a serious risk to public health from a particular product, class, batch or item of food. The effect is to prohibit the sale of the product, either temporarily or permanently.

Competition Law

Questions (24)

Jackie Cahill

Question:

24. Deputy Jackie Cahill asked the Minister for Agriculture, Food and the Marine if he will address the serious concerns in the beef industry following a takeover by a company (details supplied), in view of the fact the primary producers may now find themselves selling into a less competitive market; and if he will make a statement on the matter. [32210/16]

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Written answers

I am very much aware of the crucial importance of competition in the beef and lamb sectors. In this context, it is critically important to have a robust and transparent legal basis for the evaluation of proposals for mergers and acquisitions. This helps maintain the continuing viability of the beef farming industry in Ireland.

I note the outcome of the European Commission's recent decision on this particular case. The proposal has been scrutinised in accordance with the well-established procedures under competition law rules, and amongst the factors taken into account by the European Commission was the impact this merger would have upon competition in the beef and lamb sectors. My Department wrote to the Competition and Consumer Protection Authority in relation to the matter referred to by the Deputy some time ago and provided statistical industry data in response to a questionnaire which came from DG Competition.

In this particular case the analysis and decision was undertaken by the Commission as per EU competition law on the basis of the combined turnover of the parties involved.

The vulnerable position of farmers in the supply chain is widely recognised and it was for this reason that we legislated earlier this year for the establishment of Producer organisations in the beef sector. I have also proposed to make an amendment to our Rural Development Programme which would introduce support for these organisations to improve farmers' bargaining power in the beef supply chain. Recognition as a Producer Organisation will give farmers the right to bargain collectively with factories outside normal competition rules, strengthening their hand and allowing for a more predictable and stable supply rate, which will be of benefit to both producers and factories.

Through the Competition and Consumer Protection Commission, the State has an existing and well-established infrastructure for the oversight of competition issues and for dealing with allegations of anti-competitive practices or the abuse of a dominant market position. I would like to reiterate that if evidence is available of practices by this or any other entity which are contrary to competition rules, the possibility of the matter being taken up with the relevant Competition Authorities remains open.

Rural Development Plan

Questions (25)

Éamon Ó Cuív

Question:

25. Deputy Éamon Ó Cuív asked the Minister for Agriculture, Food and the Marine the total allocation of funding in the Estimates in 2016 for measures covered by the rural development plan; the amount paid out to date under these measures; the amount anticipated to be expended by the end of 2016; and if he will make a statement on the matter. [32194/16]

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Written answers

The total allocation of funding in the 2016 estimates for measures covered by the Rural Development Plan (RDP 2014 – 2020) is €494.16 million and expenditure at the end of September 2016 amounted to some €230.6 million.

The majority of the remaining expenditure will take place in December and a full drawdown is expected on most schemes.  The scheme where an under-spend is most likely to occur is  TAMS where the submission of claims by farmers for completed works is slower than anticipated.

Afforestation Programme

Questions (26)

Martin Kenny

Question:

26. Deputy Martin Kenny asked the Minister for Agriculture, Food and the Marine the rationale behind allowing the same level of grant aid and tax relief on forestry-related activity to non-farmers and farmers; if his attention has been drawn to the effect this is having on land prices; and if he will make a statement on the matter. [32183/16]

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Written answers

The current afforestation scheme is governed by the European Union Guidelines for State aid in the agricultural and forestry sectors and in rural areas 2014 to 2020 which themselves must be consistent with the Rural Development Regulation 2014-2020.  The current Rural Development Regulation does not provide for a reduced premium payment for non farmers, a condition which existed under the preceding regulation covering the period 2007-2013.

Under the previous afforestation scheme forest premium rates were significantly greater for farmers than non farmers, both in annual rates and in the duration of payments. Consequently the uptake of afforestation by non-farmers was relatively low, 4% in 2013 and 2014. At the time the Forestry Programme 2014-2020 was being drafted it was decided to introduce a single premium rate now that the EU rules had changed in this regard.  The reason for introducing this change was to attract more landowners into the afforestation scheme and increase planting levels in line with the targets set in the forestry programme.

