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

I thank members for their questions, which I will try to deal with quickly. Deputy McConalogue asked for clarity. Unfortunately, it is not possible to be absolutely clear about where we are at in respect of CAP reform until such time as we know what funding is available. The amount of funding is critical. Senator Paul Daly alluded to this in terms of the MFF issue, which is the central plank of the Heads of State meeting later this month. We are plugged into the deliberations on the MFF and how it impacts on the CAP because we get most of our receipts from the European Union through the CAP. We are a net a contributor to the European project, which is reflective of the state of our economy. We are one of the highest per capitacontributors to the EU but we get most of our receipts from the Union through the CAP and, therefore, we are clued into the overall debate, in particular how we protect the CAP and our share of it. Bringing clarity to the CAP process to reform post 2020 is inextricably linked to that issue. We have been actively trying to forge alliances with other members states, as I have outlined previously at this committee.

On the second point, the Commission is facilitating transitional arrangements for a 12-month period. Notwithstanding the progress that is being made, it is highly unlikely that the CAP will be ready following a 12-month extension. It is likely that the extension will be for a minimum of two years, which is not desirable. That is my reading of the position. In regard to bringing clarity around our position in the context of those continuing uncertainties, I will attempt to do that. Our objective is to protect the funding that is available to our farmers within this reform process and the reform of the funding of the EU for the next number of years. When it comes to pillar 1 and pillar 2 payments, there will be changes in the new CAP to the obligations and conditionality under pillar 1, which are not currently in place, but our objective will be to protect the amount that Irish agriculture receives under the new CAP. We are anxious to ensure that the new policy gives us the suite of policy instruments or the toolbox to enable us to drive the climate ambition that is part of our agriculture-climate public consultation.

As the committee knows, there is an overall Government strategy and we have our share to do. I would argue that we start from a relatively good point with respect to the sustainability of Irish agriculture but there is undoubtedly more we can do. The particular focus will be on nutrient management, genetics and other efficiencies, with environmental schemes delivering on biodiversity, water quality etc.

This is a headline view and in the context of the transition period we would like to roll over existing schemes, with flexibility where possible to pilot new initiatives particularly in the climate sector. We have much to do in the new decade and there are onerous targets that must be achieved by 2030. We must start immediately and we are informed in that endeavour by the Oireachtas committee mentioned by Deputy Corcoran Kennedy, as well as the input of many stakeholders and the public consultation under way. In the context of the transition arrangements, we are anxious to be enabled to get some elements up and running. We do not have clarity around what will be facilitated in that transitional directive and it is unlikely to be finalised until mid-2020 perhaps. We are trying to influence that structure in a way that gives us the maximum freedom to manoeuvre in order that the important elements to us, including protecting the financial support targeted at farmers and the conditionality that would give us the maximum opportunity to assist us in our climate endeavour over the next decade, would be central to the process.

Deputy Cahill and Senator Hackett raised the matter of generational renewal, which is a critical part of the challenge facing the agricultural sector across Europe. In response to the Senator, I have not heard it articulated that there is an oasis of optimism in Austrian agriculture, although I acknowledge it has a higher proportion of organic agriculture than us. I am unaware that it is a panacea for generational renewal. As far as I can see, there is a challenge in attracting younger people into agriculture in practically every country I have visited. Not to be trite but the best way to incentivise generational renewal in farming is to give people a career pathway that will give them something comparable with peers. Talk of lifestyle and working in the open air and with nature only goes so far. These people want what their peers have in other employment, including holidays and being able to provide for their children. It is not an unreasonable expectation but it is something of which we must be conscious.

We have been very progressive with the piloting of incentives for young farmers but there is no substitute for giving people a pathway they can see as financially secure. The proof of the pudding here is the dairy sector, which has the youngest age profile in agriculture because it is seen as a reasonably secure area financially. It is not exempt from the ups and downs of prices but that area can be contrasted with the area that sees most demographic challenges, which is the beef side. That is for a good reason as well. We must see how we can maximise support and incentivise that sector to ensure there are career opportunities for those who wish to take them.

I am aware of the Bord na Móna interest in aquaculture opportunities and there is great potential in those former Bord na Móna lands no longer subject to peat harvesting. Deputy Corcoran Kennedy is aware that my Department has endeavoured in the past while to clear the backlog of aquaculture licence applications. That has been a complicated task but I am glad to say that by the end of this year, we will meet the target of clearing the backlog. We will be anxious to work, explore and assist in any way that the Department can with the proposals for aquaculture. I am aware of other aquaculture endeavours that are based inland and that are quite successful. There is no reason this could not be carried out successfully as a new enterprise in a post-peat environment in the midlands. If my Department officials can be of any assistance in this regard, we would be willing to engage with the relevant parties.

I am aware of the number of people outside environmental schemes. For example, people have exited the agri-environment options scheme, AEOS, or will see their green low-carbon agri-environment scheme, GLAS, contracts expiring within the transition period. It is why we are looking to influence the regulation and ensure we can not just roll over those who will be in contract for a period of years yet but for those whose contracts expire or have expired already, we will be able to pilot new initiatives. Those initiatives should be tailored to our circumstances no more than the previous schemes were foisted upon us. It is clear that with the new dispensation and regulation for the CAP strategic plan, there will be much more emphasis on these schemes' outcomes, so we can measure in a tangible way what we are getting out for the financial support we are putting in. That is compatible with the overall direction of travel in terms of the climate ambition within CAP and the fixed percentage for climate measures.