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Thursday, 11 Oct 2018

Written Answers Nos. 1-29

Brexit Issues

Questions (11)

Charlie McConalogue

Question:

11. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine the operational details of the various Brexit loan schemes announced in budget 2018 for farmers, fishermen and food businesses in 2018; when they will open for applications; and if he will make a statement on the matter. [41454/18]

View answer

Written answers

In his Budget speech my colleague, the Minister for Finance and Public Expenditure and Reform, Paschal Donohoe TD, formally announced progress in relation to the development of the “Future Growth Loan Scheme” for SMEs, including the primary agriculture and seafood sectors. This is a key Government Brexit response for which I had provided €25 million in funding in 2018.

The Food Wise 2025 strategy outlines the agri-food sector’s unique and special position within the Irish economy and its potential for future growth. Brexit is obviously a significant challenge given our unique exposure to the UK market. Farmers, the seafood sector and food businesses will need to focus on competitiveness and innovation in order to continue the growth in Irish agri-food exports, which reached a record €13.6 billion in 2017. The Scheme forms an important part the Government’s Brexit response alongside the “Brexit Loan Scheme”, the provision of additional resources to the agri-food and enterprise State Agencies and an intensification of Minister-led trade missions to access and develop new markets.

The Scheme, which will be administered by the SBCI and backed by a European Investment Fund counter-guarantee, will bring previously unavailable 8 to 10 year unsecured investment finance to the Irish market at competitive interest rates. I am working with colleagues the Minister for Business, Enterprise and Innovation, Heather Humphreys TD, and Minister Donohoe, to bring up to €300 million of loans to the market.

This is a long-awaited source of finance for young and new entrant farmers, especially the cohort who do not have high levels of security. It will also serve smaller-scale farmers, who often do not have the leverage to negotiate for more favourable terms with their banking institution. Along with the likes of Milk Flex, this Scheme will form part of a comprehensive investment package for farmers. I am also delighted to be able to include the seafood sector in the Scheme

Food companies have identified long term investment finance of up to ten years as a critical need which is currently unavailable in Ireland. I am pleased that the Government have been able to deliver this product and its effects will be felt all along the food production chain.

My Department is providing 40% of the funding so an overall agri-food package of €120 million will be available. However, unlike previous Schemes, this can be reviewed and adjusted according to demand.

Further details will be provided in the coming months. The Scheme is expected to be in place in early 2019 and will run for three years from its launch date.

Question No. 12 answered orally.

Rural Development Plan

Questions (13)

Charlie McConalogue

Question:

13. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine his plans to commence the introduction of a €200 annual payment for suckler cows under the RDP to ensure the sustainability of the national herd; and if he will make a statement on the matter. [41457/18]

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Written answers

My Department is examining all appropriate measures to support the different agrifood sectors, including the suckler sector in preparation for the next iteration of the CAP. The measures adopted will be informed by stakeholder consultation on the needs of the sector to develop in an economically and environmentally sustainable way, as well as the relevant research and the available budget and structure of the new CAP when it is finalised.

I was pleased to secure in the Budget this week an allocation of €20 million in 2019 for a new pilot scheme for suckler farmers, specifically aimed at further improving the carbon efficiency of beef production. The Beef Environmental Efficiency Pilot (BEEP) will target the weaning efficiency of suckler cows and calves - measuring the liveweight of the calf at weaning as a percentage of the cow's liveweight. This data will be used to target improvements on a herd basis by giving the farmer detailed feedback on the performance of individual animals. The data collected will also be a valuable addition to Ireland's already impressive database on cattle genomics. Details of the scheme will be announced in due course.

The Beef Data and Genomics Programme (BDGP) is currently the main support specifically targeted for the suckler sector, which provides Irish beef farmers with some €300 million in funding over the current Rural Development Programme (RDP) period. This scheme is an agri-environmental measure to improve the environmental sustainability of the national suckler herd by increasing genetic merit within the herd.

My Department has rolled out a range of schemes as part of the €4 billion Rural Development Programme (RDP), 2014 - 2020. In addition to the BDGP, other supports which are available for suckler and sheep farmers under Pillar II of the CAP include GLAS, ANCs and Knowledge Transfer Groups. Suckler farmers also benefit from the Basic Payment Scheme (BPS) and Greening payments under CAP Pillar I.