It should be borne in mind that farmers still enjoy a significant advantage over non-farmers in that farmers can draw down their Basic Payment and Forestry Premium on the same land at the same time.

With the introduction of the single rate the percentage of planting undertaken by non farmers has increased to 15% in 2015 and 34% so far in 2016. However, it remains the case that the vast majority of planting is still carried out by farmers.

The total area planted increased in 2015 over the previous year and the 2016 figures indicate an increase over the 2015 figure.

With regard to the equal treatment of farmers and non farmers with regard to tax relief, it is not entirely accurate to say that this is the case. Individuals are exempt from Capital Gains Tax (CGT) on standing timber while companies are not. Furthermore, the removal of forestry income from the 'High Earners Restriction' which was included in Budget 2016 concerns active foresters and farmers only.  Section 140 of the Tax consolidation Act excludes from this exemption 'Distributions out of profits or gains from stallion fees, stud greyhound services fees and occupation of certain woodlands'. Institutional investment funds in forestry fall under Section 140 and therefore the removal of forestry from the 'High Earners Restriction' does not apply to this group.  

 The value of land is of course governed by the laws of supply and demand and for those selling land this is of course a positive development. There are many reasons why lands are put up for sale which can include such lands which are viewed as marginal for agriculture or indeed the restructuring of farm holdings following retirement, death or inheritance. Therefore the movements in all land prices cannot be attributed solely to changes in the rules of the afforestation scheme.

Question No. 27 withdrawn.

Fish Quotas

Questions (28)

Thomas Pringle

Question:

28. Deputy Thomas Pringle asked the Minister for Agriculture, Food and the Marine the efforts that have been made in formalising the allocation of herring for the north west; and if he will make a statement on the matter. [32189/16]

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Written answers

The International Council for the Exploration of the Seas - ICES, determined that there were two herring stocks in the north western waters and, correspondingly, two separate ICES Total Allowable Catch or TAC areas. In previous years, ICES gave separate advice for herring in 6A North and 6A South. Since 2015, ICES has found that while there are two separate herring stocks it was not possible to provide definitive, separate scientific advice and better scientific information is needed in order to provide advice on the separate stocks.

In order to provide for the collection of scientific data, the EU Council set a TAC of 1,630 tonnes for Area 6A South and 4,170 tonnes for Area 6A North involving an Irish quota of 1,482t for 6A South and 630t for 6A North.

In order to support carrying out a scientific acoustic survey to help inform the state of the Area 6A North herring stock, Ireland transferred 630 tonnes to the UK as our contribution towards carrying out this survey.  In addition, a small available quota in Area 6A North, transferred from 2015, was distributed in accordance with Ministerial policy.  This is intended to cover by-catches of herring in other pelagic fisheries.

In relation to 6a South herring, the Marine Institute prepared a scientific sampling methodology for data collection.  In addition, the industry proposed an acoustic survey in Area 6A South, similar to that already undertaken in Area 6A North. 

The industry representatives on the Quota Management Advisory Committee comprising Producers Organisations and the Inshore Forum reached an agreed compromise regarding the allocation of available quota to meet the sampling requirements set down by the Marine Institute.

I issued the proposal for public consultation which ended on 20 October 2016. There were eight written responses received.  It was clear from the submissions that there was strong support for the Quota Management Advisory Committee proposal, which I have now adopted.  My Department has advertised seeking expressions of interest by Tuesday 1st November.  If numbers in any category are over-subscribed, a lottery for the authorisations will take place in the Department Offices on Wednesday 02 November.  It is intended that the Marine Institute will work closely with operators to support the collection of the necessary samples in the specified areas.  In addition there will be an allocation to allow for the acoustic survey to be completed in Area 6A South.  This will be carried out by 1 or 2 vessels in line with  the survey  work already completed in Area 6A North.

