Phil Hogan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

The European Council agreement on the new multi-annual financial framework, MFF, is a good deal for Ireland and for Europe. The overall amount for the last MFF for 2007 to 2013, was €994 billion. The amount agreed for the 2014 to 2020 MFF is approximately €960 billion. Although this is slightly less than the previous financial period it is, nonetheless, a positive development in the context of the financial situation that prevails across Europe currently and particularly in relation to the significant budget available for the Common Agricultural Policy.

The agreement provides some €373 billion funding for sustainable growth - natural resources, largely agriculture and fisheries - and it supports a continuing strong CAP. It will deliver some €1.2 billion per year in direct payments to farmers under Pillar I and €313 million per year under Pillar II, including a specific allocation of €100 million for rural development under Pillar II. It will give vital support to our agrifood industry which is growing and continuing to create employment. Ireland also secured a further €100 million for the BMW region from the ERDF. All of this combined means that Ireland will be in a strong position for the next programming period of 2014 to 2020.

The next stage is for the European Parliament to agree to the deal. In parallel with these discussions, the negotiation processes for the large range of regulatory instruments required to implement the various parts of the MFF will continue. The MFF provides for flexibility regarding the co-financing rates for various areas of rural development including Leader, for which my Department has responsibility. Final decisions on the specific nature of the co-financing arrangements for the Leader elements of the rural development programme remained to be negotiated and in this context, my Department and the Department of Agriculture, Food and the Marine, will be taking forward the discussions with a view to obtaining the best outcome for Ireland.

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