Charlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

I thank the Cathaoirleach, and I thank the committee for the opportunity to present to it this request for a Supplementary Estimate for 2023. The Supplementary Estimate is required in order to make sure that we make use of the savings in the Department's Vote and to provide for Brexit adjustment reserve, BAR, schemes and Ukraine-related schemes. In gross terms, an additional €90.9 million is required by my Department to meet costs that have arisen in 2023. That is broken down as follows: €17.5 million for BAR fishery schemes; €68.4 million for Rosslare Europort development costs; and €5 million to fund Ukraine schemes.

The upgrade to Rosslare Europort is a critical infrastructure project to develop the necessary permanent infrastructure to comply with customs, with sanitary and phytosanitary controls, and with official food controls as the consequences of Brexit, as Deputies Deputy Kehoe and Mythen are very well aware of. The current temporary situation in Kilrane, which is situated outside Rosslare Europort, is not in compliance with the requirements of the EU customs' code. Nor is it in complete compliance with the infrastructure requirements for border control posts' handling of live animals as laid down in European Union legislation. The €68 million will go to the Office of Public Works as my Department's apportionment of the development costs here. The net amount of €236.506 million is €145.6 million higher than the gross requirement. This additional provision is to account for a reduction to the projected appropriations in aid to be received in 2023 by Vote 30, as receipts from the European Commission are now expected to be received in 2024. The main reason for the increase is because of the level of bovine TB.

The Supplementary Estimate will also provide for the movement of savings within certain subheads and across other subheads accounting for €90.093 million to meet cost pressures arising in other areas including for TB eradication and the organic farming schemes. As these proposed transfers in expenditure involve changes to the original 2023 Vote allocations it is important to seek the committee's input and approval. The areas where savings emerge reflect the very dynamic environment in which the sector and the Department has operated this year. Despite the continuing challenges facing the agrifood sector, including additional pressures arising as a result of the continuing war in Ukraine this year and the delivery of new CAP strategic plan schemes, we have continued to carry out our usual business.

Since October, more than €888 million has been paid to farmers under the 2023 basic payment scheme and the areas of natural constraint basic scheme. The Department issues these advance payments at a rate of 70% and 85%, respectively, to farmers at the earliest date possible under EU regulations. The remaining balancing payments, at rates of 30% and 15%, respectively, are due to commence in early December.

I will now outline where the savings we propose to use have emerged, starting with programme A, which relates to food safety, animal and plant health, and animal welfare. To ensure the highest international standards of food safety and quality are maintained, I am requesting an additional €22.3 million to bring the known administration part of the programme to €190.63 million. The main reason for the increase is because of the level of bovine TB in Ireland, which increased slightly in 2023 following a relative flat-lining of disease levels in recent years. Herd incidence currently stands at 4.81% on a 12-month rolling average up from 4.1% this time last year. The number of reactors is increasing also compared with last year. It stands at 26,987, compared with 22,500 on a 12-month rolling average. This reinforces the need to support the TB programme not just financially but also to ensure the policy the TB forum is developing is implemented in a robust manner.

The on-farm market valuation scheme, OFMV, is a principal compensation measure available under the TB eradication scheme to herd owners whose herds are affected by disease. This compensation is based on the market value of that animal subject to individual animal ceilings under the OFMV scheme. The number of reactors disposed to date is up 21% on the same period in 2022. Compensation payable for each animal removed under the scheme is 13% more expensive on average compared with last year, so compensation is now 29.9% more expensive when we compare it with 2019, for example. The large increase in the administration side of programme A is in the main due to the payment of the OPW payment, already referred to, for the Rosslare Europort development.

With regard to programme B - farm sector supports and controls - the total allocation here is reduced by approximately €34 million.

With the savings identified throughout the Vote I have allocated extra funding as follows: €4 million for organics; €3 million for the beef sustainability schemes; €1.4 million for the sheep improvement scheme; €22 million for the Ukraine-related schemes, in the main the fodder balancing payment; and €3 million for Brexit beef schemes. Savings from programme B are arising from lower than anticipated take-up of demand-led schemes from capital-funded schemes in particular. I reassure the committee I will ensure the maximum levels of funding will be paid out to farm families between now and the end of the year.

Programme C deals with policy and strategy. Its funding will increase from €404 million to €457 million. Some €25 million of the €53 million increase will be for the World Food Programme forward payment. As members know, my Department leads on Ireland's engagement with the World Food Programme, which is funded exclusively from voluntary contributions from member states. It works in partnership with other UN and international organisations and NGOs as well as civil society and the private sector to enable communities and countries to meet their own food needs. Ireland's commitment to the World Food Programme, expressed through three yearly strategic partnership agreements, is €75 million for the period 2022-2024. This proposed €25 million allocation is for next year and represents an advance on our commitment for next year. It will help save lives by supporting food security, nutrition and rebuilding livelihoods in fragile settings and reaffirms Ireland's role as one of the World Food Programme's most engaged partners. An allocation of €10.853 million is being provided to support the sustainable beef and lamb assurance scheme managed by Bord Bia.

Programme D concerns the seafood sector. This allocation has been increased from €337.5 million to €351.8 million. Savings within programme D were identified and used elsewhere within the Vote. This increase will provide additional funding to schemes funded by the BAR and managed by Bord Iascaigh Mhara and the Brexit adjustment: local authority marine infrastructure scheme, termed the BALAMI scheme.

Programme E is appropriations-in-aid. As I mentioned, I am reducing my Department's receipts Estimate from €376 million to €231 million because receipts from the European Commission related to the CAP strategic plan and the European Maritime and Fisheries Fund are now expected to be received in 2024. The majority of these receipts are expected in the first quarter of the year and my Department's Revised Estimates will also be amended next month to reflect this change.

To conclude, this is a necessary and important Supplementary Estimate which I recommend to the committee for support. I am naturally happy to respond to any questions members may have on it.