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Gnáthamharc

Thursday, 26 Apr 2018

Written Answers Nos. 34 - 53

Agriculture Cashflow Support Loan Scheme

Ceisteanna (34)

Willie Penrose

Ceist:

34. Deputy Willie Penrose asked the Minister for Agriculture, Food and the Marine when low interest rate credit will be available to farmers who have incurred significant additional feed costs for their animals as a result of the long winter; if he has obtained a commitment from the commercial banks that they will respond positively to the cash flow problems being experienced on farms arising from the long winter and fodder crisis; and if he will make a statement on the matter. [18311/18]

Amharc ar fhreagra

Freagraí scríofa

I am conscious that this prolonged winter will have put some individual farmers under pressure in terms of cash flow. In recognition of this, I have met with the CEOs of the main banks and discussed the current cash flow and liquidity position of the primary sector. I emphasised to them that they should recognise the temporary and exceptional nature of the current situation and that they should be flexible and put in place measures to support their customers. They indicated to me that there are no signs that there is a liquidity issue across the sector as a whole, while acknowledging that there may be pressures in individual cases. They assured me that they will provide supports, such as extended overdraft facilities, to their customers, and asked that those in difficulty should contact them as soon as possible.

One of my priorities is to improve access to finance for the agri-food sector. Food Wise 2025 identifies competiveness as a key theme and includes a recommendation that stakeholders work to “improve access to finance for agriculture, forestry and seafood producers and agri-food companies”.

Last year I introduced the Agriculture Cashflow Support Loan Scheme, developed in cooperation with the Strategic Banking Corporation of Ireland (SBCI). It provided low-cost flexible working capital finance to farmers to address the impact of the change in the sterling exchange rate and lower commodity prices in some agriculture sectors in 2016 and 2017. It was facilitated by CAP Exceptional Adjustment Aid funding, which facilitated a subsidy to the interest rate and also covered the Scheme in terms of EU State Aid requirements. I was pleased at the very positive reaction by farmers to the Scheme, which was fully subscribed.

I announced in Budget 2018 that my Department is considering the development of potential Brexit response loan schemes for the primary sector. Consideration and discussions are ongoing in this regard and I will announce further details on this as they become available.

Live Exports

Ceisteanna (35)

Clare Daly

Ceist:

35. Deputy Clare Daly asked the Minister for Agriculture, Food and the Marine the implications for live cattle exports in view of the announcement of the opening of the beef market with China. [18261/18]

Amharc ar fhreagra

Freagraí scríofa

Last week I announced that my Department has secured the opening of the Chinese beef market for Irish beef. This is very good news for our agri-food sector and indeed for the country. The ongoing search for new third-country markets is a priority for my Department, particularly in the context of the challenges posed for our livestock products by the upcoming UK exit from the EU.

But while China will be an important future market for Irish beef, live exports will also remain an important component of Ireland’s livestock industry, playing a vital role in stimulating price competition, and providing an alternative market outlet for Irish farmers.

Indeed, live exports were among the strongest performers in terms of agri-food export growth in 2017. Last year saw an increase by 21%, to the value of €175 million. €115 million of this represents the live cattle market. Live exports will continue to play a part in informing the destinations selected for trade missions in 2018 as it did in 2017.

In terms of animal welfare, EU Council Regulation (EC) No. 1/2005 on animal transport provides for the application of stricter rules by member states than those set down at EU level. Ireland has availed of this provision and, therefore the current Irish legislation, made possible by powers conferred under the Animal Health and Welfare Act 2013, sets higher standards relating to the approval of ships for livestock transport than those which apply generally in the EU.

Only ships approved by my Department, which involves assessment from independent Marine Surveyors in the process, can load cattle for export from Ireland. Livestock being exported are monitored by my Department’s veterinary inspectors during the prescribed isolation period, with the loading of cattle also supervised by Department officials. All animals are inspected and must be certified as regards health status and fitness for travel, and cattle on board a livestock ship departing from Ireland are typically bedded and penned in conditions very similar to cattle in any feedlot or cattle shed. In addition, due regard must be taken to weather conditions in respect of long distance transport and these measures contribute to maintaining Ireland’s reputation as an exporter of livestock of high health status.

The preservation of Ireland’s animal health status, the international reputation of veterinary certification services and the existence and application of a regulatory framework ensures that high standards and welfare considerations are taken into account during transport and are essential components to safeguarding Ireland’s live export trade.

The Deputy can be assured that my Department will continue to promote and maintain an environment in which live exports can continue in both an economic and sustainable manner, with an ongoing strong emphasis on the welfare of all animals being exported.

Basic Payment Scheme Administration

Ceisteanna (36)

Willie Penrose

Ceist:

36. Deputy Willie Penrose asked the Minister for Agriculture, Food and the Marine if he is satisfied that all farmers will be able to comply with the 100% online application for the basic payment scheme in the context of the variation of broadband coverage across the country; and if he will make a statement on the matter. [18310/18]

Amharc ar fhreagra

Freagraí scríofa

Under the EU regulations, 2018 is the first year that all applications for the Basic Payment Scheme (BPS) are to be submitted online. Recent years have seen significant growth in the number of farmers applying for the BPS online, and this is reflective of the range of benefits that online application brings for farmers.

