Oireachtas Joint and Select Committees

Tuesday, 6 November 2012

Joint Oireachtas Committee on Agriculture, Food and the Marine

Food Harvest 2020: Discussion with Department of Agriculture, Food and the Marine

3:45 pm

Photo of Martin HeydonMartin Heydon (Kildare South, Fine Gael)
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That is interesting because I have a major difficulty with some of the points he made.

I fully support the work the Minister and the Department have done to date. The Minister has been proactive in that regard. It is great that Ireland is giving a lead in coming up with proposals and getting other countries on board on an approximation model. On the idea that we could see a swing where 75,000 farmers would receive an increase of 85%, albeit from a very low base, while 55,000 would see their payments fall by 33%, I am baffled by how anyone could argue this could be good for the overall agriculture system and the general economy. I do not know how we would have any hope of hitting our ambitious targets under Food Harvest 2020 if that were to happen. I am mindful that many farmers, on the basis of their income from direct payments, have made significant investments in their farming enterprises to reach their current levels of production. That investment would not have been possible without the single farm payment, but there are significant debts that must be paid and commitments met. For those farmers who have made significant investments in their farms to see a massive drop in payments in the next CAP round would be disastrous.

A point was made about farmers who had sold young animals and not claimed the extensification payment or any of the subsidies available.

We must bear in mind that the farmers were paid handsomely for that stock at the time.

The Secretary General outlined the importance of the overall budget. The envelope for the country is the key issue. We want the Minister and the Department to have maximum flexibility as opposed to decisions being made in Europe. I acknowledge the work the Minister has put into these negotiations.

On greening, I agree that to move to a percentage of each individual farmer's payment, as opposed to a 30% flat rate, is very important. To refer to the point that Deputy Pat Deering made earlier on sugar beet - the Commission proposes that the sugar quota is ended by 2015 - if the sugar quota remains, it is absolutely crucial that we are a part of the new quota system. What is the likelihood of Ireland being able to access the sugar quota? In some respects one could argue that it might be better for Ireland to have access to a quota rather than to the open market.

If the framework is not in place by the end of our Presidency, would that mean that the new Common Agricultural Policy would not begin in January 2014 and would roll over to a later date? What period is necessary as a lead-in time? I do not think it would be feasible to implement it if the decision was taken after June 2013.