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

This year's budget is unique, in that it aims to preserve the strong financial supports that assist our agrifood sector while providing for the potential of a significant external shock to the sector in the guise of a no-deal Brexit. The 2020 Estimates provide a gross Vote of €1.647 billion for the Department, of which €1.373 billion is current expenditure and €274 million is capital expenditure. That is a €51 million increase on the 2019 figure.

The 2020 provision focuses in particular on the difficulties in the beef sector. I am providing almost €85 million in targeted schemes to support sustainable beef farming. This includes €45 million for the beef data and genomics programme, BDGP, and a further €40 million for targeted supports. I intend to consult stakeholders as to the use of these funds, but in broad terms the following options will be considered: the continuation of the beef environmental efficiency pilot, BEEP, suckler cow-calf weighing scheme; the provision of supports for beef farmers rearing dairy beef animals to encourage best practice and improve the efficiency of such enterprises; and encouraging farm practices that ensure the highest standards of animal welfare on beef farms. I have also included €18 million for the sheep welfare scheme and the budget for Bord Bia will increase by €1.6 million, with much of the additional funding focused on promoting the consumption of Irish beef and sheepmeat.

I am providing €103 million in support for the forestry sector in recognition of the vital contribution that it can make to mitigating climate change and augmenting farm incomes. I am increasing the provision for the targeted agricultural modernisation schemes, TAMS, by €12 million to almost €82 million. This will fund investment in a range of environmental and competitiveness measures. The provision in the agri-environment area is increased by €8 million to almost €238 million. This includes an allocation of €3 million generated by the carbon tax, which will fund pilot projects aimed specifically at climate measures in agriculture. A call for a new pilot European Innovation Partnership, EIP, scheme on reduced management of farmed peatlands will be announced in due course.

The provision for the Department's seafood programme has been increased by €5 million to a total of €137.8 million. This will help fund vital investment in our fishery harbours, allow the Marine Institute to progress the construction of a new research vessel and provide for the vital work of the Sea-Fisheries Protection Authority, SFPA, and Bord Iascaigh Mhara in what may be very testing times for the industry.

Regarding the food sector, Teagasc's capital provision of more than €9 million will permit it to proceed with the development of the food hub in Moorepark. Some €8 million will be provided to support innovation and development in the food sector.

The Horse and Greyhound Racing Fund will be allocated €84 million and an additional €1 million will bring the 2020 allocation for Horse Sport Ireland to €4 million to assist with the strategic development of the sector.

The range of existing specific agri-taxation measures are estimated to provide €240 million per year in supports to the sector. I am pleased that these supports have been maintained. I have agreed with the Minister for Finance that our Departments will engage on potential measures to assist farmers in meeting the challenges and obligations set out in the climate action plan and to incentivise better health and safety in the sector.

I refer briefly to the Government's no-deal Brexit package, which is designed to assist the most vulnerable sectors in the event of a no-deal Brexit. Some €110 million will be made available for the agrifood sector in the first tranche, to be supplemented by any exceptional aid provided by the EU. This amount is not yet included in the Department's budget allocation, since we all continue to hope for and work towards a different outcome. If the UK leaves without a deal, though, the provision of €85 million in support for our beef sector will be a first priority, together with €14 million for our fishing fleet. We will also want to support food companies wishing to reorient production and marketing towards non-UK markets - a provision of €5 million is available for this purpose - and to provide necessary supports to other sectors to improve competitiveness, in which respect €6 million is being allocated. While funds cannot fully address the negative effects of a no-deal Brexit for the agrifood and fisheries sectors, this first tranche of supports will be used to ameliorate the immediate impact on farmers and fishermen as the full impact of a no-deal Brexit crystallises and to make some of the adjustments needed to improve the resilience of businesses in the face of new market realities.

This has been a brief overview of the range of measures that apply in the agrifood and marine sectors for 2020. I am confident that they provide an appropriate balance to support the development of a competitive and environmentally sustainable agrifood sector as well as a contingency to protect our sectors from the worst impacts of a no-deal Brexit.

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