Mary Coughlan (Donegal South West, Fianna Fail)

We achieved the highest level of participation in REPS with a record level of 48,000 farmers receiving nearly €283 million in payments in 2005. This is the highest figure since REPS began in 1994 and represents an increase of 36% on the previous year.

A generous package of measures was provided for farmers in the 2006 budget. Farm-specific measures worth over €24 million will help meet the challenges ahead in relation to competing on global markets. The main focus of these budget measures is to help farmers consolidate farm holdings through leasing or purchase of land, to further the productive use of land and to encourage the entry of young farmers into agriculture.

The gross Estimate for my Department for 2006 will exceed €1.516 billion, an increase of 12% on last year's outturn of €1.355 billion. Generous funding is provided for a whole range of schemes designed to put money directly into farmers' pockets and to assist them in adjusting to the requirements of the reformed CAP. Increased funding was provided for REPS, the early retirement scheme, installation aid, on-farm investment schemes, disadvantaged areas incomes support and forestry.

This massive financial support is hardly the hallmark of a Minister or an administration whose commitment to the farm sector can be questioned. The upshot of the support provided in 2005 combined with good market conditions for principal sectors resulted in an increase of almost 20% in farm incomes, hardly indicative of a sector in crisis. There was progress on many other fronts, including the animal health area and in food safety but I wish to turn to the specific issues raised by the Opposition.

The nitrates directive has been there since 1991. Sooner or later it had to be complied with. We are coming to the end of long and difficult negotiations with the Commission in which both the Minister for the Environment, Heritage and Local Government, Deputy Roche, and I have fought hard to get the best outcome for Ireland and Irish agriculture. In spite of all the exaggeration, scare-mongering and general grandstanding that have gone on in the past few weeks, I believe we have succeeded.

We must all face certain realities, however tempting it might be to pretend they do not exist. The nitrates directive is European law and is not optional. The basic provisions of the directive have been clarified by the European Court of Justice in a series of cases that the Commission brought against several member states, including Ireland. The court has found that Ireland had not implemented the directive. When the court finds that a member state has not implemented European law, only two things can happen. Either the member state comes into line or the Commission returns to the court and asks it to impose a fine. In this case, our advice is that a fine would be in the region of €11 million a year, back-dated for several years. No Government could risk taxpayers' money in that way.

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