Written Answers Nos. 1-33
12. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the degree to which he expects to be in a position to ensure the future of the food producing sector notwithstanding developments surrounding Brexit; if he expects to adopt new or specific policies in this regard; and if he will make a statement on the matter. [28163/17]
View answerFood Wise 2025, the new ten year strategy for the agri-food sector, 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.
The implementation process for any strategy is vital for its success. Minister Creed chairs 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 eleven individual sectors outlined in Food Wise 2025.
In light of the UK vote to leave the EU, Brexit has been included as a standard item on the agenda of each meeting of the HLIC. It is clear that driving the implementation of the Food Wise recommendations, particularly those related to market development, competitiveness and innovation, will assume even greater importance in the light of the UK decision.
The UK’s decision to leave the EU reinforces the need to develop as many outlets for our agri-food exports as possible, in order to minimise our dependence on any one market. Indeed this principle of market development is already a key component of Food Wise. We have been very active in recent years in efforts to diversify markets, and in aiming to respond to consumer demands in emerging markets.
The challenges linked to Brexit are immense, given the very close trading relationships between Ireland and the United Kingdom and on the island of Ireland. We are determined to work closely with the industry and with other Governments to identify strategies and approaches that will maintain the success of the Irish agri-food and drinks sector.
I will launch Steps to Success 2017, the second progress report on Food Wise 2025, of next month.
13. Deputy Aindrias Moynihan asked the Minister for Agriculture, Food and the Marine the number of GLAS and AEOS payments outstanding from 2016 for persons in County Cork. [28011/17]
View answerBoth GLAS and AEOS provide valuable support to farmers to deliver environmental benefits and public goods which will enhance Ireland's sustainability credentials into the future. They provide support to Irish farmers aimed at enhancing biodiversity, water quality and the mitigation of the future impacts of climate change while allowing Irish farmers to improve their agricultural practices.
The GLAS scheme is the latest agri-environment scheme available to farmers. It forms part of Ireland’s Rural Development Plan 2014-2020. To date in excess of 50,000 farmers have had applications approved into the Scheme under three different tranches over a fourteen month period. The approval of these farmers into the Scheme has been achieved a year ahead of the original target set when the Scheme was launched.
Over 95% of cases in Cork have been paid and currently the applications of 136 farmers continue to be processed with payment issuing as cases are cleared. The Department has contacted the applicants where further information to support their application is needed and we are awaiting a reply to allow the payment processing to be finalised. The Department is continuing to review cases on an on-going basis and as they are cleared they are processed for payment.
Concerning AEOS the position is that all but 33 farmers in County Cork have been paid and payments issue as files are cleared. As 2016 is the final scheme-year of payment under AEOS 2, re-checks on payments made for all scheme years must be completed before final payment can be processed. This process is on-going and payments are issued on a weekly basis as cases are finalised.
14. Deputy Mick Wallace asked the Minister for Agriculture, Food and the Marine the details of impact assessments that his Department has carried out with regard to the 2014 to 2020 forestry programme (details supplied); and if he will make a statement on the matter. [27936/17]
View answerThe drafting of the Forestry Programme 2014 – 2020 included the production of a Natura Impact Statement and subsequent appropriate assessment, and this process concluded that the programme did not pose a threat to the integrity of the Natura 2000 network. In parallel to this, a Strategic Environmental Assessment was also carried out. As part of this assessment, an environmental report was drafted, the purpose of which was to evaluate the likely environmental effects of implementation and non-implementation of the draft Forestry Programme. This included an evaluation of realistic strategic alternative approaches and options, as well as suggested mitigation and enhancement measures to prevent, reduce and offset any significant adverse effects on the environment arising from the implementation of the draft programme. Mitigating measures adopted by the Forestry Programme are listed under Section 6.12 of the programme document itself. All documents are publicly available on the Department's website.
As regards any potential effect of afforestation on land prices, it should be noted that there are many factors which can influence land prices. Some are macro factors such as supply and demand and some are more local. Other factors include the prevailing economic climate, for example, the price of land decreasing as a result of the financial crisis of 2008/2009. There are also regional variations in terms of demand, supply and quality which influence the final price paid for land. To claim that afforestation grants and premium rates are responsible for driving up the price of all land types across the entire country overlooks the complexity that exists within the land market.
With regard to the economic aspects of forestry, I firmly believe that the sector is good for our economy and in particular, good for our people living in rural communities. Forestry generates economic activity in rural areas where other sectors of our economy cannot reach. It helps create sustainable and vibrant communities by supporting jobs throughout the forest cycle including planting, fencing, thinning, forest roading, harvesting and transportation, and replanting, and of course through the related nursery and processing sectors. In addition, numerous jobs are supported indirectly throughout rural communities, from machinery sales to local shops.
15. Deputy Richard Boyd Barrett asked the Minister for Agriculture, Food and the Marine when he last met with Coillte; if he will report on the discussions; and if he will make a statement on the matter. [27973/17]
View answerMy most recent meeting with Coillte was on 10 April 2017 in Macroom, Co. Cork, at the launch of Coillte Premium Partners’, Coillte’s new private forestry partnership product. I met with both the Chairman of the Coillte Board, Mr. John Moloney, and the company’s CEO, Mr. Fergal Leamy, at the event. This contact is of course in addition to ongoing contact on operational and policy issues between Coillte and officials in my Department.
