Charlie McConalogue (Donegal, Fianna Fail)
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I thank the Chairman and members for providing time to go through and discuss the Revised Estimates for 2023. The Department’s budget for 2023 was designed to lay the groundwork for strategic supports for the agriculture and fisheries sectors while providing farmers and fishers with supports to deal with the immediate and ongoing fallout of the illegal invasion of the Ukraine and the challenges associated with Brexit. We have designed the budget to strategically address the short-term and long-term challenges and opportunities in the sector. Despite these and other challenges, the sector has displayed remarkable resilience, as demonstrated by the fact that the value of Ireland’s agrifood exports increased by 22% last year to a record high of some €18 billion. The foundation for this incredible performance were farmers, fishers and food producers. The agriculture Vote for 2023 provides the Department with the resources to deal with current challenges and exploit opportunities across the various sectors. In a period of uncertainty and high input costs, I have agreed a budget that protects the income of farmers and fishers and supports them in their efforts to ensure standards are maintained, including, importantly, the meat inspection service and various supports provided by the Department’s laboratories.

Tuberculosis, TB, and brucellosis allocation is more than €51 million. The level of bovine TB in Ireland continues to be relatively low by international standards with progress being made during 2022, but it is against a challenging background. Herd incidence stands provisionally at 4.27% and has decreased in comparison to the previous year’s 4.33%. The number of herds restricted last year was 4,492, compared to 4,675 in 2021. As Minister, I initiated enhanced actions to clear infection from herds experiencing extended breakdowns in 2021. The goal is to eliminate TB infection from such herds, help them go clear as soon as possible and reduce the risk of repeat breakdowns. My Department, in consultation with the TB forum, will continue this year and beyond to implement the policy options outlined in the bovine TB eradication strategy. We are all acutely aware of the financial and emotional pain associated with a TB breakdown. It is important we move quickly and together to reduce rates. Our focus will be on reducing disease year by year.

The increase in subhead A3, incorporating food safety, animal and plant health and animal welfare, can be attributed to the need for the Department to address a number of areas, including the costs associated with any potential outbreak of avian influenza and Brexit adjustment reserve, BAR, funding for potential meat and bone meal disposal projects.

On programme B, which covers farm sector supports and controls, improving the carbon efficiency of suckler cows will play a key role in reducing Ireland’s emissions. The sheep improvement scheme provides valuable support to those undertaking actions which make a positive contribution to flock welfare. The allocation for that scheme is €20 million in 2023 and provides for increased payment from €10 per ewe to €12. A total of under €1 billion is available under programme B. This is in addition to €1.2 billion funding from the EU in respect of direct payment schemes.

There are several key provisions in programme B for this year. In beef and sheep supports, the Estimate provides €105 million in targeted supports for livestock farming, with €85 million, as it stands, to support sustainable beef farming and €52 million towards the suckler carbon efficiency programme that is taking over from the outgoing beef data genomics programme. The funding of €260 million in the lifetime of this programme is a recognition of the importance of the suckler sector to Ireland’s economy and will help improve economic and environmental efficiency of enterprises.

The targeted agriculture modernisation scheme, TAMS, is one of the key drivers of on-farm investment. It continues to be a hugely successful and beneficial scheme that will continue for the year ahead. An indicative allocation of €370 million for TAMS is available from 2022 to 2027, of which €89 million is provided for this year. Investments will be linked to climate, environment or animal welfare. I expect TAMS will open for receipt of applications on a phased basis throughout this month. To assist generational renewal and gender balance, young farmers and, for the first time, women farmers will be provided with grant aid for capital investments at an enhanced grant rate of 60%, providing they meet the eligibility requirements. The proposed increase to 60% grant aid for farm safety equipment will encourage the development of physical safety infrastructure on farms. The Minister of State with responsibility for farm safety, Deputy Heydon, has led strongly on that. I believe this will be critical in helping to drive down the unacceptably high number of fatal and non-fatal incidents on farms in the years ahead.

The agri-climate rural environment scheme, ACRES, is our new environmental scheme. We have provided €160 million of new spend this year. Tranche 1 of the scheme closed in December and my Department is working through and assessing applications before moving to the next stage. The scheme has proven extraordinarily popular with farmers, which is good to see. We received more than 46,000 applications. My objective, if possible, is to be in a position to accept all 46,000 applicants to the current tranche of the scheme, but there are operational considerations for my Department and for co-operation project teams and agricultural advisers. I am considering these. I want to be certain any next steps do not compromise the integrity of the scheme or our ability to make timely payments to applicants accepted into it. The scheme is well designed and offers much choice to interested farmers. Its implementation will be closely monitored. It is important the scheme delivers and is managed properly, both for potential participants and to provide a return on investment of public money. It is important to move as quickly as possible on this and I plan to announce next steps very soon. I intend all ACRES applicants will hear from us before the end of February.

