Brendan Smith (Cavan-Monaghan, Fianna Fail)

At a recent special debate in the Seanad on the future of the CAP post-2013, I set out some of my views on the need to ensure security of food supply and to maintain family farming in Europe. It must be borne in mind that negotiations on the future on the CAP post-2013 are taking place against the background of an EU budget review and a new EU financial perspective for the period 2014 to 2020. Ireland will play a central and very active role in these negotiations and will be stressing the importance of a strong and properly resourced CAP in the future. The major issue at present is the amount of funding that will be available for the CAP after 2013, which in turn will put pressure on the share of the EU budget going to agriculture and the share going to Irish agriculture.

With regard to the single farm payment system, I do not see any compelling reason to change from the current historic model for determining single payments. The historical model has a distinct advantage in linking the payment with the level of farming activity, albeit farming activity in 2000 to 2002. I have made my views on the benefits of the historic model clear at meetings of the Council of Ministers and in bilateral discussions with other member states and the Commission. However, Ireland is in a small minority of member states who take this view while I am prepared to look at alternatives, particularly if other countries move from the historic camp. There is a need, however, to find a basis that is acceptable and fair to all member states and one which meets our objectives of improved competitiveness and sustainability.

I consider that maintaining a strong decoupled direct payments system is fundamental to maintaining and stabilising farm incomes, especially at times of increased market volatility. Direct payments remain the best way of underpinning the incomes of small family farms, while allowing them respond to market opportunities. However, there is also a need to retain the capacity and flexibility to react promptly and effectively to market instability and price volatility and therefore to maintain some level of market supports.

The core purpose of rural development policy is to support farmers in developing their productive capacity while securing the environment and ensuring the well-being of the wider rural society. The continuation of a two-pillar system includes the recently revised rural development programme which focuses on competitiveness in the form of targeted investments and sustainability in the form of an agri-environment scheme with benefits for all.

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