Mr. Tim Cullinan:

Deputy Carthy raised a very important point about smallholdings with high payments per hectare. This is critical. Those smallholders are getting caught up in this, as they were in the past. We have a very clear view. We need targeted schemes. As I stated, we must ensure there are more targeted schemes in Pillar 2 co-funded by the Government. For example, we must ensure we get the payment under the suckler cow scheme up to €300 per cow and get a proper payment of up to €30 per ewe as well. It is important to note the structure of farms here compared with many of the larger countries in the European Union. We have hedgerows and smaller fields. We have an excellent farm structure for sequestering carbon. Outside of the CAP, we are the only group in society that can help in the whole climate change debate. For generations, farmers have been sequestering carbon in hedgerows and grassland. A new payment must be developed around that as well to help farmers in smaller farms to continue farming.

Deputy Carthy asked a question about capping. We are in favour of capping but there must be an allowance for all farm labour, including that provided by family members. If a farmer leases entitlements, that is a cost as well and it must be included. I will ask Mr. Buckley to give a view on GAEC 9.