GLAS Payments

Questions (29)

Michael Healy-Rae

Question:

29. Deputy Michael Healy-Rae asked the Minister for Agriculture, Food and the Marine when 2015 GLAS payments will issue to persons (details supplied); and if he will make a statement on the matter. [32201/16]

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Written answers

Some 25,800 farmers are actively participating in Tranche 1 of GLAS.  Of these, some 1,500 have a contract commencement date of 1 January 2016 and a further 2,000 with a contract commencement date of 1 October 2015 did not select any actions qualifying for a 2015 part year payment leaving 22,300 participants entitled to a part year payment. 

Under the general scheme the maximum part year payment is €1,250 and the average payment to date for 2015 is €640.  To date 18,800 applicants have received their full 2015 payment, a further 2,700 have received up to 85% of their part year payment while some 800 applications are yet to receive any part of their 2015 payment due.

Under the EU Regulations governing the Scheme and other area-based payment schemes, a comprehensive administrative check, including cross-checks with the Land Parcel Identification System, have to be completed before any payment can issue. 

There are a number of different reasons for outstanding 2015 payments such as applications not meeting all regulatory checks due to errors identified during the Basic Payment Scheme cross checks, inspection cases that are currently being finalised, changes in Land Parcel Identification System numbers and changes in areas from those approved. 

Officials in my Department are working on all outstanding applications on a case by case basis with the intention of processing payments which meet all required regulatory requirements as soon as possible.

My Department recognises that some payments for 2015 have yet to be completed but it must also be recognised that in the first year of the GLAS Scheme over 95% of GLAS farmers due a 2015 payment have received up to 85% of this payment.

This has represented a significant commitment in terms of resources, including IT development resources, within the Department and when viewed in the context of the Department also rolling out the new Basic Payment Scheme and a number of other schemes as part of the new Rural Development Programme such as TAMS II, Beef Genomics, Knowledge Transfer Schemes, it represents a significant amount of work. 

As I have indicated, my Department continues to process the remaining 2015 part year payments as well developing the systems to support the third tranche of GLAS and systems to support 2016 GLAS payments for GLAS 1 and GLAS 2, which are the first full year payments under the Scheme.  These 2016 payments will begin issuing before the end of the year for applications which pass all the required regulatory checks.

Fish Quotas

Questions (30)

Thomas Pringle

Question:

30. Deputy Thomas Pringle asked the Minister for Agriculture, Food and the Marine if his Department has made an application to the Commission for bluefin tuna quota to enable the development of a catch and release angling business in the north west; and if he will make a statement on the matter. [32188/16]

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Written answers

Ireland has received unequivocal advice from the EU Commission that a recreational angling fishery, even on a catch and release basis, in Ireland for bluefin tuna is not legally possible in the absence of a national bluefin tuna quota. We do not have such a quota and it is extremely unlikely that we could obtain one as it would involve reducing the share of the Total Allowable Catch of those EU Member States that do have quota and for whom bluefin is an important commercial fishery.

A small bluefin by-catch quota is available to Ireland for our Northern Albacore Tuna fishery and Celtic Sea herring fishery where there is a Bluefin tuna by-catch. This bycatch quota is also available to other Member States of the European Union. It cannot be used for recreational and/or sport fisheries, even in the context of a catch and release programme, as it does not allow the direct targeting of Bluefin tuna.

However, I am glad to be able to inform the Deputy that I have recently made funds available to allow my Department and the Marine Institute, with the support of the European Commission, to actively engage in developing Ireland's involvement in the ICCAT (International Commission for the Conservation of Atlantic Tunas) Atlantic wide research programme for bluefin Tuna. Ireland is currently participating in an ICCAT sanctioned  scientific 'tag and release' research programme on bluefin tuna in the waters off the North West coast using experienced local vessel operators.

