Mr. Phil Hogan:

Many of the issues the Depty has mentioned are options for the Minister for Agriculture and Food, Deputy Coveney. We produce 2 million tonnes of grain in this country, depending on the year, but that is not something I would include on a list of priorities because it is such a small amount. The only way we can assist grain producers and do something about the margin of profitability is to try to reduce their input costs. Those input costs have reduced, particularly fuel input. We also made it a priority to include malt and barley growers in the GLAS scheme and we gave considerable assistance in that regard to ensure the malt and barley contracts were protected. Those growers were able to get the benefits of the scheme because they were able to get decisions made early. Those growers are a significant part of the grain industry.

I mentioned that I am looking at the issue of inspections in the context of CAP simplification. I fully agree with the Deputy on this issue. We go over the top through the disproportionate way we deal with small farmers. We will have an ecological focus area, EFA, review in 2016 and this will give us the opportunity to look at all greening measures, not just the EFAs, with a view to putting whatever changes we want to make in place for 2017. The three-crop rule and similar issues can be examined in that context. We are not too bad in regard to the three-crop rule here, because of the equivalence we can give on protein. There is a 33 million tonne requirement for soya in Ireland.

I agree with the Deputy that our attitude in Ireland is a little bit of "on the one hand, and on the other" in regard to GMOs. We do not mind importing GMO and biotechnology crops, but we do not want to grow them ourselves. Therefore, there is a bit of a political dilemma. However, as long as the process is science based, I will stand over it. We cannot stand over something that is not science based. In the last Commission, all of the licence requests from the United States were blocked and political decisions were not made. That blockage has gone and 19 licence requests went through in the past month. This will help with the importation of soya bean into this country and will help the competitiveness of our beef industry. Otherwise, we would have been at a 20% disadvantage.

Single farm payments will go to active farmers. This issue arose also in Scotland last week.

It is an issue that legislators will have to examine in the context of a mid-term review. In regard to the strategic bank, the interest rates are high but today we launched a programme of European Investment Bank loans which will offer money at approximately 3% over a term of ten to 20 years, depending on the project and the risk. This programme could be rolled out by 1 January 2016, or sooner if possible.

The hen harrier is not my responsibility. Whoever is responsible for the matter should sort it out. When an area is designated and the issue of single farm payment liability comes into play, the Department of Agriculture, Food and the Marine makes the decision about paying single farm income on designated lands in respect of which income is foregone because of the hen harrier. The Department of Arts, Heritage and the Gaeltacht is responsible for the designation of the land but Deputy Heyden raised the issue of farmers who did not receive the single farm payment because of the designation. It will cost approximately €12 million to resolve the issue. Members know who they should approach to discuss priorities in this area. It is a significant political issue. If we were in private session, I might say more about how we should resolve it. It is included in tier 1 of the GLAS scheme but that is not enough in terms of what people were seeking. It is a matter for member states, however, and even if I was Commissioner for the environment I could not dictate to member states on their priorities and choices.

Publication is part of the law as agreed by the Council of Agriculture Ministers, representatives of member states and the European Parliament. Generally speaking, there was not much hoo-ha about it after a day or two. The IFA was the only organisation generating activity but if it had said nothing there would not have been as much discussion. We should not get intoxicated about something that is not a major issue. It is an annoyance more than an issue but it is in the legislation.

When the business plan for beet was being prepared, the price of sugar was €700 per tonne. The price has since decreased to €400. What can we do to ensure a viable sugar beet industry in terms of giving €40 per tonne to the farmer while also making a profit? It cannot be done with current prices. The financial conditions are not conducive to developing a viable beet industry. The European Union is not going to set up a beet industry in Ireland after providing €6 billion for a restructuring package several years ago. Ireland received €150 million from that package. Farmers and Greencore participated in the decline of the sugar beet industry, and they got paid for it. I do not see a great deal of money flooding into the fund but the sugar industry is not viable at current prices. If the State wants to build a new entity with its own money or on the basis of tax breaks, which probably would fail the Commission's state aid rules, it has limited options. That is the hard reality of the business case. I am sure the hard-nosed people who are trying to put a package together are well aware of the difficulties.

In regard to the cost of fertiliser, Commissioner Vestager requested evidence of companies colluding to keep prices high. It is not easy to gather evidence but there is a track record dating back to 2004, when the fertiliser industry was fined and investigated by the then competition Commissioner for an alleged cartel. The industry does not want to go down that road again and it will not be happy with the letters I have been sending to the competition Commissioner, which are beginning to yield results. The recent IFA fertiliser conference highlighted the problems arising. It is interesting that older stock has going out of stores in recent weeks, and new stock is being sold at a lower price. We have to make sure the lower prices are passed on to farmers. We will continue to make the industry uncomfortable until such time as it sells fertiliser at an appropriate price in the marketplace.

Leader funding can still benefit from EIB loans as part of the rural development programme. The procurement issues need to be rationalised but that is a matter for member states. If they engage with us on procurement issues we can help them to do something about it. Ireland does not have a strong record on farm safety compared to our partners in the European Union. The Minister for Agriculture, Food and the Marine is making an effort to highlight this issue with the assistance of the IFA and other farm organisations. If improvements are not made in the next year we will have to consider the option of linking farm safety to payments. I ask farmers and farm organisations to take this issue seriously. Many of the tragedies that have occurred were avoidable.

The greening issue will be reviewed in the context of the ecological focus areas I mentioned earlier. Senator Comiskey asked about inspections, beet, Leader and land eligibility issues. The issue of land eligibility is being addressed in the context of the latest submissions made by the Department.