I propose to take Questions Nos. 182 to 189, inclusive, together.
The new legislative proposals for the Common Agricultural Policy 2021-2027 were launched on Friday 1 June 2018 by Commissioner Hogan. The proposals, as drafted, involve significant changes, including in relation to governance, the distribution of direct payments among farmers and the increasing environmental conditionality attaching to such payments. There will be additional discretion for Member States in configuring the measures available, within parameters laid down in the draft proposals. The new proposals must commit to a more significant environmental ambition than the current CAP schemes, including in pillar I.
These are complex proposals. We are at the beginning of what will be intensive and challenging negotiations. I will work with the Commission and other Member States to shape these proposals into an effective new CAP. My Department is still analysing the proposals and their potential implications for the Irish agrifood sector.
The new proposals allow for subsidiarity for Member States but with an overall commitment by the European Commission to protect the common policy and avoid distorting the single market.
Of course there are elements in the proposals as drafted that will present challenges, including the definition of a "genuine farmer". This was among the most difficult discussions during the last reform in 2013, and member states will have differing perspectives on the definition. Commissioner Hogan has already confirmed that the definition proposed in the new draft regulations will not exclude part time farmers, but of course we must also ensure that any definition is implementable in practice and does not lead to undue administrative burden or delay for applicants or the department.
I have already indicated that I am open to some level of capping and redistribution of direct payments. Ireland has already applied the maximum level of degressivity allowable under the current regulations for payments over €150,000. The new proposals include a number of measures designed to move further in this direction, including an overall cap of €100,000, degressivity for payments above €60,000, a complementary redistributive income support and the convergence of payments towards a minimum of 75% of the average payment per hectare nationally. My Department is at present examining these proposals carefully to assess their potential impact on applicants, and to ensure that any such mechanisms can be implemented without undue complexity.
I am also broadly supportive of the proposals to support young farmers and new entrants. This has been a priority in the current CAP and will continue to be. The new proposals include a mandatory complementary income support for young farmers and will allow member states to configure support measures appropriately in the period 2021-2027, having regard to the range of priorities to be met from each national envelope.
The Article referred to by the Deputy requires "young farmers" to be defined within the parameters laid down in the Council Regulation. The supports proposed are for young farmers who have newly set up a holding for the first time or those who have newly set up a holding for the first time as head of the holding and have the necessary training or skills as defined by the member states. These elements will require further elaboration as the negotiations progress, but it appears that there will be some member state discretion in configuring the necessary supports.
There are also new governance proposals regarding how schemes and plans can be approved and made operational. I will be seeking to ensure that any new systems do not lead to delays in approval and operation of schemes and that there is clarity for farmers with regard to their obligations.
I have recently concluded a transparent national consultation for citizens on the future CAP. Now that the Commission proposals have been published, I have announced a further consultation to take place early in July. Ultimately the shape of the regulations will be determined by engagement with the Commission, Member States the European Parliament, but I am anxious that Irish citizens have an opportunity to have their voices heard in the process.
Underpinning all of this is the CAP budget. While the shape of any new Multi Annual Financial Framework is ultimately a matter for Finance Ministers, and the European Parliament, I have been working successfully with counterparts in other Member States to build support for the retention of a strong budget.
Over the coming months there will be detailed negotiations at all levels across the EU as we work together to shape the final outcome. At the centre of all our considerations will be the need to ensure that the new CAP, properly funded, will continue to support farm families and the rural economy.