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

Proposals for new regulations for the CAP for 2021 to 2027 were published on Friday, 1 June 2018 by the Commissioner, Mr. Hogan. The proposals as drafted involve significant changes, including on governance, the distribution of direct payments among farmers and the increasing environmental conditionality attaching to such payments. There will be some additional discretion for member states in configuring the measures available, within parameters laid down in Council regulations. Risk management measures, and measures to support young farmers and new entrants will be mandatory, and there will be a significant emphasis on education and technology adoption. At least 5% of rural development funds will be ring-fenced for the LEADER programme.

The Commission's objective is to have the proposals adopted by the co-legislators in spring 2019, prior to European Parliament elections in May that year. Preliminary discussions of the draft proposal took place at the informal Council meeting in Sofia, Bulgaria, and Agriculture Ministers discussed the proposals in more detail at the recent agri-fish Councils. Further discussions will take place in Luxembourg on 15 October. In general, member states have expressed concerns about the level of the budget and the different nature and additional complexity for reasons stated.

The Austrian Presidency has implemented an intensive programme of working party meetings to discuss specific aspects of the CAP proposals. Meetings commenced in July and have continued into September and October, where up to ten additional working party meetings have been scheduled.

To date, the special committee of agriculture has been provided with three separate updates on the state of play of the working party meetings. A progress report on CAP post-2020 discussions was presented at the special committee on 8 October in preparation for the upcoming Agriculture and Fisheries Council in October.

I am pleased to see the continued commitment in the new proposals to direct payments. They are a crucial component of the family farm income and their value cannot be underestimated. They provide income support, help prevent land abandonment and contribute towards economic growth in rural areas, as well as contributing towards the public goods that are delivered by farmers across Ireland and the European Union. This emphasises the need to continue to seek to secure an adequate and appropriate budget for CAP post-2020.

Another key feature is the increased environmental conditionality of CAP post-2020. A minimum of 40% of the CAP budget for each member state must be devoted to the environment and climate change. This increased conditionality recognises the role agriculture has to play in helping us meet our climate objectives. All European countries, including Ireland, have commitments under the Paris accord. I have always been clear that protecting the environment and maintaining our agrifood sector go hand in hand, and one cannot have one without the other. I want to see a future CAP playing a major role in supporting the farm sector in contributing to climate change mitigation and improved water quality and biodiversity.

Additional information not given on the floor of the House

My officials and I are working constructively on the CAP proposals. My Department has engaged in a consultative process with all stakeholders involved. In February this year, I launched my Department's public consultation process. As part of that process, both the Minister of State, Deputy Andrew Doyle, and I participated in six public meetings held to discuss the future of the CAP in various locations around the country. The public consultation was followed by a consultative conference with stakeholders in July. The outcome of the public consultation process and the stakeholder conference is feeding into the Department's analysis and consideration of Ireland's position on key issues in the proposals.

The CAP proposals are intrinsically linked to the proposals for the overall EU budget, the multi-annual financial framework, MFF. The MFF proposes a 5% cut to the overall CAP budget. While decisions on this are a matter for Heads of State and Ministers for Finance, I have worked with my colleagues in the Agriculture and Fisheries Council to gain agreement on the need to protect the CAP budget. In May this year I, along with my EU ministerial colleagues from France, Spain, Portugal, Greece and Finland, signed a joint memorandum seeking the retention of the CAP budget at current levels. The memorandum was presented at the Agriculture and Fisheries Council in Luxembourg on 18 June, and up to 20 other EU Ministers have signalled their support to this proposal. At the Council on 16 July 2018, France and Germany presented a joint declaration that included a rejection of the cuts proposed. This paper was supported by other member states, including Croatia, Romania, Spain, Portugal, Slovenia, Belgium and Ireland. The retention of a sufficient budget for CAP is an essential requirement for Ireland. This is even more important against the background of Brexit.

We are engaged in the negotiation process but many aspects remain to be clarified so it is by no means certain what the final outcome of the proposals will be. I reassure the Deputy that I am committed to securing the best possible outcome for Ireland in the continuing negotiations.

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