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

It is important for people to know what is possible and what is not possible. We have previously discussed putting a ceiling on payments of €100,000. In principle I agreed with that and I am on the record as having said that. We now have an agreement with other Ministers. Some countries, in particular Germany and the UK, wanted no capping at all and have only agreed to a 5% degressive payment over €150,000, which represents very limited capping. We have also agreed that on a voluntary basis member states may have a degressive payment of up to 100% - in other words no payment above €150,000. However, there is no provision allowing us to introduce a cap under that. The reason is that we have a Common Market in which big farmers are competing with big farmers in other parts of Europe in the same marketplace. There was a view that we need to try to maintain a level playing field on direct payments available for farmers. I would not have had an issue if the agreement at ministerial level was for a cap at €100,000. However, that is not the position - the position is €150,000. We will decide whether we choose to reduce payments above that figure or to cap payments at that figure, as we will decide everything else at the end of the consultation process.

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