Among the benefits available to online applicants is the availability of preliminary checks for online applications. These preliminary checks allow online applicants to be advised of certain errors at an early stage and to correct any such issues without penalty.

These preliminary checks have proved very successful in previous years, and they represent one of the many advantages for farmers in making their BPS applications online.

From 2018 all the elements of the Direct Payments Schemes (BPS, Greening, Young Farmers Scheme, National Reserve, and transferring of entitlements) are online. This helps to ensure that the Department can process all applications under these schemes as efficiently as possible.

I am aware that for some people, this is the first year that they will have engaged with the online applications process. To help farmers to submit their application online in 2018, I ensured the early opening for the BPS application facility in 2018. The application process in 2018 opened over a month earlier than in 2017. This provides more time for farmers to familiarise themselves with the online application facility and to submit their applications. My Department contacted these farmers in advance of the online application facility opening advising them of the requirement to submit online in 2018.

Officials from my Department have also subsequently notified farmers of a range of supports available to applicants, including a series of BPS clinics in locations throughout the country. These clinics have been running since early April and enable farmers to sit with an official from my Department who guide them through the process to enable submission of the application online by the farmer.

Further supports such as telephone help lines and ‘How to’ guides are also in place. As we move towards the application deadline, my Department will be in contact with these farmers again to provide further details on these supports. These supports ensure that all farmers are able to access these important payments.

I would urge all farmers to avail of the opportunity to apply for the BPS via the online system. It is open for farmers to do this either as individuals or through an agent. Online applications allow my Department to continue to improve on the delivery to farmers of essential payments under schemes such as BPS and the Areas of Natural Constraint Scheme.

Food Exports to China

Ceisteanna (37)

Willie Penrose

Ceist:

37. Deputy Willie Penrose asked the Minister for Agriculture, Food and the Marine the likely impact of the opening of the Chinese market for the beef trade, in particular from a price perspective for beef producers; the strategy of Bord Bia to ensure that Irish beef is promoted as a premium product in China; and if he will make a statement on the matter. [18309/18]

Amharc ar fhreagra

Freagraí scríofa

The recent opening of the Chinese beef market to Irish beef is very significant for the Irish beef industry, all along the chain from farmers through to processors and exporters.

However I cannot comment on the potential volume or value of beef exports. The role of my Department is to open up access to new markets, in line with the market diversification theme of our Foodwise 2025 strategy, and to maintain access to existing markets. It is now up to our industry to avail of this significant opportunity. I hope that they will follow the success that our exporters have already had in finding Chinese markets for dairy, pigmeat and seafood products.

The prices agreed at factory level are a matter for the primary producers and the factories to agree. My Department does not have a role in relation to this. However my Department is committed to ensuring that we open as many markets as possible for both beef and live animals, in order to maximise returns for all.

In relation to the marketing and promotional strategy for Irish beef in China, the strategy is primarily a matter for Bord Bia. However, my officials, Bord Bia and industry are working closely to ensure that Irish beef will be promoted effectively and appropriately for the Chinese market.

The timing of the Government Trade mission that I will lead to China and Hong Kong next month is particularly opportune in this regard. For example nine Irish meat companies will exhibit at Sial China, Asia’s largest food innovation exhibition, under the overall Bord Bia and Origin Green stand. Detailed planning and preparation for the Trade Mission is underway at present.

Trade Agreements

Ceisteanna (38)

Charlie McConalogue

Ceist:

38. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine the status of the latest Mercosur talks at EU level; and the steps he is taking to protect beef farmers here by ensuring that beef does not form part of the final Mercosur deal. [18299/18]

Amharc ar fhreagra

Freagraí scríofa

Discussions in relation to an EU /Mercosur trade deal are ongoing.

Ireland's position on these negotiations is well-understood at EU level and we are working hard to protect the best interests of Irish farmers.

While we have made it clear that we are broadly supportive of liberalised trade, we have been consistent in seeking appropriate balance in trade agreements, and in particular in seeking to protect vulnerable sectors such as beef.

Our position has been articulated through all available channels ,including by my colleague Andrew Doyle and I at Council of Agriculture Ministers meetings, and by other Ministers in the relevant EU Trade policy fora.

Ireland's views have also been articulated through direct contacts with Commissioners Hogan and Malmstroem, by the Taoiseach at European Council and through his own direct contacts, including with Commission President Jean Claude Juncker and French President Emmanuel Macron.

I believe there is a need for continued vigilance in relation to the conduct of these trade negotiations, and I will continue to insist that they are handled appropriately, and in a manner that safeguards the interests of the Irish and European beef sector.

I will also continue to work very closely with Member State colleagues in this regard. In particular, I believe full account must be taken of the findings of the Commission’s own assessment of the cumulative impact of trade deals on the agri food sector, and the potentially very damaging impact of Brexit on an already delicately balanced EU beef market.

Inshore Fisheries

Ceisteanna (39)

Clare Daly

Ceist:

39. Deputy Clare Daly asked the Minister for Agriculture, Food and the Marine further to Parliamentary Question No. 1069 of 17 April 2018, when the consultation document regarding inshore waters will be published and available publicly. [18260/18]

Amharc ar fhreagra

Freagraí scríofa

The issue of limiting access to different categories of vessels in inshore waters and within 6 nautical miles has been raised by a number of stakeholders. My department is currently in the final stages of preparing a formal paper to include possible measures. I hope to be in a position to present this paper for a full public consultation in the coming days. Let me provide some background on this matter.

