LEADER Programmes Funding

Dáil Éireann Debate, Thursday - 14 June 2018

Thursday, 14 June 2018

Ceisteanna (1)

Éamon Ó Cuív

Ceist:

1. Deputy Éamon Ó Cuív asked the Minister for Rural and Community Development the discussions he has had with the Minister for Agriculture, Food and the Marine, and the Minister for Public Expenditure and Reform to ensure there is no reduction in the overall funding for the Leader programme post 2020 in view of the recent announcement by the European agriculture Commissioner that the rural development funding under the Common Agricultural Policy is likely to be cut by 15% for the 2021-2028 programme; and if he will make a statement on the matter. [25932/18]

Freagraí ó Béal (10 píosaí cainte)

Deputy Éamon Ó Cuív

I hope, when it comes to the reply, that the Minister skips the usual bumf that is put in the beginning and cuts to the meat speedily. I have a quick question. The Minister knows that the framework of the Common Agricultural Policy, CAP, has been announced and that Pillar 2, from which the money for rural development outside the farm gate comes from, is proposed to be cut radically. Has the Minister started early negotiations with the Department of Public Expenditure and Reform and the Department of Agriculture, Food and the Marine to ensure that this does not have a huge knock-on impact on the Leader programme? It is well down already-----

Acting Chairman (Deputy Eugene Murphy)

I thank the Deputy.

Deputy Éamon Ó Cuív

-----but if it took the kind of hit that is proposed here, it would be hardly worth having.

Acting Chairman (Deputy Eugene Murphy)

We are ten seconds over already. The Minister has two minutes.

Minister for Rural and Community Development (Deputy Michael Ring)

The European Commission has proposed, as part of the multi-annual financial framework, MFF, for 2021 to 2027, that approximately €78.8 billion would be allocated for rural development funding over the next seven-year period. I understand that this equates to approximately €1.85 billion for Ireland and represents a reduction in the region of 15% on the current funding period. It should be noted that the proposal published by the European Commission is the initial MFF proposal. The final outcome will be determined by negotiations at EU level over the coming year. Achieving Ireland's priorities in these negotiations will be a key issue for the Government.

The matter has been discussed by the Government and work is well under way to achieve a satisfactory outcome from negotiations. I, together with my Government colleagues, will carefully monitor progress in these negotiations at EU level over the coming months. A decision regarding the level of funding required for the various elements of Ireland's rural development programme, including Leader, can only be made following the conclusion of the overall MFF negotiations. I assure the Deputy that I will continue to strongly defend the Leader budget as the MFF negotiation progresses.

Acting Chairman (Deputy Eugene Murphy)

I thank the Minister for his co-operation.

Deputy Éamon Ó Cuív

I thank the Minister for his reply but the situation is simpler than he has outlined. While obviously the Government will try to get as much money as it can from Brussels, if it decreases, the Minister can increase the national contribution. He could say today, if he had the assurances of his two ministerial colleagues, that no matter what happens, we will revert to the €400 million that was in the Leader programme and that we will make up whatever shortfall from Brussels that arises. I hoped to hear today that no matter what happens in Brussels, the Government is committed to a hugely increased Leader programme the next time. The Minister might clarify whether he has had those discussions and let the Minister for Finance and for Public Expenditure and Reform deal with how much of a rebate he gets from Brussels but have the Government commitment to go back to the €400 million minimum for Leader.

Deputy Michael Ring

We have had negotiations at Cabinet about the CAP. The Deputy knows that is important, particularly for rural people, rural life, farmers and agriculture. On the Leader aspect, the negotiations are ongoing. We cannot show our hand yet. We have to wait and see what the negotiations will finalise. As the Deputy knows, Commissioner Hogan indicated that if the rest of the European Union increased its contribution by 10%, we would be able to increase Leader funding.

As such, we have to wait and see what the final negotiations are. At Cabinet level, I will ensure we maintain the funding for Leader, but we have to wait and see what happens. This must also go to the European Parliament where our MEPs will have a contribution to make. This has a long way to go yet.

Deputy Éamon Ó Cuív

I cannot understand the mentality of putting extra money into Brussels to get a percentage of it back when it would be much simpler for the Government to put it straight into the Leader programme and not lose a lot of money in transmission while having a whole lot of rules added to it in its transmission back here. I seek a commitment that Leader will revert to the €400 million plus level between 2007 and 2013. The current Leader programme is significantly underfunded, not because of the European cut, albeit there was one, but because of the cut in the Exchequer contribution. Every year, inflation eats into this. Over a 21-year period from 2007, there will be a 40% decrease in the value of money at 2% per annum.

Deputy Michael Ring

The Deputy is correct in that we want Leader funding and I want to see it maintained. He knows, however, having been around a long time himself, that if one goes to a fair, one does not put one's best bid forward first. The Government, in particular the Taoiseach, will negotiate on CAP. They will be long negotiations and we cannot show our hand until we see what the proposals are. There is a proposal on the table, but it is only that and there is a long way to go. The proposal will have to go to the Government and the European Parliament and a lot of discussion on it will take place in the next number of months. This has to be finalised by May 2019 and we will not put our hand up and say what we are going to do at national level. We have to wait and see what is agreed on the proposal put forward by Commissioner Hogan. There is a great deal of negotiating to be done between now and then and I will monitor it. I will be watching this in relation to the Leader programme and working with my colleague, the Minister for Agriculture, Food and the Marine, Deputy Creed, who will be fighting to ensure that CAP funding is maintained for Ireland given the serious potential effects for farmers in rural Ireland.