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

I am delighted to have the opportunity, albeit brief, to outline the expenditure plans of the Department of Agriculture, Food and the Marine for 2019. A total of €1,616 million is planned expenditure from the Exchequer in 2019 plus, in the context of direct support under the Common Agricultural Policy, EU receipts of €1.2 billion. This is a critical Vote in respect of the rural community and, in particular, the agriculture, agrifood and fisheries industries. The objective which we sought to achieve in the budget was to build resilience in the sector, particularly in the context of a very challenging 2018 for the livestock sector in terms of the market and weather events experienced. This sector is the most exposed to Brexit. We put together a €78 million package, €44 million of which is allocated to building resilience inside the farm gate. The principal planks of this are an increase in the areas of natural constraint, ANC, payments amounting to €23 million. This follows on from an additional €25 million provided last year, which amounts to a 24% increase in ANC payments over two years, bringing us back to the level of €250 million last seen in 2008 when the cuts to ANC were implemented by a Fianna Fáil Government. I am glad that this Government is in a position to restore this important payment. The Leas-Cheann Comhairle will be aware that last year, in terms of the additional €25 million, the most disadvantaged areas received €13 million, the intermediate tier received €9 million and the least disadvantaged of the ANC categorised lands received €3 million. I will consult with stakeholders to repeat this kind of targeting of those payments in 2019.

The other substantial element of the package for the farming sector is the initiative under the environmental efficiency package for the beef sector. This will deliver a €40 payment per weanling for the suckler beef sector. The purpose of this initiative is to encourage the reporting of data to the Irish Cattle Breeding Federation, ICBF, which will assist in the journey the industry is on to improve the genetic merit of the beef herd. This means small suckler cows delivering bigger quality weanlings, a herd that is more fertile, calves every year and is easy calving and, simultaneously, drives down the carbon footprint. This delivers to the farming community while at the same time acknowledging the overhanging policy obligation in respect of the climate change agenda.

There is also significant support for the agencies in the context of Brexit, with €5 million for Bord Bia, €6 million for Teagasc, €13 million for supports for the SME sector, €3 million for the artisan food sector and €7 million for recruitment of staff and associated ICT costs. Overall, it is a package of €78 million. What have not received as much commentary in the context of the budget are the taxation measures. Yesterday, we published the cumulative impact of the agri-taxation review which was initiated by my predecessor, now Tánaiste and Minister for Foreign Affairs and Trade, Deputy Coveney. This is delivering in excess of €200 million every year to the agricultural community. Many in the agricultural community would be delighted if they were able to invoke the provisions therein, particularly with regard to taxation, but the challenge for many of these industries, particularly in the livestock sector, is not having a taxable income and, hence, the supports I mentioned earlier.

This budget also addresses the issues of generational renewal, the restoration of stock relief and stamp duty exemptions, etc., for young farmers, which will be of benefit to the dairy sector in particular because it is an area where there are reasonable levels of income. It also provides for the extension of the income averaging to families with an off-farm income, be that the income of a farmer or a spouse, who up to now were excluded from availing of this provision. Overall, it is a balanced package. Agriculture is our biggest indigenous sector, which employs, inside and outside the farm gate, 175,000 people and it is the most exposed to the challenge of Brexit.

The Leas-Cheann Comhairle will be aware of the provisions in the budget in regard to the marine sector, which will enable us to proceed with critical infrastructure investment in Killybegs and Castletownbere in 2019. Funding is also provided to the Marine Institute to enable it to commence the process of replacing the RV Celtic Voyagerresearch boat in 2019.

All in all this is a balanced budget. The most unsung thing about this budget is that this is the first balanced budget in over ten years. This is the best guarantee we have of avoiding the boom and bust cycle that has bedevilled the Irish economy for many years. This is equally of significance in the context of the budget.

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