This is a scientific research project only to assess the abundance and distribution of bluefin tuna in the waters off the Irish coast.

Ireland is committed to improving the scientific knowledge base for the stock of bluefin tuna in the waters off Ireland and I would be hopeful that the gathering of sufficient information could help build a case that would allow for a future angling catch and release fishery. Any such proposal would have to based on a scientific assessment from the Marine Institute and would also need to be developed in conjunction with the Department of Communications, Climate Action and Environment and Inland Fisheries Ireland who have responsibility for recreational fishing.  Any such case will require the support of the EU Commission and approval of ICCAT.

Strategic Banking Corporation of Ireland Funding

Questions (31)

Charlie McConalogue

Question:

31. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine if he will provide operational details on the new SBCI agri fund; the details of funding sources and financial providers that will lend moneys to farmers; and if he will make a statement on the matter. [32324/16]

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Written answers

In view of the sustained period of lower commodity prices and the cash flow difficulties this has caused for farmers in several sectors, I have committed to working with all the stakeholders, both at National and EU level, to address the issues involved and to ensure that we continue to have a sustainable and resilient sector.  One of my priorities is to support the provision of lower-cost flexible finance. Therefore I was pleased to announce plans for a €150 million fund for 'Agri Cash Flow Support' on Budget Day.

This fund will support highly flexible loans for up to six years, for amounts up to €150,000, at an interest rate of 2.95%.  It will be available to livestock, tillage and horticulture farmers. The proposed interest rate will represent a significant saving to farmers when compared with other forms of finance currently available.

The loan fund is part of a “three pillar strategy” in response to income volatility that I announced in the recent Budget, along with additional tax measures and farm payments.

Further details of the loan fund will be provided shortly but it is expected that it will be operational as soon as possible in 2017. The Strategic Banking Corporation of Ireland (SBCI) will make an open call for lending institutions to participate and I have spoken to the main banks to encourage them to make this facility available to their customers. Normal lending assessment criteria will apply although the loans will be 'unsecured' in nature, thereby facilitating a more straightforward application process.

My Department and SBCI are breaking new ground with this innovative approach to delivering support to farmers, designed to maximise the leverage achieved on the funding available. The provision of €11.1 million in EU funding and €14 million in National funding by my Department enables the SBCI to leverage the total fund of €150 million.

I would encourage farmers to consider their cash flow and borrowings situation now, and if appropriate to their circumstances, to be prepared to apply for these loans when they become available.

Brexit Issues

Questions (32)

Thomas Pringle

Question:

32. Deputy Thomas Pringle asked the Minister for Agriculture, Food and the Marine the measures he will take to assist farmers with price support in relation to the decline in the sterling exchange rate; and if he will make a statement on the matter. [32192/16]

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Written answers

The decline in the sterling exchange rate has been the most immediate impact for our agri-food exporters in the wake of the result of the UK referendum.  While this was not unexpected in light of the uncertainty caused by the referendum result, a prolonged period of currency volatility would be of concern.

A number of measures are being taken to deal with this impact. 

Bord Bia and Enterprise Ireland have been providing practical guidance to SMEs in areas such as managing volatility impacts, providing consumer and market insight, deepening customer engagement and extending market reach, with the aim of helping companies maintain their competitiveness.

In addition, I announced a comprehensive set of measures in Budget 2017 which tackle many of the underlying issues currently affecting farm incomes, as well as financially underpinning my Department's Brexit mitigation efforts, through strategic investment in key areas of the Department, in its agencies and in the agri-food sector. 

The measures include access to an innovative low interest agri-cash flow fund of €150 million. This loan fund will support highly flexible loans for up to six years, for amounts up to €150,000, at an interest rate of 2.95% and is available to farmers across the livestock, tillage and horticultural sectors.  These loans are aimed at strategically alleviating the pressures of income volatility and will help farmers to improve the management of their cash flow and reduce the cost of their short-term borrowings.