I am conscious that this has been a difficult year for the sector in terms of weather and the range of challenges associated with it. At the recent meeting of the Beef Roundtable on 3 October, I highlighted the need for stakeholders to recognise their inter-dependency. I urged processors to engage positively with their farmer suppliers to build the sustainability of the sector as a whole and to ensure a reasonable return for the farmers upon whom the sector relies for its development. It is essential that the position of the primary producer in the supply chain be secured if we are to build a sector for the future.

The Beef Roundtable also included discussions on the potential for producer organisations and the development of new technologies as ways of adding value along the whole supply chain, all tools to build resilience in the sector. Producer Organisations would allow farmers to engage collectively with processors, with the aim of strengthening farmers' bargaining power. Additionally, I have asked Bord Bia to conduct a detailed examination of market dynamics, with the cooperation of the industry, taking into account sales of particular cuts into particular segments of the market in order to improve price transparency.

One of the unique strengths the agri-food sector has is our shared vision for the sustainable development of the sector in Food Wise 2025. I hope that this positive engagement will continue.

I am strongly of the view that this new provision announced in this week's Budget and the existing range of supports available to suckler farmers, together with ensuring access to as many markets as possible, both for live animals and beef exports, are appropriate supports for the continued development of the sector. According to National Farm Survey already suckler farmers receive support equivalent to approximately €500 per suckler cow on average.

I will continue to argue for as strong a CAP budget as possible, post-2020. In particular, I am committed to ensuring that suckler farmers continue to receive strong support in the next CAP. My view is that such payments should support and encourage suckler farmers to make the best decisions possible to improve the profitability, and the economic and environmental efficiency, of their farming system. The Beef Environmental Efficiency Pilot is a positive step in that direction.

Question No. 14 answered orally.

Harness Racing Industry

Questions (15)

Martin Kenny

Question:

15. Deputy Martin Kenny asked the Minister for Agriculture, Food and the Marine the way in which he plans to support the harness racing sector in the future. [41469/18]

View answer

Written answers

My Department funded the Indecon Review of the Irish Harness Racing Sector, which was published on 1st November 2017. This report provides the sport with a road map for its potential development and I will be supporting the recommendations within my Department's remit from the outset.

In March 2018 my Department agreed the sum of €63,714 to fund the preparation and development of a Five Year Strategic Plan for the Irish Harness Racing Association and the sector. A draft of this report was recently received and my officials are in discussion with the Irish Harness Racing Association regarding its contents.

I would like to highlight that in addition to the funding provided for the Indecon Review and the development of a Five Year Strategic Plan, I have already committed to continuing and expanding the pilot integration programme, which will be funded by my Department.

- With a view to raising the awareness of the critical importance of good horse welfare amongst road racing sulky participants and the owners and keepers of trotting horses, my Department awarded a tender to carry out an education programme Horse Welfare course for Road-Racing Sulky Drivers and owners. The first course was run in the Dublin region in May 2018. A second course is currently under way in Tipperary. A third course began at the end of September in Cork and has a high level of engagement with participants in the north of the county. The demand for a fourth course is currently being assessed in other areas.

- In 2017 grants totalling €40,020.00 were paid to the Irish Harness Racing Association under the Equine Technical Support Scheme. In 2018, €24,823.00 in grants were also approved under this Scheme.

- Support valued in excess of €25,000 for 'Road Racing Education Programme' were issued in 2017.

Similarly in 2016, the Irish Harness Racing Association received grants totalling €21,704.00 under the Equine Infrastructure grant scheme, with a view to supporting this sector in a targeted way.

Basic Payment Scheme Payments

Questions (16)

Martin Kenny

Question:

16. Deputy Martin Kenny asked the Minister for Agriculture, Food and the Marine his plans to introduce a 100% reduction in the basic payment scheme on all payments over €60,000 in the new Common Agricultural Policy, CAP. [41467/18]

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Written answers

The new legislative proposals for the Common Agricultural Policy 2021 - 2027 were launched on Friday 1 June 2018 by Commissioner Hogan. The proposals, as drafted, involve significant changes, including in relation to governance, the distribution of direct payments among farmers and the increasing environmental conditionality attaching to such payments. There will be some additional discretion for Member States in configuring the measures available, within parameters laid down in the draft proposals. The new proposals must commit to a more significant environmental ambition than the current CAP schemes, including in pillar I.

