Tuesday, 14 May 2019

Written Answers Nos. 374-387

GLAS Payments

Questions (374)

Pat Breen

Question:

374. Deputy Pat Breen asked the Minister for Agriculture, Food and the Marine when payment will issue to a person (details supplied); and if he will make a statement on the matter. [20337/19]

Written answers

Minister for Agriculture, Food and the Marine

The person named was approved into GLAS 1 and has received payments for scheme years 2015, 2016 and 2017.

The Department is actively working to resolve an issue that was identified in relation to the Wild Bird Cover action. Once this case clears all the required validations, the 2018 advance payment will issue. GLAS payments are continuing to issue on a weekly basis.

Brexit Supports

Questions (375)

Charlie McConalogue

Question:

375. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine the full details of the aid package for beef farmers he has proposed to the European Commission to cover the retrospective Brexit beef price losses, which stand in excess of €100 million; the precise details on the amount of aid in euro he has sought from both the EU and the Exchequer; the time period covered; the number of beef producers involved; the amount of aid per head for steers, heifers, young bulls and cows; the way in which he plans to award this aid to farmers; if it will be in the form of a direct payment to farmers based on the number of cattle they have sold; and when he expects farmers will receive payment. [20362/19]

Written answers

Minister for Agriculture, Food and the Marine

The agri-food sector is of critical importance to the Irish economy, and its regional spread means it underpins the socio-economic development of rural areas in particular. Brexit has the potential to have a very significant impact on the sector, given its unique exposure to the UK market, which accounted for 38% (€5.2 billion) of agri-food exports last year.

There are on-going discussions with the Commission regarding the difficulties which would face Ireland in the event of a no-deal Brexit, and the assistance that might be required for its agriculture food and fishery sectors. Avoiding a no-deal Brexit continues to be the Government’s overriding policy priority.

It is clear that, in the event of a no-deal Brexit, the impact of the UK tariff regime as announced would have had a significant impact on beef prices and on beef farm incomes, as a result.

I have held a number of discussions with Commissioner Hogan regarding the potential impact of a disorderly Brexit on the sector. I have stressed the need for the Commission to be ready to deploy a range of measures to mitigate the potential impacts on agri-food and fisheries, including through traditional market supports and exceptional aid under the CAP's Single Common Market Organisation regulation (Regulation (EU) No 1308/2013), as well increased flexibility under State Aid regulations.

Obviously, as Minister, I have no role when it comes to prices paid to producers but it is important to acknowledge that the past few months have been very difficult for beef farmers in particular, following a difficult year in 2018 due to weather conditions. There has been a period of depressed prices since last autumn with the ongoing uncertainty surrounding the outcome of Brexit, among other factors, contributing to this market disturbance. I also note that prices have started to increase week-on-week recently, mainly due to tightening supply of cattle and the outlook is that this will continue. Market intelligence also points towards other factors such as the presence of African Swine Fever in China affecting their pork output, thereby strengthening the demand for beef in a market to which Ireland already has access.

In light of the on-going market disturbance, I have, in discussions with Commissioner Hogan and my EU counterparts, said that I believe that the deployment of exceptional measures under the CMO Regulation, to provide targeted aid to farm families who have suffered a sustained reduction in returns from the market, is now required. I made an intervention to this effect at the April meeting of the Council of Agriculture Ministers, and my officials have followed this up with a detailed submission, which is under consideration by Commission officials.

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. It is crucial that we all continue to work together. I have highlighted the need for stakeholders to recognise their inter-dependency, and to increase the strength of all links in the supply chain, including the development of Beef Producer Organisations.

I am deeply committed to fully supporting and developing Ireland’s beef sector. I am strongly of the view that the existing range of supports available to beef farmers under the RDP, together with ensuring access to as many markets as possible, both for live animals and beef exports, are appropriate for the continued development of the sector.

