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Tuesday, 11 Feb 2014

Written Answers Nos. 1-102

Consultancy Contracts Expenditure

Ceisteanna (94)

Thomas Pringle

Ceist:

94. Deputy Thomas Pringle asked the Minister for Agriculture, Food and the Marine if he will provide a breakdown of the spend by his Department on external IT consultancies and contractors; if he will list any firm or contractor that has received over €1 million in total over the past three years; and if he will make a statement on the matter. [6347/14]

Amharc ar fhreagra

Freagraí scríofa

Information and Communications Technology (ICT) in my Department underpins the administration of €2.5bn in EU and Exchequer funds annually and the maintenance and development of award winning animal traceability and health computer systems that process millions of births, movements and tests annually. The ICT infrastructure and systems underpin the huge range of farming and industry supports as well as providing the animal traceability and food safety systems behind a sector with €26 billion in turnover and €10 billion in exports. The advanced use of information technology in my Department has contributed significantly to the substantial reduction in the cost of running my Department from €303 million in 2008 to €216 million allocated for 2014.

In addition to contributing to the very substantial internal reforms carried out within my Department, as part of the Public Service Reform Plan recently announced by my colleague Minister Howlin, we have been very active in the Shared Services Reform Programme and my Department supplies significant ICT shared services from within our own resources to various state agencies such as Teagasc, the Sea Fisheries Protection Authority and Bord Bia and to other Government Departments such as the Department of the Taoiseach, the Department of Communications, Energy and Natural Resources and the Department of Public Expenditure. This has provided significant savings.

My Department uses ICT external support to augment our own internal ICT teams primarily in the development and support of a range of major systems. These contractors supply certain specialist ICT services (in particular Java programming and database support) when such proves to be more cost effective and where sufficient, suitably skilled Departmental staff, are not available. While the expenditure on ICT external support is significant, it is in line with that of other large organisations, that also have a significant operational dependence on ICT and it is also reasonable relative to the scale of our operations. Savings are achieved on an ongoing basis by leveraging maximum value from existing investments, utilising Open EU procurement processes and frameworks, negotiating reductions on contracts and software licences, and careful management of resources for software development.

This commitment to utilising modern technology has enabled us to do more with less and continue to provide our existing services to the expected high standard whilst also planning for the future of our service delivery in the context of Common Agricultural Policy (CAP) and Common Fisheries Policy (CFP) reform, and our ambitious Food Harvest 2020 growth targets.

Breakdown of expenditure for 2013 on external IT consultancies contractors and outsourcing

Definition

Expenditure 2013

Services Provided

Consulting

€42,152

- Quarterly independent assessments of the Department's IT security measures, Bi-annual independent security review of the Department's IT infrastructure and independent testing on web facing applications as required for EU accreditation purposes.

- Independent specialist review of all Geographical Information based computer systems in the Department, carried out as part of the effective and efficient administration of the Department's EU Common Agricultural Policy (CAP) based payment schemes.

Outsourcing

€1,228,454

- Single Farm Payment (SFP) System development and maintenance.

Contracting

€6,851,347

€1,794,237

- ICT programming and database development on corporate applications (e.g. Java and SQL development).

- ICT Infrastructure support & maintenance (e.g. Oracle Application and Database, Mainframe and Linux Operating Systems support).

Total

€9,916,191

-

ICT Contracts worth €1M+ from 2011-2013

2011

-

Vendor

Amount

ACCENTURE

€1,759,956.99

VANTAGE RESOURCES LTD

€1,140,156.79

VERSION 1

€2,079,847.32

2012

-

Vendor

Amount

ACCENTURE

€1,477,987.39

IT ALLIANCE OUTSOURCING LTD

€1,030,415.97

SYSTEM DYNAMICS LTD

€1,217,968.15

VANTAGE RESOURCES LTD

€1,145,608.09

VERSION 1

€2,127,065.24

2013

-

Vendor

Amount

ACCENTURE

€1,377,800.02

SYSTEM DYNAMICS LTD

€1,091,864.86

VANTAGE RESOURCES LTD

€1,424,772.06

VERSION 1

€2,178,623.55

Rural Development Programme Funding

Ceisteanna (95)

Éamon Ó Cuív

Ceist:

95. Deputy Éamon Ó Cuív asked the Minister for Agriculture, Food and the Marine his plans for Pillar 2 expenditure for the period 2014-2020; the total funding provided for this period; the funding provided for new schemes and projects during the period; and if he will make a statement on the matter. [6339/14]