These are complex proposals. We are currently in the process of what are intensive and challenging negotiations. I am working with the Commission and other Member States to shape these proposals into an effective new CAP. My Department is continuing to analyse the proposals and their potential implications for the Irish agrifood sector.

The new proposals allow for subsidiarity for Member States but with an overall commitment by the European Commission to protect the common policy and avoid distorting the single market.

I have already indicated that I am open to consider some level of capping. Ireland has already applied the maximum level of degressivity allowable under the current regulations for payments over €150,000. The new proposals include a number of measures designed to move further in this direction, including an overall mandatory cap of €100,000; degressivity for payments above €60,000; a complementary redistributive income support; and, the convergence of payments towards a minimum of 75% of the average payment per hectare nationally. However these are currently draft proposals only. My Department is at present examining these proposals carefully to assess their potential impact on applicants, and to ensure that any such mechanisms can be implemented without undue complexity.

The CAP draft legislative proposals come against the background of recent proposals for the next Multi-annual Financial Framework 2021-2027. The Multiannual Financial Framework sets the budgetary ceilings for the next seven years across a range of headings, including CAP. It is anticipated that the next MFF will be finalised before the European elections in May 2019. Until the final budget for CAP Post 2020 is agreed, along with the draft CAP proposals it is not possible to give an accurate position on the details of the future Agri Schemes. I remain focused on this crucial issue of the overall level of the budget and am working closely with my European colleagues on this matter.

Fodder Crisis

Questions (17)

James Browne

Question:

17. Deputy James Browne asked the Minister for Agriculture, Food and the Marine the supports he plans to introduce for farmers in crisis in winter 2018; and if he will make a statement on the matter. [41265/18]

View answer

Written answers

I am grateful to have the opportunity to inform the House of the actions I have undertaken already to seek to ensure sufficient supplies of Fodder for the coming Winter and Spring 2019.

A survey of Fodder supplies in September, conducted at my request, indicated that the potential national fodder deficit has reduced from 18% earlier this Summer to 11% at that time. Further reductions are anticipated since this survey was conducted as farmers continue to harvest fodder.

My priority has been to support the conservation of as much fodder for the coming Winter as possible from our own resources, and to supplement this with necessary imports as required. To achieve this I introduced a number of targeted measures:

I introduced a €2.75 million Fodder Production Incentive for Tillage Farmers to encourage tillage growers to actively engage in the fodder market and there has been positive engagement with this measure.

I also announced a €4.25 million Fodder Import Support Measure for Autumn 2018. The measure seeks to reduce the cost to farmers of imported forage. While the measure will operate through the Co-operatives and registered importers, the actual beneficiaries will be farmers who need supplies of fodder.

Additionally, I also secured agreement from Commissioner Hogan to pay higher advance Pillar 1 and 2 payments which will be increased to 70% and 85% respectively, resulting in €260 million in additional cash flow for farmers at a vital time of the year.

Furthermore, following consultation with the EU Commission, my Department made some temporary adjustments to the GLAS scheme for this year and in consultation with my ministerial colleague Mr. Eoghan Murphy T.D., a two week extension of the closed period for the spreading of chemical and organic fertilisers was announced and has allowed farmers capitalise on Autumn grass growth for fodder production.

I am confident that the range of measures introduced by me to date, taken together and targeted at producing as much fodder as possible from our own land, is the most effective response to ensuring adequate supplies ahead of the coming Winter. However I can assure you that I will continue to closely monitor and engage on this significant challenge during the coming period.

Agriculture Cashflow Support Loan Scheme

Questions (18)

Charlie McConalogue

Question:

18. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine his plans to open a new low-cost loan scheme to support farmers with cashflow issues arising from increased costs associated with the fodder crisis; and if he will make a statement on the matter. [41455/18]

View answer

Written answers

The agreement I secured from Commissioner Hogan to make higher advance payments this autumn will result in a very substantial €260 million in additional cash flow for farmers shortly.

I have had ongoing engagement with the banks on the cash flow pressures arising from the effects of the weather on grazing and fodder stocks. I am pleased to see that this engagement and the delivery of last year’s Agriculture Cash Flow Loan Scheme has acted as a catalyst to encourage financial institutions to improve and develop new products for the sector:

- A recently announced initiative by one of the main banks mirrors the Scheme in offering a discounted interest rate with extended and flexible repayment terms.

