Michael Creed (Cork North West, Fine Gael) | Oireachtas source

I thank the Chairman. With regard to his last remark, we only became aware of the date for the Estimates meeting last Thursday. We would have been anxious to facilitate the committee at the earliest possible date and we did, in fact, make offers of a departmental briefing to all the relevant spokespersons. While I appreciate the time is a little truncated, there was no intention on my part or that of my staff to in any way hinder the effective work of the committee.

I very much look forward to working with the committee. It is a novel experience for me to be sitting on this side of an Estimates process and I very much welcome the opportunity to be here this morning. I look forward to working with the Chairman, his committee colleagues and the staff of the committee, of whose dedication and commitment to the sector I have known for many years.

I will commence by introducing my officials: Anne Derwin, assistant secretary; Paul Dillon, assistant secretary; Cecil Beamish, assistant secretary; Heber McMahon, principal officer; Kay Ryan, principal officer; and Martin Crowley, assistant principal. I hope we can have an effective meeting and discussion of the Estimates.

I am very pleased to accept the invitation to meet the committee. This is a valuable opportunity to review how we are progressing with the current challenges and opportunities presented across the various agriculture, food development, marine and forestry sectors and to talk about market prospects across these areas, as well as new investment opportunities for the coming year. As the programme for a partnership Government identifies, agriculture is the heartbeat of the rural economy. The agri-food commitments in the programme for Government align closely with both Food Wise 2025 and the agri-food actions in the 2016 Action Plan for Jobs. I look forward to working closely with Cabinet colleagues who have responsibility pertaining to rural Ireland and with members of this committee. I will particularly emphasise the importance of improving profitability at farm level through a focus on competitiveness, innovation and knowledge transfer; continuing the growth of the food industry through market development, consumer insights and innovation; and enhancing our existing strong reputation for food safety and environmentally sustainable food systems.

My Department has 65 detailed commitments in the programme for a partnership Government. I have identified the following priorities for action: first, to respond to price volatility, including through initiatives and access to finance and taxation; and, second, to lead the implementation of the Food Wise 2025 strategy. In regard to market development, we must maintain existing markets and develop new markets. In regard to the Common Agricultural Policy and other related EU actions, I will progress discussions with the European Commission on the detailed commitments on the CAP, Pillar 1, and on the rural development programme.

Environmental sustainability is a key issue in Irish agriculture. We must ensure effective input into negotiations on new EU climate and energy policy to 2030 and to Ireland's first national mitigation plan. On seafood and the marine, my priority will be to implement the Harnessing our Ocean Wealth strategy and the seafood development programme.

The agri-food sector is an important engine for growth in rural areas, providing valuable jobs to rural communities and contributing to the wider economy. The sector continues to play a considerable role in our economic recovery and to prove its fundamental importance as a cornerstone of the economy and life of rural Ireland. The sector remains Ireland's largest indigenous industry and provides valuable employment, particularly in rural and coastal areas, where few other job opportunities exist.

I am pleased to say the budget allocation for 2016 reflects a significant Exchequer recognition of the importance of the sector and demonstrates a further commitment to support for agriculture, food and the marine. The Exchequer contribution to the Vote of my Department amounts to €1.363 billion in 2016 - €1.134 billion on current expenditure and €229 million on capital expenditure, including a carryover of €12 million in capital funding. This represents an overall increase of €109 million over the original 2015 Estimate and of €38 million when last year's supplementary budgets are taken into account, and it takes account of new priorities, including the expanding new rural development programme and the seafood development programme. In addition to the Department Vote, in 2016 Ireland will receive some €1.2 billion in direct funding from the EU for the basic payment scheme. This brings the combined investment in Irish agriculture, food and the marine to over €2.5 billion in 2016.

I will move on to programme group A. This programme focuses on progressing the economic development of the agri-food, forestry and marine sectors, including facilitating the achievement of Food Wise 2025. The-----