Andrew Doyle (Wicklow, Fine Gael) | Oireachtas source

I thank Deputy Penrose for his good wishes. I am extremely conscious of the importance of the CAP budget to Ireland's agriculture sector. The UK's withdrawal from the EU has been independently estimated to be likely to lead to a reduction of circa €10 billion, which will undoubtedly put pressure on the availability of funding for the future CAP. In the meantime, the amount of CAP funding per member state for Pillar 1 direct payments and Pillar 2 is fixed until 2020 in regulations of the Council and European Parliament. It would require a co-decided amendment of these regulations to change the figures. The only adjustment variable within that overall budget is expenditure on market supports, which is not allocated on a member state basis.

In my view, maintaining a strong CAP budget is one of the key challenges in the context of the multi-annual financial framework post-2020. The CAP budget is likely to come under increasing pressure, given the possibility that the overall EU budget will be reduced after 2020. Furthermore, there has been ongoing pressure from some member states to reduce the proportion of CAP spending within the overall EU budget and to divert this spending to newer priorities such as migration, defence and security. Brexit is also a significant factor and the loss of the UK contribution to the overall EU budget will undoubtedly put further pressure on the availability of funding for the CAP in the future.

Ireland will continue to negotiate for a strong and well financed CAP and seek to build alliances with member states with a common interest in supporting the EU's farm sector and consumers.

Ultimately, the CAP is funded by taxpayers across European member states. It is critically important against that background to reinforce the legitimacy and importance of the CAP and its role in achieving European priorities and objectives in areas such as employment creation and retention; food security; food safety and quality; the protection and enhancement of the environment; the development of the rural economy; and the prevention of land abandonment and rural depopulation. I strongly believe the CAP has evolved considerably and very effectively in recent years in response to changing market, consumer and environmental demands. It also plays a central role in delivering the smart, sustainable and inclusive growth sought under the Europe 2020 strategy.

I can assure Deputy Penrose that Ireland's objectives are clear as we enter into a new discussion on the financial perspectives and the shape of CAP post-2020. I will be working with Government colleagues, other member states and the EU institutions to secure the best possible outcome for the Irish agrifood sector.

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