Oireachtas Joint and Select Committees

Tuesday, 27 September 2016

Joint Oireachtas Committee on Agriculture, Food and the Marine

Estimates for Public Services 2016: Vote 30 - Department of Agriculture, Food and the Marine

5:00 pm

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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There are currently 38,000 farmers in GLAS. There is a provision over the lifetime of the rural development programme for €1.4 billion up to 2020. When I attended the committee in June, I stated it was our ambition to re-open the scheme and it remains so. However, that is contingent on the budgetary process.

Deputy Jackie Cahill and Senator Michelle Mulherin raised the issue of the horticulture sector. I am cognisant of the difficulty it is experiencing. There has been a swing, year on year, in the sterling exchange rate to our disadvantage. It is 20% lower today than it would have been this time last year. That is a significant blow for those in the sector dependent on the UK market. I am acutely aware of the number of people who have lost their jobs and the plants which have closed while others are in crisis. This is exercising not just the minds in my Department, but across the Government, because it ties into the whole Brexit difficulties with which we are grappling. I am on the record saying that there is no upside for the agrifood sector and very few upsides for the Irish economy generally, given our, some would say, excessive trade dependency on UK markets. Deputy Jackie Cahill referred to how this is also affecting the beef sector.

It is not that we are doing nothing, however. For example, we paid out €4.3 million in commercial horticulture grants in 2016. Departmental funding is available for those interested in establishing local horticultural enterprises and refocusing from mushroom production. Through CEDRA, the Commission for the Economic Development of Rural Areas, we fund market opportunities. One way to tackle the power of the multiples is to have other outlets. Local markets are important in that regard. However, they are not the be-all and end-all. The commercial focus of the horticulture sector, the mushroom sector in particular, is export-oriented. It is grappling with difficulties for which we are trying to put a package together.

On the issue of the payment to the producer organisations, I do not want to get into a big debate on this because the Department is being sued by them. However, for paying out, accounts need to be submitted. Accounts have only been submitted in recent weeks for the relevant year. There are other obligations as well not just in respect of accounts, but environmental actions, which must be taken before we can verify them. It is our intention to pay as quickly when we have all of that material. It is important to reiterate that the accounts were only submitted in recent weeks.

Over 4,000 applicants have been approved under TAMS, targeted agricultural modernisation schemes.

We were behind the curve and much effort went into getting our systems ready for payment. There was much clamour at the last committee meeting about getting the payment system up and running. We gave a commitment then that we would have it by the end of July which did happen. However, we have not been overwhelmed by the numbers applying to have payments issued. In fact, only over 100 applicants have submitted online applications for payment and only 4,000 approvals have issued. One of the difficulties my Department faces is that it has funding approved for the drawdown of TAMS in 2016 but we would like to pay it. We would encourage farmers to apply.

There are two critical documents farmers must have for payment in this scheme. First, they will have to have completed a farm safety course. Second, they have to have a tax clearance certificate. Then there are basic matters such as signing forms. The system is up and running ready for payments but we have not been overwhelmed. In fact, we have underwhelmed by the number of applicants for payment.