Food Imports

Questions (376)

Charlie McConalogue

Question:

376. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine the amount of non-EU maize in euro and volume imported here annually over the 2016 to 2018 period; and if his attention has been drawn to the negative impact this has on the income of tillage growers here that are left with stores full of barley due to the importation of feed. [20363/19]

Written answers

Minister for Agriculture, Food and the Marine

The following table outlines the volume of non-EU maize imported into Ireland over the last three years.

Year	Tonnes
2016	689,545
2017	1,042,463
2018	1,485,702

Figures in terms of the value of maize imports are not available.

The majority of maize imported is used in the animal feed industry. Due to our high proportion of livestock production compared to tillage area, Ireland is very dependent on feed imports relative to other EU Member States. Overall, Ireland imported approx 5.1 million tonnes of animal feed material in 2018. This was an increase of over 40% on 2017, mainly due to the fodder shortage experienced last year as a result of the prolonged dry spell of weather. This was supplemented with home-grown cereals used in the production of feed.

I am acutely aware of the challenges faced by tillage growers over the last number of years and that the sector has come through a difficult period in terms of adverse weather conditions which impacted on sowing and harvesting. My role is to ensure a sustainable and viable sector and whilst I cannot intervene in market prices, I have introduced a number of support measures for the sector. Budget 2019 provided for a Future Growth Loan Scheme which will provide up to €120 million in long term, unsecured investment finance for farmers and small scale companies in the food and seafood sectors.

The Tillage Capital Investment Scheme under TAMS II covers specific areas of investment for tillage farmers with over €7.7 million distributed to over 700 tillage farmers to date.

My Department also provides a high quality official crop seed certification scheme to the industry, in addition to an extensive national crop variety evaluation programme, providing invaluable information to growers on the latest varieties available.

Mindful of the many pressures on public funds, I wish to assure the Deputy of my continued support for tillage growers ensuring adequate supports where required are in place to sustain the sector.

Agriculture Scheme Data

Questions (377)

Charlie McConalogue

Question:

377. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine the number of persons participating in schemes (details supplied) who have received an advanced 2018 payment, by county, in tabular form; the number of persons who have passed all payment approval checks and are awaiting their 2018 advanced payments; the number still to receive their advanced payments; the number of persons participating in the schemes who have received a balancing 2018 payment by county; the number of persons who have passed all payment approval checks and are awaiting their 2018 balancing payments; the number still to receive their balancing payments; the amount in 2018 advanced and balancing payments that still have to be paid out by scheme; and if he will make a statement on the matter. [20364/19]

Written answers

Minister for Agriculture, Food and the Marine

The information requested by the Deputy is currently being collated and will be forwarded directly as soon as it is available.

Future Growth Loan Scheme

Questions (378)

Charlie McConalogue

Question:

378. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine the amount of the €1 billion loan scheme for young farmers that will be ring-fenced for Irish young farmers; the lending rates that will apply; the minimum loan amount; the financial institutions that will provide the fund here; and when it will open for applications. [20365/19]

Written answers

Minister for Agriculture, Food and the Marine

I welcomed the recent announcement of a €1 billion loan programme by Commissioner for Agriculture and Rural Development Phil Hogan and EIB Vice-President Andrew McDowell, aimed at increasing access to funding for EU farmers, especially young farmers.

This programme will be managed at Member State level by banks and leasing companies operating across the EU. Therefore, the details requested will only be known following engagements by these financial institutions with the Commission and the EIB.

In recent years, I have introduced a number of initiatives on access to finance. The Future Growth Loan Scheme has been developed by my Department and the Department of Business, Enterprise and Innovation, in partnership with the Department of Finance, the SBCI and the European Investment Fund (EIF). It will be delivered through participating finance providers and make up to €300 million of investment loans available to eligible Irish businesses, including farmers and the agri-food & seafood sectors. The loans will be competitively priced and will be for terms of 8-10 years and will support strategic long-term investment in a post-Brexit environment.

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 from primary producer to processor.

I was pleased to launch this Scheme recently with my colleagues. It is open for loan eligibility applications through the SBCI website since 17th April.

