Simon Coveney (Cork South Central, Fine Gael)
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The outlook for the agrifood sector remains very bright and the sector will continue to contribute strongly to national economic recovery. There is a new awareness of its vital economic importance and a strong recognition that it has the fundamental building blocks in place to reach the demanding targets it set for itself in Food Harvest 2020. This blueprint will contribute significantly to growth in food and drink exports and national prosperity. I am confident that the measures introduced in budget 2014 in a highly challenging fiscal environment will help us to continue on this path towards national recovery.

The agrifood and fishing industry is enjoying a period of strong success. I was pleased to note recently that the most recent statistics from Bord Bia confirmed that this trend was continuing, with all signs pointing to ongoing growth in the sector. The value of Ireland's food and drink exports grew by more than 9% in 2013 to slightly less than €10 billion in the year. Since 2009, the value of food and drink exports has increased by more than 40%.

The Exchequer contribution to the Vote of my Department will amount to €1.22 billion in 2014. This figure comprises €1.019 billion in current expenditure and approximately €200 million in capital expenditure. While on the current expenditure level, the allocation amounts to a modest fall in overall terms in 2014, reflecting the reality of macro-level budgetary constraints, but it is also worth noting that some agricultural schemes are coming to the end of their natural life. Separately, the Department continues to reduce the administrative cost of delivering its programme for farmers and the agrifood sector as part of its reform package.

When drafting the Estimates for 2014, I was conscious of a number of key areas, including the need to provide support for vulnerable sectors and maintain family farm income; the need to provide a support for the very important suckler beef sector; and, consequent on the new Common Agricultural Policy, the need to ensure schemes and programmes under the rural development programme were well funded. On this latter point, last week I was pleased to be in a position to announce that under the new rural development programme, €1.9 billion in national funding would be added to the €2.2 billion European Union funding already secured for expenditure on the seven-year programme. Combined with the €8.5 billion in EU funding that will be paid in direct payments to farmers in the period to 2020, this brings total funding for the sector over the period from 2014 to 2020 to more than €12.5 billion. This constitutes an ongoing and significant strategic financial investment in the agrifood sector.

I have demonstrated the Government's ongoing commitment to support farmers in vulnerable sectors, particularly those farming in disadvantaged areas.

Furthermore, I have maintained the level of payments under the disadvantaged areas payments at 2013 levels, with an allocation of €195 million for 2014.

I am pleased that we were in a position to fund support measures for suckler farmers which will result in investment of €40 million in the beef sector next year. The suckler herd is the seedbed for a quality beef industry, involving more than 100,000 farm families and employing almost 8,000 people in processing and sales and marketing. It drives exports valued at approximately €1.8 billion per annum. Harnessing technology in a way that improves efficiency and, ultimately, profitability at farm level is key and I am convinced that the combination of measures announced can make a major contribution to the expansion of beef output and greater market penetration.

The key elements comprise €23 million for the new beef genomics scheme; payments of €5 million for the continuation of the beef technology adoption programme; €10 million from unspent single farm payment funds for the beef data programme; and €2 million under the suckler cow welfare scheme. This will bring total payments direct to suckler farmers to €40 million in 2014. The continuation of the beef technology adoption programme with a funding allocation of €5 million will build on the outstanding success of the previous two years of the programme to allow its continuation for a third year. Almost 6,000 farmers received an annual payment of €825 each under the 2013 programme. Some €10 million will also be paid for the beef data programme in 2014. In 2013 approximately 34,000 farmers applied for the programme, which assists farmers in improving the genetic quality of their livestock while maintaining a flow of crucial data to the Irish Cattle Breeding Federation that will generate further advances in cattle breeding at national level.

