Common Agricultural Policy Negotiations

Dáil Éireann Debate, Tuesday - 24 September 2013

Tuesday, 24 September 2013

Ceisteanna (51)

John Halligan

Ceist:

51. Deputy John Halligan asked the Minister for Agriculture, Food and the Marine in view of the conclusion of the recent Common Agricultural Policy negotiations, if he will confirm if Ireland will retain its current funding levels under Pillar 1 and Pillar 2; if the level of funding has been reduced; if he will further confirm the level of funding has been approved for Ireland under each pillar; if his Department has begun the process of determining what the elements of the new programme will be; the elements of the current programme which are to be retained; if he will further confirm when his proposed programme for implementation for 2014 to 2020 will be put to the commission for their consideration; the timeline for delivery of commitments arising from same; and if he will make a statement on the matter. [39615/13]

Freagraí ó Béal (9 píosaí cainte)

Deputy Simon Coveney

The European Council on 7 and 8 February agreed the multiannual financial framework for the period 2014 to 2020. The overall EU budget was cut by about 7% compared with the Commission’s original proposals, and by 3.5% compared with the current MFF for the period 2007 to 2013.

By the way, that was seen as a triumph at the time given the fact that a year ago many people were talking about cuts of up to 30% to the Common Agricultural Policy budget.

In so far as Ireland is concerned, the projected annual average commitment for direct payments in the 2014 to 2020 period is approximately €1.214 billion. This implies a reduction of 3.3% on the 2013 allocation of €1.255 billion. The annual average commitment for rural development is €313 million in current prices, implying a reduction of 11% on the 2013 allocation of €352 million. I will add a caveat to these figures. Although the European Parliament has assented to the multi-annual financial framework related issues on CAP reform are being finalised and negotiated this afternoon and I have not got an update from that meeting yet. I am giving the figures assuming that they will agree today.

As I have said in answers to previous questions, we have initiated a consultation process on how we spend that money, who gets it, where it goes, what schemes we should introduce to help farmers get more money from the marketplace, how to help a new generation of farmer expand and get land and how to support vulnerable sectors and farmers on land that cannot allow them to benefit from growth and expansion under the food harvest plan. That is the position. There has been a reduction in terms of the overall CAP spend, but in his negotiations on the MFF, I believe the Taoiseach managed to limit the damage significantly, and that has been recognised by all the farming bodies.

Deputy John Halligan

The issue of how money is to be redistributed is a burning one for farmers, now more than ever. From speaking to farmers in my constituency, it is clear they need certainty on their payments. We all know it is crucial that the Minister delivers an outcome that protects the interests of farmers and their families. While I understand there is agreement in principle, can the Minister clarify whether Irish farmers will get the minimum of €150 per hectare under the reforms or at least 60% of the national average payment? Will he confirm that no farmer will lose more than 28% of the current payment?

Deputy Simon Coveney

They are easy questions to answer. First of all, there will be a minimum payment. One of the big negotiating issues with the Commission during the six months of our Presidency was around this mandatory minimum payment; it is not voluntary. In any country, whatever the average payment, if that country is not going to go to a flat rate payment model, as the Commission would like, and if that country is going to introduce the convergence model that Ireland designed and for which it managed to get support, under that model the country must ensure no farmer getting a direct payment gets less than 60% of the average payment in that country. That is a welcome development. If that figure had been too high, I believe it would have posed significant problems in Ireland and I reckon 60% is approximately the right figure. This means that the 60% figure will be somewhere between €145 and €150 per hectare.

The second question Deputy Halligan asked was whether no farmer would lose more than 28% of his payment. There is a voluntary measure that can be introduced in Ireland or anywhere else whereby a country can limit the losses to any one farmer of 30% of his direct payment. In my view, we should not use that in Ireland. The reason is that if a farmer is on €1,500 per hectare at the moment and we limited what he could lose to 30%, he would still be on €1,000 per hectare, which is indefensible. The result of having that limit would mean that people who are closer to the average payment would have to lose more to compensate. The 30% figure under the convergence model does not make much sense in terms of fairness.

An Leas-Cheann Comhairle

I thank the Minister but I must call Deputy Halligan.

Deputy Simon Coveney

Consequently, while I do not propose to use that, the Department will implement the mandatory minimum payment.

Deputy John Halligan

I thank the Minister and acknowledge it is good to have a minimum payment to bring all farmers up to an acceptable level of direct supports. However, my information is that while approximately 60,000 farmers will gain under the reforms, another 50,000 farmers will lose out. The Minister might confirm this, although it may be difficult for him to provide an immediate answer, and should clarify these figures or indicate by how much the aforementioned 50,000 farmers will lose out.

Deputy Simon Coveney

As I stated, this has been the topic for many debates nationwide that I have attended, as have other Deputies. However, there are more winners than losers in this regard because of the way in which money is distributed at present. As farmers who get less than the average payment get a smaller payment than do those who are above the average, there are more farmers in the former category and therefore, there are more winners than losers in the context of people seeing an increase in their single farm payment. However, the important issue is the level of losses being incurred by those who are above the average to bring up everyone else who is under the average. These will be significantly less than most people thought possible under these negotiations. One will see an average loss of somewhere between 8% and 12% for most farmers over a seven-year period, which is not dramatic.

An Leas-Cheann Comhairle

I thank the Minister.

Deputy Simon Coveney

Unless one is in receipt of an extremely high payment, one will not see significant losses in any single year. Moreover, even if one is in receipt of a very high payment, it still is staged over a seven-year period. However, the majority of farmers are in or around the average, that is, somewhere between €200 and €400 per hectare. These farmers will not see a significant redistribution one way or the other.