One of my priorities is to improve access to finance for the agri-food sector. I look forward to continuing to work with the Commission, the EIB and others to ensure that Irish farmers have access to appropriate financial products to enable them to sustain and develop their individual enterprises. This will contribute to the overall development of the agri food sector which is a hugely valuable part of the Irish economy and particularly important for our rural and coastal communities.

Agriculture Industry

Questions (379)

Charlie McConalogue

Question:

379. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine the number of farmers nationally referred to as the forgotten farmers (details supplied) by county, in tabular form; and the estimated full-year cost of increasing the value of entitlements to the national average for these farmers. [20366/19]

Written answers

Minister for Agriculture, Food and the Marine

The information sought is currently being compiled and will be forwarded to the Deputy as soon as possible.

Agriculture Industry

Questions (380)

Charlie McConalogue

Question:

380. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine the funding avenues available to accommodate the forgotten farmers under the specific disadvantage category of the national reserve and the approval of the European Commission; and if he has made such a request to the European Commission. [20367/19]

Written answers

Minister for Agriculture, Food and the Marine

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 could not use the proceeds of a linear cut to fund a specific disadvantage category of the National Reserve.

The Commission confirmed at the time that the only funding option for the specific disadvantage category was natural replenishment of the Reserve, such as from unused entitlements or the proceeds of clawback, but only after the two priority categories of ‘young farmer’ and ‘new entrant to farming’ had been catered for.

EU Regulation 2393/2017 (Omnibus Regulation) came into effect in January 2018 and introduced a new possibility for the inclusion of ‘Specific Disadvantage’ categories such as Forgotten Farmers into the National Reserve. From 2018 Member States may use the proceeds of a linear cut to fund ‘Specific Disadvantage’ categories of the Reserve, but only if a linear cut is required to fund the two priority categories of ‘young farmer’ and ‘new entrant to farming’ in that particular year. As there was sufficient funding available in the National Reserve in 2018 and 2019 from natural replenishment of the fund in order to cater for the two priority categories, the issue of a linear cut did not arise.

Decisions in relation to the National Reserve, including the basis of funding the Reserve, are made in consultation with the Direct Payments Advisory Committee which comprises members of the main farming organisations, farm advisory and education services.

Agriculture Industry

Questions (381)

Charlie McConalogue

Question:

381. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine if it is technically possible to accommodate the forgotten farmers group under the specific disadvantage category of the national reserve by using unused funds from Pillars 1 and 2 to finance; and if it is possible under the CAP to transfer funds from Pillars 1 to 2 and vice versa to fund such initiatives. [20368/19]

Written answers

Minister for Agriculture, Food and the Marine

In relation to the provision of funding for groups classified under the specific disadvantage category, my Department has been in consultation with the European Commission.

The National Reserve must allocate funds initially to the priority categories of young farmer and new entrant. The European Commission advised that it is possible to provide funds for a specific disadvantage grouping from the national reserve. Each of the specific disadvantage groups must receive approval by the Commission.

My Department also queried with the Commission if a linear cut to the value of all payments made under the Basic Payment Scheme could be used to fund the National Reserve to an extent needed for the forgotten farmers. The Commission confirmed that my Department could not do this and could only use the funding available from natural replenishment, once the priority categories were fully funded. Funds are naturally replenished from unused payment entitlements and claw-back on trading entitlements without land.

In 2018, the Omnibus regulation made a provision for the allocation of funds for specific disadvantage groups from a linear cut to all payments made under the Basic Payment Scheme, provided that a linear cut was required to fund payments made to the priority categories under the National Reserve. However, a linear cut was not required to fund the National Reserve in 2018 or 2019.

Furthermore, Article 14 of EU Regulation 1307/2013 sets out the circumstances surrounding the flexibility between pillars. Ireland opted not to avail of the flexibility between pillars which under the regulation had to be notified to the Commission before 31 December 2013.

