Dáil debates

Wednesday, 13 October 2021

Financial Resolutions 2021 - Financial Resolution No. 2: General (Resumed)

 

5:50 pm

Photo of Martin HeydonMartin Heydon (Kildare South, Fine Gael) | Oireachtas source

Let me start by welcoming budget 2022 in an overall sense. I believe it is a fair and balanced approach for all of our citizens. From an agricultural perspective, and in this time of transition, farmers can have confidence that this budget protects farm family incomes and supports actions to improve safety and sustainability on farms.

Farm safety is an issue of great importance for me, my Department and the Government. Following my appointment as the first ever Minister of State with responsibility for farm safety, I secured a dedicated staffing resource for farm safety within the Department of Agriculture, Food and the Marine. This year I am delighted to have secured the first ever dedicated budget of €2 million for farm safety. This budget will allow us to fund a range of farm safety initiatives over the coming months, aimed at driving down the rate of fatal and serious incidents on our farms. This will only happen by changing behaviours and increasing awareness, training and investment in key farm safety and mental health and well-being measures.

The €2 million allocation is in addition to continued funding for fire safety equipment under TAMS, the accelerated capital allowance for the farm safety equipment scheme and a range of locally=led schemes focused on farm health, safety and well-being projects. I have developed these initiatives as part of my wider goal to drive a change in culture on our farms that puts safety first. Combined, they are a clear commitment to bring about the required change.

In my other areas of direct responsibility, namely new market development and research and innovation, there are also strong commitments. Bord Bia will have €53 million to help to support us in our ongoing efforts to maintain and grow existing markets for Irish food and drink and to open new markets. This funding will enable Bord Bia to continue to invest in innovative digital approaches to developing new markets, defending and growing our food and drink exports in existing markets in the UK and Europe and build on our reputation in third countries, in line with our market access programme. It will also facilitate a welcome return to in-person trade missions, as international travel opens up, keeping Ireland and its quality, sustainable, and safe food offering current, relevant and visible, in line with our food vision 2030 strategy.

Ireland is one of the most sustainable producers of food in the world. I am incredibly proud of the work our farmers do, and as Minister of State with responsibility for new market development, I will continue to promote their work and stories abroad. Teagasc will receive €153 million, along with ongoing commitments from my Department to fund important research. Investment in research will allow us to assist farmers, future-proof our industry and develop key solutions to meet the ambitions of the agrifood sector. It is important that our policy decisions are guided by robust science at all times.

Regarding the food ombudsman, the Minister, Deputy McConalogue, the Minister of State, Deputy Hackett, and myself are committed to advancing fairness and transparency in the agriculture and food supply chain. It is vital that our farmers, who are at the start of the chain, and who are the most important link, have confidence in the system. We intend to enhance transparency through the establishment of a new office that will fulfil the role of the national food ombudsman. This year, as an interim step, the unfair trading practices enforcement authority was established in my Department. The primary legislation required to establish the new office is being drafted by my Department and on the Government's legislation priority list.

Funding of €4 million has been provided in budget 2022 for the office's establishment costs.

Agri-taxation measures complement my Department's Vote spending. We have worked closely with the Minister, Deputy Donohoe, on agri-taxation issues, and I welcome his renewal of stamp duty relief for young trained farmers and general stock relief, young trained farmer stock relief, and registered farm partnership stock relief. The total value of the reliefs renewed yesterday is €15.8 million. These national taxation measures, together with the support available under the Common Agricultural Policy, CAP, represent a substantial commitment to young farmers. I myself was once a young farmer, though I may not look it anymore. I know these men and women are the future of our sector. They can be assured the Government is fully committed to generational renewal.

I am also pleased that small cider producers will benefit from the introduction of an excise relief similar to that which is already available for microbreweries. As well as supporting the domestic small-scale cider sector, this will have benefits for fruit growers.

The phased introduction of the new zoned land tax is an important initiative to improve the housing supply, which is badly needed for families in both urban and rural areas. However, we must account for land that is in active agricultural use. We will work with the Minister, Deputy Donohoe, to ensure farmers who may be farming zoned and serviceable land are fully aware of the implications and can plan accordingly.

A programme for Government commitment provides for additional current funding of €1.5 billion from carbon tax funding for new schemes that will incentivise farmers to farm in a green and more sustainable way. To maximise the impact of the carbon tax funds from 2023 onward, the majority of this year's allocation is deferred to the period post 2023. This will allow funding to be programmed into the CAP strategic plan, ensuring compliance with agricultural state aid rules and with a view to securing European Commission approval for the interventions proposed and coherence with the overall green architecture proposed for the CAP strategic plan 2023-27. Let there be no doubt: the additional €1.5 billion committed to farmers from carbon tax in our programme for Government will be delivered on to support our farmers.

The Government is committed to supporting our seafood sector also and our coastal communities that depend on fishing. My Department's €240 million European Maritime and Fisheries Fund, EMFF, programme for the development of our seafood sector over the period 2014 to 2020 is coming to its end. We are providing €50 million to 2022 to fund remaining payments under the old EMFF programme and to commence new schemes under the new seafood development programme. The new seafood development programme for the 2021 to 2027 period will be launched next year.

The departure of the UK from the European Union and the related trade and co-operation agreement have had some profoundly damaging effects for our fishing sector and the coastal communities that depend on fishing. Such a once-in-a-generation event requires a collective response involving the seafood businesses and coastal communities that are impacted and the full range of State bodies with a role to play in our response. The Minister, Deputy McConalogue, recently received the final report of the seafood sector task force. My Department is examining it with a view to implementing quickly a comprehensive response to the impacts of Brexit on our fishing sector and coastal communities. The measures recommended in the task force report will be examined with particular regard to available funds, eligibility of the recommended measures for funding under the Brexit adjustment reserve, BAR, state aid rules, and the public spending code. Together with the BAR, the new seafood development programme will have an important role to play in mitigating the impacts of Brexit on our seafood sector and coastal communities, and it will fund elements of the recommendations of the seafood sector task force.

Last week, as the Ceann Comhairle will be aware, the Government published a review of the national development plan. My Department's capital allocation has increased by €10 million to €281 million. Public capital investment in the agrifood sector will seek to support the sustainable development of the sector in accordance with the ambition in Food Vision 2030. These objectives will be aided by the new common agricultural and common fisheries policies. This, of course, does not include any potential carry-over at year end or additional funding made available from the European Union recovery instrument, which is 100% EU-funded. One of the projects being explored is pilot anaerobic digestion plants. This is an exciting development that could create an additional income stream for farmers while meeting our climate objectives.

Funding of €88 million has been made available to assist the State bodies dealing with the horse and greyhound sectors. Part of the fund is in recognition of the continued impact of the Covid-19 pandemic on those industries. Horse Sport Ireland is allocated €5.2 million to assist with the strategic development of its sector in areas such as research, breeding and identification. The horse sport sector is of huge benefit to rural communities, and further improvements in our breeding programme will help to unlock even greater potential.

I am confident this overview of a range of measures outlined by the Minister of State, Senator Hackett, and me provide an appropriate balance to support the development of competitive and environmentally sustainable agrifood and marine sectors. The Minister, Deputy McConalogue, the Minister of State and I look forward to working closely with stakeholders over the next year as we build a platform for the development of this great sector and continue to support and protect our farm families. I commend the budget to the House.

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