One of the challenges facing the Irish forestry sector is the mobilisation of the private timber resource. ‘Forests, products and people – Ireland’s forest policy – a renewed vision’ indicates that timber mobilisation will play an increasing priority role, if forecasts of roundwood production, especially from the private sector are to be achieved.
The ‘Coillte Premium Partners’ which we discussed at our last meeting is a private forestry partnership product where the forestry partners retain ownership of their land while having direct access to Coillte’s forest management expertise, operational capacity, planning systems, certification and sales channels. Our timber processing sector, which provides both direct and indirect employment in rural communities, require a consistent supply of good quality timber so the wider impacts of such a scheme are timber mobilization and local employment. I was therefore pleased to launch the scheme which has the potential to support Irish forest owners and create new value in the rural economy through the mobilisation of timber from privately owned forests.
I also spoke with the CEO of Coillte last month in relation to the wildfires which occurred on Coillte lands at the beginning of May, most notably in Cloosh Valley, Co. Galway. These outbreaks were very serious, with implications for lives, livelihoods, homes, property, forests and wildlife.
My colleague, Minister of State Doyle, who is the Minister of State at my Department with responsibility for forestry, subsequently visited the site of the Cloosh Valley wildfire on Monday, 15 May 2017, where I understand he met with Coillte personnel, including Coillte’s Director of Forest Operations. As the Deputy will recall, an extensive wildfire raged in Cloosh Valley from the weekend of 6th May 2017 until it was eventually brought under control on Thursday 11th May 2017, resulting in the estimated loss of some 1,500 hectares of forestry and 1,000 hectares of bogland. During his visit, Minister of State Doyle saw firsthand the extent of the damage caused with the fire, its spread and the efforts to control it being the subject of the discussions.
16. Deputy Thomas Pringle asked the Minister for Agriculture, Food and the Marine if he will report on the progress made on the implementation of a heritage licence in the inshore fisheries sector which was a recommendation of the report on sustainable island and fishing communities published in 2014; and if he will make a statement on the matter. [27933/17]
View answerI presume the Deputy is referring to recommendation 10 of the Report on Promoting Sustainable Rural Coastal and Island Communities of the former Joint Sub-Committee on Fisheries published in January 2014. That recommendation stated:
The sub-Committee recommends that the Government examines the feasibility of 'heritage licences‘ to be issued by the Department for rural coastal and island communities. Such licences would, optimally facilitate traditional fishing practices in conjunction with the establishment of a producer organisation representing vessels under a certain LOA in these designated areas.
I understand that this recommendation arose in relation to requests for special concessions for certain groups to fish commercially for wild salmon. Such matters are proper to the Minister for Communications, Climate Action and the Environment who retains responsibility for Inland Fisheries including management of wild salmon stocks.
While establishment of producer organisations is a matter for industry partcipants themselves, funding is available under the European and Maritime Fisheries Fund for which my Department is the Managing Authority.
On the matter of the Inshore Fisheries sector, the National Inshore Fisheries Forum is now the established arena for setting sectoral priorities and discussion on proposals to enhance the sustainability of that sector. I am particularly encouraged by recent steps the Forum is taking to initiate the development of an Inshore Fisheries Strategy which will help to guide the work of the Forums in improving the opportunities available to the sector overall.
17. Deputy Jackie Cahill asked the Minister for Agriculture, Food and the Marine if he will address the situation in which the agriculture cashflow loan support scheme was used as stocking loans to farmers in 2017; and if he will make a statement on the matter. [27967/17]
View answerLast month I welcomed the release of preliminary information from the Strategic Banking Corporation of Ireland (SBCI) regarding the uptake of the Agriculture Cashflow Support Loan Scheme. The Scheme, which was developed by my Department in co-operation with SBCI, makes €150 million available to farmers at interest rates of 2.95%. Distributed and administered through AIB, Bank of Ireland and Ulster Bank, the Scheme provides farmers with a low-cost, flexible source of working capital and allows them to pay down more expensive forms of short-term debt, ensuring the ongoing financial sustainability of viable farming enterprises. The SBCI reported that €60.2m has been drawn down by farmers to the end of April. The average loan size is €32,000, with more than half the loans being advanced for terms of four years or more.
The Scheme was devised to be a flexible as possible and it was up to the applicant to decide the purpose for which they used the loan according to the circumstances of the farming enterprise. Finance for trading stock is a normal working capital requirement for farmers and was eligible under the Scheme. The objective of the Scheme was to address the impact of the change in the sterling exchange rate and lower commodity prices in some agriculture sectors by lowering the cost of finance. There is a significant cost saving for those who decided to use this Scheme as a stocking loan.
I am pleased at the very positive reaction by farmers to the Scheme, which has proved that significant demand exists for low-cost flexible finance. I have met with the Chief Executives of the participating banks to discuss this and other access to finance issues relating to the agri-food sector. I have asked the banks to respond positively to the demand that has been demonstrated by reducing interest rates and providing more flexible terms for cash flow loans in the future.
The banks advise that all of the remaining €150m is committed and is in the process of being drawn down. My Department is expecting another update on the progress of the Scheme from the SBCI shortly.