Agriculture Industry

Questions (382)

Charlie McConalogue

Question:

382. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine if he and his EU ministerial counterparts are seeking increased funding flexibilities in order to accommodate forgotten farmers (details supplied) under the specific disadvantage category of the national reserve; if the proposed capping of BPS payments is agreed if proceeds from such capping would be permitted to fund forgotten farmers into the national reserve; and if this avenue has been confirmed with the European Commission by him. [20369/19]

Written answers

Minister for Agriculture, Food and the Marine

The current 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.

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 could not use the proceeds of a linear cut to fund a specific disadvantage category of the National Reserve.

The Commission confirmed at the time that the only funding option for the specific disadvantage category was natural replenishment of the National Reserve, such as from unused entitlements or the proceeds of clawback, but only after the two priority categories of ‘young farmer’ and ‘new entrant to farming’ had been catered for.

EU Regulation 2393/2017 (Omnibus Regulation) came into effect in January 2018 and introduced a new possibility for the inclusion of ‘Specific Disadvantage’ categories such as forgotten farmers into the National Reserve. From 2018, Member States may use the proceeds of a linear cut to fund ‘Specific Disadvantage’ categories of the Reserve, but only if a linear cut is required to fund the two priority categories of ‘young farmer’ and ‘new entrant to farming’ in that particular year. As there was sufficient funding available in the National Reserve in 2018 and 2019 from natural replenishment of the fund in order to cater for the two priority categories, the issue of a linear cut did not arise.

Decisions in relation to the National Reserve, including the basis of funding the National Reserve, are made in consultation with the Direct Payments Advisory Committee which comprises members of the main farming organisations, farm advisory and education services.

The new legislative proposals for the Common Agricultural Policy 2021 - 2027 were launched on Friday 1 June 2018 by Commissioner Hogan. There will be additional discretion for Member States in configuring the measures available, within parameters laid down in the draft proposals.

Significant changes are being proposed in the draft legislation, particularly when it comes to the area of direct payments. The new proposals include a number of measures relating to distribution of payments, including an overall cap of €100,000, degressivity for payments above €60,000 and a complementary redistributive income support scheme.

I have already indicated that I am open to some level of capping. Ireland has already applied the maximum level of degressivity allowable under the current regulations for direct payments over €150,000.

Currently, the proposals state that the product of the reduction of direct payments, via capping, shall primarily be used to contribute to the financing of the proposed complementary redistributive income support for sustainability and thereafter, to other interventions, belonging to decoupled direct payments.

My Department is at present examining these proposals carefully to assess their potential impact on all applicants. We need to ensure that any such mechanisms will be simple and straightforward for Member States to administer and that they can be implemented without undue complexity for the farmer.

These are complex proposals. We are in the midst of intensive and challenging negotiations and we still have some way to go before agreement on the proposals will be reached. I will continue to work with the Commission and other Member States to shape these proposals into an effective new CAP.

Veterinary Inspection Service Expenditure

Questions (383)

Michael Fitzmaurice

Question:

383. Deputy Michael Fitzmaurice asked the Minister for Agriculture, Food and the Marine the amount spent on the veterinary public health inspection service on an annual basis; the way in which this changed in the past three years; if the service received a boost in funding for 2019; and if he will make a statement on the matter. [20424/19]

Written answers

Minister for Agriculture, Food and the Marine

The cost of providing the Veterinary Public Health Inspection Service in Department of Agriculture, Food and Marine approved meat establishments, net of fees paid by the Food Business Operators, for 2016, 2017 and 2018 was €11.8m, €13.3m and €14m respectively.

One of the main elements of the Veterinary Public Health Inspection Service cost relates to the provision of ante-mortem and post-mortem inspection as required under Regulation 854/2004 by Temporary Veterinary Inspectors whose services are used on a contract basis for inspection in slaughter plants. The budget for Temporary Veterinary Inspectors has been increased by €2.8m for 2019.

The increase in inspection costs over the three year period is due to higher bovine slaughter numbers and a requirement for allocation of additional resources in some USDA-approved plants.