As I mentioned earlier, I have been able to obtain some €23 million in Exchequer funding for the beef genomics scheme. This will provide suckler farmers with a payment of €40 per calf in return for which the farmer will be required to take samples from stock bulls and a selection of suckler cows for genotyping. This will help to accelerate the type of genetic improvement that will drive efficiency and increase profitability at farm level. With the beef data programme, this will provide for payments of up to €60 per calf in the suckler herd. The initiative will help to place Ireland firmly to the forefront globally in beef genetics. It will enhance our reputation as a world leader in sustainable food production. It will increase the carbon efficiency of the sector and, from a marketing perspective, will help to reinforce the uniqueness of our offering on EU and world markets. The collection of this vital genetic information can also provide a building block for further development of a genetic traceability system, which would be a global first. This would place Ireland firmly in first place globally when it comes to consumer assurance and traceability. The transfer of knowledge and best practice to beef farmers through the beef technology adoption programme and the collection, through the beef data programme, of animal events data that will link to the genetic data gathered through the beef genomics scheme are key examples of the smart green growth initiatives proposed under the Food Harvest 2020 strategy. We are building on the progress to date with what we announced last week in respect of the rural development programme to bring payments to farmers from €60 per calf to €80 per calf and by adding to the beef genomics scheme, which we can discuss later.

I am strongly committed to supporting a capital programme throughout the agrifood, fisheries and forestry sectors in 2014. In the marine sector I have provided an increased capital allocation of €12 million to maintain the infrastructure at the Department's fisheries harbours and local authority fisheries harbours, which make a valuable contribution to Ireland's marine sector. The capital allocation to the Marine Institute is being increased to €10 million to cover the cost of its ongoing research programme as well as upgrading its research vessels. Capital funding to Bord Iascaigh Mhara will be increased to €6.5 million to assist in the implementation of the revised Common Fisheries Policy. In other words, we have deliberately increased funding to the marine and fisheries sectors to ensure we can bring about the necessary changes required under the Common Fisheries Policy, which are all positive sustainable changes to fishing but which will require some capital investment from fishermen. We will need to help them in the transition and we will certainly do that through BIM in particular.

I have also continued to provide capital funds in support of on-farm modernisation. Specifically, in 2014 I have provided for the investment requirement needs to support the dairy sector through its expansion plans ahead of the removal of milk quotas in 2015. The ending of milk quotas provides the best opportunity for dairy farmers to increase output volumes rapidly and enhance the earning potential of the sector. As the final year ahead of the quota abolition progresses, I expect to see an increasing level of investment in farm infrastructure in line with the investments already commenced at processing level, which are significant, amounting to €300 million or €400 million.

I am committed to the continuation of an active programme of reducing the cost of running my Department. Costs have fallen by some €88 million since 2008 from €304 million to €216 million, a reduction of 29%. Considerable reform efforts have taken place in recent years. The Department's staffing level has fallen by some 1,600 since 2005, in other words, from 4,800 staff to 3,200, a reduction of one third. Since 2010 there has been a 22% reduction in the staff of the non-commercial State bodies, down to 1,463 from 1,865 at the beginning of 2010. The total Department spend on these agencies has fallen from €247 million in 2008 to an estimated €189 million this year, a reduction of 24%. The cost of running my Department and the State agencies will be some €8.5 million less in 2014. I intend to continue to drive a change management programme throughout the Department and its agencies while ensuring the proper resourcing of front-line services, particularly those directly responsible for food safety, animal welfare and programme delivery.

All in all, I believe the funding provided to the Department for 2014 demonstrates the Government's commitment to the agriculture and marine sectors. It recognises the potential of future growth and employment in the sectors and their important role in the recovery of the Irish economy. I am determined to build on the progress achieved in recent years in developing the agrifood sector and, in particular, to contribute further to the future growth and prosperity the sector can achieve for Ireland, primarily expanding its revenue base through growth in export earnings.

Following the rural development programme, RDP, funding announced last night, I wish to pay tribute to the Minister for Public Expenditure and Reform, Deputy Brendan Howlin. He was very much a part of the conversation and the decision. We had a good negotiating process and, as a Minister, he understands well the importance of the sector. His support for the funding announced last week for the RDP for the next seven years is significant and I thank him for that.