Michael Creed (Cork North West, Fine Gael)

I welcome the Minister's reply. I heard alarm bells ringing when I read the Minister's press release of 30 December last where he stated, "For example, there is huge pressure for changes to be made to the historic basis used to calculate single farm payments and I believe we owe it to ourselves to at least examine the alternatives".

I am pleased the Minister now sees that the national interest is in ensuring that resources are targeted at people in active production and whereas the reference years that were used in the previous CAP reform, of 2000, 2001 and 2002, need to be updated, we need to ensure that resources are targeted at those in active farming, and the flat rate is obviously not a runner.

On the broader issue, what initiatives does the Minister plan to ensure that the budget is adequate? It appears there is a softening up process going on at present for a reduced budget for the Common Agricultural Policy. We need to forge alliances to put food security of the Union centre stage. If one puts that centre stage, one must have the resources to back it.

I welcome recent comments, for example, by an unlikely source, the UK Secretary of State for Agriculture who stated that food security in the Union was now as important as energy security. We need to work on those kind of alliances. There will be an east-west fault-line in the negotiations, but it must be remembered that new accession states witnessed a rise in commodity prices. We need to forge alliances and I want to know what efforts the Minister is making to ensure there is an adequate budget and to ensure that the single farm payment is targeted at those who are involved in active primary production of commodities.

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