Dáil Éireann Debate, Thursday - 12 July 2018
11. Deputy Martin Kenny asked the Minister for Agriculture, Food and the Marine the status of the redesignation of areas of natural constraint, ANC, land; his plans to increase the ANC in budget 2019; and if he will make a statement on the matter. [31447/18]
Amharc ar fhreagraI ask Deputy Stanley to forego the first 30 seconds because we have made little progress.
Less favoured and disadvantaged areas were to be replaced under EU regulation by newly designated ANCs from 2018, with eligible areas being designated using a set list of biophysical 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 has been approved at EU level along with a number of other regulatory changes in what is referred to as the "omnibus proposal". My Department has commenced work on this project and relevant technical experts are currently working on analysing the data relating to the new biophysical criteria. In addition to the technical work on the biophysical criteria, the regulation allows for two linked processes designed to enable further targeting of support under the scheme. These processes are referred to as fine-tuning and the identification of areas of specific constraint. These three process are under way in parallel with each other and, once complete, will provide the basis for the identification of eligible areas in the ANC scheme from 2019 onwards. To progress this work, my Department is in ongoing communication with the EU Commission on the accepted parameters and technical aspects of the 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 for 2014 to 2020.
I am aware of the importance of the ANC scheme, which issues annual payments in excess of €200 million to more than 95,000 farmers. In light of this, I was happy to confirm earlier this year that an additional €25 million has been allocated to the scheme for 2018. Following careful consideration of the options for allocating this money, it was decided to target a higher proportion of the money at those farmers in the categories which are deemed to face higher levels of constraint. This is in keeping with the existing logic of the scheme. Thus the total allocations for each land category being increased as follows:
Additional information not given on the floor of the House
A sum of €13 million will be allocated to the mountain type land category; €9 million will be allocated to the more severely handicapped category, and €3 million will be allocated to the less severely handicapped category. This additional allocation delivers on the commitment in the programme for a partnership Government to increase the funding for the scheme. The required process to amend the rural development programme in agreement with the EU Commission to take account of this new funding is well under way.
The review of the scheme is important and it was to be done and dusted this year. The Minister has clarified that it will now be 2019. Can he clarify if that is 1 January 2019 or if it means it will be completed in the course of next year? The important point is to ensure the existing areas are retained. The Minister mentioned the budget, which was cut to €200 million having originally been €250 million. I acknowledge that he has increased it to €225 million this year, which is welcome. While the scheme is beneficial, it contains certain anomalies. It is an important scheme in my constituency of Laois-Offaly. The criteria at the moment are socio-economic but there are quirks in that which have caused problems. For example, a townland south of Ballacolla around Woodenbridge is surrounded by a mini-version of the Golden Vale, with which the Minister will be familiar, but there is a pocket of farms in the middle of that on wet land due to the presence of a number of rivers, including the Goul and the Erkina, which flood every year for a number of months. I ask the Minister to look at parts of that. Clonterry on the Laois-Offaly border and Garryhinch along the Barrow are other areas which need to be included. This is a crucial scheme. The new criteria consider soil, rainfall, mountainous land and stony land, which is welcome because it will be more scientific than the old townland basis for inclusion. While 60% of a townland may be prosperous, the rest may not be but it will have been left out of the scheme to date.
On the dates involved, the obligation is to conclude this by the time farmers make applications for their 2019 basic payments. The January deadline is not the critical one. The requirement is to conclude this before farmers make their online applications for 2019. I note the Deputy's point about the budget. We allocated an additional €25 million in this year's budget and I appreciate that there is still a shortfall to make up for the cuts to ANC payments imposed by the previous Fianna Fáil Government. Any consideration in that regard is subject to budgetary negotiations. I note also the Deputy's points about specific parts of his own constituency. I visited one of the higher profile demonstration farms in the constituency recently and was surprised to find it was in a disadvantaged area. I appreciate that there are anomalies within the current system and opportunities to address them in the context of the process which is under way.
The Minister's contribution is welcome. I hope he will seek to add the €25 million which was cut from the scheme a number of years ago. It is a good payment because it goes directly to the farmer who has discretion as to how to use it to improve and maintain his or her holding and business. I am glad to hear the Minister will examine areas such as Clonterry, Garryhinch and the areas south of Ballacolla to iron out some of the anomalies and improve the scheme. I hope that happens. It appears from what the Minister said that the change will be made at the point when farmers are putting in their applications later in the year.
I concur with the Deputy that the payment is of huge significance to all farmers but it is of even greater import for those with a higher level of constraint.
In the context of the additional €25 million, that is why we skewed the payment to make sure those with higher disadvantage got a higher payment. For example, €13 million will be allocated to the mountain type category, €9 million to the more severely handicapped category and €3 million to the less severely handicapped category. That has been welcomed by farm organisations and it is recognised that it is targeting the resources available. Should additional resources become available, it is my intention that template will be replicated. I want to be clear on the deadline. It is for the 2019 basic payment. That is when this has to be clarified so that when people are submitting their applications the Department will have details of their holding.