18. Deputy Thomas Pringle asked the Minister for Agriculture, Food and the Marine the status of the implementation of the landing obligation; the reason over quota catches are being taken from the national quota for the following year and not from the individual person that incurs the over quota catch; and if he will make a statement on the matter. [27934/17]
View answerUnder the Common Fisheries Policy, the landing obligation – which prohibits the wasteful practice of discarding of fish at sea - is being phased in over a 4 year period. The first phase, concerning pelagic stocks, came into effect on 1 January 2015. The landing obligation was extended to certain demersal stocks (whitefish and prawns) from 1 January 2016 and will be fully phased in for all quota species by 1 January 2019.
The phasing process is agreed by Member States in a particular area in consultation with the relevant Advisory Councils which consist of industry and NGO stakeholders. For North Western Waters the Member States involved are Ireland, Belgium, France, the Netherlands, the UK and Spain.
195 Irish vessels are currently obliged to land some species depending on where they fish and the type of gear they use. In order to assist skippers with the rollout, my Department and the marine agencies have actively engaged with industry including hosting information workshops.
In Ireland, quotas are a public resource and are managed by the Minister to ensure that property rights are not granted to individual operators. In 2016 some individual operators exceeding their quota allocations; however I was able, in consultation with Industry representatives, to secure quota swaps with other Member States to keep most stocks within permitted limits.
In December 2016 I sought to introduce a voluntary quota balancing system for the RSW Pelagic Segment Mackerel Fishery, but to date full agreement has not been reached with relevant Producer Organisations.
My Department is also working to introduce a new quota balancing system. This will initially involve consultation with Industry representatives prior to full public consultation. The proposed arrangements are intended to operate as a pilot scheme initially in relation to pelagic stocks with a view to further development and amendment as experience informs.
19. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine the position regarding the programme for Government permitting young farmers that are under 40 years of age that have been farming for more than five years from accessing measures under CAP for young farmers including being able to apply for the national reserve and for top up entitlements; the reason for their exclusion; and if he will make a statement on the matter. [28156/17]
View answerThe Regulations governing the operation of the National Reserve include an optional provision whereby Member States may use the National Reserve to allocate new entitlements or give a top-up on the value of existing entitlements for persons who suffer from a specific disadvantage.
In the context of the discussions with the EU Commission in early 2015 regarding the inclusion of the group referred to as Old Young Farmers under the 2015 National Reserve, the EU Commission advised that the inclusion of groups under ‘Specific Disadvantage’ category of the National Reserve would require individual approval at EU level.
The National Reserve in 2017 was established using funding derived from a linear cut to the value of all farmers’ entitlements. EU Regulations pertaining to the National Reserve provide that the two categories of young farmer and new entrant to farming must receive priority access to the Reserve. In the context of the commitment in the Programme for a Partnership Government, Ireland consulted with the EU Commission regarding the possibility of including the Forgotten Farmer group under the specific disadvantage category of the 2017 National Reserve. The EU Commission confirmed that Member States cannot use the proceeds of a linear cut to fund a specific disadvantage category of the National Reserve.
The Commission confirmed that the only funding option for the specific disadvantage category is natural replenishment of the Reserve, such as unused entitlements or the proceeds of clawback, but only after the two priority categories of young farmer and new entrant to farming have been catered for.
20. Deputy Willie Penrose asked the Minister for Agriculture, Food and the Marine the supports which are available from his Department to support strawberry growers here; and if he will make a statement on the matter. [27974/17]
View answerThe strawberry sector has invested significantly over recent years to improve the quality and consistency of output.
Traditionally Irish strawberry production was centered on field based production with harvesting very much concentrated in the traditional June-July period. At that stage the majority of the crop was destined for low value processing. While production still peaks in summer, Irish strawberry growers have made significant investments on their farms to extend the season and to produce high quality fruit from early April right through to mid-November largely using polythene based protective cropping structures.
Growers are currently enjoying very strong growth in consumer demand for strawberries and my Department is facilitating development of the sector and providing supports to strawberry growers in a number of different ways.
My Department has supported this development through the availability of grant aid under the Scheme of Investment Aid for the Development of the Commercial Horticulture Sector. This nationally funded competitive scheme facilitates capital investments in horticulture specific equipment or buildings by providing aid at a rate of up to 40% (50% for applicants under 35) for approved investments.
156 applicants were approved under the 2017 Round of the Scheme with a total of €6.4m in aid approved. Within these figures there were 25 approvals relating to investments in the soft fruit and protected food crop sector with in excess of €1.5m in aid approved for this sector alone. A significant proportion of these approvals relate to strawberry growers investing to expand their production capacity and/or improve the quality of their produce.
Strawberry growers are also eligible to receive EU Aid through participation in the EU Fruit and Vegetable Producer Organisation (PO) Scheme. The objective of this EU funded scheme is to encourage growers to come together to strengthen their position in the market in the face of increased concentration of demand by the retail multiples. Under this scheme each PO implements an approved Operational Programme over 3-5 years. Eligible actions included in the Operational Programme can have the objective of improving product marketing and/or quality, aligning production with consumer demand or using environmentally beneficial production methods.
Although there are two active fruit/vegetable PO’s at present in Ireland no Irish strawberry grower is participating in a PO. The EU legislation governing this scheme has recently been updated and simplified. In line with FoodWise 2025 my Department is committed to facilitating the development of fruit or vegetable PO’s.
