Mr. Bill Callanan:

I thank the committee for devoting its time to the important topic of Ireland's water quality, plans for the interim review and engagement with the European Commission regarding the nitrates derogation. I am joined by my colleagues, Mr. Massey and Mr. Flynn.

Ireland’s water quality is in the top third of EU member states. Irish farmers are engaging in significant measures to reduce the loss of nutrients to water. However, as evidenced by EPA data, the level of nutrients in many of our waters remains too high. Last year saw the introduction of Ireland’s fifth nitrates action programme and the European Commission extension of Ireland’s nitrates derogation to cover the period 2022 to 2025. That programme brought significant changes for farmers. New measures were introduced, existing measures expanded and there is an increased focus on compliance and enforcement. These changes started to become applicable from March 2022, with further changes introduced from January of this year. Farmers have bought into these changes, and this must be recognised. We will likely see the benefits of the changes over time.

On the question of the nitrates derogation, the European Commission is not obliged to grant any member state such a derogation and to do so they must be assured the derogation will not compromise achievement of the nitrates directive’s objectives of reducing and preventing water pollution caused by agriculture. Last year Ireland secured a new derogation covering 2022 to 2025. These were very difficult negotiations, given the decline in Irish water quality, increases in fertiliser use and livestock numbers, as well as changes in Commission policy since the previous derogation was negotiated in 2017.

When we now engage with the European Commission, the 2027 water framework directive target of all water bodies having at least good ecological status is clearly on their mind. Ireland will not meet this target. Most, if not all, other EU member states will be in a similar situation regarding these targets; however, few of them are availing of a nitrates derogation. This year, Ireland is one of just three EU member states with a derogation. Belgium decided not to apply for an extension to its derogation, which expired at the end of last year, and the Netherlands is on a trajectory that will see it exit derogation at the end of 2025. The likely scenario is that, post 2025, Ireland will be one of just two EU member states seeking or in receipt of a nitrates derogation. Improving water quality will be critical to securing the derogation over the longer term.

Last week’s publication of the Environmental Protection Agency, EPA, report on the outcome of the Commission’s two-year water quality review puts that challenge into stark reality. This was an agreed part of the review. Ireland has engaged with the Commission to seek flexibility on this condition. Those discussions are ongoing. However, we must all recognise there is no guarantee the Commission will agree to reopen its decision.

In May, the Minister, Deputy McConalogue, established an all-of-industry agriculture water quality working group to raise awareness of water quality impacts, identify ways to further improve compliance and enforcement and identify new measures that will drive improvements in water quality. This group’s work will feed into the interim review of the nitrates action programme which must take place over the coming months. I chair that group. The EPA has significantly developed its information around targeting of measures to improve water quality.

I believe the best way we can secure the derogation, and a sustainable future for Irish farmers, is through a science-led, targeted approach where the whole industry comes together to drive improvements in water quality. At the core of this objective must be that we improve our overall quality. It is a key performance indicator on sustainability and something I believe all stakeholders are committed to.