Amharc ar fhreagra

Freagraí scríofa

As you will be aware, on 14 January I announced a number of decisions in relation to the implementation of the new CAP. This included details in relation to proposed measure outlines for inclusion in the new Rural Development Programme (RDP) for the period 2014-2020 as well as an outline of the National Exchequer funding for the new RDP. The agreement reached on the Multiannual Financial Framework provides for a total allocation of EU funding of €2.19 billion (€313m per annum over 7 years) to Ireland for a new RDP. Regulation 1305/2013 on Support for Rural Development by the European Agricultural Fund for Rural Development (EAFRD) provides that at least 5% of this allocation must be allocated to projects delivered under the LEADER mechanism. Following consultation with my colleague, the Minister for the Environment, Community and Local Government, 7% of the available EU allocation (some €153 million) has been allocated to LEADER. Thus, €2.037 billion of the EU funding is allocated to measures to be delivered via the Department of Agriculture, Food and the Marine.

The Government has shown its commitment to a strategic investment in Rural Ireland and the agri-food sector by providing matching National Exchequer funding at the rate of 46% to supplement the €2.037 billion EU allocation. In addition to this money, there is also an allocation of some €170 million from the current RDP to be spent in 2014 and 2015. When taken in conjunction with the allocation of funding for LEADER measures, this represents a fund of over €4 billion for investment in rural development measures in the period to 2020.

My Department is currently undertaking a consultation process in relation to proposed measures for inclusion in the new RDP. These proposed measures have been designed to reflect the priorities for Rural Development set out in the Rural Development Regulation as well as to support the Smart, Green Growth message of Food Harvest 2020. The proposed measures include a substantial new Agri-Environment and Climate Change Scheme (GLAS), continued support for Less Favoured Areas, significant support for capital investments and knowledge transfers, an innovative new beef data and genomics scheme and a range of other supports.

Agriculture Scheme Administration

Ceisteanna (96)

Éamon Ó Cuív

Ceist:

96. Deputy Éamon Ó Cuív asked the Minister for Agriculture, Food and the Marine the way the rules as laid down by the European Commission on the leasing of entitlements will operate here, in particular in cases where the owner of the entitlements has not activated any entitlements in the reference year; the reference year that will be applied; and if he will make a statement on the matter. [6340/14]

Amharc ar fhreagra

Freagraí scríofa

Any farmer who received a direct payment in 2013 (Single Payment, Grassland Sheep Scheme, Burren Life Scheme, Beef Data Scheme) is automatically eligible to receive an allocation of entitlements under the Basic Payment Scheme in 2015. The number of entitlements that will be allocated to a farmer under the new Basic Payment Scheme will be based on the number of eligible hectares the farmer declares in 2013 and 2015, whichever is less. The value of entitlements that will be allocated to a farmer in 2015 will be based on a percentage of the value held by the farmer in 2014. As of yet it has not been decided whether the "value" will be based on the total value of "entitlements" held by a farmer in 2014 or on the value of the "payments" received by the farmer in 2014 as these options have differing impacts on the status of leased entitlements.

If Ireland chooses "entitlements", then the calculation of 2015 value would be based on the entitlements "definitively held" by each farmer in 2014. As per the Delegated Act, the value of any entitlements leased out by a farmer in 2014 would be attributed to the lessor. In this scenario the lessor and lessee may enter into a Private Contract Clause (PCC) whereby the lessor may lease out together with the holding or part of it the corresponding payment entitlements that will be allocated in 2015. Such PCC would have the effect of recognising an existing lease agreement and would allow both lessor and lessee to benefit. However, such a transfer requires that the lessor has an "allocation right" based on receiving a direct payment in 2013, or based on any of the other optional measures which would give rise to an "allocation right", and that the lessee is an active farmer as defined in article 9 of the Direct Payment Regulation.

The difficulty arises therefore where lessors have leased out their entire holding and all entitlements in 2013 and consequently do not have an automatic "allocation right". As a consequence, they will neither be eligible to receive entitlements in their own right, nor can they enter into a PCC to transfer entitlements to the lessee. The value of such 100% leased entitlements would be lost to both lessor and lessee but would remain in the overall fund for redistribution.

This issue remains the subject of negotiation with the EU Commission where Ireland continues to argue for increased flexibility in dealing with leased entitlements. However, if no resolution can be found, the parties involved in the lease may safeguard the value of the leased entitlements by entering into a permanent transfer of the entitlements in question under the 2014 scheme year.