My Department is also responsible for enforcing the EU legislation relating to the quality and labeling of fresh fruit and vegetables. These standards cover a number of technical quality parameters, however country of origin labeling is the most important aspect for most consumers and all Irish strawberry producers. My Department conducts inspections throughout the fruit and vegetable distribution chain, at import, wholesale and retail level to verify compliance with this legislation thereby ensuring that consumers can make informed decisions regarding their purchases of strawberries and other fruit/vegetables.
The State also supports the strawberry sector through Teagasc’s specialised advisory and education services. In addition Bord Bia funds a number of promotional events for the sector. This year was the 10th year of National Strawberry Week which has now been re-branded as “Celebrate Strawberry Week.” Co-funded by Bord Bia and the Irish Strawberry industry this promotion campaign aims to highlight the health benefits of strawberries as well as increasing consumer demand though a range of communication channels.
Strawberries have recorded phenomenal growth in sales in the last few years. Based on Bord Bia figures retail strawberry sales have grown by 13.5% in the 12-month period to end of March 2017. The Irish market consumed a total of 9,600 tonnes of strawberries in this period with a retail value of €91 million. Over two thirds of these strawberries were Irish grown.
21. Deputy Mick Wallace asked the Minister for Agriculture, Food and the Marine the measures his Department is taking to reduce the emissions from the agriculture sector; if a projection has been carried out by his Department in relation to emissions reduction from the agricultural sector in 2020, 2030 and 2050; and if he will make a statement on the matter. [21868/17]
View answerThe historic Paris Agreement in December 2015 recognises the need to limit global temperature increases to 2050, to less than 2 degrees and to pursue an objective of limiting increases to less than 1.5 degrees. It also recognises that this must be achieved in a manner that does not threaten food production (Article 2). This reflects the need for a coherent approach to the twin challenges of climate change and food security. From the forestry perspective of land use, the Paris Agreement includes a strong recognition of the role of forests in mitigating climate change.
This aligns with the Government’s long-term ambition for the sector- an approach to carbon neutrality which does not compromise capacity for sustainable food production. In effect, carbon-neutral agriculture aspires to balancing agricultural emissions with carbon-sequestration, reducing emissions from land sector, increasing fossil fuel displacement and materials displacement.
With this in mind, we are correct to seek to maintain one of Europe's most sustainable forms of food production - the Irish family farm.
As the Deputy will be aware, my Department and its agencies have been strongly focussed on improving the efficiency of Irish farming which is fundamental to reducing emissions. We are focused on improving animal, grassland and nutrient management and have invested heavily in a number of schemes and measures such as the Origin Green initiative, the Beef Data and Genomics Programme and our Agri-Environment Scheme, GLAS. Our knowledge transfer programmes are key to bringing the latest innovative sustainability research and practices direct to farmers.
These strategies have led to a significant decoupling of production output and emissions, with current analysis suggesting that the emissions intensity per kcal of food output in 2013 had reduced by approximately 14% relative to 2005.
FoodWise 2025 includes clear and comprehensive commitments to managing the projected growth in the Irish agri-food sector in a sustainable way. The guiding principle underpinning this projected growth is that environmental protection and economic competitiveness will be considered as equal and complementary, one will not be achieved at the expense of the other.
FoodWise provides a framework for the agri sector to engage with the National Mitigation Plan and for the development of a common vision of transition to a low carbon future.
There is also a strong commitment to measuring and monitoring the sustainability credentials of the sector. As part of the implementation phase of FoodWise, an Environmental Sustainability Committee has been established. This implementation process will include evaluation and assessment of the delivery of sustainability and mitigation actions.
All of these efforts are being implemented alongside an extensive afforestation scheme. Afforestation is the main cost effective land based climate mitigation tool available to Ireland, followed by the above mentioned technologies in agriculture itself. Climate change mitigation by forests, forest fuels and wood products is one of the principal drivers of the policy to expand forest cover out to mid century. Agriculture and afforestation are intrinsically linked in Ireland, with every new hectare of afforestation comes directly from agriculture.
My Department will continue to actively engage in the whole of government approach on climate policy to examine the best means of encouraging sustainable intensification of food production, while optimising the sectors contribution to greenhouse gas mitigation and sequestration including through afforestation and other forest sector activities.
22. Deputy Brendan Smith asked the Minister for Agriculture, Food and the Marine the position regarding the review of the areas of natural constraint; and if he will make a statement on the matter. [28150/17]
View answerUnder the Rural Development Regulation each Member State must designate areas eligible for payments under the Areas of Natural Constraints (ANC) scheme. The ANC scheme replaces the previous Disadvantaged Areas Scheme / Less Favoured Areas Scheme. The designation of eligible areas under these schemes to date has been based on a range of socio-economic factors. From 2018 eligible areas must instead be designated using a set list of bio-physical criteria. In cases where a Member State does not introduce this new system for payment, the old scheme remains in place but payments must phase out on a digressive basis.
The biophysical criteria set out in the legislation to underpin the new system of designation are:
- Low temperature
- Dryness
- Excess soil moisture
- Limited soil drainage
- Unfavourable texture and stoniness
- Shallow rooting depth
- Poor chemical properties
- Steep slope.
My Department has commenced work on this project, and relevant technical experts are currently working on sourcing and analysing the data in relation to the new criteria. Department officials have also been in contact with the Joint Research Centre (JRC) and DG Agri in the EU Commission in relation to technical issues arising. This analysis will identify areas deemed to be facing natural constraints, which will in parallel be subjected to a refinement process.
