Andrew Doyle (Wicklow, Fine Gael) | Oireachtas source

The Government's continued commitment to the agrifood sector has been firmly reflected in the agrifood and marine budget for 2017. The increase in spending on the rural development programme, RDP, to €601 million in 2017, with the introduction of new schemes such as the animal welfare scheme for sheep, which is worth €25 million, and the innovative €150 million agri cashflow support loan fund, are key examples of the level of support provided.

I wish to focus on my key areas of responsibility as Minister of State, those being, forestry, horticulture, organics and the greyhound sector. It is intended that total expenditure in this area will amount to just over €142 million in 2017. The Government's ongoing commitment to the forestry sector is reflected in this year's budget. It is intended that €111.6 million will be made available for forestry development during 2017. This commitment is particularly significant, given the potential role of forestry in helping to achieve the targets set by the recent EU proposals on climate change mitigation, etc. The funding will allow for more than 7,100 ha of new forests to be planted, which is almost 800 ha more than the total area planted in 2015, 110 km of new forest roads and forest management initiatives. This is important, given that these aspects have been neglected in previous afforestation programmes. Payments under the new reconstitution scheme will also commence during 2017.

Much has been said and written about the forestry sector and its potential conflict with agriculture. It is my firm belief that forestry has a role to play, and not only in terms of climate change. Speaking as a farmer who recently planted some of my land in the second phase, the sector is part of the overall farming enterprise and can deliver asset value, increase the future-proofing of marginal parts of farmland and add to income streams, allowing for the development of other areas of farm enterprise. Forestry is not in conflict with other agricultural activities at all.

I am keenly aware of the challenges that the horticulture sector is experiencing in the aftermath of the UK decision to exit the EU, particularly in light of currency fluctuations. I dealt today with Deputy Ó Caoláin's Topical Issue on the mushroom sector, which is particularly vulnerable in areas of the country that do not have a tradition of other agricultural activities. We are making every effort to deal with the crisis. Brexit will happen at some stage, but the immediate impact has been the fluctuation in currency. The UK is important for exporters across the agrifood industry, but it accounts for almost 100% of the mushroom sector's export trade, so the fluctuation in sterling is having a profound effect on it. Many initiatives need to be taken together to ensure that the sector has a viable future.

In this context, funding for capital investments in the commercial horticulture sector has been increased to €5 million in 2017. The horticulture sector will also have access to the €150 million low-interest cashflow support loan fund that was announced last Tuesday, providing access to highly flexible loans for up to six years and for amounts of up to €150,000 at an interest rate of 2.95% and an option to pay interest only for up to three years. Bord Bia is also investing in a market development programme that will assist companies dealing with currency and trading difficulties. These measures, coupled with continued engagement through the Consultative Stakeholders Committee on Brexit, the Food Wise 2025 high-level implementation committee and the Department's dedicated Brexit unit, will assist the sector in meeting emerging challenges.

Organics have been a significant growth industry. Last Thursday, I attended the annual organic awards at the Bord Bia Food Centre on Mount Street where there were 268 entrants and 22 finalists across seven sectors. It is a vibrant sector which has grown significantly. It is still not large, but it has considerable potential. The allocation of €10 million for the organic farming scheme reflects the Government's commitment to ongoing support for this sector and the unprecedented success of the scheme, in that it is fully subscribed to. The allocation will support more than 1,600 farmers who have opted to go organic, many converting for the first time. This growth sector provides farmers with a key opportunity for adding value through the development of processed organic products.

Funding is also available for capital investments in the organic sector under the organic capital investment scheme, one of six measures available to farmers under the targeted agricultural modernisation scheme, TAMS Il. These measures were launched under the Rural Development Programme 2014-2020 and are co-funded under the European Agricultural Fund for Rural Development, EAFRD.

Regarding the greyhound sector and Bord na gCon, I must say that, after I was told that I had been appointed to this position, it was only when I went to Agriculture House that I realised that greyhounds were also part of the package. Deputy Ó Cuív will know that, since being appointed as Chairman of the Joint Sub-Committee on Fisheries, I have been on a steep learning curve. However, I am pleased that the Government is signalling its intention to continue to support the Horse and Greyhound Racing Fund in 2017, with an anticipated increase in expenditure to €16 million next year for Bord na gCon. This sector is an important contributor to the economy and provides employment in rural and urban areas.

Deputy Ó Cuív is aware that in the previous Dáil the agriculture committee was trying to get impetus into the provision of new greyhound legislation, as it dates from 1958. I am pleased to say I have met officials and the board and we are advancing draft heads of a Bill. We hope to give the new agriculture committee a little bit of business in the form of pre-legislative scrutiny of that Bill. My intention is this will commence before this session finishes and we will be able to fine-tune an item of legislation for the future, dealing with the likes of governance, finance, control and appeals. There is also concern about welfare.

We have much work to do on this. As somebody with no particular vested interest, I am able to look at this with a clean pair of eyes and say we should move on with it. It is a sector that has much potential and many challenges. We can work together on it and I implore that those in the industry work with one other as well. If they do that, we can help them but if they do not, it will be difficult.

The 2017 budget has moved along issues in the agricultural sector. I am cautious as Brexit and the fluctuations in sterling in particular will present challenges, along with the possibility of tariffs and borders in times to come. The value of sterling in the immediate future will present a major challenge to the sector and agrifood exports in particular. The UK market amounts to 45% of everything we produce. It is our nearest trading neighbour and it always will be important. Whatever finally comes to pass by way of arrangements, agreements and currency differentials etc., we will still trade with the UK. We must try to ensure as little damage as possible is done to what has been a real growth sector over the past five or six years. It is one of the few areas that was able to grow and develop significantly during the challenging economic crisis. It is vital that we deal with the issue and the Department has its own Brexit implementation team to do that as best it can. It is a cross-sectoral and cross-departmental issue. Ultimately, we have been doing everything right from a trade stability perspective, meeting market demands. It is something we must fall back on in the next 12 months and beyond.

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