Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

I mentioned this issue earlier in connection with a matter raised by Deputy Martin Ferris. I would like to explain the decisions taken in last week's budget on the sheep grassland scheme. We had a three year grassland scheme which was costing the country approximately €18 million a year, using unspent funds under Pillar 1. The aim of the scheme and the idea behind it was to increase the number of sheep being farmed in Ireland because for ten years in a row the flock decreased in size year after year. We had to try to reverse that trend. I am delighted to be able to say the scheme has contributed significantly to reversing it and for the first time in a decade, the flock is bigger this year. Therefore, the scheme has worked well.

I now want to try what I know has worked in other sectors, particularly in the dairy sector, in which we have seen the benefit of discussion groups. In the dairy sector dairy farmers meet on a monthly basis in what they might call "dairy discussion groups" to discuss how their business works and how their animals are performing and everything else. The issues discussed include fertility, grazing, feed conversion efficiency, stock management and so on. The evidence we have from the groups is that, on average, farmers who attend them have increased their profit margins by somewhere between 4% and 5%. I want to see the same benefits in the sheep sector. The sheep grassland scheme was due to end this year, but we have chosen to extend it into next year. We will spend €14 million on it next year and use €3 million from the budget to initiate a sheep discussion group model to encourage sheep farmers to enter the type of discussion group setting that has worked so well for the dairy and beef sectors in order that we can help sheep farmers to make more in the market place rather than rely on schemes for an income. This is a progressive measure. It is about using money in the most progressive way we can, given the problems we face.

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