In parallel to this process, it is also possible to designate areas as 'areas of specific constraint' where it is deemed necessary for land management to be continued in order to conserve or improve the environment, maintain the countryside, preserve the tourist potential of the area, or protect the coastline. The potential use of this designation is being considered as part of the overall redesignation project. It is envisaged that stakeholders will be consulted as this process develops.
23. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine if the commitment made by his Department to spend €250 million per year on GLAS when the scheme is fully subscribed will be delivered in 2017; if not, the reason therefor; and if he will make a statement on the matter. [28155/17]
View answerBoth the GLAS and AEOS agri-environment schemes provide valuable support to farmers to deliver environmental benefits and public goods which will enhance Ireland's sustainability credentials into the future. They provide support to Irish farmers aimed at enhancing biodiversity, water quality and the mitigation of the future impacts of climate change while allowing Irish farmers to improve their agricultural practices.
The GLAS scheme is the latest agri-environment scheme available to farmers and is part of Ireland’s Rural Development Plan 2014-2020. To date in excess of 50,000 farmers have had applications approved into the Scheme under three different tranches over a fourteen month period. The approval of this level of farmers into the Scheme has been achieved a year ahead of the original target set when the Scheme was launched.
I firmly believe that this level of participation in GLAS demonstrates Irish farmers commitment to the sustainable growth of the Irish agri-food sector into the future. It clearly shows that Irish producers recognise that future growth must be based on the principle that economic benefits are complementary, compatible and equal to the environmental protection and enhancement of the resources needed to produce the high quality, safe and healthy produced by them.
The commitment of Irish farmers to sustainable agriculture production and the protection of the environment is fully supported by the financial provisions in the RDP 2014-2020. So while the full annual expenditure for GLAS will only be known when 2017 payments for all three tranches of the scheme (GLAS 1, 2 and 3) have been processed together for the first time in the final quarter of this year, I am confident that all of the expenditure provided for in Ireland's RDP 2014-2020 for agri-environment measures will be used.
24. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which his Department has carried out an evaluation of the impact of Brexit on the various aspects of the agrifood producing and business sectors including the need to retain existing provisions for the equine industry vis-à-vis Ireland, the UK and France; the extent to which alternatives can be examined in the event of difficulties; and if he will make a statement on the matter. [28164/17]
View answerMy Department and its agencies have conducted various analyses of the likely impact of Brexit on the agri-food sector. These analyses range from initial and ongoing internal departmental assessments to published work by Teagasc and Bord Bia.
This is an ongoing process, and will continue through extensive consultation with stakeholders, for example through the Department's Stakeholder Consultative Committee and through the All-Island Civic Dialogue process, in respect of which I have already hosted five agri-food and fisheries sectoral dialogues, the most recent of which I held only last week in respect of the equine and greyhound industries.
I have already referred in some length in earlier replies to the range of short- and long-term impacts likely to arise as a result of Brexit, to the measures that I have already taken in order to help mitigate the short-term impacts, and to the ongoing work being undertaken by myself and my Department in relation to dealing with the longer-term impacts.
From the point of view of the equine industry, I would point out that my Department has been in regular contact with Irish equine industry stakeholders in order to fully understand the potential implications of Brexit for the sector. The sector is represented on the Department's Stakeholder Consultative Committee, which met most recently on 11 April, and, as I mentioned, was the focus of the latest of the five sectoral dialogues that I have hosted under the All-Island Civic Dialogue process, which took place in Portlaoise last week. This event provided myself and my Department with an invaluable further opportunity to tease out these issues in some detail, and to consider possible responses, and was made all the more worthwhile by the strong attendance of representatives from Northern Ireland, given the highly integrated nature of the industry on the island.
These contacts have given the industry the opportunity to flag its concerns in relation to Brexit, including in relation to the operation of the Tripartite Agreement, which facilitates the free movement of horses between Ireland, the UK and France. Indeed, this was an issue which featured very prominently at last week's Dialogue, and will be given careful consideration by myself and my Department over the coming period.
I would also point out that, in April this year, Department officials hosted the annual meeting of the Tripartite member countries and industry stakeholders, which provided the opportunity to discuss this issue with the UK and France. The matter has also been raised in the context of my Department's ongoing contacts with its counterpart in Northern Ireland.
I am very aware of the potential threats that Brexit represents to many areas of the agri-food sector, but I remain very focused on supporting the industry through the challenges ahead. I will continue to consult with the industry as the negotiations develop in order to ensure that the issues faced across all sectors, including the equine sector, are fully understood and addressed.
25. Deputy Martin Kenny asked the Minister for Agriculture, Food and the Marine the measures which will be put in place by his Department in order to assist farmers due to the new EU rules governing slurry spreading and the use of splash plates. [29244/17]
View answerMy Department is aware of recent media coverage and at the outset, it is important to note that the lead on this issue is the Department of Communications, Climate Action and the Environment as it relates to the National Clean Air Strategy consultation which was open during March and April this year.
Within this context, the consultation document identified the main issues in relation to air quality and emission sources. It recognised that the spreading of slurry can, depending on the timing of the application and the weather conditions, result in nitrogen loss from slurry to the atmosphere through ammonia volatilisation. That Department will conduct a thorough examination of all submissions received as part of its consultation phase. No decision has been taken on a total ban on splash plates. My Department continues to liase closely with colleagues in the Department of Communications, Climate Action and the Environment on this matter.