- All three main banks have dedicated offerings in response to the current situation.

- Co-ops have introduced recent initiatives on credit facilities for their suppliers.

A Spending Review of the Agriculture Cash Flow Loan Scheme, published with the Budget, concluded that this was the main impact of the Scheme.

In the context of these new and improved supports in this area, the focus of the Government has been to address market gaps, the most critical of which has been identified as unsecured longer-term investment finance. In his Budget speech my colleague the Minister for Finance and Public Expenditure and Reform, Paschal Donohoe TD, formally announced progress in relation to the development of the “Future Growth Loan Scheme” for SMEs, including the primary agriculture and seafood sectors.

This is a long-awaited source of finance for young and new entrant farmers, especially the cohort who do not have high levels of security. It will also serve smaller-scale farmers, who often do not have the leverage to negotiate for more favourable terms with their banking institution.

Food companies have identified long-term investment finance of up to ten years as a critical need which is currently unavailable in Ireland. I am pleased that the Government have been able to deliver this product and its effects will be felt all along the food production chain.

My Department is providing 40% of the funding so an overall agri-food package of €120 million will be available. However, unlike previous Schemes, this can be reviewed and adjusted according to demand.

Further details will be provided in the coming months. The Scheme is expected to be in place in early 2019 and will run for three years from its launch date.

Beef Industry

Questions (19)

Charlie McConalogue

Question:

19. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine his views on the price beef farmers are receiving for their produce from factories; if he will report on the discussions at the recent beef forum; the actions and deadlines agreed; and if he will make a statement on the matter. [41458/18]

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Written answers

As the Deputy will be aware, in accordance with competition law, neither I nor my Department have any role in determining market prices for any commodity, nor can I intervene in this process.

I am conscious that this has been a difficult year for the sector in terms of weather and the range of challenges associated with it. We have to acknowledge that input costs at farm level will be unexpectedly high this year as a result of fodder shortages.

At the recent meeting of the Beef Roundtable on 3rd October I highlighted the need for stakeholders to recognise their inter-dependency. I urged processors to engage positively with their farmer suppliers to build the sustainability of the sector as a whole and to ensure a reasonable return for the farmers upon whom the sector relies for its development. It is essential that the position of the primary producer in the supply chain be improved if the industry is to build a sector for the future.

The Beef Roundtable also included discussions on the potential for producer organisations and the development of new technologies as ways of adding value along the whole supply chain though increased engagement in the bioeconomy. These discussions were aimed at highlighting available tools to build resilience in the sector.

I noted that previously at the Beef RoundTable in 2015, a commitment was made to legislate for the recognition of Producer Organisations (POs) in the beef sector. This initiative was supported by all sectoral stakeholders and in February of 2016 a Statutory Instrument was signed into law to give a legal basis for my Department to maintain a register of recognised POs in the beef sector. The recognition of POs will encourage primary beef producers to form Producer Organisations and allow farmers to engage collectively with processors. The ultimate aim is to ensure the viable development of production by strengthening farmers' bargaining power with downstream operators.

At the Roundtable on 3 October, I also asked Bord Bia to conduct a detailed examination of market dynamics, with the cooperation of the industry, taking into account sales of particular cuts into particular segments of the market in order to improve price transparency.

One of the unique strengths of the agri-food sector has been the shared vision for the sustainable development of the sector in Food Wise 2025. I hope that this positive engagement will continue.

More generally in relation to the beef sector, I was pleased to secure in the recent Budget, €20 million for a new pilot scheme targeted at suckler farmers and specifically aimed at further improving the carbon efficiency of beef production. The pilot will build on existing work in this area and inform the development of future policy direction.

My Department is examining all appropriate measures to support the different agri-food sectors, including the suckler sector in preparation for the next iteration of the CAP. I will continue to argue for as strong a CAP budget as possible, post-2020. In particular, I am committed to ensuring that suckler farmers continue to receive strong support in the next CAP. My view is that such payments should support and encourage suckler farmers to make the best decisions possible to improve the profitability, and the economic and environmental efficiency, of their farming system.