Coillte Teoranta Harvesting Rights Sale

Ceisteanna (97)

Luke 'Ming' Flanagan

Ceist:

97. Deputy Luke 'Ming' Flanagan asked the Minister for Agriculture, Food and the Marine if he no longer plans to sell the harvesting rights of Coillte forests; and if he will make a statement on the matter. [6345/14]

Amharc ar fhreagra

Freagraí scríofa

The Government decided on 19 June 2013 that it is not the appropriate time to proceed with the proposed sale of Coillte Harvesting Rights. It was also decided, at that time, that the current focus will be on the restructuring of Coillte, overseen by NewERA and the relevant stakeholder Departments. This decision was made on the basis of a comprehensive analysis by NewERA, Coillte, the Department of Public Expenditure and Reform and my Department. The analysis included, as part of the process, a number of detailed financial, technical and other specialist reports in relation to Coillte, by external specialist consultancy bodies, in full consultation with the Board of Coillte and its executive management. A number of bodies also outlined their views to the Oireachtas Joint Committee on Agriculture, Food and the Marine.

It is important to put the consideration about the sale of Coillte harvesting rights into context. As a Government, it was necessary had to examine all reasonable means to raise revenue, including the release of some of the value from State assets. Coillte, as a state owned enterprise managing the State's forest estate which represents a significant state asset, formed part of that exercise. The Government is very much aware of the economic and social benefits of forestry, as is evident by the allocation of funding in 2014 for the forestry programme, and of the important contribution Coillte makes in relation to the supply of timber to the sawmills, in the provision of forest recreational activities and valuable tourism attractions and in the maintenance of the State's forest estate. I have consistently said that the Government would proceed cautiously on this issue as it was important not to do anything to adversely affect the forest industry and its ongoing development.

In relation to the restructuring of Coillte, proposals in relation to restructuring are currently being considered and evaluated by NewERA. The Government will consider all the options to maximise value from Coillte when the restructuring is complete. The Government also decided, in June 2013, that a robust analysis be carried out to evaluate how to give effect to a beneficial merger of Coillte with Bord na Móna to create a streamlined and refocused commercial state company operating in the bio-energy and forestry sectors, as committed to in the Programme for Government. NewERA is undertaking a financial evaluation on behalf of the relevant Government Departments (my Department, the Department of Public Expenditure and Reform and the Department of Communications, Energy and Natural Resources), which is currently being finalised. The outcome of this analytical exercise will then be considered by the relevant Ministers in due course.

Ministerial Newsletters

Ceisteanna (98)

Éamon Ó Cuív

Ceist:

98. Deputy Éamon Ó Cuív asked the Minister for Agriculture, Food and the Marine when he intends to issue the next ministerial newsletters; and if he will make a statement on the matter. [6343/14]

Amharc ar fhreagra

Freagraí scríofa

My Ministerial newsletter is issued on a regular basis in order to update the agricultural sector on new developments in the sector. The newsletter is prepared at no extra cost to the taxpayer and is issued electronically. The next date for issue of the newsletter is not yet decided.

Harbours and Piers Funding

Ceisteanna (99)

Mick Wallace

Ceist:

99. Deputy Mick Wallace asked the Minister for Agriculture, Food and the Marine if his Department will consider providing funding for a short extension to the pier at Courtown, County Wexford, which continues to deteriorate, in order to deal with ongoing silting problems at the harbour and the difficulties this creates for fishermen and other boat users; and if he will make a statement on the matter. [6314/14]

Amharc ar fhreagra

Freagraí scríofa

The Pier at Courtown, County Wexford is owned by Wexford County Council and responsibility for its repair and maintenance rests with the Local Authority in the first instance. Under the Fishery Harbour and Coastal Infrastructure Development Programme my Department has, in previous years, provided funding for the development and repair of Local Authority owned harbours, piers and slipways subject to the availability of exchequer funding. Funding for this programme is allocated on an annual basis.

Under the 2013 Fishery Harbour and Coastal Infrastructure Development Programme Wexford County Council received funding in the amount of €11,250 for repointing works at Courtown Harbour. The allocation of funding within the 2014 Programme is currently under consideration. Any application for funding in 2014 or future years by Wexford County Council will be given consideration subject to available exchequer funding and overall national priorities.

That said I am also acutely aware of the ferocity of the recent storms combined with the exceptionally high tides which in combination have resulted in widespread damage to vital public infrastructure in various small local authority piers and harbours including Courtown. I am working closely with my Ministerial colleagues in cabinet, in evaluating the overall extent of the damage, and in developing a co-ordinated response by relevant Local Authorities, Government Departments and Agencies to the damage that was wreaked on our coastal communities as a result of the exceptionally bad storms. I have offered the services of my Department in this regard, and fully expect to have a prominent role in the Governments co-ordinated response to the situation.

Question No. 100 answered orally.

