Mary Coughlan (Donegal South West, Fianna Fail)

The series of measures I announced last May in support of the sheep sector constituted my response to the report of the sheep strategy development group, known as the Malone report. Together, the measures form a comprehensive package that recognises the importance of the sheep sector and addresses the challenges and opportunities that lie ahead.

Good progress is being made in implementing the various measures and I am pleased for this opportunity to set out the main points. Under REPS, my Department secured European Commission approval for a new supplementary measure in REPS 4 promoting mixed grazing of cattle and sheep. Under this supplementary measure a farmer can qualify for an annual payment of up to €1,000 in addition to his or her basic REPS payment

Payments of an additional €6 million to qualifying sheep farmers are currently being issued under the 2007 national reserve and all payments are due to issue by the end of May. Progress is being made by my Department in discussions with ICBF, Teagasc, breed societies and farm bodies on the proposal for ICBF to take over the management of a sheep breed improvement programme for the sheep sector. It is hoped to have an interim structure in place for the 2008-09 breeding year.

A capital scheme has been made available for the beef and sheep processing sectors. Trials are currently under way on the use of new technology to allow for the mechanical grading of carcases in the sheepmeat sector. The lamb quality assurance scheme, which was established in 2007, has seen almost 6,000 farms being registered to date with over 4,200 farm audits having been carried out. I have made €400,000 available to support inspections under the scheme.

Bord Bia will continue to organise strategic marketing campaigns in selected European markets. Along with its French and British counterparts, Bord Bia is undertaking a three-year generic lamb promotion on the very important French market to promote lamb to younger consumers. Teagasc has developed a comprehensive plan to restructure sheep support services, including a programme for technology evaluation and transfer farms, which includes hill and lowland areas.

These measures complement those to be taken by the industry itself in implementation of the Malone report. I am confident these form the right approach and will help to address potential difficulties. I remain very much conscious of the concerns within the sector and I raised these at the EU Council of Agriculture Ministers meeting on 17 March. Definitive conclusions on possible support action were not reached but my concerns were shared by a large number of colleagues and it was generally recognised that the needs of the sector should be borne in mind in the "health check" of the Common Agriculture Policy.

See this speech in context