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

The Deputy's questions are all very relevant. I, too, hope we can conclude the discussions and finalisation of the agreement with the European Parliament today. What is currently being finalised relates to multi-annual financial framework decisions by Heads of States in terms of issues such as transfer between pillars and a number of other issues around capping, in which I know Deputy Martin Ferris also has an interest. I hope we can reach final agreement with the Parliament on those issues which remain outstanding.

On the co-financing issue, about which I have been asked repeatedly, there are a number of different co-financing rates available to Ireland because the Commission is trying to encourage member states to ensure they spend money on particular issues. For example, a 75% co-funding rate will be applied to environmental schemes and a co-funding rate of 53% will be applied to other schemes. It is no surprise that I would expect the Department of Public Expenditure and Reform to ensure that, first, all of the money is drawn down and, second, that we maximise the highest level of co-funding available for Ireland. We need to take this into account, of course, but my first priority is to ensure we are spending as much money as we can in rural Ireland on the schemes that can give us the biggest bang for our buck. It is too early for me to say we will have a 50:50 co-funding of all expenditure. However, I can assure the Deputy we will be ensuring all of the EU money available under Pillar 2 will be fully drawn down and we will co-fund to the extent necessary to ensure that happens and, one hopes, in the years ahead, go well beyond that, as previous Governments did when they added significant top-ups from the Exchequer to rural development programmes.

On the forestry issue, it is unlikely we will include forestry expenditure in the rural development programmes. However, I do not wish to rule anything out until such time as our approach has been finalised following the public consultation.

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