Sugar Industry

Questions (20)

Martin Kenny

Question:

20. Deputy Martin Kenny asked the Minister for Agriculture, Food and the Marine his plans to invest in the sugar beet sector. [41468/18]

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Written answers

As the Deputy will be aware, in 2006 the EU introduced a restructuring mechanism intended to reduce overall production of sugar, acknowledging the then global over supply and resultant low prices being achieved.

Greencore, as the holder of the entire Irish sugar quota at the time, availed itself of this voluntary initiative, ceasing production and dismantling its processing facilitates.

As part of the relinquishing of its sugar quota, Ireland secured €353 million as part of the reform package, with some €220 million being distributed to beet growers and a further €6 million to machinery contractors in the sector.

In the intervening years, global production has continued to exceed demand and prices unfortunately remain at historically low levels. To illustrate, during the height of a sugar beet industry in Ireland growers were receiving payment approaching €50/tonne whereas in 2018, growers in the UK are receiving approximately £22.50/tonne (€25/tonne) for sugar beet with a price drop of 15% quoted for 2019 harvest of £19.07/tonne (€21.36/tonne).

As part of the reform of the CAP under the Irish Presidency, agreement was secured on the abolition of sugar quotas from 30th September 2017. From that date, investors in the European Union, including Ireland are free to invest in sugar producing capacity if they wish.

Notwithstanding this, a number of groups expressed an interest in the redevelopment of the sugar sector, two of whom prepared desktop feasibility studies between 2010 and 2011. In their findings, both proposals sought to develop a new sugar and bio ethanol production facility with capital costs, estimated at the time, of between €250 and €400 million.

The current "Programme for a Partnership Government" states that "State Bodies will be asked to examine any substantial business plans relating to rebuilding the industry with a view to considering appropriate State supports".

Any such business plans would need to be supported by a sufficiently robust business case, having regard to the price of sugar, to attract the substantial funding required from investors for such a new start-up industry.

Areas of Natural Constraint Scheme Review

Questions (21)

Charlie McConalogue

Question:

21. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine the status of the areas of natural constraints, ANC, review with regard to redesignation using a set list of bio-physical criteria; if the new approach must be introduced from January 2019; if mapping of all ANC lands is complete; the specific actions completed to date by officials; the details of the actions outstanding; when the final ANC data will be submitted to the EU Commission in 2018; and if he will make a statement on the matter. [41456/18]

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Written answers

Under EU regulation, Less Favoured / Disadvantaged Areas were to be replaced by newly designated Areas of Natural Constraints from 2018, with eligible areas being designated using a set list of bio-physical criteria such as soil drainage, texture and slope. However, as part of legislative amendments at EU level, a proposal was made to extend the 2018 deadline to 2019 on an optional basis. This proposal has been approved at EU level, along with a number of other regulatory changes in what is referred to as the “omnibus regulation”.

My Department is well advanced with work on this project, and relevant technical experts are currently continuing to analyse the data in this regard.

In addition to the technical work on the biophysical criteria, the Regulation allows for two linked processes designed to enable further targeting of support under the Scheme. These processes are called fine tuning and the identification of areas of specific constraint. These three processes are underway in parallel to each other and, once complete, will provide the basis for the identification of eligible areas in the ANC scheme from 2019 onwards.

In order to progress this work, my Department is in on-going communication with the EU Commission in relation to the accepted parameters and technical aspects of this project. Any change to the ANC scheme on foot of this process will require formal agreement with the EU Commission via an amendment of Ireland's Rural Development Programme 2014 - 2020.

Laboratory Facilities

Questions (22)

Bobby Aylward

Question:

22. Deputy Bobby Aylward asked the Minister for Agriculture, Food and the Marine the status of the review and cost-benefit analysis of the regional veterinary laboratory in County Kilkenny which serves the farmers of the entire south east region; and if he will make a statement on the matter. [41304/18]

View answer

Written answers

My Department has commissioned a cost-benefit analysis (CBA) of options that have been proposed for the future development of the Regional Veterinary Laboratories (RVLs). The team conducting the CBA includes internationally-recognised, independent experts in economic analysis and animal disease surveillance. It is currently finalising its work, after which a report and recommendations will be presented to me.

My Department completed an initial consultative process with all relevant stakeholders on the options for the RVLs during the course of last year and the consultants undertaking the CBA have also consulted with stakeholders. Any decision that is made on the RVLs will be informed by both those consultative processes and the outcome of the CBA.

