Trevor Sargent (Dublin North, Green Party)

The sheep sector is an important part of the overall agrifood sector and its future depends on its ability to meet the needs of the market. The sheep industry strategy development group and the subsequent implementation group set the blueprint for the sector's future development. Most of the recommendations fall to be implemented by the industry. However, the Department and the State agencies under its aegis are also playing an active role. Good progress is being made and the following is a summary of the main actions taken: payments of an additional €6 million to qualifying sheep farmers were issued under the national reserve; the Department secured European Commission approval for a new supplementary measure in REPS 4 to promote the mixed grazing of cattle and sheep and under this a farmer can qualify for an annual payment of up to €1,000 in addition to his or her basic REPS payment; the pedigree sheep breeding programme, as operated by my Department in co-operation with the sheep breed societies, is being transferred to Sheep Ireland, a sister company of the Irish Cattle Breeding Federation and an interim sheep board has been established to manage and oversee the transfer; a trial to examine the feasibility of mechanical carcase classification for lamb — the results of which are expected shortly — was conducted earlier this year and it is hoped that the system will allow for the accurate and objective mechanical classification of lamb carcases and that it will gain universal industry support; the lamb quality assurance scheme, which was established in 2007, has led to some 6,500 farms being registered to date; Bord Bia is continuing to organise strategic marketing campaigns in selected European markets and in conjunction with its French and British counterparts, it is undertaking a three-year generic lamb promotion on the very important French market to promote lamb to younger consumers; and Teagasc has developed a comprehensive plan to restructure its 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 in the implementation of the Malone Report. I am satisfied that our Department is dealing satisfactorily with the areas of the report within its remit.

Additional information not given on the floor of the House.

Turning to the resources that will be available to the sector in 2009, it is worthwhile first to recall that €27.5 million approximately was paid under the sheep headage scheme and €107.5 million was paid under the ewe premium scheme in 2000 and 2004, respectively — the last years of operation of such coupled payments. Those schemes are now incorporated into the disadvantaged areas and single farm payment schemes and sheep farmers will continue to benefit under these subject to compliance with the relevant conditions.

I will now outline other financial provisions that will benefit the sheep sector. In the case of REPS, sheep farmers can qualify for the mixed grazing supplementary measure of up to €1,000 and, where appropriate, qualify for the increased payment rates on Natura 2000 land, non-Natura 2000 commonage and on designated NHA land. Some €355 million has been allocated to REPS for 2009.

Under the 2005 national reserve, some 500 hill sheep farmers benefit to the amount of €400,000 annually or €2.8 million over the period until 2012. In addition, a special category was included under the 2007 national reserve for sheep farmers whose existing single payments are less than €10,000 and where individual entitlements are less than the district electoral division, DED, average. Allocations are capped at the DED average value of entitlements or a total single payment of €10,000, whichever is the lesser, and allocations to successful applicants will not exceed €1,000. It is estimated that this measure will be worth some €6 million annually or €42 million over the period until 2012.

The pedigree sheep breeding programme as operated by my Department, in co-operation with the sheep breed societies, is being transferred to Sheep Ireland, a sister company of the Irish Cattle Breeding Federation, ICBF. An interim sheep board has been established to manage and oversee the transfer. To facilitate this transfer and to allow for redevelopment of the breeding programme, funding of €163,000 has been provided to date in 2008. My Department will provide further financial support to ICBF in 2009 for sheep breeding.

A trial to examine the feasibility of mechanical classification for lamb was conducted earlier this year at a cost of €135,000. Additional funding at a similar level may be made available to carry out additional feasibility work, if required, in 2009.

The lamb quality assurance scheme operated by Bord Bia has 6,500 participants and it is hoped to expand this by a further 6,000 in 2009. This could involve spending of up to €1 million depending on uptake. In addition, Bord Bia will spend in the region of €1 million on the promotion of sheep and lamb at home and abroad in 2009.

Teagasc allocated approximately €1.5 million in 2007 and 2008 on sheep research activities and these will be continued into 2009. This also covers specialist staff for the sheep programme established following the sheep strategy group's report. It does not include additional funding related to the advisory service, some of which would be directed towards sheep.

Finally, the problems facing the sheep sector are well known at EU level. The Minister's predecessor ensured they were discussed at the EU Agriculture Council of Ministers in March. This was followed by the Aylward report to the European Parliament and a conference hosted by the French Presidency of the EU in September. These initiatives have kept the sheep sector's concerns to the forefront and, in the context of the current CAP health check discussions, we continue to pursue possible solutions.

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