Dr. Frank O'Mara:

In regard to the national research policy, the most recent exposition of that was the national research prioritisation exercise which did target funding for research towards economic development. Perhaps in that scenario research around rural development did not get enough visibility. There are steps being taken to address that, including a renewal of the national research prioritisation exercise. I am sure issues like that will come to fore.

In regard to Teagasc funding, the bulk of our funding comes from Government through the Department of Agriculture, Food and Marine Vote, which is supplemented by funding we might win through competitive bids to Department of Agriculture, Food and the Marine programmes such as the research stimulus fund, RSF, the food institutional research measure, FIRM, and competitive forest research for development, CoFORD, Science Foundation Ireland or Horizon 2020. The greatest squeeze in terms of resources is in the staff area. Like all public services, we lost many staff during the recession. As an agency, we were disproportionately hit in terms of the reduction in staff numbers. While there is some freedom in this regard in the context of delegation sanction, we are still way behind in terms of the staff resources we have now as compared with a few years ago.

In regard to energy, there are many reasons we do not have a growing energy sector in the country. We had great hope ten years ago for miscanthus and willow but for various reasons acreage in that regard has remained low, including because of the return that farmers can get from growing those crops versus other crops and the certainty around movement of the product. Vital to this sector is the availability of an end-user for the product. Forestry was also mentioned. It is an easier wait for a company that wants to buy an energy crop to buy forestry thinnings rather develop a supply chain around miscanthus or willow. In comparison with Northern Ireland, where there is a reasonably well developed anaerobic digestion sector there are few, if any, commercial anaerobic digesters at farm scale in the South, which may be due to the refit tariff paid on the energy. There are issues that need to be tackled if we are to get the bio energy sector going on-farm.

Deputy Michael Collins asked about the single farm payment. The issue is around viability and profitability on farms. It is a huge issue which we could spend the day talking about. In regard to the Deputy's specific question, our role in respect of the single farm payment is not around decision-making or policy in this area. That is a matter for politicians and the EU under the Common Agricultural Policy. The role of Teagasc is to provide evidence of the implications of various scenarios that might be under consideration. I am sure that the Deputy is well aware that the current round of CAP provides for convergence towards a flat rate single farm payment. While a flat rate might not be possible the high payments per hectare are being reduced and the low payments per hectare are increasing. That process is under way such that when the current CAP expires there will have been a significant shift in terms of the high payments having been reduced and the low payments having been increased. It is important that the productive base of agriculture is maintained. Basic payments are a key factor in that regard. Without a strong, productive base in agriculture we will not deliver on Food Wise 2025 or for farmers and jobs in related areas such as veterinary offices, accountants, meat processing, dairy co-operatives and retail and distribution.

It is not just farms that will suffer but all other services. With farmers, these services are the heartbeat of rural communities. I do not want to teach people here how to suck eggs, but one cannot overstate the importance of a viable farming sector. One third of farmers are viable and the job of Teagasc is to get as many farmers as it can into that category. We have to work with all farmers in order that they can improve what they get from their resources.