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

I thank the Deputy for raising this important question. A vibrant sheep sector is as an integral element of a balanced regional economy and sheep farmers are committed to producing a world-class, safe and sustainable product. Although there has been a solid and sustained increase in average sheep prices since the end of February, I recognise that sheep farmers are experiencing more difficult market conditions in 2023 compared to recent years.

Market prices are obviously a commercial matter to be bargained between suppliers and buyers and Government has no role in determining commodity prices in the sheep sector. However, with hoggets crossing €7 per kg and lambs exceeding €8 per kg, it is heartening to see markets returning better prices than at the start of the year.

To bolster the sustainability of sheep farming, my Department provides significant support to the sector under the CAP Strategic Plan, the CSP, both through a new targeted scheme for sheep farmers: the sheep improvement scheme, SIS, which aims to improve sheep health and welfare, and through the broad range of schemes in the CSP.

On the Deputy's specific point regarding the BAR fund for the sheep sector, this provides financial support to the most affected member states to counter the adverse economic, social, territorial and very appropriate, environmental consequences of the withdrawal of the UK from the EU. Expenditure under BAR must demonstrate a direct link to the negative impact of the withdrawal of the UK from the EU. Failure to do so will see the European Commission deem expenditure ineligible. The ongoing trade negotiations between the UK, New Zealand, and Australia will not give access to the UK market in the short term. While this will present future challenges, which we are looking to mitigate, there may well also be opportunities for suppliers in import substitution on EU markets.

The fact is that nobody has demonstrated a case that would qualify for BAR funding, which would not be deemed ineligible. While we would very much like to be able to access that once-off funding before the end of the year for the sheep sector, we have to be cognisant of the fact that that could well be deemed ineligible by the Commission.

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