Simon Coveney (Cork South Central, Fine Gael)

This question relates to the specific issue of the use of 2014 as a reference year for the new CAP proposals in respect of single farm payments. The Deputy will be aware that in advance of the publication of the European Commission's document on reform of the CAP, a great deal of concern was expressed to the effect that 2014 would be used as a reference year. That concern was realised when the document in question was published. In the period between the commencement of the lobbying effort in respect of this matter and the publication of the document, my officials and I engaged in intensive lobbying of the cabinet of the Commissioner on Agriculture and Rural Development. We indicated that what is proposed would give rise to major problems in Ireland and that we are extremely concerned that there would be a land grab prior to 2014 if the reference year was set in the future rather than - as has traditionally been the case - in the past.

There was partial acceptance of the argument we put forward because the Commission added a new section which stipulates the inclusion of 2011 as a "tie-back" year. In other words, if a farmer has eligibility in the proposed reference year of 2014, he or she can only be eligible for the single farm payment in the future if he or she made some claim for that payment in 2011. This is designed to stop people from outside the agricultural community coming in and buying up large tracts of lower value land in an effort to secure payments indefinitely into the future. In essence, the problem has still not been resolved. I remain concerned that in the build up to 2014 the leasing and conacre markets and, potentially, the afforestation market may be affected by the setting of the reference year in the future rather than the past.

Farmers should recognise that this issue remains the subject of much discussion. In that context, I encourage people not to make investment or long-term leasing decisions on the basis of the current reference year of 2014 or the current tie-back year of 2011. A great deal of negotiation remains to be done in respect of this issue.

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