Mr. Pat McCormack:

I thank Deputy Fitzmaurice for his questions. He spoke about the dairy breed and the banding. We have significant concerns in that regard. As I alluded to in my opening remarks, we need to see more industry consultation and discussion on this issue. We certainly acknowledge the role of the Department in listening to our dairy calves beef proposal last year. Although it is a pilot programme, it is something that can certainly be built upon in the CAP negotiations that will happen in this country or that are currently ongoing. We believe we can improve the beef going from the dairy herd and have it fit for purpose within the beef herd but that is not the question the Deputy asked. I share his concerns in respect of the banding and the potential to go in the wrong direction from an animal welfare point of view.

As regards the lack of grant aid for contractors, Mr. Cullinan alluded to the fact that the vast majority of contractors would be eligible because they have a herd number. However, the issue is that they are not eligible to receive the VAT back if they obtain the grant. That is something that I am sure the contractors' associations are well able to battle and highlight. Obviously, we need to get as many of those machines on the ground as we can, particularly so that they are available when the closed period begins. That is critical for farmers. That is why we cannot go straight from 170 kg down to 100 kg in terms of mandatory slurry spreading through the low-emission slurry spreading. Those machines will not be on the ground. We believe it should be done in a staged process.

The 7,000 or 8,000 dairy farmers in derogation contribute hugely to the dairy industry. We know what that industry did for the economy during the recession of 2008 and 2009, and what it has done since the abolition of quotas. The dairy industry accounts for a considerable part of our exports. Derogation is important to those 7,000 or 8,000 farmers. It is also important to our dairy processors and rural employment. The spin-off effects of the derogation to rural economies cannot be overestimated.

The Deputy also touched on water quality and slurry storage, and described that 40% of farmers are struggling to have sufficient slurry storage. When I look at the proposals as they come forward, an issue about which I have a considerable concern is that farmers will have to be compliant to qualify for the soiled water, from a slurry perspective. It is necessary that, by whatever means, we put the infrastructure on farms that would mean nobody needs to go out during the closed period.

I agree with what the Deputy said about anaerobic digesters. The issue there is getting it to pellet form. This committee has done work on that issue and listened to various proposals. The reality is that needs to be funded or subsidised, certainly initially, and we hope that, over a period of time, the quantities involved will make it economically sustainable. Mr colleague, Mr. Enright, is anxious to come in on that point and provide some clarity.