Other measures introduced in Budget 2017 include significant additional spending on farm gate schemes through the Rural Development programme, and a set of agri-taxation measures primarily aimed at tackling income volatility, increased funding of Bord Bia and BIM, investment in research & development and innovation, and increased expenditure on the Seafood Development Programme.

This is an evolving situation, which I am keeping under review.  Both I and my Department officials are working with colleagues across Departments to meet the challenges brought on by the currency fluctuations.

Competition Law

Questions (33)

Catherine Murphy

Question:

33. Deputy Catherine Murphy asked the Minister for Agriculture, Food and the Marine his views on a recent European Commission decision to allow the merger of two Irish companies (details supplied) in view of the fact the new company will have a supply rate above the 15% threshold; and if he will make a statement on the matter. [32199/16]

View answer

Written answers

I am very much aware of the crucial importance of competition in the beef and lamb sectors. In this context, it is critically important to have a robust and transparent legal basis for the evaluation of proposals for mergers and acquisitions. This helps maintain the continuing viability of the beef farming industry in Ireland.

I note the outcome of the European Commission's recent decision on this particular case. The proposal has been scrutinised in accordance with the well-established procedures under competition law rules, and amongst the factors taken into account by the European Commission was the impact this merger would have upon competition in the beef and lamb sectors. My Department wrote to the Competition and Consumer Protection Authority in relation to the matter referred to by the Deputy some time ago and provided statistical industry data in response to a questionnaire which came from DG Competition.

In this particular case the analysis and decision was under-taken by the EU Commission as per EU competition law, based on the combined turnover of the entities to be merged. 

The vulnerable position of farmers in the supply chain is widely recognised and it was for this reason that we legislated earlier this year for the establishment of Producer Organisations in the beef sector. I have also proposed to make an amendment to our Rural Development Programme which would introduce support for such organisations to improve farmers' bargaining power in the beef supply chain.  Recognition as a producer organisation will give farmers the right to bargain collectively with factories, outside normal competition rules, strengthening their hand and allowing for a more predictable and stable supply rate, which will be of benefit to both producers and factories.

Through the Competition and Consumer Protection Commission, the State has an existing and well-established infrastructure for the oversight of competition issues and for dealing with allegations of anti-competitive practices or the abuse of a dominant market position.

I would like to reiterate that if there is evidence  of practices by this or any other entity which are contrary to competition rules, the possibility of the matter being taken up with the relevant Competition Authorities remains open.

GLAS Payments

Questions (34)

Éamon Ó Cuív

Question:

34. Deputy Éamon Ó Cuív asked the Minister for Agriculture, Food and the Marine the average payment to date to farmers for 2015 under tranche 1 of GLAS; the number of farmers who have not received their full payment for this period; the total number of farmers in tranche 1 of the scheme; and if he will make a statement on the matter. [32193/16]

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Written answers

Some 25,800 farmers are actively participating in Tranche 1 of GLAS.  Of these, some 1,500 have a contract commencement date of 1 January 2016 and a further 2,000 with a contract commencement date of 1 October 2015 did not select any actions qualifying for a 2015 part year payment leaving 22,300 participants entitled to a part year payment. 

Under the general scheme the maximum part year payment is €1,250 and the average payment to date for 2015 is €640.  To date 18,800 applicants have received their full 2015 payment, a further 2,700 have received up to 85% of their part year payment while some 800 applications are yet to receive any part of their 2015 payment due.

Under the EU Regulations governing the Scheme and other area-based payment schemes, a comprehensive administrative check, including cross-checks with the Land Parcel Identification System, have to be completed before any payment can issue. 

There are a number of different reasons for outstanding 2015 payments such as applications not meeting all regulatory checks due to errors identified during the Basic Payment Scheme cross checks, inspection cases that are currently being finalised, changes in Land Parcel Identification System numbers and changes in areas from those approved. 

Officials in my Department are working on all outstanding applications on a case by case basis with the intention of processing payments which meet all required regulatory requirements as soon as possible.

