Micheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

In response to Deputy Carthy's points, Fianna Fáil's role in the Common Agricultural Policy and its evolution, going back to the days of Commissioner Ray MacSharry, has been exemplary in terms of fairness, farm families and ensuring the sustainability of the Common Agricultural Policy within the European Union framework throughout this decade. Deputy Brendan Smith, when he was Minister for Agriculture, Fisheries and Food, did an enormous amount of work, particularly in terms of sustainable food production. It has been an honourable tradition which the current Minister, Deputy McConalogue, is continuing in respect of the current negotiations on the Common Agricultural Policy. There has always been a need for flexibilities on the operation of CAP but they have been reducing over the years. On another day, Deputy Carthy would come in here and look for greater subsidiarity in respect of European Union measures, and greater flexibilities.

The current situation is that the discussions have moved fairly well and are coming to a conclusion. The results will not be universally accepted all round because people will prefer different elements of the agreement. We are getting closer. Member states will have the option to cap the basic payment at €100,000. The proposals also introduce a mechanism for member states to reduce direct payments above €60,000 to a maximum of 85%. Internal convergence will continue. All farmers must reach a level of 85% of the national average entitlement by 2026. Member states are expected to allocated 10% of direct payment funding to redistribute funding to small- and medium-sized farmers. Member states will also have the choice to derogate from this option, provided they can demonstrate that the redistribution needs, nationally identified, are met by other instruments.

With 27 member states, trying to put all of this together has been challenging. An amount equal to 3% of the direct payments envelope would be spent on attracting and sustaining young farmers. Direct payment top-ups, insulation aid and 50% of farm investment supports could count towards this 3% and the CAP will also include a social dimension. Farmers and other beneficiaries will receive direct payments in that area to ensure strong employment conditions and so on. Payments would be conditional on that.

Deputy Brendan Smith's point about national co-financing will pertain and the commitments made will be followed through on. Many parties in this House objected to and opposed the €1.5 billion carbon fund but it gives us the resources to help and support farmers in respect of a range of environmental schemes, separate to the environmental schemes that are being provided under the aegis of the Common Agricultural Policy. I accept the Deputy's point that Irish farming has been one of the more progressive food production systems in reducing emissions, when compared to many other food production systems across Europe and the world. Our dairy and beef industries are among the top performers in terms of their capacity to reduce emissions. That said, the challenges of climate change mean we have to do more. We want to work with and support the industry to enable that to happen. The carbon fund gives us room to allocate additional funding in that regard, as do the national co-financing mechanisms. We will continue to engage with the farming pillar through the social dialogue mechanism which we have re-established, and that is welcome. I intend that to be a consistent part of our engagement with the industry and sector to ensure we can progress employment and maintain this vital industry across Ireland and rural Ireland, in particular. It is vital to many towns and communities because of the employment it provides. We want to sustain that employment and support farming in making the advances it continues to make in terms of carbon and production efficiency and in providing employment.

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