Dáil debates

Tuesday, 12 February 2013

Other Questions

Common Agricultural Policy Reform

3:05 pm

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

The problem is that under the World Trade Organisation rules, payments cannot be linked directly to productivity. I would like to be able to do so. Coupling is one way of doing it. The single farm payment cannot be linked directly to productivity which is the reason we have been relying on an historical link to productivity. Teagasc figures in 2010 demonstrate a correlation between farmers with the highest stocking rate and those in receipt of the highest payments. That does not necessarily mean that outliers do not exist who are in receipt of high payments. I will try to get those figures for the Deputy.

We are in the middle of a process to review the Common Agricultural Policy which has been in train for four years. We are now at the end game in efforts to hone in and focus on compromises. I would welcome input from the Opposition to the process. If the Deputy is proposing something entirely new which has not been debated and which is not part of the European Parliament or Council discussions, it is unlikely that a radically different arrangement could be achieved at this stage. I have had a brief discussion with the Commission. I do not believe that countries will be told they can set a cap at whatever level they wish. In my view the Sinn Féin proposal to cap payments at €100,000 was a pretty good proposal. However, whether we will be able see that through and have the flexibility to do so in the final agreement, remains to be seen. That is why I am slow to commit myself to any cap figure at the moment because I may not be able to deliver on it subsequently. I am the chairman but there are 27 countries and also the European Parliament which has very strong views.

The Commission wants to try to retain the Common Market approach. I am not sure how the idea that Ireland would be able to set a cap of €50,000, that Germany would have no cap at all and that this would not have an impact on competitiveness in the two countries in the context of how they produce food would fly. We are involved in a process and it would be helpful to consider where the proposals stand and from where the compromises on the part of the Parliament are coming. If these can be improved upon from an Irish perspective, then I would certainly like to obtain the Deputy's views on the matter.

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