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

The Deputy's questions are fair. A package worth €500 million has been secured, which is a really good delivery by Commissioner Hogan, because the expectation was that the package would be a lot less. Approximately €420 million of the funding will be spent on what are called national envelopes to enable a positive impact within countries on the income of dairy and pig farmers. Ireland's allocation is just under €14 million. There is a facility through which, if we want, we can match that funding with Exchequer funding. My Department is in discussions on the matter with the Department of Public Expenditure and Reform. We need approval to provide matching funding, because to facilitate that we would have to change our Estimates. Those discussions have not yet concluded.

We had a good discussion with all of the stakeholders at the first dairy forum meeting, which took place last week. The recommendation from farming organisations was that we consider the introduction of a flat payment for farmers, which would positively discriminate in favour of smaller farmers in terms of payments. Macra na Feirme made clear that it would like to see some level of top-up or priority for younger farmers, who may be more indebted because they are trying to grow their businesses, and may be under more pressure than dairy farmers who have been around longer. I agree with those recommendations. The Department's proposals in this regard have not yet been finalised but will be based on those principles. I do not propose to pay farmers on the basis of the amount of milk they produce and, therefore, give larger farmers more money. I do not think that is where the need is. In terms of the final outcome, I think most farmers, regardless of size, will receive similar payments. We may consider giving a top-up to young farmers to encourage them, which is something I have been consistently trying to do. We will work towards getting the payments out as soon as possible. I am certain they will be made within the next six weeks.

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