Dáil Éireann Debate, Tuesday - 3 October 2017
32. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine the position on the programme for Government commitment to increase areas of natural constraint, ANC, scheme funding by €25 million in 2018; and if payments will reflect the constraint of land type. [41891/17]
Amharc ar fhreagraAs priority questions had to be submitted by the middle of last week in advance of news breaking that the European Commission planned to offer up to 70,000 tonnes of beef in the South American trade negotiations as part of the Mercosur deal, it was not possible to table a question on that matter to be dealt with today. Therefore, I raised the matter with the Taoiseach earlier. That is why it is not on the agenda in this context today. I certainly hope every effort will be made by the Minister to ensure the proposal will be blocked and that we will not see such a massive threat pursued to the beef industry.
Priority Question No. 32 relates to areas of natural constraint and the commitment in the programme for Government to provide €25 million for them. Will the Minister give an update on whether that funding commitment will be followed through in the forthcoming budget? Will he also ensure the allocation of that funding will reflect the various constraints of land type under the scheme?
For the Deputy's information, there is a later question tabled on the Mercosur trade negotiations, Question No. 45; therefore, we may have an opportunity to discuss the matter, which is of critical importance.
The areas of natural constraint, ANC, scheme is a very important source of financial support for farmers across the country, under which over €200 million is paid each year to over 95,000 farmers. A Programme for a Partnership Government provides for a commitment of a €25 million increase in funding for the scheme in 2018. This falls for consideration in the context of discussions on budget 2018.
There are a number of options in relation to how any additional funding could be allocated under the ANC scheme. The options range from allocating the funds as a flat increase across the current payable rates to various forms of targeting higher payment rates for particular categories of farmer. Any change would require formal agreement with the European Commission via a formal amendment to the rural development programme, 2014 to 2020.
The 2017 ANC scheme payments commenced on 19 September and, to date, more than €171 million has been paid to almost 80,000 farmers. Payments are continuing on a rolling basis as more farmers satisfy eligibility and stocking rate requirements. I am pleased to note that payments are ahead of where they were this time last year.
I thank the Minister for his response, which seems to indicate that the following through on the €25 million commitment in the programme for Government in 2018 is optional and up for discussion rather than non-negotiable. I would have thought that if there was a commitment in the programme for Government, it would have been sealed and done and dusted. It should not be up for discussion at this late stage as to whether the €25 million will be available. Will the Minister comment further on the matter because in his initial response he raised a question mark against whether the €25 million would be available? I want to make it absolutely clear that I believe it must be delivered as it is very important for the agricultural community.
On the various land types and the way funding is distributed, as the Minister is aware, the difference between the payment rates for the three types of land - mountain land, more severely handicapped lowlands and less severely handicapped lowlands - is approximately €14 between the top rate and the lower rate, but there is a massive difference in the types of land involved. I put it to him that in distributing the €25 million which needs to be provided in the budget we should start the process of allocating higher payments to farmers with more severely handicapped land who should receive the largest portion of the funding.
I thank the Deputy for his support. As he will be aware, total payments of approximately €250 million were made to eligible farmers under the ANC scheme in 2008. That sum was cut substantially by the Fianna Fáil Government at the time. We are attempting to make up some of the ground lost in budget 2018. Obviously, until the budget is announced, there will be no certainty in that regard, but it is my earnest wish that that will be the case. I appreciate the support of the Deputy in that regard. As to how the money would be spent if it were to be delivered in the budget, there is a range of options available, but my overwhelming objective at this stage is to secure the funding. Until the budget is announced, there can be no certainty in that regard. I am aware of the various views, particularly the different and competing views, on how the money should be allocated, but until such time as the €25 million is delivered, there is little point in exercising ourselves about the matter, but I am aware of all the options being canvassed.
I am disappointed that this issue has not been nailed down at this stage. For what does the commitment in the programme for Government stand? I remind the Minister that it is his party's programme for Government. If it commits to the provision of an additional €25 million in ANC funding for 2018, it is a poor reflection on the priority attached to agriculture that a week prior to the announcement of the budget, the matter is still under discussion and the Minister cannot made a clear commitment that the money will be forthcoming. The programme for Government stipulates that it will be provided. It is not exactly a big issue on which to have a fight; that fight would have been fought a year and half ago when the programme for Government was put in place. Will the funding, which clearly must be provided and is non-negotiable, be additional to what was included in the rural development programme and the overall Common Agricultural Policy, CAP, envelope in 2014, or will it simply be a rejigging of the spend, with farmers ending up no better off and the Government robbing Peter to pay Paul within the overall CAP envelope to provide the €25 million in funding?
On the distribution of the additional funding provided, I am aware that there is a delay in the discussions at EU level in ensuring the constraint of land type is reflected in payments, but there is no reason the Minister could not begin that process and ensure farmers would be compensated in accordance with the level of difficulty they encounter in farming the land.
As I am not in the business of counting chickens before they are hatched, I am not going to engage in speculation about how money that has not been secured in budget 2018 may be spent. That is a debate I am sure we will have on another day should we succeed in securing the funding. I appreciate the Deputy's anxiety and support to make up some of the funding cut by Fianna Fáil in 2008.
By using some of the funding not spent in the Minister's Department.
As we have said ad nauseam in this Chamber, there will not be one penny left behind under the rural development programme.
There will be plenty of pennies left behind this year as a result of the underspend-----
The Deputy understands the position on the rural development programme.
We have had this before-----
The most underspending Department in the whole of Government. That is this year's figures.
The rural development programme is a rolling programme. When farmers present for payment in certain schemes, we are obliged to meet that obligation. In respect of the Deputy's support for this particular proposal on the rural development programme, it is the subject of the negotiations within Government for 2018.