Areas of Natural Constraint Scheme

Questions (384)

Tom Neville

Question:

384. Deputy Tom Neville asked the Minister for Agriculture, Food and the Marine the category of the ANC the lands of a person (details supplied) are under. [20445/19]

Written answers

Minister for Agriculture, Food and the Marine

The person named submitted an application under the 2019 Basic Payments (BPS) scheme and the Areas of Natural Constraints (ANC) scheme on 29 April 2019.

Further to the completion of the ANC lands redesignation project, the lands declared by the person named in Baskethill (M13407), Clashbane (M13411), Curraghaveara (M13414) and Killeagh (M13428) are all newly eligible as Category 3 lands under the ANC scheme.

Beef Environmental Efficiency Scheme Applications

Questions (385)

Tony McLoughlin

Question:

385. Deputy Tony McLoughlin asked the Minister for Agriculture, Food and the Marine if an application by a person (details supplied) has been lost; if the person can resubmit an application in the interests of fairness; and if he will make a statement on the matter. [20512/19]

Written answers

Minister for Agriculture, Food and the Marine

Applications to participate the Beef Environmental Efficiency Pilot were accepted between the 4th and the 22nd February 2019. As provided for in the Terms and Conditions of the Pilot, any potential participant seeking to establish the timely submission of an application would be required to produce an Express Post or Registered Post receipt as proof of postage. To date, no such documentation has been supplied by the person named.

If such documentation is available it should be submitted without delay and my Department will be happy to review the application.

Veterinary Inspection Service Expenditure

Questions (386)

Clare Daly

Question:

386. Deputy Clare Daly asked the Minister for Agriculture, Food and the Marine the estimated cost in a full year if five additional full-time senior superintending veterinary inspectors and 20 additional superintending veterinary inspectors were recruited. [20691/19]

Written answers

Minister for Agriculture, Food and the Marine

The notional annual direct cost (includes salary, employer PRSI as well as superannuation) associated with employing an additional five full-time Senior Superintending Veterinary Inspectors (SSVI) and twenty Superintending Veterinary Inspectors (SVI) would be approximately €2.84 million.

It is important to note that neither of the grades referenced are recruitment-level grades – Veterinary Inspector (VI) is the entry point for the veterinary stream within my Department. The first point of the salary scale for the Veterinary Inspector grade is €56,616.

Areas of Natural Constraint Scheme

Questions (387)

Eamon Scanlon

Question:

387. Deputy Eamon Scanlon asked the Minister for Agriculture, Food and the Marine the reason a penalty was imposed on a person (details supplied) under the BPS and ANC 2018 schemes; the position regarding same; and if he will make a statement on the matter. [20875/19]

Written answers

Minister for Agriculture, Food and the Marine

The person named submitted a 2018 Basic Payment/Areas of Natural Constraint schemes application on 14th May 2018. EU Regulations governing the administration of these schemes require that full and comprehensive administrative checks, including in some cases remote sensing (i.e. satellite) inspections, be completed before any payments issue.

The application of the person named was selected for a Remote Sensing eligibility inspection. As part of the inspection process, a field visit was carried out on 15th November 2018 on a parcel to verify the position on the ground. The inspection process identified an over-declaration in area exceeding 10% of the area claimed.

The person named was notified of the interim inspection findings by control report letter of 30th November 2018 and comments on the findings were received on 3rd December 2018. As part of the examination of these comments, a further field visit was carried out on 10th January 2019, the outcome of which did not alter the initial inspection findings. A letter issued to the person named on 23rd January 2019 detailing the final inspection outcome and advising of their right to seek a review.

The final inspection outcome resulted in no payments being due under the Basic Payment or the Areas of Natural Constraints schemes. A reduced Greening payment issued to the nominated bank account of the person named on the 24th January 2019.

While no request for a review has been received to date, officials in my Department have been in direct contact with the person named recently regarding the inspection outcome and understand that a request for a review is to be submitted. On receipt of the request, my Department will re-examine the inspection outcome taking account of the content of the review request.

In the event that the person named is dissatisfied with the outcome of any such review, the decision can be appealed to the independent Agriculture Appeals Office, within 3 months.