Dr. John O'Neill:

I will try to cover the questions from our perspective and will pass on to my colleagues in the Department of Agriculture, Food and the Marine the questions that are more relevant to them. The Chairman asked a question on the flexibility on the emissions trading scheme, ETS. The proposals, which were published on 20 July last, are currently part of a working party process in the European Union. Ireland and other member states are trying to get behind the methodology the Commission used to arrive at the figures, not only as regards flexibilities but also on the cost efficiencies side. We are not yet 100% certain of the basis the Commission used to give some member states a higher allocation in terms of credits.

It is important to note that even though we have access to credits from the ETS side, these credits are not free, as we would have to forego revenue that would normally be taken from the auction of these allowances under the ETS scheme. It does not come as a credit as such. It is more of a flexibility instrument we could use if required at some stage for compliance reasons and it certainly would not be free.

Deputy Dooley asked about breaching our 2020 commitments. Mr. Arnold outlined the commitments for 2018 and 2019. The simple answer to putting a price on breaching our commitments is that we do not know what it could be.