Oireachtas Joint and Select Committees

Tuesday, 7 May 2013

Joint Oireachtas Committee on Agriculture, Food and the Marine

Update on CAP and CFP: Discussion with Minister for Agriculture, Food and the Marine

3:20 pm

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I will provide the figures later in order that I can answer the questions that have been put. It is 3.20 p.m. and I was supposed to leave five minutes ago.

With regard to the reference year, we secured some flexibility in this regard following an Irish request in March during the negotiations because the reference year until then had been 2014, which was undisputed. There was a tie-back year, 2011, but essentially the reference year was 2014. That was having a significant and negative effect by making land much more expensive to lease. People were trying to build up their land holdings to maximise them in 2014 either to dilute high payments or to gain additional entitlements. That is still a problem and, therefore, it was important to have other options and flexibilities around the reference year, which is why we secured agreement that 2011, 2012 or 2013 could also be considered a reference year. We now have to negotiate with the Parliament and the Commission, neither of which likes that flexibility, and, therefore, we will have to see where we get to on this. I have consistently said to farmers that they should not make significant investment decisions on the basis of a 2014 reference year because the negotiations were not over and I still maintain that. However, I will not commit to another reference year either until we have a much clearer picture as to what we can do.

I refer to Deputy Healy Rae's request for installation aid and retirement packages. When we see the options available to us under the new rural development programme, we can then see what we can afford to do. Obviously, we will have to try to support vulnerable areas within farming where necessary and where possible and we will have to try to take strategic initiatives under the Pillar 2 headings, which provide for strategic investments we can make in the sector.