This Government has committed to the development of the inshore sector in the current Programme for a Partnership Government. The programme identifies a number of methods for supporting the sector, such as ensuring smaller inshore boats are given new opportunities for commercial fishing. Support is being provided under the European Maritime and Fisheries Fund Operational Programme (EMFF OP) for enhanced management and conservation of inshore stocks, including v-notching of lobster, more selective fishing gear and preparation and implementation of management plans for a sustainable inshore fishery. Funding of some €6 million has been earmarked under the programme for the Inshore Fisheries Conservation Scheme.

I meet regularly with the National Inshore Fisheries Forum (NIFF). The NIFF and its supporting network of six Regional Inshore Fisheries Forums (RIFFs) cover the entire coast. The Inshore Forums provide a platform for the discussion of problems facing the inshore sea-fisheries sector and have been making recommendation to me on issues of concern for their sector.

The NIFF is taking the lead in setting priorities for the inshore sector, including developing for the first time a dedicated strategy. From my meetings with the NIFF, I have introduced a number of industry-led initiatives, developed through the forum structures, following extensive consultation. These include conservation measures for inshore stocks such as velvet crab and scallop off the coast of Wexford. Public consultations were also held earlier this year (2018) on proposed management measures recommended to me by the NIFF in respect of brown crab and razor clam in the North Irish Sea.

The potential impact of limiting access to different categories of vessels in inshore waters and within 6 nautical miles has been the subject of scientific and economic reports by the Marine Institute and Bord Iascaigh Mhara. There has also been preliminary engagement with fisheries representative groups in respect of these reports. The forthcoming consultation paper will set out possible measures and their potential impacts.

Let me reassure the Deputy that once the public consultation begins, adequate time will be provided to ensure that the diverse interests of all stakeholders are considered and any possible measures will be fair and balanced.

Common Agricultural Policy Subsidies

Ceisteanna (40)

Willie Penrose

Ceist:

40. Deputy Willie Penrose asked the Minister for Agriculture, Food and the Marine if Commissioner Oettinger plans to outline a 6% cut in the CAP budget which would specifically apply to Pillar 1 payments; if so, the steps and policies he plans to implement to mitigate the extent of such a proposal in the case of the farming sectors that are highly dependent upon CAP payments as their primary source of income; and if he will make a statement on the matter. [18308/18]

Amharc ar fhreagra

Freagraí scríofa

The Budget Commissioner, Gunther Oettinger visited Dublin on 6 March 2018 as part of his tour of all European capitals in advance of the Multiannual Financial Framework (MFF) proposals being published on 2 May 2018. As part of his appearance before the Joint Oireachtas Committee on Finance, Public Expenditure, he spoke of acceptable cuts to CAP and Cohesion of 5 - 10%. This was in the context of some Member States looking for cuts in these programme of up to 30%.

These figures must be seen in the context of the European Commission's own Reflection Paper on the Future of EU Finances which was published on the 14 February 2018. Within this paper, a range of scenarios across all major spending programmes are outlined and the impacts of maintaining the current budget, a 15% cut and a 30% cut are outlined. The Communication is very clear that these are just options and not proposals and are intended to stimulate an open debate.

Recent media reports indicate that Commissioner Oettinger stated at a trade Conference in Hannover that his proposal is for approximately a 6% cut.

From Ireland's perspective, the Taoiseach, in his address to the European Parliament in January of this year, indicated that Ireland is open to contributing more to the EU budget, but only if it is spent on policies that contribute to the advancement of the European ideal.

The CAP is such a policy. The European Commission's Communication on the Future of Food and Farming sets out a higher environmental ambition for the next CAP, highlights the need to strengthen the resilience of the European agriculture sector, and, improving the European added value of the policy to name but a few. In order to address these challenges I believe as strong a CAP budget as possible must be maintained post 2020 and I have repeatedly called for this at the Council of Agriculture Ministers meetings.

Discussions on the future CAP are intensifying under the Bulgarian Presidency and will continue afoot under the Austrian Presidency from 1 July. In that context, I look forward to engaging constructively with the Presidency, my European counterparts and the European Commission, to ensure the next CAP continues to provide necessary support to the Irish and European agriculture sector. My officials are also continuing to engage with their counterparts in the Presidency, the Commission, Member States and with our own Department of Finance who are the lead Department for Ireland on the MFF. We await the MFF proposals due to published on 2 May 2018.

Artisan Food Sector

Ceisteanna (41)

Aindrias Moynihan

Ceist:

41. Deputy Aindrias Moynihan asked the Minister for Agriculture, Food and the Marine the new schemes being introduced in 2018 to develop the artisan food sector; and if he will make a statement on the matter. [18259/18]

Amharc ar fhreagra

Freagraí scríofa

Growth prospects for the artisan food sector are positive overall, driven by increased consumer interest in the provenance of food, environmental concerns, health and a desire to support the local economy.

There is provision in the Rural Development Programme (RDP), for funding to support new and existing artisan, micro and small food producers to address emerging challenges through investment in areas such as market development, competitiveness and innovation. This funding will be delivered using the LEADER methodology. I hope to announce further details of this in the near future with my colleague Minister Ring.

