Mr. Joe Healy:

It is crucial that CAP is fully funded. We sought an increase to 1.3% of gross national income, GNI, from member states. It was increased to 1.1% but we saw the new initiatives, for example, migration, defence and security, eat up more than that 10% budget increase. We talk about a 5% decrease. Taking the European Commission’s proxy figure of 2% for inflation, we came up with a decrease of 17% to 18% in CAP for farmers. It is imperative that CAP is fully funded.

In 1984, CAP was over 60% of the EU budget. Now, it is at around 30%. By the end of the next CAP round, it will be at 28% of total funding. It has been a successful policy. While people might look at it as only a benefit for farmers, when it was introduced, over 30% of the average household income was spent on food. Today, that is somewhere between 10% and 12%. It has probably had more benefits for the non-farmer than for the farmer.

The one original aim for farmers in which it has failed, however, is ensuring a viable income for the farming sector. Borrowing Deputy Deering’s line again, it is hard to expect us to be green if we are in the red. The average farm income across Europe is only 40% of the average income in other sectors. Farm incomes are indexed for inflation and there is a significant amount of extra costs to get that CAP payment.