My Department recognises that some payments for 2015 have yet to be completed but it must also be recognised that in the first year of the GLAS Scheme over 95% of GLAS farmers due a 2015 payment have received up to 85% of this payment.

This has represented a significant commitment in terms of resources, including IT development resources, within the Department and when viewed in the context of the Department also rolling out the new Basic Payment Scheme and a number of other schemes as part of the new Rural Development Programme such as TAMS II, Beef Genomics, Knowledge Transfer Schemes, it represents a significant amount of work. 

As I have indicated my Department continues to process the remaining 2015 part year payments as well developing the systems to support the third tranche of GLAS and systems to support 2016 GLAS payments for GLAS 1 and GLAS 2, which are the first full year payments under the Scheme.  These 2016 payments will begin issuing before the end of the year for applications which pass all the required regulatory checks.

Live Exports

Questions (35)

Thomas P. Broughan

Question:

35. Deputy Thomas P. Broughan asked the Minister for Agriculture, Food and the Marine if he will support the amendment of the Welfare of Greyhounds Act 2011 in order that the export of greyhounds to countries with insufficient welfare standards will be prevented; and if he will make a statement on the matter. [32204/16]

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Written answers

Once appropriate animal health and welfare certification requirements are met, dogs, including greyhounds, may be exported internationally. Exporters are also required to comply with the provisions of Council Regulation (EC) No 1 of 2005 on the protection of animals during transport. It is  imperative therefore to ensure that the transport of greyhounds over long distances is conducted in a manner which safeguards the welfare of animals being transported and minimises the risk of transmitting infectious diseases.  Bord na gCon is responsible for the regulation of the greyhound industry and the well-being of greyhounds in Ireland. The Bord has developed a comprehensive Code of Practice on the welfare of greyhounds which sets out specific standards that all individuals engaged in the care and management of registered greyhounds are expected to meet. The code emphasises that owners and keepers take full responsibility for the physical and social well-being of greyhounds in line with best welfare practice.

Officials of my Department have met with representatives of Bord na gCon and the welfare members of the International Greyhound Forum (represented in Ireland by the ISPCA and Dogs Trust) to consider all issues relating to the export of greyhounds. Officials have used the opportunity to emphasise that the well-being of greyhounds, including their physical and social environment, is at the core of Ireland's greyhound industry and the need for the industry to comply with the Welfare of Greyhounds Act 2011 and the associated Code of Practice which sets out clearly specific standards that all individuals engaged in the care and management of registered greyhounds are expected to meet. A number of airlines have also introduced a policy not to transport greyhounds and Bord Na gCon (BnG) has reiterated its advice to all owners involved in the export of greyhounds to only export to destinations that provide the expected levels of care and management as defined in BnG's Code of Practice for the welfare of greyhounds.  I fully endorse this view. I have no proposal to amend the Welfare of Greyhounds Act 2011 at this time.

Greyhound Industry

Questions (36)

Maureen O'Sullivan

Question:

36. Deputy Maureen O'Sullivan asked the Minister for Agriculture, Food and the Marine his views on calls by animal welfare groups to decrease, if not cease, financing the greyhound industry, which is seeing a significant decrease in public interest, and instead invest in industries which do not support cruel treatment of animals in the name of sport. [32206/16]

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Written answers

Bord na gCon's income is derived from two sources, namely; turnover from racing facilities and financial support provided by my Department from the Horse and Greyhound Racing Fund, under Section 12 of the Horse and Greyhound Racing Act, 2001.

State funding provided from the Fund is pivotal to the survival and continued development of the horse and greyhound racing industries. In accordance with the provisions of the Horse and Greyhound Racing Act, 2001, the level of financial support provided to Bord na gCon is approved by both Houses of the Oireachtas.

In accordance with the Act, 80% and 20% of the monies paid into the Fund each year are distributed between Horse Racing Ireland and Bord na gCon, respectively.

