Dáil Éireann Debate, Wednesday - 29 June 2022
205. Deputy Matt Carthy asked the Minister for Agriculture, Food and the Marine the percentage of indicative allocations for Pillar 2 rural development measures that will be made up by co-financing; the maximum co-financing permissible; and if he will make a statement on the matter. [34731/22]
Amharc ar fhreagraThe total funding for the CSP for the period 2023-2027 is €9.83 billion. The EU budget agreement in 2020 provided a total CAP funding for Ireland of €7.53 billion over the five-year period from 2023 to 2027. This funding is split between Pillar I (Direct Payments and Sectoral Interventions - €5.97 billion) and Pillar II (Rural Development - €1.56 billion).
Article 91(4) of Regulation (EU) 2021/2115 of the European Parliament and of the Council states that the minimum EAFRD contribution rate shall be 20% of the total Pillar II expenditure.
The allocation from the national exchequer to co-fund the Rural Development element of the CSP was agreed between the Minister for Agriculture, Food and the Marine and the Minister for Public Expenditure and Reform, at €2.30 billion. This funding includes carbon tax funding of €723 million. This will bring the total budget for the rural development aspects to €3.86 billion, with an effective national co-financing rate of 60%.
This represents a significant increase in Pillar II funding from a number of perspectives. For example, on a five-year comparison, it is €600 million higher than the €3.26 billion initially allocated for the final five years, 2016-2020, of the previous Rural Development Programme, and more than €900 million higher than the actual spend over that period. It also represents a significant increase on the national co-financing rate of 47% under the 2014-2020 Rural Development Programme.
