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

Yes, exactly. Coupled payment is a double-edged sword. It benefits the sector that we want to support, but it has to come out of the other sectors. If we were to support suckler beef, for example - there are approximately 80,000 beef farmers - we would be giving the money back again. For someone who is not benefiting from a coupled payment it could result in their getting a more significant payment. It is not fair to say that they could have a 19% loss because we are not going to couple 10%. If we do couple it will be a much lower figure. We would try to put a scheme in place. The obvious sector would be suckler beef farming, but it is interesting to consider how we would do that. For example, rather than introducing a coupled scheme we could transfer money from Pillar 1 to Pillar 2 and then design a scheme that would not simply give farmers money for producing beef. We could introduce something like a suckler cow welfare scheme that would give farmers money for producing beef but would also ask them to do some other things that would add value.

It is possible to transfer money from Pillar 1 to Pillar 2 without any co-decision funding requirement. In other words, we could do something more strategic with that money, but it would be the same as coupling. There are options available to us to do strategic things with the money that we have. Every time we spend money in one sector it costs another sector and that is what we need to understand. If we couple beef, that is at a cost to the sheep, dairy and arable sectors. If we couple sheep it is at a cost to other sectors. We have the flexibility to do that if we want, but that coupling debate is a very divisive one. Farming organisations take different approaches to it. The Irish Creamery Milk Suppliers' Association will, I suspect, take a very hard line to oppose coupling. I do not want to cite other organisations but I know the ICMSA's position. Others will have an internal debate on this issue and will try to find a balance on the coupling option. I look forward to receiving those submissions.