Brexit Issues

Questions (23)

Martin Kenny

Question:

23. Deputy Martin Kenny asked the Minister for Agriculture, Food and the Marine the steps that have been taken to ensure that cross-Border veterinary regulations and standards will be maintained after Brexit. [41470/18]

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Written answers

Brexit has the potential to have a significant impact on the whole of the agriculture industry throughout Ireland.

However, the Government, in the first instance, is seeking to minimise the impact of Brexit through a negotiated outcome which avoids a hard border on the island of Ireland and which permits a trading arrangement post-Brexit that is as close as possible to that prevailing currently. That is what Ireland wants from the negotiations, and it is also what the EU wants.

In this regard, the UK commitment, in the Joint EU-UK Report of last December, to avoid a hard border on the island of Ireland, was extremely important. The aim from an agri-food perspective is to continue with the free movement of agricultural goods and animals on the island of Ireland, while maintaining veterinary regulations and standards.

Ensuring that the UK gives effect to this commitment is a significant focus of the Irish Government, and we have the full support of our EU partners and of the European Commission Task Force in this regard. I and my Department have been contributing actively to the Department of Foreign Affairs and Trade- coordinated ‘whole of government’ approach to ensuring such an outcome from the negotiations.

In relation to the maintenance of veterinary regulations and standards on the island, I want to assure the Deputy that the ongoing, close co-operation between my Department and the Department of Agriculture, Environment and Rural Affairs in Northern Ireland established under the All island Animal Health and Welfare Strategy is continuing. The working groups established under the strategy, continue to focus on critical issues such as disease control, animal identification and movement, cross-border communication, data sharing and the development of joint initiatives on animal welfare.

I wish to assure the Deputy that the Government remains very focused on supporting the agricultural industry through the challenges ahead. The Government will be firm in arguing that any agreement reached between the EU and the UK must take account of the very serious challenges presented by Brexit for the sector, particularly given the unique circumstances on the island of Ireland and the importance of our economic relationship with the UK.

And, of course, ultimately Ireland's objective in the negotiations is to have a trading relationship with the entire UK which is as close as possible to the current arrangement.

Greyhound Industry

Questions (24)

Clare Daly

Question:

24. Deputy Clare Daly asked the Minister for Agriculture, Food and the Marine the steps he is taking to improve the compliance rate of microchipping for Irish greyhounds that are being sold to the UK. [41259/18]

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Written answers

The feedback from databases dealing with dog identification indicates high levels of compliance for dogs generally.

Greyhounds being sold to the UK must be accompanied by a passport. The relevant EU legislation (Regulation 576/2013) states that a passport can only be issued by a vet after the vet has verified that the dog has been marked with a chip. The passport must contain the chip number and the date of insertion of chip.

Furthermore, in the case of greyhounds it is not possible to enter them in the stud book if they are not microchipped which means they are unable to race or be used for breeding.

Animal Welfare

Questions (25)

Thomas P. Broughan

Question:

25. Deputy Thomas P. Broughan asked the Minister for Agriculture, Food and the Marine the organisations he and his officials have met in relation to the export of greyhounds; and if he will make a statement on the matter. [41389/18]

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Written answers

My Department has a close working relationship with animal welfare charities on all aspects of animal welfare. Officials of my Department have met with the welfare members of the International Greyhound Forum, which includes the Dogs Trust, the ISPCA and Bord na gCon, where issues surrounding the export of greyhounds are considered.

Bord na gCon, which is responsible for the governance, regulation and development of the greyhound industry in Ireland, has stated that it does not support the export of greyhounds to destinations which do not conform with the standards in the Animal Health and Welfare Act 2013, the Welfare of Greyhounds Act 2011 or its own Code of Practice and standards. I fully endorse this view.

Dairy Sector

Questions (26)

Jackie Cahill

Question:

26. Deputy Jackie Cahill asked the Minister for Agriculture, Food and the Marine the latest developments regarding skimmed milk powder, SMP, intervention at EU level; the data on sales; the EU Commission's plans for SMP intervention tendering in 2019; and his views in relation to same. [41475/18]

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Written answers

As the Deputy is aware, the Irish dairy market, in line with broader EU and international trends, is currently in a much improved position compared to the period 2014 - 2016. Of course, we remain vigilant in monitoring the market and emerging trends, particularly after the challenges of this season faced by Irish farmers.