Food Exports to China

Ceisteanna (42)

Martin Heydon

Ceist:

42. Deputy Martin Heydon asked the Minister for Agriculture, Food and the Marine the impact for farmers in County Kildare of the opening of the Chinese market for Irish beef; and if he will make a statement on the matter. [18243/18]

Amharc ar fhreagra

Freagraí scríofa

The recent opening of the Chinese beef market to Irish beef is a very positive and significant development for the Irish beef industry, all along the chain from farmers through to processors and exporters. It marks the culmination of a number of years work involving my Department and the Irish Embassy in Beijing, their counterpart officials in China and with the cooperation of the Chinese Ambassador and Embassy in Dublin, Bord Bia and the industry itself.

The beef plants that have been approved by Certification and Accreditation Administration of the People’s Republic of China (CNCA) are in various locations around the country. The beef plants that remain to be approved are also spread across the country. It is not possible to assess the likely impact of a particular market, on an individual county or regional level basis.

Fallen Animal Collection Scheme

Ceisteanna (43)

Maureen O'Sullivan

Ceist:

43. Deputy Maureen O'Sullivan asked the Minister for Agriculture, Food and the Marine if an audit will be conducted regarding the records from fallen animal companies, that is, businesses that collect deceased farm animals, comparing the past five years (details supplied) with the previous five years; the number of newborn calves that have died from scour and pneumonia, BVD related, during those two periods, respectively; and if he will make a statement on the matter. [18188/18]

Amharc ar fhreagra

Freagraí scríofa

The figures for reported on farm deaths, as notified to the Animal Identification Movement system, over the period of 2007 – 2017 are set out in the following table.

On Farm Deaths 2007 – 2017

Year

On Farm Deaths

2007

272,217

2008

300,779

2009

261,974

2010

244,132

2011

215,828

2012

247,740

2013

290,057

2014

235,228

2015

241,020

2016

275,655

2017

262,864

These data, recorded by fallen animal collection operators on behalf of farmers, do not capture causes of death. My Department therefore does not have statistics on the causes of bovine deaths. The costs associated with putting in place a system to diagnose and record the cause of death would be prohibitive.

The National Bovine Viral Diarrhoea (BVD) Eradication Programme is an industry- led programme delivered by Animal Health Ireland (AHI). A voluntary programme was introduced in 2012 and this became compulsory in 2013. The legislative basis for the programme is currently set out in S.I. No. 30 of 2017, the Bovine Viral Diarrhoea Order 2017. This requires that all animals born on or after the 1 January 2013 are tested for the presence of the BVD virus. Animals found to be persistently infected (P.I.) are disposed of. Progress to date has been excellent with numbers of persistently infected animals reducing year on year as follows:

Year

Animals Tested

Number of P.I. Animals

Percentage

2013

2,095,738

13,877

.66%

2014

2,131,945

9,733

.46%

2015

2,264,819

7,426

.33%

2016

2,324,229

3,805

.16%

2017

2,340,663

2,390

0.1%

2018(to date)

1,340,001

593

0.04%

The vast majority of these animals were disposed of through the knackery system, thus contributing to the overall on-farm death data above, with a small number being slaughtered. It will be noted that the eradication programme has been successful in bringing about a major reduction in the incidence of PI animals being born and thereby lowers the risk of disease spread.

However, it can be deduced from the above that in the 5 years leading up to the introduction of the National BVD Eradication Programme in 2013 approximately 14,000 PI animals were born in each of these years. The animals in question are likely to have suffered ill thrift and died at a young age before being removed to a knackery.

Control of BVD – a condition which compromises the immune response capability of animals - also brings overall health benefits to the national herd, with animals being better able to respond to other infection risks.

GLAS Data

Ceisteanna (44)

Charlie McConalogue

Ceist:

44. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine the breakdown between the number of farmers who have received their 2017 GLAS 1, 2 and 3 and AEOS advanced and balancing payment; the number who have not received their advance and balancing payment in tabular form; if all information technology issues have been addressed; and if he will make a statement on the matter. [18300/18]

Amharc ar fhreagra

Freagraí scríofa

The GLAS scheme participation levels surpassed the original target of 50,000 participants well ahead of the targeted date - such is the popularity of the scheme. Given that the first approvals under the scheme run from 1 October 2015 it is a remarkable achievement to have exceeded this target within a period of 15 months.

GLAS, like previous agri-environment schemes supports participants in improving their agricultural productivity and practices in a sustainable manner. The scheme delivers overarching benefits to the rural environment and also addresses the issues of the mitigation of the impacts of climate change, the enhancement of biodiversity and the improvement of water quality. The scheme provides valuable support to participants who deliver public goods and environmental benefits that enhance the sustainability credentials of Irish agriculture.

The scheme is co-funded by the National Exchequer and the European Agricultural Fund for Rural Development. As required under EU regulation two payments issue in respect of each year – the advance payment followed at a later stage by the balancing payment.

The overriding factor in the processing of all EU funded schemes is to ensure that all regulatory requirements are respected in issuing payments. This includes the requirement that payments cannot commence until after 15 October annually.

