Vol. 521 No. 6
11 Mr. Ring asked the Minister for Agriculture, Food and Rural Development if he will alter the proposals to increase the individual headage limit to £5,000 to a higher amount for sheep farmers in the midland, west and Border regions; and if he will make a statement on the matter. [17716/00]
A new area based compensatory allowance scheme is to be introduced with effect from 2001 as part of the outcome of the Agenda 2000 negotiations and, in particular, to protect the future of these payments in the context of WTO.
As provided for in the Programme for Prosperity and Fairness, a task force representative of my Department and the main farming bodies was established to formulate proposals for a new scheme and to ensure an orderly transition. The task force met on a number of occasions and, having considered a range of options, the group recommended a scheme which would involve a payment per hectare linked to the type of livestock on the holding. The proposals envisaged a one hectare payment for each livestock unit.
I announced details of the proposed scheme, including an increase in the overall headage grant limit from £4,000 to £5,000, on 29 May last. I also announced a £120 million increase in the overall allocation of money for disadvantaged area payments for the period 2001-06. The allocation for sheep headage would almost double to £40 million annually.
At a recent meeting with officials of my Department, the European Commission was not satisfied with aspects of the scheme being proposed mainly on the grounds that it did not represent a clear shift from headage related payments to area related payments. The fact that each livestock unit would attract one hectare payment was seen as continuing the link to production.
The task now is to devise a scheme which is best suited to our requirements and which meets Commission approval. Earlier this week, I raised the issue with Commissioner Fischler and had direct consultations with him on the matter when I attended the EU Farm Council meeting in Luxembourg. My officials are in continuing contact with the Commission with a view to devising an alternative proposal. Further consultation is also taking place with the farming bodies with a view to formulating such a scheme.
Europe has rejected the proposal and we are now further down the road than ever. There are many mixed and hill sheep farmers in the west and I hope the proposal which has been increased to £5,000 can be increased further to £6,000 or £7,000. Sheep farmers have had a few bad years and have not received much sympathy. Therefore, I hope when the Minister returns to Europe he will try to achieve an increase in the figure of £5,000.
As I stated in my reply, we are trying to get the best possible deal for farmers in disadvantaged areas because they are the people who most need support. That is why I indicated a doubling of the headage payments for sheep farmers in particular who have gone through a difficult time. Unfortunately, the scheme we devised with the farming representatives was regarded as linked to production. We argued strongly that we should at least have a transitionary period of five or six years from headage to area based payments. If one goes directly to area based payments, a person with a small holding would be penalised severely and there would be huge distortions between what farmers received last year and what they will receive next year. Following my meeting earlier in the week with Commissioner Fischler – my officials are in daily contact with the Commission – I hope there will be a satisfactory resolution to the matter in the next two weeks.
I have argued in this House for a move to area based compensatory schemes. I support the Minister's views and I am pleased to see belated Pauline conversions on the Road to Damascus by some farming organisations. The ICSA made this proposal some time ago and it was laughed out of court. I want to put that on the record as some of the farming organisations may have short memories, even though I have not.
Does the Minister agree the Commission wants payments in the less favoured areas decoupled from production to make them WTO compatible? Can I be so bold as to suggest that if the French put forward a scheme they will proceed with it. France proceeds with the national interest because renationalisation is taking place there and in other countries throughout Europe. We are too compliant with the EU. It is important that we hammer out this aspect.
I remind the Deputy that this is Question Time. There should not be a debate on the issue.
Will the Minister tell Commissioner Fischler that we want a scheme that is compatible with the retention of the maximum number of farmers on the land in this country? The Minister should not be afraid to weigh in in favour of small farmers.
The Deputy has exceeded his time. I wish to remind Members that there is a limit of one minute on supplementary questions and replies. The Chair has no discretion in this matter.
Will the Minister ensure a small area of Connacht-Ulster, particularly the parish of Aghabog where I come from and a few surrounding areas, receives headage payments next year on whatever basis? I believe this vast area is illegally and unjustly omitted.
I agree with the Minister that small farmers must be protected. Is it possible at this stage to negotiate between the various beef, sheep and dairy farming sectors? Is there latitude in that regard? Will the Minister guarantee that no farmer will lose money because of the change-over to area based payments?
During discussions with the farming organisations we agreed a formula for different enterprises such as cattle, sheep and so on. These discussions were satisfactory but the European Commission turned down the formula. However, we are now modifying and sand-papering it to make sure we get agreement in the next couple of weeks. We want an agreement which will ensure there will be no loss to farmers in disadvantaged areas. I have agreed to double the headage payments for sheep farmers.
On the way in which the French do business, I made a difficult decision last Sunday, given that there was a very important match in Killarney which I regret we did not win.
That will allow the Minister more time for the races during the summer.
I invited the French Minister to Dublin to garner support in the Council meeting in Luxembourg the following day. As a relatively small State, we need the support of countries such as France which has a similar type of farming to us.
On the extension of the disadvantaged areas scheme to include Monaghan – there are also a few little pockets in west Cork and elsewhere – we must revisit that problem again.