The funding being provided to the greyhound racing sector helps sustain a long standing tradition as the industry is part of the social fabric of our country. This funding is of particular importance to the economic activity of rural areas. It has also contributed significantly to the improved facilities now available at greyhound tracks around Ireland. 

The greyhound industry also contributes significantly to tourism in Ireland, having successfully identified and developed a niche market among continental European visitors.

Bord na gCon estimates that the greyhound industry contributes approximately €500 million in economic output, as well as creating a valuable source of employment. Since 2002, over 10 million people have attended greyhound racing meetings. 

In addition, I understand from Bord na gCon that in 2015, €5m was raised at Irish Greyhound Board stadia for charitable organisations such as schools, clubs, healthcare charities and community projects. The money was raised through Fundraising/Benefit Nights hosted at the venues in conjunction with race nights.

Given the benefit of the Greyhound Industry to Irish society, I have no plans to reduce funding of the sector.

Fodder Crisis

Questions (37)

Martin Kenny

Question:

37. Deputy Martin Kenny asked the Minister for Agriculture, Food and the Marine the provisions that will be made, especially for farmers in the north west, in view of the pending fodder crisis in the area. [32187/16]

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Written answers

My Department is monitoring the winter fodder situation. Based on the available information it would appear that there is sufficient fodder available nationally. In relation to the northwest according to Met Eireann data there was less than 1/3 of annual average rainfall in the northwest during October to date. Silage has been made in the northwest region in the last number of weeks that will help to alleviate potential problems. My Department will continue to monitor the situation and has already liaised with Teagasc to ensure it is being kept abreast of current developments.

Departmental Funding

Questions (38)

Charlie McConalogue

Question:

38. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine if emergency funding will be available to tillage farmers in view of recent severe weather; and if he will make a statement on the matter. [32320/16]

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Written answers

I am indeed very much aware of the challenges this year for the tillage sector with low prices and challenging harvest weather. 

I recently chaired a meeting with the main stakeholders in the tillage sector. This meeting provided a platform for the stakeholders to express their views and concerns on the challenges they are facing but equally to discuss the opportunities that lie ahead for the industry.  

At that meeting, I outlined that one of my priorities was to provide low-cost more flexible finance and in this regard I was happy to announce on Budget Day plans for a €150 million Agri Cash Flow Support Loan Fund. Developed in conjunction with the Strategic Banking Corporation of Ireland (SBCI), by leveraging EU and Exchequer funding totalling €25m from my Department to deliver a total loan fund of €150m, it will support highly flexible loans for up to six years, for amounts up to €150,000. The interest rate applying is 2.95% and the product will be available to livestock, tillage and horticulture farmers.   Loans to tillage and horticulture farmers will be provided in line with agriculture State Aid de minimis requirements. This loan product is aimed at alleviating the pressures of income volatility and will enable farmers to improve the management of their cash flow and reduce the cost of their short term borrowings. 

As an additional support to cash flow on farms including Tillage farms, I also confirmed that advance payment would be made this year in respect of Basic Payment and Greening Payment scheme. Advance payment commenced on the 17th October, the earliest possible date by which payments can commence under the governing EU Regulations. By the end of last week some €735 million had been paid out to 112,922 farmers and these payments are ongoing. 

I was also pleased to note that the processing of the Areas of Natural Constraints payment scheme is on schedule and payments have already commenced during the third week in September.  It is expected that approx 96,500 will fulfil the scheme eligibility requirements.

I stressed at the meeting also and want to restate my view that in this changing landscape we need to take a fresh look at our tillage industry, to ensure that it is best positioned to withstand possible future threats and to avail of the new opportunities which may present themselves.

