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Single Payment Scheme Payments

Dáil Éireann Debate, Thursday - 13 December 2012

Thursday, 13 December 2012

Ceisteanna (6)

Michael P. Kitt

Ceist:

6. Deputy Michael P. Kitt asked the Minister for Agriculture, Food and the Marine if he would favour a limit on the amount of money being paid to any one farmer under the single farm payment of the Common Agricultural Policy 2014-2020; the ceiling he thinks would be appropriate; and if he will make a statement on the matter. [55990/12]

Amharc ar fhreagra

Freagraí ó Béal (8 píosaí cainte)

This question is in the name of Deputy Kitt, although I suspect it comes from Deputy Ó Cuív. It relates to whether we should be setting ceilings on future single farm payments. Before considering whether we should be setting caps on single farm payments, we first need to know that we have the capacity to do so. I have been supportive of the Commissioner's proposals to cap single farm payments. This would result in a reduction in payment on amounts in excess of €150,000. I would like to see the cap set lower than €150,000. I have stated that I would have no difficulty with a cap on payments of approximately €100,000. I recognise that we must find a common solution across the European Union which all countries can accept and live with. In my view, a number of the larger powerful countries, such as, for example, Germany and Britain, will not accept a cap on single farm payments because they have large landowners who are big commercial food producers who are receiving large payments and they want to see that continue.

Ireland is in a different situation. I need to ensure the flexibility countries are given in relation to the capping issue suits Ireland. Once a final deal is done and, if we have the capacity on a voluntary basis, country by country, to be able to set caps on single farm payments, we can then have this discussion and try to get this right. I do not have a problem with that in principle but we need to be careful not to push the cap too low because we have large commercial farmers we need to support. We will have an opportunity at a later stage, when we know the options, to be able to debate and discuss this issue and then make the most informed decision.

Perhaps the Minister will indicate the overall budgetary position for CAP funding. There appears to be some doubt about what that figure will be. Will we be dealing with a reduced provision in 2013 or is it likely the budgetary situation will deteriorate with the passage of time? The envelope available for distribution to primary producers in Ireland will be determined by the budgetary position. There are various proposals floating around concerning the multi-annual financial framework for 2014 to 2020 - the long-term budget plan. The danger in this context is that provision for CAP funding may well be reduced and that the Irish envelope will suffer as a result. Perhaps the Minister would appraise the House of the up-to-date position.

Two sets of negotiations are ongoing. The first concerns negotiations on the overall budget, the multi-annual financial framework, MFF, as referred to by the Deputy. We failed collectively last month as a European Union to get agreement on the MFF. This budget is for seven years and is worth more than €1 trillion. There was a wide variation in what countries wanted in terms of the levels of reduction or increases to that budget. For example, Britain wanted cuts of up to €200 billion. President Van Rompuy proposed cuts of approximately €80 billion. As the negotiations proceeded, the different budget lines within the budget were being debated in terms of which might take cuts and which might not. There are three big budget lines. CAP represents approximately 38 to 40% of the budget. Cohesion Funds represent one third of the budget and innovation and research and development also account for a large chunk of it.

Ireland has been trying to prevent a significant reduction in the overall MFF funding. If there are to be cuts, we will seek to protect the CAP budget within that. Some 85% of all EU money coming into Ireland comes through CAP. This amounts to approximately €1.6 billion per annum. We had some success in the negotiations. At one stage, it looked like there was going to be a cut to CAP of approximately 6% or 7% in terms of pillar 1 and about 11% in pillar 2. By the end of the discussions, this had been reduced to a 3% cut in pillar 1, which was progress. The difference was about €8 billion across the Union.

There is only one minute remaining for this question.

We hope to conclude the MFF discussions during the Irish Presidency of the European Council at a Heads of State meeting to be held on 7 February. It is likely to be the next big summit meeting on the MFF. If we can get the budget agreed in February, it may be possible to get the CAP reform finalised before the end of the Irish Presidency. If we cannot get the MFF agreed in February, it will be difficult, in terms of the timescale, to do this.

In terms of the eventual template or formula to be put in place for Ireland, a serious difficulty is arising in terms of the age profile of people involved in the agriculture industry in Ireland. As regards incentives and support under CAP to encourage young people to get involved and become participants in the future of the agriculture industry, how does the Minister see this unfolding?

This issue is the subject of Question No. 9, at which point I will respond to those questions.

We now move on to Question No. 7.

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