Joe Carey (Clare, Fine Gael) | Oireachtas source

Budget 2017 was a sensible prudent budget. In the short time available I wish to concentrate on aspects relating to agriculture and rural affairs. I welcome the fact that budget 2017 will facilitate the development of an action plan for rural development to co-ordinate and implement initiatives to support economic and social progress throughout rural Ireland.

The budget increases funding to the rural development programme by €107 million; from €494 million in 2016 to €601 million in 2017. The reopening of schemes such as the green low-carbon agri-environment scheme, GLAS, and the beef data and genomics programme are welcome and offer opportunities to farmers in County Clare and throughout the country to bring increased income inside the farm gate.

Many deputations to my office over recent months have expressed concern with regard to the income averaging facility. The new arrangement, as announced by the Minister for Finance, Deputy Noonan, which will allow a farmer facing an exceptionally poor year to step out of income averaging and, instead, pay only the tax due on a current year basis with any deferred tax liability becoming payable over subsequent years, is a proper and common sense solution to what had all the ingredients of the perfect financial storm for many of our farmers at the end of October 2016. I also welcome improvements in the means testing arrangements for low-income farmers on farm assist, including farm families with children. The expansion of the rural social scheme by 500 places is a further underscoring of an important initiative supporting rural Ireland.

The headline issue with respect to agriculture in budget 2017 is no doubt the announcement of the plans for a €150 million, 2.95% interest, agri cashflow support loan. I welcome the fact that the Minister for Agriculture, Food and the Marine has been exploring new and more competitive sources of funding for Irish agriculture. There is no doubt that there are evolving market requirements, not least the potential impact of Brexit. The Minister has given us the outline of the new scheme. I urge him to continue in this proactive vein and not leave the delivery and final design of this initiative solely in the hands of Ireland’s commercial banks. His work and that of the Department is only beginning now with this potential agricultural game changer.

A genuine fear expressed in response to this initiative is that this scheme could be a Trojan Horse, designed to wean farmers from the Common Agricultural Policy. I would like the Minister for Agriculture, Food and the Marine to address this point. In fairness to Commissioner Phil Hogan in his speech of 23 June 2015 at the National Convention Centre he dealt with this question. I would like to hear the Minister for Agriculture, Food and the Marine, Deputy Creed, hammering home the point that this scheme is not a replacement for a farmer's basic payment scheme, BPS, payment.

I welcome the 2017 budgetary allocation of €111.6 million for forestry development as announced by the Minister of State at the Department of Agriculture, Food and the Marine with responsibility for forestry, Deputy Andrew Doyle. This level of funding is further evidence of the Government’s ongoing commitment to the sector as set out in the Forestry Programme 2014—2020. It will ensure continued progress in the drive towards increased forestry and mobilisation of the existing timber and biomass resource. These are two core objectives necessary for growing Ireland’s timber processing industry. The level of funding provided is also significant given the recent EU proposals on climate change mitigation and the potential role of forestry in helping to achieve the targets set. I note that in the 2017 budgetary allocation there is a capital carry-over. Does this relate to the sterilisation of lands with respect to forestry established in hen harrier special protection areas, SPAs? Could the Minister of State clarify that?

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