Oireachtas Joint and Select Committees

Tuesday, 9 July 2013

Joint Oireachtas Committee on Agriculture, Food and the Marine

CAP Reform and Related Matters: Discussion

2:40 pm

Ms Michelle O'Neill:

The first point was on free movement. Obviously, that is the ideal we all want to achieve. Aligning our disease status was obviously key to moving forward on that issue. EU animal health law will allow us to move more freely, but it is not due to come into effect until 2015 and there is still a way to go in negotiations on it. Obviously, the committee will want to be involved in discussions in respect of the approach to be taken in the European Union. That is the prize. We want to be in a position where we will have free movement, but as we discuss implementation of the animal health law in 2015, the focus must be on disease status and making sure we will be in a similar position in order that there will be no barriers to trade and movement. We will certainly be trying to do this.

Senator Pat O'Neill referred to the impact of the dairy sector and what supports might be in place for other sectors, particularly the suckler cow scheme. Because of what we have achieved in the European Union there is an option for availing of coupled payment support. We can consider these measures. It is something for which the beef industry has called in the past and we need to explore it as we move forward.

On the point about how I intend to engage in consultation on CAP reform, it will involve stakeholder meetings and hosting meetings for wider rural communities. With regard to rural development programmes, consultation is needed in terms of the supports available. We have started that process. Now that we have come out the other side in getting the bigger political agreement, people want to be vocal on what they want to see in the new programme. I want to make sure everybody involved will have an opportunity to do this. We should align our policies, where possible, and look at areas where we have a common purpose. We will certainly do this in the time ahead.

On the voluntary code of practice, as members are probably aware, the dairy sector is organised differently in the North in that most farmers are involved in co-operatives. The way the process works is slightly different. Their prices would have been set by milk auction, but that arrangement has been changed recently. The process is slightly different in that respect, but as was said, prices are broadly similar in terms of the price per litre across the island.

On the voluntary code of practice, those involved in the industry have taken the approach that they want it to be a voluntary code. They have asked for time to work out how they want to implement it. I will work with them on that issue and we will see how it progresses. It comes back to fairness in the supply chain and everybody has to get his or her fair share. If there is not fairness in the supply chain, the position will not be sustainable for those involved in part of that chain and this will have a big impact on the entire chain.

The British Government has provided for the establishment of groceries code adjudicator. The power in that respect is not devolved to the Assembly and we do not have the ability to introduce a groceries code adjudicator. We have been trying to feed into the process. If the adjudicator does not have teeth, there is no point in having such a position. I will reserve judgment as the position has only been established in recent weeks. It is difficult to judge its impact until we see the office operating in practice and the way it will deal with the issues raised. It is welcome that the office has been established and it is a step in the right direction. It will be a challenging role for the body, but its establishment is welcomed. At to whether it will have teeth and be effective, only time will tell. If we have a discussion in six months' or a year's time, I will be able to talk more about it.

The average age of farmers is 57 years. That is something about which we must be seriously concerned. We need to examine why young people would want to become involved in farming and how we can entice them to become involved and stay in it. The day is gone when people automatically assumed that because their father or family was engaged in farming that the young people in the household would also enter the industry. That we now have to put in place supports is a positive development. It is also a positive sign that the agricultural colleges are oversubscribed. That shows that young people see a future in farming, the food sector and the wider industry. That is a positive indicator, on which I want to build. I want to ensure we will have everything in place to support it. I do a good deal of work with the young farmers' organisation and support those involved in the work they do in talking to their peers. We will do more of this in the time ahead.

On the timeframe for TB eradication, I wish there was a simple solution or a quick fix. However, it is one of those difficult issues that has proved hard to crack. The study we have brought forward will cover a number of years, probably three to four, as the information will have to be gathered, a model will have to be put in place and the work carried out. I would be happy to provide the five or six page document we have available which details the project we are bringing forward which members might find interesting. The incidence of TB in the Twenty-six Counties is lower than the level in Northern Ireland. There may be a combination of reasons for this, one of the potential factors being that we still have a 100% compensation rate, an issue that needs to be examined. We want to make sure we take every step possible to eradicate this disease in the time ahead.

On the horsemeat scandal, the Food Standards Agency was in the lead role in terms of the investigation carried out. It sits outside the Assembly and the Executive, which was the downfall in terms of what happened. I would like to see it being accountable to a Government Department. The public that elects us wants to be able to hold somebody to account and when an outside body is in the lead role, as happened in this case, that does not happen. I would like to see this changed, but I do not suppose that change will happen over night.

In terms of the lessons learned, there were plenty. Inevitably, there is reputational damage until one comes out the other side of such a scandal. One thing I noted was that the majority of our farmers participated in a farm quality assurance scheme. If their meat had a farm quality assurance stamp on it, they were able to stand over its quality and traceability. That was a standard about which we could boast throughout the scandal. Since the scandal, quite a number of farmers have come forward to enrol in the scheme, which is a positive development for the industry. They could see the benefit of participating in it. In the past farmers asked me what was the benefit and what would they get out of it. This was a clear example where they were able to see something they could get out of it. Many of the major chains now state they will try to source 100% of their meat locally, but whether that is doable is another thing. However, they have made that claim which is to be welcomed. We will see how it develops.

Deputy Martin Ferris raised the issue of the CAP pillars. That issue is one of traceability which we all need to ensure is provided for in the time ahead.

The agrifood strategy report that I mentioned is another tool under which we will examine all of the challenges facing the industry, the challenges faced on foot of the horsemeat scandal, as well as other issues, including the barriers to growth, what the government and the industry need to do to address them, how can we challenge each other and how can we work together. That is important work which I look forward to seeing through in the time ahead.

One of the recommendations made in the strategy report which was industry-led was that the Executive invest £400 million in the industry and that, in return, the private sector invest £1.3 billion. That is doable and something we need to push forward. I know the Executive is on board in seeking to be able to do this.

On the fodder scheme, we bought in 16,000 tonnes of fodder. It was a very difficult time for the farming industry in general, but we also had instances where there was heavy snowfall which was beyond belief. People were in dire straits and we had to move quickly to bring forward the scheme. We need to plan for what will happen next. We have put a task force in place, which includes departmental officials and representatives of the farming unions. It has met twice and we are planning for what we will need to do in the period post-September, October and November. We are also running courses for farmers in the agricultural colleges on fodder management and planning to ensure a winter feed supply.

On CAP reform and how we interacted with the British Government, we had significant differences in budget discussions.

It was successful in that we managed to divorce the financial position from the agricultural council meetings in which we were involved. We dealt with agricultural issues outside the financial discussions and this worked out well for us. Throughout the discussions the Minister, Deputy Simon Coveney, and I corresponded a great deal, which was very effective in looking at the supports the entire island needed, for which we are very grateful.