Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

The charge that we have been doing nothing on the fodder crisis is nonsense. Everybody, including farm organisations and co-operatives, was managing this through a difficult winter but everybody was anticipating that we would have some kind of normal spring beginning about a fortnight ago. When that did not happen, we had to kick into a new response because all of a sudden, there was a fodder access issue - we had literally run out. We are now responding to that in as comprehensive a way as we can. The point I am making is that the level of the commitment by Government should not be measured in terms of whether there is a €1 million fund available. What we are doing is targeting money where it is needed, which is to support the importation of large volumes of fodder, to make that available to farmers at affordable prices and to ensure they can get the credit to buy it if they need it. If we need to go further, we need to go further. That is why I have said in terms of the welfare fund that if animals are starving in parts of Ireland, I want to hear about it and we will intervene. We will make that work regardless of the cost consequences.

With the exception of the transport subsidy, two or three weeks ago we were trying to increase the pace at which we were making payments because I knew farmers were stressed. Approximately ten days ago we instructed inspectors to be more careful in how they approached and treated farmers. We have a legal obligation to ensure the rules are kept. That is linked with single farm payments, disadvantaged areas payments and all of the other payments provided through the European Union. We have to inspect farms, but we are doing what we can to avoid putting pressure on farmers in the inspection process. If I simply cancelled inspections for the next couple of weeks, I would be audited by the Commission and the committee would then be asking me about disallowances, or fines, because the Commission had refused to pay money linked with schemes in respect of which we had not properly implemented the rules. I have to implement the rules, but I have made it clear to inspectors that they are to treat farmers with respect, which they should always do, and sensitivity, given the stress they are under. Sometimes when a crisis emerges on a farm, inspections can help because if inspectors are doing their job properly, they can bring back information that will allow us to respond.

We have had a discussion on shipping fodder. Instead of importing individual lorryloads of hay, I am anxious to transport a couple of shiploads into Cork, Galway, Waterford and, perhaps, Killybegs or on the east coast. I have asked the CEOs of the co-ops to consider this option and we had a conversation on the issue yesterday. It is a more complex logistical exercise because it requires the co-ops to act collectively rather than use their own transport systems. They will revert to me within the next couple of days with a response on increasing significantly the volume of hay being imported. That matter is under consideration as part of the mix. My Department does not have the logistical capability to do this, but a big company such as Glanbia or Dairygold does. The business of such companies includes management of their transportation systems to collect large volumes of milk on a daily basis and deliver feed. That is why we are working through the co-ops.

If it is possible to access funds from the EU solidarity fund, we will try to do so. It would be dangerous for me to raise expectations in that regard, however, because I have been through many debates in which people have sought money under that fund. Normally it is sought in response to massive forest fires, widespread flooding and other extreme weather events and natural disasters. Many countries in Europe are dealing with fodder shortages. This is not the only country to have a delayed spring. I do not know whether we can successfully argue a case for accessing the solidarity fund on grounds of a fodder management system that is out of sync with the weather. We will investigate our options and if it is possible to draw down funds, of course, we will not leave anything behind. However, I would be slow to raise expectations around the fund because I know it is difficult to access.

We have had a conversation with the banks about merchants receiving credit. I understand the issue is not significant. If members have experience of cases that show otherwise, I have a direct contact in all of the main banks and will pursue the issue. There is a genuine understanding a credit issue has emerged in Ireland and money has been made available to address it. The banks have assigned teams of people to meet farmers and fill in forms with them rather than throwing them a form of ten or 12 pages. That is what I have been told and I want to test the commitment I received yesterday. It is easy to beat up the banks for obvious reasons, but in this instance I have received strong commitments on providing the financial assistance and credit the farming community needs. I can only take such commitments at face value and encourage farming organisations to test them.

As regards having a centre for storing fodder, we have thought about this option, but I want the co-ops to manage storage. If they have fodder that is additional to demand, I want them to store it. Most of them have indicated that there is no issue in this regard because they have extensive storage facilities located close to farming communities. I suspect there will be demand for everything we bring in, even if we dramatically ramp up imports because farmers will want to store extra hay as an insurance measure, particularly if they can access feed at affordable prices.

In regard to the operation of the transport subsidy, farmers will fill in their forms in the co-ops. I witnessed one such transaction in Dairygold last weekend. The co-op will bring in a load of hay and farmers will arrive with their tractors or jeeps to get the bale. Who gets what will be clearly calculated. We have to give the subsidy to the farmer because there will be issues with European competition law if we give it to the co-op. The farmer will receive credit or a cheque to the value of the transport subsidy. In other words, the price will be reduced. Most farmers have accounts with co-ops and their accounts will simply be credited if they fill in the forms. That is why we are using the co-ops. I have advised farmers who club together to import large volumes of hay from the United Kingdom that we cannot give them direct subsidies because we would lose control and management of the situation.