The issue of intervention stocks overhanging the dairy market remains a cause for concern, arising from the significant recourse to this market measure for skimmed milk powder across the EU since September 2015.

Figures from the European Commission show that there were approximately 245,000 tonnes of skimmed milk powder in public intervention stocks at the end of September 2018 ,effectively overhanging the EU skimmed milk powder market. This figure represents a substantial reduction of over 145,000 tonnes in the quantity of SMP in public intervention stocks across the EU over the course of this year.

In relation to the sale of intervention stocks, the Commission has agreed to accept bids as part of recent tender processes, for approximately 43,000 tonnes of SMP at a price of €123/100kg since August.

An additional recent development in terms of the strategy adopted for reducing the overhang of SMP stocks in public intervention has been to amend Implementing Regulation 2016/2080 “as regards the periods for the submission tenders”, which will result in approximately doubled frequency of tenders for sale of product in intervention which provides for “two partial invitations to tender per month”.

Regarding the Commission’s general approach, my Department and I engaged at Council of Ministers meetings and directly with the Commission on recent measures to prevent further stockpiling of skimmed milk powder into 2019 without due justification, including the Commission's proposal to reduce the fixed-price ceiling to zero which it had previously introduced for 2018.

This proposal is for 2019 only and it is essential that this should not mark a fundamental or permanent change in the mechanism for intervention for dairy products agreed by Member States in the Council Regulation in 2013. The intervention mechanism is an essential tool which puts a floor under SMP prices and the importance of its availability to the Commission as a means to deal with extreme price volatility and any other market crisis must be acknowledged.

I have clearly stated previously, at Council of Ministers meetings and elsewhere, that it is imperative that the Commission remains vigilant in monitoring the market and that it has contingencies in place in the event of market volatility re-emerging in relevant markets, particularly the raw milk, butter and skimmed milk powder markets. However, in common with the vast majority of EU member states where dairy production is of significance, I recognise that the current position of existing stocks cannot be allowed to persist indefinitely.

Given the Commission's status among the world’s biggest players on the skimmed milk powder market, and as such its capacity to affect market sentiment, the Commission should act prudently and responsibly in the disposal of stocks. I am satisfied to date that the Commission has managed those stocks in a prudent manner.

My Department has engaged and will continue to engage with the Commission, with other member states, and with national stakeholders on these important issues.

Animal Welfare

Questions (27)

Maureen O'Sullivan

Question:

27. Deputy Maureen O'Sullivan asked the Minister for Agriculture, Food and the Marine if exemptions will be removed from blood sports from the Animal Health and Welfare Act 2013, in view of the suffering and death caused to hares and foxes during coursing and foxhunting activities. [41483/18]

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Written answers

As the deputy will be aware detailed debate was held around the issue of hunting during the passage of the Animal Health and Welfare Act 2013 and the Dail voted overwhelmingly to allow the continuation on fox hunting in accordance with an appropriate Code of Conduct.

The Animal Health and Welfare Act 2013 requires persons to ensure that animals being hunted are not subject to unnecessary suffering and specifically prohibits the hunting of animals which have been released in an injured, mutilated or exhausted condition.

Section 25 of the Animal Health & Welfare Act 2013 also allows for the establishment of codes of practice and for the adoption of codes published by other persons for the purposes of providing practical guidance relating to any aspect of the Act, including fox hunting. Voluntary codes of practice have been established by The Hunting Association of Ireland which detail the conduct to be adhered to in respect of the hunting of foxes and the treatment of the animal during the hunt. The Code prohibits the hunting of foxes where the animal is injured and advocates the humane disposal of a fox when captured. The code also takes into account local concerns and the concerns of the landowner(s) on whose land hunting takes place.

While I have no plans to ban fox hunting, officials of my Department met with the Hunting Association to review their existing Code and consider whether it needs updating.

I am fully committed to promoting good practices that respect the welfare of all animals and my Department devotes considerable resources to protecting animal welfare and in dealing with breaches of animal welfare legislation. Under the Act, on summary conviction, a person can receive a fine of up to €10,000 and, on indictment, €250,000 and/or imprisonment up to 5 years. There are fixed penalty payments for lesser offences. The Act provides the framework within which the welfare of animals can be safeguarded and I am hopeful that the substantial and significantly increased levels of penalties for offences of animal cruelty provided for under the Act will act as a deterrent to animal welfare abuses.

