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

The European Council on 7 and 8 February agreed the multiannual financial framework for the period 2014 to 2020. The overall EU budget was cut by about 7% compared with the Commission’s original proposals, and by 3.5% compared with the current MFF for the period 2007 to 2013.

By the way, that was seen as a triumph at the time given the fact that a year ago many people were talking about cuts of up to 30% to the Common Agricultural Policy budget.

In so far as Ireland is concerned, the projected annual average commitment for direct payments in the 2014 to 2020 period is approximately €1.214 billion. This implies a reduction of 3.3% on the 2013 allocation of €1.255 billion. The annual average commitment for rural development is €313 million in current prices, implying a reduction of 11% on the 2013 allocation of €352 million. I will add a caveat to these figures. Although the European Parliament has assented to the multi-annual financial framework, MFF related issues on CAP reform are being finalised and negotiated this afternoon and I have not got an update from that meeting yet. I am giving the figures assuming that they will agree today.

As I have said in answers to previous questions, we have initiated a consultation process on how we spend that money, who gets it, where it goes, what schemes we should introduce to help farmers get more money from the marketplace, how to help a new generation of farmer expand and get land and how to support vulnerable sectors and farmers on land that cannot allow them to benefit from growth and expansion under the food harvest plan. That is the position. There has been a reduction in terms of the overall CAP spend, but in his negotiations on the MFF, I believe the Taoiseach managed to limit the damage significantly, and that has been recognised by all the farming bodies.

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