GLAS 2017 advance payments have now issued to over 47,000 applicants, representing over 99% of all participants that are eligible for payment. Of the 25,025 applicants for GLAS 1, 24,051 have received the 2017 advance payment, with 974 remaining. 10,476 and 12,684 have been paid for GLAS 2 and GLAS 3 respectively, with the Department continuing to process applications for the remaining 674 and 502 in these tranches.

In approximately 1,600 of the outstanding cases, applicants remain ineligible for payment until they complete the steps they must take before the Department can process their payment. The general issues preventing payments taking place include the non-submission of nutrient management plans (NMP's), commonage management plans, low emission slurry spreading forms, rare breeds forms and 2017 BPS application issues that remain to be resolved.

Other cases are being examined separately to clarify what remedy can be put in place to resolve their particular issue. Where action is needed by the participant concerned the Department, if it has not already done so, will be in direct contact with them.

I anticipate that GLAS 3 balancing payments will commence in May and I would remind scheme participants that outstanding Nutrient Management Plans and Commonage Framework Plans must be submitted before this payment can be released.

In relation to the AEOS 2017 scheme year 2,101 cases have been paid in full with 145 remaining cases which continue to be processed.

Updates are published weekly on my Department’s website and clearly show that steady progress is being made in reducing outstanding cases. While my officials are prioritising the clearing of cases and where a farmer has been contacted for additional information it is important that any such request is responded to as the information requested is essential to finalise all checks.

Common Agricultural Policy Negotiations

Ceisteanna (45)

Charlie McConalogue

Ceist:

45. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine the steps is he taking at EU level to build support for a fully funded CAP post 2020; and if he will make a statement on the matter. [18296/18]

Amharc ar fhreagra

Freagraí scríofa

Background

The future of CAP is an issue of enormous importance for the agriculture sector in Ireland and across Europe. The CAP has evolved considerably and very effectively in recent years, in response to changing market, consumer and environmental demands. It also plays a central role in delivering the smart, sustainable and inclusive growth sought under the Europe 2020 strategy.

It is important that the CAP continues to evolve in a way that supports the achievement of European priorities, particularly in the context of securing a strong CAP budget for the post 2020 period. This can only be achieved by reinforcing the relevance and effectiveness of the policy in helping to achieve broader societal goals. This is something that I strongly believe in and will continue to actively pursue at Council level as the debate on the future CAP and its budget intensifies over the coming months.

Budgetary context

There will be budgetary challenges, arising not only from the UK decision to exit the EU, but also from the need to address other EU policy challenges, such as those relating to migration, security and growth. In that regard, the CAP should not be seen as a policy of the past and is already addressing some of these “new challenges”.

The Taoiseach, in his address to the European Parliament in January 2018, has already indicated that Ireland is open to contributing more to the EU budget, but only if it is spent on policies that contribute to the advancement of the European ideal.

More clarity will be provided next Wednesday, the 2 May 2018 when the European Commission publish their MFF proposals.

I regularly meet with my European ministerial colleagues at the monthly Council of EU Agriculture Ministers. These meetings give me the opportunity to discuss future CAP policy and funding. Since July of last year, I have bilaterally met with the French Agriculture Minister Stephane Travert on three separate occasions, with the main focus of discussion being CAP post 2020. In addition, during the first half of 2017, I held an intensive round of bilateral meetings with my counterparts in key Member States, and I am repeating this process currently.

My officials have and will continue to engage with officials in all Member States with whom we have a deep and long lasting relationship. In particular, my officials engage on a regular basis with their counterparts in other Member States through a G6 meetings which includes the Netherlands, France, Germany, Denmark, Austria and ourselves.

The next stage of in the CAP post 2020 process will be the publication of the legislative proposals, which are due on 29 May 2018. In that context, I look forward to engaging constructively with the Presidency, my European counterparts and the European Commission, to ensure that the next CAP continues to provide necessary support to the Irish and European agriculture sector.

Common Agricultural Policy Negotiations

Ceisteanna (46)

Brendan Smith

Ceist:

46. Deputy Brendan Smith asked the Minister for Agriculture, Food and the Marine if the need to increase the CAP budget post 2020 was raised at the recent European Council meeting. [15157/18]

Amharc ar fhreagra

Freagraí scríofa

From my understanding this matter was not one of the agenda items raised at the recent European Council meeting. However Ireland's position on the need for a well funded CAP is well understood at institutional level and by other Member States in the European Union. In his address to the European Parliament in January 2018, the Taoiseach indicated that Ireland is open to contributing more to the EU budget, but only if it is spent on policies that contribute to the advancement of the European ideal. I consider CAP to be one such policy.

It is however worth noting that not all Member States are in favour of increasing their contributions to the overall EU budget, so upcoming budget negotiations will be difficult. Further clarity will be provided shortly when the MFF proposals are published by the Commission on 2 May 2018.

However I wish to assure the Deputy that I have argued and will continue to do so at the Council of Agriculture Ministers for as strong a CAP budget as possible post 2020.

