Pat O'Neill (Fine Gael) | Oireachtas source

As Senator Comiskey stated, it is good that €300 million will be invested in beef farming, a sector that has been under pressure for a long time. The market has picked up over the past year but for the previous two years it had been a disaster.

Many Members have raised the issue of inspections and how farmers fear them. I hope the new charter will convey to participants that a beef genomics inspection will not be a full compliance inspection. That fear has turned a lot of people off the scheme.

The biggest issue is the star rating for replacement stock. Farmers have between three and five years to get this matter in order. The Department has stated here that 50% of the female stock is already compliant. Unfortunately, that may not be the case because the data stem from larger suckler farmers. A lot of new people wish to join the scheme so we may not have data on their herds. I do not know how new participants will achieve a rating of three, four or five stars in the next four or five years. The matter must be examined. A mid-term review will take place but the Department must be flexible about three, four or five star replacement aspect.

I wish to mention the rolling reference year. Last year, 2014, has been set as the reference year so the Department knows exactly how much it must pay out for the next six years. The rationale for the scheme is to produce better quality beef in a shorter space of time. I believe that people should be awarded for their efficiencies. Therefore, if people want to increase numbers by 10%, 15% or 20% flexibility should be shown. As the assistant secretary said, people can reduce their numbers as long as it is less than 20%. If people choose to reduce their numbers then other people should be allowed to increase theirs if we want to retain the same size of suckler herd. We have discussed the growth of the dairy industry on numerous occasions here. However, there is a danger that the national suckler herd will be reduced. Unless we are seen to support a viable beef suckler herd then we will not have one and, eventually, the majority of our beef will be produced from a dairy stock. The issues are the rolling reference year and providing flexibility to people so they can increase their herd size. In terms of the latter, I am not saying increase it by 100%. People are allowed to increase by a certain percentage every year and will be paid for it. Such provision will help to support and sustain our beef suckler herd.

The scheme is due to last six years. I suggest that some flexibility be shown; force majeure can come into place but there are other issues. If a business is no longer profitable then people should not be asked to stay in it. That element must be examined.

The biggest issue is worry about inspections. There is also an issue with the replacement indexes.