Severe Weather Events Response

Ceisteanna (101)

Mick Wallace

Ceist:

101. Deputy Mick Wallace asked the Minister for Agriculture, Food and the Marine if his Department will provide any assistance to lobster and crab fishermen in County Wexford who lost their equipment or found it damaged beyond repair following the recent storms; and if he will make a statement on the matter. [6313/14]

Amharc ar fhreagra

Freagraí scríofa

Along with all my colleagues in Government I am acutely aware of the ferocity of the recent storms, combined with the exceptionally high tides, which in combination have resulted in widespread damage right around the coast. I have been actively assessing the damage to the many small Local Authority piers and harbours right around the coast. I am aware of the critical importance of this local pier and harbour infrastructure to the 1900 odd inshore fishing vessels that provide a backbone to our inshore fishing fleet.

The Government in considering the totality of the impact of the storms decided that the Local Authorities need to do a full assessment of the damage and the costs involved and should revert to Government in the coming weeks. That comprehensive assessment will then enable Government to decide on a fully informed response to the damage that was wreaked on our coastal communities as a result of these exceptionally bad storms.

On the specific issue of Government support for inshore fishermen for losses suffered, it is useful to recall that there are a range of grant aid schemes already available to inshore fishermen, which are administered by BIM. There have been some reports in the media about the loss, by some inshore fishermen, of their pots. It is not unusual for inshore fishermen to experience some pot losses through the winter. It is too early to fully determine the scale of the losses and if these were widespread. I am working with BIM to endeavour to assess the scale of losses that may have occurred.

In deciding on an appropriate response to the situation that emerges I will have to take account of the fact that EU Law limits the options. The EU requires that any financial assistance provided by Government to the seafood sector must always be considered in terms of what is permissible under EU State Aid rules. It is clear that under State Aid rules no aid may be given for the replacement of any lost or damaged fishing boats. In relation to pots, State Aid rules potentially allow for limited financial assistance for replacement of lost pots, but importantly any such assistance may not increase the ability of a vessel to catch fish. This is potentially difficult to implement without the risk of breaching State Aid rules. However, while all of these constraints and considerations exist, I am still endeavouring with BIM to get a full picture of the situation and working with Government and determining what responses are practical and appropriate.

Agri-Environment Options Scheme Eligibility

Ceisteanna (102)

Seán Kyne

Ceist:

102. Deputy Seán Kyne asked the Minister for Agriculture, Food and the Marine when the terms and conditions of the new green low-carbon agri-environment scheme will be available; when the scheme will be open to applications; the way entry to the scheme will be decided; and if limitations will be placed on access. [6330/14]

Amharc ar fhreagra

Freagraí scríofa

I announced details of the new GLAS (Green Low-carbon Agri-environment Scheme) and GLAS+ Scheme on the 14th of January 2014 as part of a suite of proposed measures under the new Rural Development Programme. The GLAS Scheme will provide significant funding to farmers who undertake environmental actions in line with national and EU environmental objectives. It will contribute to the overall public good and will build on the success of previous agri-environment schemes.

The entire Rural Development Programme must be submitted to the European Commission for approval. In advance of this my Department must undertake a public consultation, an ex ante evaluation, a SWOT analysis (Strengths, Weaknesses, Opportunities and Threats), a needs assessment, a strategic environmental assessment (SEA) and an appropriate assessment (AA), as part of the development of the Programme. An independent evaluator has been contracted to prepare the ex ante evaluation report, SEA and AA and to advise on the SWOT analysis. An initial round of consultation with stakeholders took place in 2013 and written submissions were received. On the basis of these, and taking account of the requirements of the Council Regulation, an outline of the GLAS Scheme was developed and published in the Rural Development Programme 2014 – 2020 Draft Consultation Programme on 14th January, 2014.

A further round of stakeholder consultation is now under way and once that is complete, and taking account of any written submissions received by the due date of the 19th February, final decisions will be made on the content of the GLAS Scheme. At that stage formal proposals will be submitted to the European Commission for consideration and approval. This work is receiving the highest priority within my Department and it is my intention to submit the Programme for approval at the earliest possible date in order to facilitate roll out of the new GLAS Scheme.

As regards details of the way entry to the Scheme will be decided, the current outline proposal, as detailed in the Draft Consultation Programme, gives priority access to certain actions which address specific environmental issues. These priorities are targeted towards actions which mitigate climate change, enhance biodiversity and address water quality. The Scheme will be governed by selection criteria, as is required under all EU funded schemes. Once the Scheme is approved by the European Commission, all GLAS documentation, including the Terms and Conditions, application procedure and selection criteria will be published. I expect that contracts under the GLAS scheme will commence in 2015.

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