Areas of Natural Constraint Scheme Review

Ceisteanna (47)

Charlie McConalogue

Ceist:

47. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine the status of the ANC review with regard to redesignation using a set list of bio-physical criteria; if the new approach must be introduced from January 2019; if his Department completed mapping of all ANC lands; the specific actions that have been completed to date by officials; the actions that remain outstanding; the timeframe for remaining actions; and when final ANC data will be submitted to the EU Commission in 2018. [18298/18]

Amharc ar fhreagra

Freagraí scríofa

Under EU regulation, Less Favoured/Disadvantaged Areas (with the exception of the islands) were to be replaced by newly designated Areas of Natural Constraints from 2018 with eligible areas being designated using a set list of bio-physical criteria such as soil drainage, texture and slope. However, as part of legislative amendments at EU level a proposal was made to extend the 2018 deadline to 2019 on an optional basis. This proposal was approved at EU level, along with a number of other regulatory changes in what is referred to as the “omnibus proposal”. The revised scheme based on the newly designated areas must be in place prior to the acceptance of applications for the ANC scheme in 2019.

The biophysical criteria set out in the legislation to underpin the new system of designation are:

- Low temperature

- Dryness

- Excess soil moisture

- Limited soil drainage

- Unfavourable texture and stoniness

- Shallow rooting depth

- Poor chemical properties

- Steep slope.

My Department has commenced work on this project, and relevant technical experts are currently working on analysing the data in relation to the new criteria. This process is still on-going and, once complete, the data will provide the basis for the identification of eligible areas in the ANC scheme from 2019 onwards.

In addition to the technical work on the biophysical criteria, the Regulation allows for a linked process of fine tuning to finalise the determination of what lands will be eligible under the new scheme. This fine tuning is based on objective criteria, with the purpose of excluding areas which are deemed to have met the thresholds for biophysical criteria but in which ‘significant natural constraints’ have been overcome by investment, economic activity, normal land productivity, production methods or farming systems. The process of sourcing and analysing data for this process is also underway.

In order to progress this work, my Department is in on-going communication with the EU Commission in relation to the accepted parameters and technical aspects of this project. Any change to the ANC scheme on foot of this process will require formal agreement with the EU Commission via an amendment of Ireland's Rural Development Programme 2014 - 2020.

Agriculture Scheme Penalties

Ceisteanna (48)

Martin Kenny

Ceist:

48. Deputy Martin Kenny asked the Minister for Agriculture, Food and the Marine his views on whether it is justifiable to penalise farmers whose land was burned in 2017 through no fault of their own by removing burned land from their 2018 BPS applications. [18214/18]

Amharc ar fhreagra

Freagraí scríofa

In order to qualify for payment under the Basic Payment Scheme (BPS), an applicant must have an eligible hectare of land in respect of each entitlement held by them. In accordance with the land eligibility rules, where land has been burned between the period of 1 March and 31 August of any given year it is not eligible for payment under the BPS for that scheme year.

My Department actively investigates incidents of illegal burning using satellite imagery. As part of this process for the 2017 scheme year, a number of hectares of land were identified as having been burned outside of the permitted timeframes. Accordingly, this land was not eligible for the purpose of a BPS payment in 2017.

As part of the 2018 BPS application process, applicants were issued with documentation by post relating to the 2018 BPS/Greening schemes, in addition to a statement of land declared by them under the 2017 BPS and other Direct Payment Schemes and associated maps for the land parcels listed.

The land details and maps provided represented, at the time of issue, the most up to date 2017 position for the land parcels listed and reflected the eligibility position of lands that were burned between the period 1 March and 31 August 2017.

With regard to land that is not eligible for payment as a result of having been burned outside of the permitted timeframes, this land is, in the normal course of events, eligible for payment under the BPS for the following scheme year.

For the 2018 scheme year, all applications must be submitted through the Departments online application system. The land details and maps available to BPS applicants on the online system have been updated to show the most current information available for 2018, including land that was burned outside the permitted time frame in the 2017 scheme year, but which is subsequently eligible for payment under the BPS in 2018. Applicants who had burnt land in 2017 will be able to include that land in their BPS application for 2018.

Areas of Natural Constraint Scheme Review

Ceisteanna (49)

Martin Kenny

Ceist:

49. Deputy Martin Kenny asked the Minister for Agriculture, Food and the Marine the status of the review of areas of natural constraint; when the report will be completed; when consultation with stakeholders will commence; when it will be submitted to the European Union; and if he will make a statement on the matter. [18212/18]

Amharc ar fhreagra

Freagraí scríofa

Under EU regulation, Less Favoured/Disadvantaged Areas (with the exception of the islands) were to be replaced by newly designated Areas of Natural Constraints from 2018 with eligible areas being designated using a set list of bio-physical criteria such as soil drainage, texture and slope. However, as part of legislative amendments at EU level a proposal was made to extend the 2018 deadline to 2019 on an optional basis. This proposal was approved at EU level, along with a number of other regulatory changes in what is referred to as the “omnibus proposal”. The revised scheme based on the newly designated areas must be in place prior to the acceptance of applications for the ANC scheme in 2019.

The biophysical criteria set out in the legislation to underpin the new system of designation are:

- Low temperature

- Dryness

- Excess soil moisture

- Limited soil drainage

- Unfavourable texture and stoniness

- Shallow rooting depth

- Poor chemical properties

- Steep slope.

My Department has commenced work on this project, and relevant technical experts are currently working on analysing the data in relation to the new criteria. This process is still on-going and, once complete, the data will provide the basis for the identification of eligible areas in the ANC scheme from 2019 onwards.

