Michael Creed (Cork North West, Fine Gael) | Oireachtas source

The Deputy calls for €200 million to be targeted at the beef sector. While I acknowledge the sector has had a difficult year, the Deputy comfortably avoided the issue of where this funding would be found. He indicated it should be allocated from the rural development programme. It must be borne in mind that we have expenditure lines that extend until the completion of the programme which means all available funding will be drawn down under current schemes. If the Deputy wants me to allocate €200 million from the programme to the beef sector, he must indicate from which scheme I should take this money. Should I take it from the green low-carbon agri-environment scheme, GLAS, or disadvantaged areas scheme? Should I abolish the sheep scheme?

If the Deputy is not suggesting I should allocate €200 million from the rural development programme and Pillar 2, he should state whether I should cut every farm payment under Pillar 1 to secure €200 million in savings to be reallocated to beef farmers. That is the uncomfortable choice that would have to be made.

A third choice, to provide Exchequer funding of €200 million, is a non-runner because of state aid rules. We do not have €200 million to spare in any case. If the Deputy asks for funding of €200 million, he must be specific about where it should come from. There is no plan to leave unspent moneys in the Common Agricultural Policy. While an underspend may arise in a given year, contractual obligations roll over. We are still making payments under the previous rural development programme, for example, under the early retirement and agri-environment options schemes. I have repeatedly made the point, although the Deputy does not appear to accept it, that schemes do not run precisely concurrently with the five year programme but contracts must be honoured over five years.

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