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

I will come to the last question in a later reply. Back in 2007 there were 340 companies drawing down payments. There are now 435. It is true that many of these are a result of farmers coming together to set up a limited company to draw down payments on the transfer. There are larger companies also. The Deputy referred to the Irish Agricultural Development Company which is part of the Goodman group. It has a large beef herd and drawn down payments to which it is perfectly entitled. I do not think we should comment overly on individual cases because they are applying the rules of the system in place. However, we are changing this system with the Common Agricultural Policy reform process. Payments will be fairer and more equitable. The model I have advocated for the past 18 months will ensure that in the redistribution of direct and single farm payments, everyone will be moved to an average payment. However, this model will also limit the transfer in such a way that it does not put individual farmers out of business who rely heavily on their single farm payment, while at the same time significantly increasing payments to farmers who have historically low payments but want to become more productive. I will continue to advocate this policy because it is fair.

We achieved a significant victory at the Council of Ministers to get acceptance from the other 26 member states of this alternative model to the flat-rate, area-based model the Commission had proposed. We must go forward and reach a compromise position with the Commission which has a different view from mine, as well as the European Parliament which has a similar view to mine but wants to move further with redistribution. We will have to find before the end of June a way of compromising on a figure and method for redistribution.

Let us be clear. Redistribution is going to happen. The question is to what extent is it going to happen in terms of the amount of money involved and the pace of that redistribution. I have strongly advocated that we need to do this over time and limit the redistribution to ensure we keep our herd size and productivity intact, while assisting the farmers contributing most to the Food Harvest targets.

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