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

In the west the average herd size is 15 animals. We want to make sure we keep the people concerned in business. The big operators will receive a big dividend, but if we must cut our cloth to measure, they will be making a contribution. I have not made a definitive decision, but I am providing the committee with my thinking on the matter. There were over 6,000 applicants and we will have them approved as soon as possible. As we only closed for the receipt of applications in mid-January, we are moving quickly. I can provide the Deputy with the exact figures. The closing date was 9 January, by which time 6,299 applications had been received, of which over 4,000 have been processed and 1,000 are being discussed with the farmers concerned. Some 1,900 have been referred to local offices for approval; 10% will be subject to a prepayment inspection, while 315 of the 1,900 have been approved. We are rolling out the scheme as fast as we can, but we must go through a process. We cannot spend European money without ensuring the correct percentage of pre-inspections. The money must, however, be spent this year. It is money under the last rural development programme that we must spend. That is why the scheme is being brought forward at this pace.

On the question of whether we should include a safety module, there is a compulsory health and safety module in some of the knowledge transfer programmes covering the beef, dairy, equine, sheep, poultry and tillage aspects. There will be a compulsory health and safety module as part of the discussion groups. Whether it is taken to the next stage where we say people must conduct a farm safety audit before they can qualify is something about which we must talk. If the committee can make some recommendations on farm safety, I will listen very closely. No one has all of the answers and it is something the committee could do, given its level of experience. I have spoken to FBD, Teagasc and the Health and Safety Authority. We have also spoken to other insurance companies and other stakeholders, as well as farming organisations about what we could do, within reason, to encourage a change in attitudes to safety. We are doing this in the fishing industry and as a result, the past few years have not been as tragic. Last year was horrific in terms of the number of farm accidents, in which 30 people lost their lives, the highest number since records began. As we have already a tragedy this year, committee members will find me proactive on the issue of farm safety and willing to spend a lot of money and make direct policy changes, if we think this will work. I would like to receive some feedback from the committee. It would be a good use of its time to hold hearings because there are many good people involved in trying to find a way forward on the issue of farm safety.

On the Chinese market, the same publication which suggested the average GLAS payment might be €3,000 was also stating we would sell €75 million worth of beef to China. I am not sure if either figure is accurate, but €75 million might be an accurate estimate. I am not sure about the figure of €3,000 because the majority of farmers participating in GLAS will comfortably receive more than that amount. They will have plenty of options to do so, but it is up to farmers to decide how they put their plans together. We are exporting more than €40 million worth of cattle skins to China.

The industry is very excited about the potential of that market. Last year China imported 240,000 tonnes of beef; by 2018, we are estimating conservatively that it will be importing 1.75 million tonnes. That is the pace of growth we are seeing in terms of the demand for non-Chinese beef. The consumption patterns of the Chinese population also give grounds for optimism. While consumption per capitawas one third of a kilogram in the 1980s, it is now more than 5 kg and continuing to increase. It is an enormous market that is only going to get larger and larger. Ireland is the only European country that can access the market. For anybody who has been to China - I have participated in a couple of trade missions - it is clear that the people associate the European Union with quality. They want German cars, French clothes and Italian shoes. My objective is to ensure they will want Irish meat. Many Chinese consumers have significant disposable incomes and will pay more for high quality products. In the infant formula market, for example, people are willing to pay $66 per tin for a product made in west Limerick, even though a locally produced tin further down the shelf is selling for $10. There is a very exciting opportunity for Irish beef producers in the Chinese market and we are determined to pursue it. We will be taking a trade mission there in the second half of the year to ensure we do everything we can politically to open doors for the beef industry. The same applies to exports to the United States which is also a very exciting market, about which members have heard me speak on previous occasions.

Deputy Tom Barry asked about Leader funding. While that funding is drawn down by agreement under the rural development plan in my Department, the detail thereof is really the responsibility of the Department of the Environment, Community and Local Government which is hoping to start the process of setting up new Leader and local action groups in the coming weeks. The process is under way and I expect Leader funding to be available in the second half of the year. I cannot be sure of this, but that is my expectation.

Some €28 million is being allocated for research and training. One of our priorities throughout the lean period was to ensure funding for research and development would not be cut dramatically because it would have had a very detrimental impact in the medium term. Now that resources are increasing and we are spending more year-on-year, many of the research programmes we supported will be coming to maturity and we will get the benefit of them in the food sector broadly, from forestry to food nutrition to dairy product processing. In fact, we are already seeing some of the benefits at the Moorepark research centre and elsewhere.

As part of the national research prioritisation exercise, as part of which almost €500 million is being provided for research, at least five of the 14 priority areas will be in the agrifood and marine sectors. That is a total change from where we were a few years ago, when the marine and agriculture sectors did not even get a look in.