Greyhound Industry

Questions (28)

Thomas P. Broughan

Question:

28. Deputy Thomas P. Broughan asked the Minister for Agriculture, Food and the Marine if he will amend the Greyhound Industry Bill 2017 to include the white list of countries in which it is permissible for greyhounds to be exported; and if he will make a statement on the matter. [41390/18]

View answer

Written answers

The Greyhound Racing Bill is primarily an industry Bill and is being introduced to ensure that the principles of good governance and regulation are clearly and unambiguously laid down in primary legislation. In broad terms the Bill seeks to address deficiencies in the existing legislation and the governance of Bord na gCon as identified by Indecon in its 2014 report on the sector. It will strengthen regulatory controls in the industry, modernise sanctions and improve integrity with a view to building a reputation for exceptional regulation in the sector.

Trade within the EU of dogs, including greyhounds, is governed by EU law.

The proposal to institute a white list of countries to which it is permissible for greyhounds to be exported would be incompatible with domestic and European law.

Bord na gCon, a commercial State Body established under the Greyhound Industry Act, 1958, chiefly to control greyhound racing and to improve and develop the greyhound industry, has repeatedly stated that it does not support the export of greyhounds to destinations where the standard of care for greyhounds falls below that required under the Animal Health and Welfare Act 2013, and the Welfare of Greyhounds Act 2011 and its associated Code of Practice. I fully endorse this view.

My Department has a close working relationship with animal welfare charities on all aspects of animal welfare. Officials of my Department have met with the welfare members of the International Greyhound Forum, which includes the Dogs Trust, the ISPCA and Bord na gCon, to consider issues surrounding the export of greyhounds.

Basic Payment Scheme Payments

Questions (29)

Bobby Aylward

Question:

29. Deputy Bobby Aylward asked the Minister for Agriculture, Food and the Marine the steps he has taken to ensure that farmers will not be forced to endure delays in receiving payments later in 2018 (details supplied); and if he will make a statement on the matter. [41305/18]

View answer

Written answers

I am very aware of the significance to all farmers, and the wider rural economy, of the payments that issue to farmers from my Department under schemes such as the Basic Payment Scheme (BPS), GLAS, TAMS, the Sheep Welfare Scheme, and the Knowledge Transfer programme.

Given the importance of payments under such schemes, my Department recently wrote to all farmers to advise them of the schedule in place for payments to commence for a range of schemes in the coming months.

Payments issuing from my Department this Autumn commenced on schedule with the first pay runs under the Areas of Natural Constraints (ANC) Scheme issuing from mid September. €185.6m issued in the first tranche of payments under the Scheme. This was a significant increase on the equivalent 2017 figure of €160m. In addition, the number of farmers paid in this first tranche increased from 75,000 in 2017 to almost 77,000 this year. Regular pay runs are continuing to ensure that cases are paid as they become clear, and to date over €194.4m has issued to 80,600 farmers under the ANC Scheme.

I am also happy to confirm that the European Commission has agreed to my request for a higher advance payment of 70% under the 2018 BPS and Greening. This is an increase on the standard 50% rate allowed for under the EU regulations. Advance payments under the BPS are due to commence on 16th October, which is the earliest date possible under EU Regulations. The 30% balancing payments will then commence at the start of December.

There will also be an increase to 85% advance payment rates under a number of CAP Pillar II Rural Development schemes. This increased rate applies to GLAS and the Sheep Welfare Scheme, which will see advance payments commence in November.

Preparations for payments under year 2 of the Knowledge Transfer Scheme to commence at the end of October 2018 are also underway while payments under the Beef Data and Genomics Programme, along with the Young Farmers Scheme, the Organic Farming Scheme and the Protein Aid scheme will all commence in December.

In addition, payments continue to issue to farmers on a weekly basis under TAMS II, with an average payment of over €1m per week for the last year. To date, 5,689 approved applicants under the Scheme have completed their approved works, submitted a payment claim and have been paid.

My Department continues to process payments under these schemes as a matter of priority, to ensure that these vital supports are delivered to farmers in the most timely and efficient manner possible.

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