Fishing Industry Development

Questions (39)

Bríd Smith

Question:

39. Deputy Bríd Smith asked the Minister for Agriculture, Food and the Marine his plans to rejuvenate the fishing industry and fishing communities; and if he will make a statement on the matter. [21594/16]

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Written answers

Food Wise 2025 recognises that in common with the broader food sector, the seafood industry will benefit from the projected increasing global demand for food produce over the coming decade. Current FAO estimates are that world consumption of fish will grow by an average annual consumption of 17 kg per person, per annum, resulting in a requirement for an extra 40 million tonnes of seafood by 2030. Seafood will also benefit from the shift in global economic gravity towards the East, where there is a strong cultural preference for seafood.

To avail of this opportunity, Food Wise identifies 6 areas where we need to focus our efforts in the years ahead. We must put sustainability at the heart of everything we do, add value to our raw material, develop scale in our processing sector, upskill our seafood workforce, increase our raw material supply and develop our markets.

In January this year, my predecessor Minister Coveney launched Ireland's new €240 million Operational Programme under the European maritime and Fisheries Fund. This new investment programme will be the source of very significant investment supports for the seafood sector for the period up to 2020. The Programme represents a doubling of previous support levels.

The Programme aims to support the seafood industry in meeting the challenges of the CFP and in sustainably growing production, value and employment in the seafood industry. The Programme will focus precisely on the same 6 areas identified in Food Wise and will be instrumental in our efforts to develop and adapt our seafood industry to take advantage of the economic and employment opportunities to come. 

The Programme is providing some €67 million for our fishing sector, €30 million for our aquaculture sector and €30 million for our seafood processing sector. A further €12 million is being made available to significantly grow the Fisheries Local Action Group initiative to foster economic activity in fishing communities and some €10 million is available for blue growth and marine spatial planning initiatives. 

The majority of support schemes under the Programme are already underway in 2016, with a small number to follow in early 2017. I expect that in the region of €20 million will be invested under the Programme in 2016 and I have secured a significant increase to €43 million in 2017.

Forestry Management

Questions (40)

Richard Boyd Barrett

Question:

40. Deputy Richard Boyd Barrett asked the Minister for Agriculture, Food and the Marine his views on whether forests are being harvested too early, as dictated by market prices, rather than there being sustainable forest management and that, as a result, forestry may not be contributing as much as it should to carbon sequestration; and if he will make a statement on the matter. [32334/16]

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Written answers

Rotation length is defined as the length of time between planting the trees and clearfelling the final forest. There are many factors that impact on the rotation length such as: species, site productivity, thinning regime, market requirements and site constraints.

Until recently the majority of clearfelling has been concentrated in the public estate. A significant portion of the private forest estate, particularly conifers, that were afforested in the 1980s and the early 1990s are now approaching a stage where forest owners may be considering the timing of felling operations. In addition the storm damage of February 2014, and strong market demands have led to increased levels of clearfelling in the private estate, where an entire standing group of trees is removed from an area in one operation.

In Ireland, it is generally accepted that rotation lengths should be geared towards ensuring that the regional and national growth potential is not reduced and that each forest stand is managed to achieve its maximum production potential. Where there has been a continuous and substantial annual increase in the forest area, only the most exploitative policies will compromise sustained future production and capacity for carbon sequestration. The issue therefore focuses on the general principle of rotation lengths that will provide a good return to the grower, consistent with the principle of sustained yield. Exceptions to normal practice usually involve the replacement of unproductive stands with a more productive crop, and the early felling of stands susceptible to windthrow in order to avoid technical problems and to reduce financial loss.

In February 2016, the Department of Agriculture, Food and the Marine initiated a project to Assess the impact of forest felling age on overall financial return. The purpose of this work is to provide information to make growers and foresters aware of the possible impact of felling age on overall financial return. The results of this work will be made available online through an interactive tool that allows forest owners and managers assess the optimum fell age of their forest. Hardcopy results will also be available. The provision of this information will inform forest owners and managers on the appropriate felling age, with a view to maximising the return on their investment. It is vital that landowners have a positive experience from their forestry investments and that revenue from the first rotation facilitates reforestation to continue the forest cycle.

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