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

I suspect we will debate the CAP budget issue on many occasions in the House between now and the decisions being finalised. The Commission has set out its opening position, which recognises that in the absence of member states being willing to increase their contributions, there will be a €12 billion reduction in the EU budget because of Brexit.

In that context, the priority is the Common Agricultural Policy, CAP, through which approximately 80% of EU funds come into Ireland. It is a huge support across rural Ireland, with which people will be more than familiar. This round of CAP funding will deliver approximately €12 billion of EU funds into the rural economy. I am familiar with the preparations for the CAP negotiations because when the last round of CAP funding was finalised, I was Minister for Agriculture, Food and the Marine. Ireland chaired the Council of Ministers at the time. Therefore, I know that the Commission's proposal is just the start of the process.

I recognise the work Commissioner Phil Hogan has done in this area. Many were predicting a much higher initial proposed reduction under the CAP. Commissioner Hogan has done a very good job in limiting the initial damage, but there is a lot of work for us still to do to ensure there will be no reductions in supports available to Irish farmers in the future. However, much of what he said yesterday was welcome, apart from the actual funding that may be available. He focused on small to medium-sized farmers. That will continue the work that has begun on the equalisation process of payments that began in the current round of CAP funding. He also talked about facilitating a new crisis reserve fund, which would be hugely welcome. He talked about an increased focus on the environment and the climate and building on the greening of the CAP which is very much under way.

There are positives in what was announced yesterday, but there is work to be done to ensure member states will examine ways in which they can contribute increased amounts to the overall EU budget to compensate for the fact that, without Britain, we will have a smaller amount of money to spend in all areas at a time when the demand for expenditure from EU budgets is increasing in a number of new areas, from migration to security and so on.

From an Irish perspective, I want to be very clear. The CAP is a huge priority for us in the context of the multiannual financial framework, MFF. The support of Irish farmers will always be a big priority in the context of a future MFF. We will work with Commissioner Hogan who I believe has done a very good job in the context of the starting point of the negotiations to ensure we will protect the incomes of farmers.

See this speech in context