Simon Coveney (Cork South Central, Fine Gael)

I will dispense with my notes on this as I know the issue backwards. The Deputy has asked whether I will reconsider a decision I made previously not to advocate an increase in payments for Natura qualifying land under the agri-environment options scheme, AEOS, from €75 to €150 per hectare. I have had much discussion with farmers and farming organisations on this issue and I understand their issues. When the previous AEOS was put in place, the sum of €75 per hectare was agreed with the European Commission, but a political promise was made that the Government would consider and advocate an increase in that payment from €75 to €150 per hectare. Therefore, there was an expectation among many farmers that would be achieved.

Even if I wanted to grant that increase in the morning, I could not do it without approval from the European Commission. The Commission was not forthcoming when we sought the increase up to a number of weeks ago. Therefore, even if I decided politically that we want to prioritise expenditure in this area and to try and increase payments from €75 to €150 for qualifying applicants, which would involve a cost, I would need to go back to the European Commission and get approval to do it, which would take some time. People need to understand there is a process involved in this regard.

Some 75% of the funding for the AEO schemes is from the European Union. The reason I wanted to stick with the sum of €75 per hectare, rather than €150, is that I wanted as many farmers as possible to qualify for AEOS 2, which I launched. Therefore, I had to make some choices. This is why I was prioritising the inclusion of the maximum number of farmers possible given the limited budget available to me.

I recently met farm organisations and stated I will re-examine this issue in the context of the overall risk expenditure review in my Department. If we decide the best way to obtain value for money is to seek from the European Commission an increase from €75 to €150, we will pursue that route. This could only happen in the context of the review.

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