On foot of farmer demand to improve the utilisation of slurry as a fertiliser, my Department is assisting farmers under TAMS in the purchase of Low Emission Slurry Spreading equipment.
This is being driven by farmers themselves wanting to maximise the value of the slurry on their own farms, rather than as a regulatory requirement. Recently, the Association of Farm and Forestry Contractors of Ireland also identified their support for this technology.
However, I fully understand that this technology is not suitable for all farms.
26. Deputy Willie Penrose asked the Minister for Agriculture, Food and the Marine his views on whether the loss of sugar beet production has represented a significant disadvantage to tillage farmers; if he will take proactive steps to revive the industry in view of the fact that farming in the UK is proceeding in this direction; and if he will make a statement on the matter. [27977/17]
View answerBy way of explanation I would like to give the Deputy a short background to this issue. A temporary restructuring scheme was introduced with the aim of reducing EU sugar production. Greencore, the holder of the entire Irish sugar quota, availed of this voluntary scheme, dismantled its facilities and ceased production in 2006. Ireland secured €353 million as part of the reform package of which €220 million went to beet growers, €127 million to Greencore and €6 million to machinery contractors.
In 2011 my Department officials met with two separate groups which had conducted feasibility studies into the possibility of establishing a new sugar and bioethanol production facility, using sugar beet, in this country. The figures published by the interested groups who are investigating the possibility of building a new facility, indicate that the overall capital costs involved could range from €250 million to €400 million, depending on what type of facility would be constructed.
My Department officials informed both groups at the time, and many times since, that any venture to develop a combined sugar/bioethanol production facility in Ireland, would have to be a viable commercial proposition, and supported by a sufficiently robust business case in order to attract the funding from investors for the very substantial capital investment required. My Government colleague Minister Coveney informed both groups at the time that it was his job to look for agreement at EU level to allow for the growing of sugar beet for the manufacture of sugar, at the earliest possible date.
In this connection, he secured agreement as part of the overall CAP reform package at the final EU Council of Agriculture Ministers, which he chaired in June 2013, to abolish all sugar quotas by 30 September 2017. This agreement removes, with effect from 1 October 2017, the current EU quota barrier for operators in Ireland or other Member State, wishing to re-establish a sugar industry.
The current Programme for a Partnership Government makes clear that “State enterprise bodies will be asked to examine any substantial business plans related to rebuilding the industry with a view to considering appropriate State supports”. It is now up to those interested parties to move the project forward and to garner sufficient commercial and financial support to turn their plans into a viable reality.
27. Deputy Willie Penrose asked the Minister for Agriculture, Food and the Marine his plans to introduce a second tranche of a low cost loan scheme administered through the Strategic Banking Corporation of Ireland and the commercial banks; if he will revise the terms and conditions of eligibility for participating persons; and if he will make a statement on the matter. [27978/17]
View answerOne of my priorities has been to address the impact of the change in the sterling exchange rate and lower commodity prices in some agriculture sectors. Last month I welcomed the release of preliminary information from the Strategic Banking Corporation of Ireland (SBCI) regarding the uptake of the Agriculture Cashflow Support Loan Scheme. The Scheme, which was developed by my Department in co-operation with SBCI, makes €150 million available to farmers at interest rates of 2.95%. Distributed and administered through AIB, Bank of Ireland and Ulster Bank, the Scheme provides farmers with a low cost, flexible source of working capital, allowing them to pay down more expensive forms of short-term debt, ensuring the ongoing financial sustainability of viable farming enterprises.
SBCI used the €25 million of public funding provided by my Department to leverage the total amount of €150 million and, along with the European Investment Fund’s ‘COSME’ (the EU programme for the Competitiveness of Enterprises and SMEs), is providing the guarantee required to underpin the loan’s flexibility and lower the cost of the loans. My Department’s contribution of €25 million includes €11 million from the EU’s ‘exceptional adjustment aid for milk and other livestock farmers’. It was this exceptional aid package which facilitated the Scheme from an EU State Aid perspective and a second tranche is not possible under this particular arrangement. Other sectors, such as tillage and horticulture, were facilitated by national funding under the ‘de minimis’ State Aid rules.
The SBCI reported that €60.2m has been drawn down by farmers to the end of April. The average loan size is €32,000, with more than half the loans being advanced for terms of four years or more.
I am pleased at the very positive reaction by farmers to the Scheme, which has proved that significant demand exists for low cost flexible finance. I have met with the Chief Executives of the participating banks to discuss this and other access to finance issues relating to the agri-food sector. I have asked the banks to respond positively to the demand that has been demonstrated by reducing interest rates and providing more flexible terms for cash flow loans in the future.
The banks advise that all of the remaining €150m is committed and is in the process of being drawn down. My Department is expecting another update on the progress of the Scheme from the SBCI shortly.
28. Deputy Thomas Pringle asked the Minister for Agriculture, Food and the Marine the way in which he is dealing with the land eligibility issues raised by an association (details supplied) for persons under the direct payment and scheme systems; and if he will make a statement on the matter. [27935/17]
View answerIn 2015 my Department published the "A Guide to Land Eligibility" booklet, which issued to all farmers, detailing all of the requirements that applicants must comply with to ensure that their land is and remains eligible for payment.
