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

I expect Deputy Kelleher and Deputy Ó Cuív, who is present to deal with the question, might have differing views on this issue, but perhaps that is not the case.

I can confirm that I am actively pursuing the question of internal convergence in the CAP reform negotiations. Indeed, it is probably my key concern in the overall CAP reform process. Under a national flat rate system, as proposed by the Commission, the impact on farmers would be significant in that approximately 76,000 farmers would gain an average of 86% on their current payments, while around 57,000 would lose an average of 33% on their payments. These are average percentages and some of the gains and losses would be far higher than this. In my view, this would have undesirable consequences at a time when Ireland is trying to encourage sustainable intensification in the agri-food sector as we strive to achieve the objectives of the Food Harvest 2020 strategy. Accordingly, I have been pressing for the maximum possible flexibility to be given to member states to design payment models that suit their own farming conditions. The approximation approach, under which all payments could gradually move towards, but not fully to, an average payment, is one alternative I believe should be considered in this regard. The Commission's pragmatic proposal for redistribution between member states is, in effect, an approximation model and provides a useful precedent. Modelling in my Department suggests that the application of this system to the distribution of funds among farmers in Ireland would lead to much smaller gains and losses to individual farmers than a flat rate system.

I have been very active in seeking allies for this position and I have been making significant progress, particularly with a group of member states with somewhat similar concerns to Ireland, including Spain, Portugal, Italy, Denmark, Luxembourg and, indeed, France and Belgium.

A number of other member states that are pressing for the adoption of a slightly different approach are also sympathetic. They include Austria, Slovenia and Hungary. In the past month the agriculture committee of the European Parliament has come on board by including an approximation model in its text. I am in regular contact with the Commission and other member states and confident that following our efforts, there is recognition of the difficulties the original Commission proposal poses for some member states such as Ireland. I hope to be in a position in the coming weeks to table a compromise solution that will be acceptable to all member states and that will try to strike a balance between the Commission proposal and the approximation proposal I have advocated. I know the Deputy has concerns in this area also and we have tried to take on board some of them.

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