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

I am pleased to meet with the committee for this valuable opportunity to review our progress and how we are navigating through the current challenges and opportunities presented across the various sectors in agriculture, food development, marine and forestry.

The recently launched National Development Plan 2018-2027 re-affirmed the Government’s commitment to protecting and enhancing our rural economy. Investment in the agrifood sector is required to improve competitiveness, to ensure the maintenance of Ireland’s landscape, to improve biodiversity and water quality, to contribute to climate change goals and for the development of our fishery harbour centres. This capital funding is very important, of course, but the majority of our funding comes through the current part of the Vote. I am pleased to note that for 2018 our overall allocation increased by 4.5%. The Government’s commitment to the agrifood and marine sectors is further demonstrated through budget 2018 recognising the challenges faced by rural communities and the ongoing challenge of Brexit. In 2018, the Exchequer contribution to the Vote of my Department will amount to €1.557 billion. This is €1.285 billion in current expenditure and €271.8 million in capital expenditure when a €23.8 million capital carryover is taken into account. This represents an overall increase of almost €67 million over last year and recognises the role the agrifood sector continues to play in our economic recovery. In addition to the funding received through the Department's Vote, in 2018 Ireland will receive some €1.2 billion in direct funding from the EU for the basic payment scheme.

The agrifood sector has performed strongly in recent years. According to statistics from the Central Statistics Office, CSO, exports reached €13.6 billion in 2017. This represents a 74% increase in agrifood exports since 2009. Similar to last year, my key focus for 2018 is on maintaining farm payments and protecting vulnerable farm incomes, supporting sustainable farming and jobs in rural and coastal communities and reinforcing the sector to meet the challenges of Brexit.

Turning to rural development, the €4 billion rural development programme for 2014 to 2020 provides vitally important stimulus in the Irish rural economy. In 2018, a total of €626 million is to be invested in the rural economy, directly to farmers through rural development programme schemes. I have provided for an increase of €20 million for the capital investment scheme, the targeted agricultural modernisation scheme, TAMS, bringing the total funding available in 2018 to €70 million. I expect this to be fully spent as payment claims are being submitted on an ongoing basis. The scheme is open for applications in rolling three month tranches. There are currently 17,520 applicants following the first nine tranches. Approvals are issuing on an ongoing basis after the closure of each tranche. Approvals have now issued to over 13,144 applicants.

The green, low-carbon, agri-environment scheme, GLAS, which is Ireland’s flagship agri-environment scheme, provides valuable support to farmers who deliver public goods and environmental benefits that enhance our sustainability credentials. At the end of December 2017, there were approximately 50,000 active participants in GLAS, of which more than 97% of eligible participants have now received advance payments valued at over €166 million. Further payments are issuing weekly where all the required validation checks have been successfully passed. My officials are in contact with farmers to forward outstanding information while also working through remaining more complex cases to facilitate speedy resolution and payment. A sum of €203 million is allocated for GLAS in 2018.

The sum of €49.5 million will be available for the beef data and genomics programme, BDGP, in 2018. Two tranches of BDGP have been opened and the number of participating applicants is now approximately 24,500. This scheme puts a focus on placing Ireland at the leading edge globally in the use of genomics in beef production and enhances our reputation as a world leader in sustainable food production.

I have delivered on the programme for a partnership Government commitment and increased the areas of natural constraint, ANC, allocation for 2018. The €25 million increase will bring the allocation to €227 for a scheme that provides invaluable direct financial support to farmers with land in the many naturally constrained parts of the country.

Turning to forestry, in response to a lower than anticipated take-up of the Department’s afforestation scheme in recent years and taking into consideration submissions received from stakeholders as part the mid-term review of the current forestry programme, I was pleased to introduce higher rates and premiums for new forestry planting, with grants increased by 2% to 7% depending on the species category and the premiums for certain categories increased by 5%. The enhanced measures are designed to promote greater species and habitat diversity with higher grant and premium rates to encourage more broadleaf and diverse conifer planting, while improved grant and premium rates for agro-forestry and forestry for fibre may incentivise farmers to plant forestry on their farm alongside other farming activities. Forestry may complement the other enterprises on the farm and provide a regular income stream to farmers in the form of the annual forestry premium.