In addition to the technical work on the biophysical criteria, the Regulation allows for a linked process of fine tuning to finalise the determination of what lands will be eligible under the new scheme. This fine tuning is based on objective criteria, with the purpose of excluding areas which are deemed to have met the thresholds for biophysical criteria but in which ‘significant natural constraints’ have been overcome by investment, economic activity, normal land productivity, production methods or farming systems. The process of sourcing and analysing data for this process is also underway.

In order to progress this work, my Department is in on-going communication with the EU Commission in relation to the accepted parameters and technical aspects of this project. Any change to the ANC scheme on foot of this process will require formal agreement with the EU Commission via an amendment of Ireland's Rural Development Programme 2014 - 2020.

Milk Prices

Ceisteanna (50)

Jackie Cahill

Ceist:

50. Deputy Jackie Cahill asked the Minister for Agriculture, Food and the Marine his plans to raise the issue of the removal of price support for skimmed milk powder at the EU Council of Ministers in view of the fact that the changes have significantly reduced the price of milk to the primary producer; and if he will make a statement on the matter. [18247/18]

Amharc ar fhreagra

Freagraí scríofa

As the Deputy is aware, the Irish dairy market, following on from broader EU and International trends, has performed strongly in 2017 and the early months of 2018, following a period of low prices in 2015 and 2016. While the overall dairy sector is now in a much better place overall than it has been in recent years, there is a significant overhang of intervention stocks of skimmed milk powder in the EU.

I remain conscious of the pressure volatility in dairy markets can exert on farmers and I can assure the Deputy that I am committed to utilising all measures at our disposal, including EU market measures such as intervention, aids to private storage and exceptional market measures, as necessary.

There were approximately 376,000 tonnes of SMP (skimmed milk powder) in public intervention stocks at the end of February. In common with the vast majority of EU Member States where dairy production is of significance within the broader agri-food sector, I recognised that this situation in respect of existing stocks could not be allowed to persist indefinitely.

Officials from my Department have been engaging with the Commission and with industry stakeholders, in order to facilitate the reduction of those stocks through the tender procedure, and following offers for tenders from market operators. Tenders for the purchase of approximately 4,000 tonnes and approximately 24,000 tonnes of SMP out of existing SMP intervention stocks were accepted in March and April of this year respectively. An orderly reduction in these SMP stocks is in my view the most appropriate means by which to deal with this overhang of stocks.

In parallel, my Department also engaged with the Commission on recent measures to limit further piling up of SMP in 2018 without due justification, including ensuring that the Commission's proposal to reduce the fixed price ceiling to zero be specified as for 2018 only, to avoid setting a precedent for the longer term. There has been no change to the fundamental provisions of the intervention mechanism, nor to the necessary supports that intervention provides during periods of market volatility.

Given the Commission’s effective status as among the world’s biggest players on the SMP market, and as such their capacity to affect market sentiment, it would be appropriate that they continue to act prudently and responsibly in the disposal of stocks. I am satisfied to date that the Commission has managed these stocks in a prudent manner.

My Department has and will continue to engage with the Commission, with other Member States, and with national stakeholders on these important issues.

Ireland is strongly positioned as a competitive producer of dairy products. It has enviable natural resources, adaptable and resilient producers, a strong international reputation, an effective dairy processing sector and a strong core of research infrastructure and expertise. My Department will continue to work with our partners in the industry to develop measures which can minimise the effects of price volatility in the future and ensure sustainable growth.

Brexit Negotiations

Ceisteanna (51)

Pat the Cope Gallagher

Ceist:

51. Deputy Pat The Cope Gallagher asked the Minister for Agriculture, Food and the Marine the details of the agreement or guarantee reached with the EU 27 on 23 March 2018 in the overall context of the FTA; the way in which it is planned to guarantee same post the interim period after the conclusion of the negotiations (details supplied); when the interim arrangement expires; and if he will make a statement on the matter. [17608/18]

Amharc ar fhreagra

Freagraí scríofa

I very much welcome the adoption by the European Council on the 23rd of March of negotiation guidelines on the framework for the EU's future relationship with the UK.

In respect of fisheries, the guidelines explicitly state that “In the overall context of the FTA, existing reciprocal access to fishing waters and resources should be maintained;".

Ireland’s key priorities are to maintain the current access to fishing grounds in the UK zone in the Irish Sea, Celtic Sea and north of Donegal and the protection of Ireland’s existing quota shares. These priorities are fully reflected in the EU 27 guidelines and are also provided for in the transition arrangements as part of the Withdrawal Agreement.

With regard to the latter, for fisheries, the transition period will involve no change whatsoever to existing arrangements other than the fact that the UK will no longer be part of decision making bodies within the EU.

While I cannot guarantee what the final outcome of the overall negotiations will be, I can assure you of my ongoing close engagement with the Barnier Task Force, in tandem with the Tánaiste, as well as with other Member States and stakeholders, on the importance of fisheries in future overall relationship. I aim to ensure that fisheries remains inextricably linked to overall future relationship negotiations.

The progress achieved to date has been welcomed by the Irish fishing industry and the importance attached to the sector by this Government was clearly demonstrated last week with a meeting between industry representatives, An Taoiseach, the Tánaiste and myself.

