Charlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

I welcome the opportunity to speak on the impact of budgetary measures on the agriculture and marine sector. The overall agriculture and marine envelope leaves people underwhelmed. It falls far short of the expectations of those in both sectors. As for the agrifood and agriculture sector, considering the massive financial pressure farmers have been under in recent months, there is nothing of substance in this budget to address the income crisis. That is particularly the case with beef farmers and their needs, especially in the light of the protests over the summer at meat factories. That was an expression borne from the losses farmers are experiencing. Nothing additional is coming out of this budget to support them in respect of the losses they have experienced.

The beef exceptional aid measure, BEAM, scheme which was agreed at a European level, with €50 million coming from the Commission and €50 million from the domestic Exchequer, covered the reference period from September last year until May this year. The period from May until the present, however, has seen prices at a lower level than was the case during the reference period. There has been no recognition by the Government of the losses farmers have experienced as a result and no effort to ensure any mitigation. This comes alongside what farmers experienced with the €20 million for the beef environmental efficiency pilot, BEEP, scheme, which was announced in budget week last year. As we debate the 2020 budget, none of that €20 million has yet been delivered to farmers. They still await the payments announced this time last year. That is despite farmers having experienced one of the most difficult years in recent times for income. That speaks again to what my colleague, Deputy Darragh O'Brien, outlined regarding the total failure of the Government to deliver on its promises and commitments.

A significant and important aspect of the budget concerns Brexit and the need to prepare as well as possible to meet the challenge of a hard Brexit. As Deputy Darragh O'Brien outlined, that necessity for political stability to meet the Brexit challenge is the reason Fianna Fáil facilitated this budget and allowed an extension of the confidence and supply agreement. Regarding the agrifood sector, in particular, however, the level of financial commitment to preparations for Brexit are nowhere near what is required. The overall budgetary envelope indicates €650 million is being allocated to Brexit preparation funds, with €110 million of that to be made available immediately for the agrifood and marine sector in the event of a hard Brexit. Similarly, €110 million will be made available to the enterprise sector, while a decision on the allocation of the remaining €400 million will be made later.

Let us look at what has happened with other schemes, however. As I stated, €100 million was allocated to the BEAM scheme to cover losses from September 2018 to May 2019. That scheme was intended to address losses incurred prior to a hard Brexit and it still only partially covered those losses. The idea, therefore, that the €110 million to be released immediately is anywhere near sufficient to facilitate the needs of the agrifood sector simply does not stand up. There is also a great lack of detail concerning how and to whom that funding will be delivered. There also is a question as to whether it will be farmers who ultimately will benefit from it. No detail at all has been given to us and that is the least we would have expected. We require it and are asking to see it now. It is not acceptable, with three weeks to go, that the information provided is so general and there is such a lack of specifics from the Government on how this funding will be spent. It also will be essential for there to be funding from the European Commission in the event of a hard Brexit. A significant package is needed from the Commission to assist us in that case. We will, of course, all be working together, across all parties, to try to ensure that there will be no hard Brexit at the end of October.

I will mention a few other outstanding elements that the budget does not deal with and which the Government must address. A significant number of farmers have come out of the agri-environment options scheme, AEOS, and cannot access the follow-on green low-carbon agri-environment scheme, GLAS, because it is closed. It is unfair that those farmers have not got the opportunity to participate. That is particularly the case given our climate change targets and our objectives in trying to boost biodiversity and improve the environment. It does not make sense that those farmers are not being facilitated to join the follow-on scheme.

Turning to the marine sector, the €14 million allocated for Brexit will also be nowhere near sufficient. There has also been very little detail from the Government regarding those funds. We also did not see any additional funds allocated to support the many small fishery harbours around the country. They have left with paltry funds in recent years. No assistance has been provided to the local authorities, in whose ownership those harbours rest, to ensure they are maintained and developed. That needs to be addressed and should have been addressed by now.

I welcome the additional €1 million for Horse Sport Ireland, which brings its total funding to some €4 million. I know that organisation requested and needs additional funds but the €1 million will certainly assist. It needs to be just the start, however. It has been disappointing, given the engagement between the Irish Harness Racing Association, IHRA, and the Government in recent years that once again no funding has been provided for it in this budget. Its strategic plans to develop the harness racing sector have not been supported.

It is similar with the knowledge transfer, KT, programme. It is disappointing to not see a commitment to follow up on and extend funding for that initiative. The existing funding has been underspent. I refer to the previous allocated commitment and the take-up of that scheme. It has been of great benefit to the many farmers who have participated. The Government should examine the underspending and consider extending the scheme for a fourth year.

I will also touch on the issue of stamp duty and the impact that will have on the farming sector. This measure is targeted at commercial property. There has undoubtedly been a bubble in that sector, which has seen major profits made and where the increase in the rate of stamp duty could be justified. The failure of the Government to put in adequate safeguards is, however, going to impact many farmers who are seeking to buy land to expand their farms. It is an unfair measure in that regard. The Government should have examined ways to ensure that those farmers who are being progressive in seeking to expand their holdings would not be penalised in so doing. Stamp duty relief exists for young fully qualified farmers under the age of 35 years. They can benefit from a stamp duty rate of 1%. Consanguinity relief also exists for intrafamilial transfers and that scheme also qualifies at the rate of 1%. A whole category for farmers seeking to expand will, however, be unnecessarily affected by the Government's plans in respect of stamp duty.

The overall message to the Government is that it still is not listening. It still does not understand the income crisis in the farming sector and this budget has not sought to deliver on addressing that issue. My message to the Minister, Deputy Creed, and the rest of the Cabinet is they need to seek funds from the European Commission to assist farmers with the losses they have suffered in recent months. That needs to be done now.

We also need commitments from the European Union on what the funding will be from it for mitigation measures in the event of a hard Brexit.

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