Some €23 million will be also available for payment to some 19,000 participants in knowledge transfer groups in the beef, dairy, equine, sheep, poultry and tillage sectors. The implementation of the scheme builds on the knowledge and skills base of farmers in key areas and focuses on profitability and sustainability as well as important issues such as farm safety and farm succession planning.

In 2018, €20 million is allocated to the sheep welfare scheme which is targeted at making a meaningful contribution to sheep welfare with particular regard to the production system and the environment in which Irish sheep production takes place. The scheme was launched in December 2017 with almost 21,000 sheep farmers participating in the first year. Advance payments for the first year amounting to €16 million have issued to more than 20,600 farmers. Balancing payments in respect of the first year are due to issue in the second quarter of 2018. The second year of the scheme has now commenced, with more than 20,000 farmers, including new entrants, continuing to participate in it.

Despite comments to the contrary I am satisfied the full €4 billion committed to the rural development programmes will be fully drawn down and spent. I have also continued to provide support to forestry, horticulture, the various State agencies under my remit and the horse and greyhound racing fund.

In response to Brexit, the triggering of Article 50 in March 2017 and the ongoing negotiation on the withdrawal of the UK from the EU pose a massive challenge given the importance of the UK market to Ireland’s agrifood sector. The UK is by far our largest trading partner, to which we exported €5.2 billion worth of agrifood products in 2017. During 2017, with the assistance of additional funding it received, Bord Bia undertook a market prioritisation exercise at the Department’s request. The results of this will help us inform, identify and target suitable new international markets for Irish food and drink in a sector-specific fashion. This is part of a wider strategy linking the Department’s market access efforts to those of agencies such as Bord Bia and Enterprise Ireland, and using Ireland’s network of embassies as a hub, to develop the profile of Ireland’s food sector and to improve access to a wider range of markets worldwide.

Since the Brexit decision, my Department has placed great emphasis on enhancing its own capacity and that of Bord Bia in the area of market diversification and new market access. Following the extra €10 million that I allocated to Bord Bia since the Brexit vote, I secured a further €4.5 million in budget 2018 to assist the agency in its promotional and developmental work overseas. This funding is to support food and drink companies facing Brexit challenges with market diversification measures, including providing companies with access to local expertise in international markets. Through the market prioritisation exercise, recently published by Bord Bia and funded by my Department, we will together identify and target other suitable new international markets for Irish food and drink, in a sector-specific fashion, to which I will lead missions later in the year. This extra funding will also allow Bord Bia to employ additional staff, some of whom will be based abroad, in line with the Taoiseach’s global footprint initiative to double the Team Ireland footprint on the international stage by 2025.

Bord Bia has developed a four pillar strategy - managing volatility, obtaining consumer and marketing insight, deepening customer engagement and extending market reach - to provide companies with market research, advice and support. An additional €2 million allocated in 2017 - adding to the extra €1.6 million allocated in 2016 - enabled Bord Bia to undertake new activities, including an export marketing strategy programme to help companies to maintain and grow positions in the UK and-or diversity market reach; research to identify priority market opportunities; participation in three new trade fairs in Asia; and increased presence at key shows such as Gulf Food where the space doubled and Anuga in Germany. Bord Bia is also planning to almost double its draw down of EU promotion funds to €1.9 million, mainly for activities focused on China.

Following on from the market prioritisation exercise, I led a trade mission to Japan and the Republic of Korea in November 2017. This followed trade missions in 2017 to China, Singapore, north Africa, the Gulf States, the US and Mexico. In addition, the Minister of State, Deputy Doyle, led a trade mission to Vietnam and the Republic of Korea earlier in the year. For 2018, a programme of ministerial trade missions has commenced with a trade mission to the US and Canada in February 2018. A further trade mission will take place in May to China and Hong Kong.

In 2018, the €241 million European maritime and fisheries fund operational programme is expected to be fully operational with a total of 19 schemes and a budget of approximately €55 million made available across my Department and its agencies. This investment will fund a range of programmes, including capital investment in seafood processing and our harbours, aquaculture and fishing sectors to foster growth in production, value and employment; enhance sustainability and competitiveness; and support training, skills development and stakeholder capacity development. I have also made €87 million in funding available for the food safety animal and plant health work performed by the Department. It is important to remain vigilant and defend our health status and keep our food standards at the very leading edge.

This is a brief overview of the range of measures that apply in the agrifood and marine sectors for 2018. I look forward to the discussion and questions from committee members.