Food Marketing Programme

Ceisteanna (52)

Pat Deering

Ceist:

52. Deputy Pat Deering asked the Minister for Agriculture, Food and the Marine the efforts he is making to seek new markets in the context of Brexit; and if he will make a statement on the matter. [18238/18]

Amharc ar fhreagra

Freagraí scríofa

The pursuit and development of new markets for Irish agri-food exports is of course an ongoing and central component of the strategic development of the agri-food sector, as evidenced by its placement right at the centre of Food Wise 2025, the industry’s strategy for development over the coming decade. Indeed, this is all the more relevant after the UK’s decision to leave the EU, which presents significant new challenges for the agri-food sector in particular.

Food Wise 2025 outlines the huge potential for growth in agri-food exports to new and emerging markets, particularly in Asia, Africa and the Gulf region. Our efforts to develop new and emerging markets will be focused on these areas, particularly given the need to diversify our markets and to reduce our reliance on traditional destinations such as the UK. We will also continue to develop more mature markets, such as those in North America and Europe.

In keeping with the priorities outlined in Food Wise 2025 I led a very successful Trade Mission in February 2017 to the Gulf Region. This covered the Kingdom of Saudi Arabia and the United Arab Emirates. This was followed by an extensive Trade Mission to the US and Mexico in June. Both markets offer many elements that are very attractive to Irish exporters. The US is the largest food and beverage market in the world and has a population of 324 million people. Around 35 million Americans also claim Irish ancestry. Mexico has a population of 127 million, making it the eleventh-largest country in the world in population terms and the fifteenth-largest economy in the world, with projections that it will move into the top five by 2050.

During a trade mission to Japan and South Korea in November 2017 I was accompanied by 40 representatives of the Irish food sector, as well as by experts from my Department, the CEO of Bord Bia and senior representatives from Enterprise Ireland and Teagasc.

This was a very opportune time to bring a delegation of Ireland’s food leaders to this part of the world, given that the EU has concluded a Free Trade Agreement with South Korea as well as concluding an Economic Partnership Agreement with Japan in December 2017. Japan and South Korea are markets of high potential for beef, pigmeat and sheepmeat exports, and so it is important that we raise the profile of Irish agri-food enterprises that already have access to these markets, and make progress in negotiating access for others.

Following on from the successful trade mission to the USA and Canada in February of this year I will, as part of the marketing effort, lead further trade missions in 2018 to promote Irish food and drinks in key markets. I will also lead a trade mission to China and Hong Kong next month to develop our relationship further, given that the Chinese beef market is now open to exports from Ireland.

These and the other missions that my Department is planning for 2018 will serve to enhance and improve our existing levels of market access in these destinations. They will also promote Ireland’s reputation as a producer of high quality, safe and sustainably produced meat and dairy products.

The destinations are also in keeping with the recent market prioritisation exercise that was completed by Bord Bia at my request. This exercise identified opportunities in new and more mature markets, and will provide valuable market intelligence both for industry operators and policy makers.

My Department will continue to seek out and identify new markets and I am ready to respond as appropriate to other opportunities that may arise.

Forestry Sector

Ceisteanna (53)

Mick Wallace

Ceist:

53. Deputy Mick Wallace asked the Minister for Agriculture, Food and the Marine if the net carbon stock in forests here will increase to 2050; if the planned harvesting boosted by bioenergy demand will decrease carbon stocks and reduce the carbon sequestration value of standing forest; and if he will make a statement on the matter. [17968/18]

Amharc ar fhreagra

Freagraí scríofa

Ireland is a country with low levels of forest cover compared to the European average and an uneven age class distribution in our forests stemming from our afforestation efforts over the last century. Forest growth and harvesting and the related changes in carbon stocks therefore occurs on an uneven basis. Based on research conducted by Teagasc, greenhouse gas removals by our forests will fluctuate significantly up to 2050 with an overall reduction in the carbon stock between now and 2050 before it increases again. This pattern is related to the age class distribution of our forests and is observed in other countries with similar levels of forest cover and age class distributions.

The use of wood for energy purposes plays an important role in substituting fossil fuels and can play an important role in decarbonising the Irish economy. In this context, forest based biomass will be central to the success of the “Sustainable Support for Renewable Heat” scheme which was launched recently by DCCAE and SEAI. This initiative is considered key to increasing the level of renewable energy production in Ireland. Based on the continuation of sustainable forest management, our forests have the capacity to produce over 4 million cubic metres of forest based biomass by 2035 suitable for energy production. This primarily comes from residues from timber processing and downgraded wood, and does not include the use of large diameter sawlog that feeds our sawmills and represents a higher value forest product from both an economic and climate change perspective.

The current Forestry Programme 2014 -2020 provides grants and premiums to encourage landowners to plant trees. So far under this programme over 18,000ha of new forests have been established. This means that forest cover is increasing in Ireland year on year as clearfell sites must be replanted. According to the National Forest Inventory 2012, the area of forests is estimated to be 731,650 ha or 10.5% of the total land area of Ireland; forest cover is estimated to be at its highest level in over 350 years. Demand for wood biomass for energy is forecast to more than double by 2025 and maintaining afforestation rates will be key to meeting this demand in the future.

A Regulation covering the Governance of the Energy Union is currently being negotiated which will likely include forecasts of greenhouse gas changes in the land use, land use change and forestry sector. Once this Regulation and timeframe has been agreed my Department will be conducting new long term forecasts of forest carbon stock changes.

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