There is considerable growth in organic farming. Currently, 200,000 hectares are farmed organically and there are real opportunities for growth. The budget allocation for 2023 has been increased from €21 million to €36 million. This will facilitate the awarding of organic farming scheme contracts to over 2,000 farmers who have submitted applications to the scheme, which closed for applications in December past. We now have 4% of overall land area farmed organically and I am confident we can achieve and exceed the programme for Government commitment of 7.5% land cover during the lifetime of the CAP Strategic Plan 2023- 2027. The Minister of State, Senator Hackett, is working strongly to ensure we achieve this.

An investment by the Government of €1.3 billion in Irish forestry for the next national forestry programme was announced by me and the Minister of State, Senator Hackett, last November.

This is the largest ever investment by the Government in tree planting. The new programme is farmer focused and aimed at supporting farm families to engage more meaningfully with forestry. As well as receiving record tax-free payments, farmers can avail of 20-year as opposed to 15-year premiums, which were part of the outgoing scheme and will the remain the case for non-farmers. Premiums will be from between 46% to 66%. In addition to receiving 33% more premium payments compared to non-farmers, farmers who plant trees will also continue to receive the single farm payment on land converted to forestry. The forestry programme 2023-2027 is subject to state aid approval from the EU Commission, which we discussed in detail at previous committee engagements. The Department's engagement with the Commission is progressing. We are seeking to ensure that state aid approval happens in the best timeframe possible.

While the new forestry programme has not yet been finalised, the Department has introduced an interim afforestation and roads scheme in order to ensure that those with valid approvals under the old forestry programme can plant and build roads while receiving the new rates of payment proposed under the scheme. There are now 1,000 approved afforestation contracts with 7,000 ha ready for planting. In addition, more than 9.5 million cu. m of felling was licensed, well beyond the National Council for Forest Research and Development, COFORD-estimated demand for timber.

I will touch on the tillage incentive scheme and liming measure. For 2023, I have provided €18 million for the continuation of the tillage incentive scheme and the introduction, for the first time in many years, of a new lime natural soil conditioner scheme meant to incentivise liming. Research carried out by Teagasc shows that liming not only increases soil microbial activity but can also unlock soil phosphorous and potassium, P and K. Our high annual rainfall, along with crop and livestock production and nitrogen fertiliser use, all combine to reduce soil pH.

Programme C deals with policy and strategy. The total allocation for that programme is €440 million.

I willtouch on access to finance, which is a crucial need for 2023. Some €20 million has been allocated to play a key part in the Government’s response to the challenges posed by Brexit. I am working closely with the Minister for Enterprise, Trade and Employment, Deputy Coveney, and the Minister for Finance, Deputy Michael McGrath, in that regard. Bank of Ireland was the first to launch a new scheme for loans under that funding recently.

To support our food industry, a provision of €17 million has been made for next year through the Enterprise Ireland capital investment scheme to support the food processing sector.

I will touch on the matter of farm safety. Last year, for the first time, we had a specific farm safety budget of €2 million. That has increased to €2.5 million for this year. The hope is this funding will continue to play a significant role in achieving cultural change around safety on farms.

We know the important role Bord Bia plays in marketing our food abroad, considering 90% of our food is exported. The Bord Bia grant is €55 million in 2023, which is up 4% on the previous year.

With regard to Teagasc and the important role it plays, more than €6 million in additional grant aid is being made available bringing its overall grant to €162 million. That includes €107 million to pay staff salaries and pensions, €44 million to support current operational expenditure, and just over €5 million for the Teagasc capital investment programme.

On programme D, the seafood sector, I have significantly increased the provision for this year's seafood programme by 70% to a total of €337 million. That increased investment reflects the Government’s commitment and follow-through on the Report of the Seafood Task Force: Navigating Change, which outlined 16 support schemes with an estimated cost of €423 million to assist the seafood sector and deal with the impact of Brexit, especially in respect of the inclusion of a temporary and permanent cessation scheme for the fishing sector, capital investment schemes for the seafood processing and aquaculture sector, and liquidity supports for co-operatives and processors. The task force recommended that the initiatives be funded through the 100% EU-funded Brexit adjustment reserve and our forthcoming EU seafood development programme under the European maritime fisheries fund. I have announced 11 schemes to date.

Fishery harbours are being significantly invested in, which is reflected in subhead D.3. We have two flagship projects, namely, the deep-water quay at Ros an Mhíl and the Smooth Point pier extension in Killybegs.

The budget allocation for the Sea Fisheries Protection Authority, SFPA, is €28 million for 2023, which will allow it to continue to meet our national and EU obligations as the competent authority for the enforcement of seafood safety law and sea fisheries control.

That is a brief overview of measures we included in this year's budget. I am satisfied that the 2023 allocation, together with the supports, provides a good, balanced package of measures for farmers, fishers, coastal communities and the food and forestry sector.