Simon Coveney (Cork South Central, Fine Gael)

I have the relevant reference. There has been much concern, particularly among farmers involved in leasing. Last year approximately 17% of the farmed land in Ireland was leased, on either short-term or long-term leases. That is a significant portion of farmland and that 17% of leased land is often very high quality, productive farmland.

Many rumours have been coming from Brussels and elsewhere to the effect that the Commission's proposals, to be published next Wednesday, will have 2014 as the reference year for future single farm payment. That has caused much concern because when a reference year is set for a future date it impacts on land mobility and rental markets. Obviously people will want to maximise the holding they are farming in a reference year. I have repeatedly made the case to the Commission - as have my officials and they did so as recently as earlier today at the G5 - that it must reconsider the position. The idea of setting a reference year in the future could contribute to warping the rental and leasing market for land in a way that would not be either anticipated or desired. This is something we need to prevent.

The Commission has redrafted sections of the proposal it is due to bring forward next week to try to take account of some of the issues we have raised with it. I have my doubts with regard to whether it will change the 2014 reference year. It will probably retain that as the reference year. However, I am of the view that it will include new elements and paragraphs to try to reassure those who had entitlements in 2010 and 2011 that they will also have such entitlements after 2014. We must wait and see what happens next week but I encourage people not to jump to conclusions until the proposal is published next Wednesday.

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