The land declared by an applicant under the various EU funded area-based schemes must be eligible agricultural land and must also have an agricultural activity carried out on the land.
The governing EU regulations set out a range of actions to define agricultural activity and maintaining it in a state suitable for grazing and cultivation. In Ireland we chose from the legal framework to go with a characteristics-based approach. Therefore an applicant is free to choose the method which best suits their farming operation to ensure that the land is suitable for grazing or cultivation. Furthermore we also exercised the option to deem what is known as "Permanent Grassland Established Local Practices" (PGELP) land eligible and hence the definition of permanent pasture that is implemented in Ireland allows for the wide variety of grazing ground that exists in the State.
The main guiding principles for determining land as eligible include:
- The land is agricultural;
- The land is not abandoned;
- Ineligible features, e.g. buildings, areas of water bodies, scrub, rock, have been excluded from the area declared;
- There must be evidence that the applicant is maintaining the agricultural area.
With specific regard to Natura land, the “Guide to Land Eligibility” booklet details the provision set out in EU regulations where land that was eligible in the past and has now become ineligible, due to compliance with the requirements of the birds and habitats directives, can be considered for payment subject to specific criteria being met. However this provision can only apply where the farmer is still farming the land and the land is fundamentally an agricultural area.
In relation to a finding of land not being eligible (e.g. in the case of burnt land), the regulations clearly allow for penalties not to be imposed where the applicant can demonstrate that he or she is not at fault for the non-compliance.
However, my Department is constrained by EU regulations which require these exceptions to be interpreted narrowly. In the case of eligibility requirements it would be for the applicant to demonstrate to the satisfaction of the Department that such exceptional circumstances arise. This may require, where appropriate, the applicant to demonstrate that all reasonable measures have been taken to prevent such damage. My Department will examine every such case on an individual basis to determine if these exceptions are applicable.
My Department implements the relevant EU regulations in relation to land eligibility in a fair and balanced manner, having due regard to all other relevant EU legislation. I can assure the Deputy that there has been no change to the criteria used to establish land eligibility since the publication of the 2015 Guide to Land Eligibility.
29. Deputy Mick Barry asked the Minister for Agriculture, Food and the Marine his plans to review the atypical worker permit for non-EU migrant fishing crew; if such a review is planned; and if he will meet representatives from the international transport federation that have concerns regarding the welfare of non-EU migrant fishing crew operating on Irish vessels. [28072/17]
View answerThe matters which arose in relation to non-EEA workers in the fishing industry required a cross-Departmental and cross-agency response. The Government set up an inter-Departmental Task Force to examine the issues involved.
The main recommendation of the report of the Task Force was the establishment of a sector-specific Atypical Worker Permission system which is an extension of the existing Atypical Worker Permission schemes administered by the Department of Justice and Equality (Irish Naturalisation and Immigration Service – INIS). The purpose of this scheme is to provide a structured and transparent framework for the employment of non-EEA workers within defined segments of the Irish commercial sea-fishing fleet. This system was established and is operated through the co-operative efforts of the Department of Agriculture, Food & the Marine, the Department of Justice and Equality and the Department of Jobs, Enterprise and Innovation.
The scheme has been in operation for just over a year and therefore further time is needed to allow the scheme to become established and to deliver on its objectives.
In tandem with the development of this scheme, under the aegis of my colleague the Minister for Jobs, Enterprise and Innovation, 11 Departments and Agencies were brought together and developed a Memorandum of Understanding to underpin the monitoring and enforcement of the scheme.
The role of my Department, in relation to this scheme, is solely in respect of maintaining the Central Depository of contracts and supporting documentation submitted under the Scheme, in order to ensure that the cap of 500 is not exceeded in any 12 month period. The Department of Justice and Equality retains responsibility for immigration matters under the scheme while the Memorandum of Understanding (MOU) put in place, which is led by the Department of Jobs, Enterprise and Innovation with relevant State enforcement bodies, provides for a rigorous and effective inspection system.
30. Deputy Willie Penrose asked the Minister for Agriculture, Food and the Marine when he will publish the report on the aquaculture licensing process; his plans to legislate on its recommendations; his views on the recommendations; and if he will make a statement on the matter. [27975/17]
View answerI received the Report of the independent Aquaculture Licensing Review Group on 31st May 2017. This Group was tasked with making recommendations to improve the existing licensing system and to undertake steps to review the legislative framework having regard to Government policy for the sustainable development of aquaculture, as outlined in Food Wise 2025 and the National Strategic Plan for Sustainable Aquaculture Development.
The Review Group carried out a detailed examination of the existing aquaculture licensing process, undertook comprehensive stakeholder consultation and looked at comparative national and international consent systems to determine best practice for managing a complex licensing process in a transparent, environmentally appropriate and legally robust manner.
The Group’s Report is published and available to view on Fishingnet.ie, the Government’s Commercial Sea Fishing Network Portal. The overarching conclusion of the Report is for a root-and-branch reform of the aquaculture licence application processes to take place with a focus on both short-term immediate actions as well as longer term initiatives. There are a total of 30 recommendations in the Report.
My Department is currently considering the Report’s recommendations. This work is regarded as high priority and implementation of recommendations of the Report will commence as soon as possible.
31. Deputy Jackie Cahill asked the Minister for Agriculture, Food and the Marine the position regarding the EU Commission's plans in relation to skimmed milk powder intervention stocks; and if he will make a statement on the matter. [27966/17]
View answerWhile dairy markets are currently broadly stable, the Deputy will be aware that between mid 2014 and the end of 2016 dairy markets experienced significant difficulties. This was due to a combination of factors including increased global supply, the effects of the Russian ban on the import of EU agri-food products and reduced global demand, notably for dairy products in China.
During that phase of volatility, the EU Commission, both prompted and supported by Ireland, among other Member States, responded to these difficulties through the deployment of support measures, including intervention provided for under the CAP.
Ireland welcomed some of the measures adopted by the Commission during this period. Key among these measures was the buying of skimmed milk powder (SMP) into intervention. Ireland's industry placed some 36,000 tonnes of product into intervention between September 2015 and the end of 2016. During this period, the EU Commission, supported by Ireland and other Member States, raised the volume thresholds for fixed-price intervention for SMP on a number of occasions. Currently there are over 350,000 tonnes of SMP in intervention across the EU.
The increased volume thresholds for SMP of 350,000 tonnes and a commitment to avoid market disruption when releasing product have had a stabilising effect on the market in late 2016 and early 2017.
The process of tendering for release of product back onto the market commenced in December 2016. There was a single tendering round in December 2016 and multiple tendering rounds throughout 2017 thus far. On each occasion the Commission has adopted a cautious approach. Only 40 tonnes in total has been released thus far, and this was at the first tendering event in December 2016. The tendering events since December have seen all offers rejected on the basis of what were deemed insufficient offers, often significantly below the market price for the stock. This approach has been supported unanimously by Member States, including Ireland.
It is critically important that the release of these stocks is managed in a way that does not de-stabilise the market, particularly through the peak phase of production in Ireland and the EU. I am satisfied to date that the Commission has managed these stocks in a prudent and sensible manner.
32. Deputy Niamh Smyth asked the Minister for Agriculture, Food and the Marine the position regarding the ANC review; and if he will make a statement on the matter. [28160/17]
View answerUnder the Rural Development Regulation each Member State must designate areas eligible for payments under the Areas of Natural Constraints (ANC) scheme. The ANC scheme replaces the previous Disadvantaged Areas Scheme/Less Favoured Areas Scheme. The designation of eligible areas under these schemes to date has been based on a range of socio-economic factors. From 2018 eligible areas must instead be designated using a set list of bio-physical criteria. In cases where a Member State does not introduce this new system for payment, the old scheme remains in place but payments must phase out on a digressive basis.
The biophysical criteria set out in the legislation to underpin the new system of designation are:
- Low temperature
- Dryness
- Excess soil moisture
- Limited soil drainage
- Unfavourable texture and stoniness
- Shallow rooting depth
- Poor chemical properties
- Steep slope.
My Department has commenced work on this project, and relevant technical experts are currently working on sourcing and analysing the data in relation to the new criteria. Department officials have also been in contact with the Joint Research Centre (JRC) and DG Agri in the EU Commission in relation to technical issues arising. This analysis will identify areas deemed to be facing natural constraints, which will in parallel be subjected to a refinement process.
In parallel to this process, it is also possible to designate areas as 'areas of specific constraint' where it is deemed necessary for land management to be continued in order to conserve or improve the environment, maintain the countryside, preserve the tourist potential of the area, or protect the coastline. The potential use of this designation is being considered as part of the overall redesignation project. It is envisaged that stakeholders will be consulted as this process develops.
33. Deputy Maureen O'Sullivan asked the Minister for Agriculture, Food and the Marine if he approved the €23 million of Exchequer funding that went to Bord na gCon in the State purchase of the former Harold's Cross greyhound stadium; his views on whether the agreed price was value for money for the land in question; and if he will make a statement on the matter. [28157/17]
View answerThe Chairman of Bord na gCon wrote to my Department on 10 May seeking my approval and that of the Minister for Public Expenditure and Reform for the sale of Harold’s Cross Greyhound Stadium to the Department of Education and Skills .
The sale of Harold's Cross Greyhound Racing Stadium is a transaction between the Department of Education and Skills and Bord na gCon. I had no role in the approval of the sum of €23 million offered for the stadium. Indeed I understand that that sum was based on an independent valuation by the Valuation office and that this was provided and accepted by the transacting parties, in accordance with Department of Public Expenditure and Reform procedures governing the sale of state assets.
I was however required to consent to the sale of the asset by Bord na gCon in accordance with the code of governance for State Bodies. The necessary Ministerial consents for the sale have been provided , subject to the proceeds being used to substantially reduce the debt and to the submission of a comprehensive business plan by Bord na gCon.
This sale was consistent with a recommendation in the Indecon Report, commissioned by my predecessor, that Bord na gCon consider disposing of assets, including Harold's Cross Greyhound Racing Stadium, in order to reduce its debt levels. This debt stood at €21.4 million at 31st December 2016, and the cost of servicing it was a significant impediment to the Bord's ability to carry out its statutory obligation to the develop the industry.
I am confident that this sale, along with the new framework for improved governance and regulation currently undergoing pre legislative scrutiny in the Joint Oireachtas Committee on Agriculture, Food and the Marine, can provide a platform for a new beginning for the sector and a more sustainable future.
