Dáil debates

Wednesday, 11 October 2023

Financial Resolutions 2023 - Financial Resolution No. 4: General (Resumed)

 

6:35 pm

Photo of Claire KerraneClaire Kerrane (Roscommon-Galway, Sinn Fein) | Oireachtas source

I listened to the Minister of State, Senator Hackett, speak about all the opposition to the agriculture budget yesterday. Much of the conversation I heard in opposition to the budget was actually from the farm organisations. Much of what they had to say was probably more negative than anything anyone in here said yesterday. That is a fact.

When looking at the budget document yesterday, I thought a page was missing because there was so little detail on what was actually being announced. We had to wait until yesterday evening almost and there were leaks throughout the day, none of which was helpful. When it comes to budget day, we need clarity and certainty on the measures announced for farmers. That issue needs to be addressed going forward.

The budget was deeply disappointing in relation to agriculture. The facts speak for themselves; the budget allocation has been reduced and there is less money for farmers in 2024 than there was this year. That is incredible given that most farmers are still not getting a fair price for their premium produce. Input costs have never been higher and are in some cases rising. There is also the major challenge of climate action, which farmers are up for, but they need significant continued supports to assist them in doing what they need to do. Despite all of that and the major challenges we are facing, the Government has announced a reduced budget for agriculture.

At the same time, the Government are rolling out a Common Agricultural Policy with more or less the same amount of funding as the previous CAP. In real terms, that is a cut because prices are through the roof and there is inflation. CAP funding has, therefore, reduced and the Government has delivered a reduced budget at home. The Government is also sending approximately €150 million of the Brexit adjustment reserve, BAR, fund back to Europe because it has been unable to spend it. In the next breath, it tells us this budget is all about protecting incomes. Farm incomes are already inadequate and many farm families are struggling. They are working hard but they are not getting a fair price. Many are finding it more and more difficult to encourage their children to work on the farm because so many farms are no longer viable. Agriculture is in a serious situation in 2023 and what we saw yesterday will not be enough to turn the tide. The message to farmers that I took from yesterday was that they have the CAP, that is more or less it and they should not look to the Government for anything additional in the budget. If that is how it is going to be, then agriculture will be in a lot more trouble as we go forward.

Most of what was listed when we eventually received a press release yesterday evening is not new but repackaged. The forestry money is not new. The funding to be used to fund the ACRES programme is not exactly new. The suckler payment will remain at €200 and, again, that is not new. The national dairy beef welfare scheme is not new either.

I was disappointed to see another budget in another year in which farmers and young farmers have been forgotten again. The Minister recommitted to the young and forgotten farmers at the Macra na Feirme conference last December. Nearly a year down the track and there is still nothing there for them. These farmers are seriously considering their future in agriculture. They are struggling, having waited year after year for support from this Government. It should have been given to them years ago. It is disappointing that we have not seen an allocation for forgotten farmers in this budget. The suckler payment is €200. Most of the farm organisations and Sinn Féin in its alternative budget last year and this year stated that €300 is needed for suckler farmers. We know that. Did the Minister seek a €300 payment to replace the standstill figure of €200?

I welcome the increase in the ewe payment for sheep farmers. I will always welcome positives in budgets and I welcome that increase. We sought an increase to €20 last year and again this year. As I have pointed out previously, we need more than just an increase in the ewe payment. Only approximately half of our sheep farmers are in that scheme and there are questions as to why so many are not getting involved in it. That needs to be looked at. We have known for a long time that sheep farmers are in a deep crisis. I ask the Minister to at least attempt to seek funding through the Brexit adjustment reserve fund before the end of the year, at which point funding from it will be returned to the EU. I cannot understand how he can get €1.5 million for Bord Bia from that fund to promote organics but cannot get money from it for sheep farmers. These farmers have made an impact with the import deal that was done with England and New Zealand. There is also an issue with the currency rates, yet funding cannot be secured from the Brexit reserve. If Europe says “No”, that is fair enough but the farming organisations have been clear that the Minister should at least try. I ask him to do so. Many sheep farmers in this country are in crisis. In the months since they protested at Leinster House, things have only got worse. It is criminal that we will send approximately €115 million back to Europe to go into a new REPowerEU fund, rather than spending it here on the farmers who really need it.

I ask the Minister to look again at wool, on which we had a feasibility study. The establishment of the Irish Grown Wool Council is a good and welcome development but the Government must do more than just set up the council and leave it at that. Recommendations made in the feasibility study need to be implemented and we need to see what more can be done in relation to wool. The sector has huge potential and can be developed in this State.

I welcome the €8 million for tillage in the budget. It is especially important, given the poor reaction to the €7 million announced last week when tillage farmers voiced their disappointment with it. It will not be paid until January. Will the Minister engage with Irish Grain Growers and others representing the tillage sector to see how the €8 million can best be spent and how quickly it can get into the pockets of tillage farmers?

Regarding ACRES, the Minister has announced funding for the remaining 4,000 places to reach the 50,000 total. Funding a programme he announced is all well and good and fairly basic, but given the significant demand for the scheme, which was oversubscribed when it was first opened to applications, will he cut that off at 4,000 or will he allow that figured to be exceeded? Farming organisations tell us that approximately 15,000 farmers are interested, so 4,000 is nowhere near enough.

It is disappointing that there was nothing in the budget to deal with ash dieback. The independent report tells us that the scheme is flawed, yet the Minister wants people to sign up to it. That does not make any sense. We are waiting on an implementation plan for a review of the review that has already been carried out even though we know what needs to be done. Those affected by ash dieback across the State will tell the Government what needs to be done. It just needs to be done as quickly as possible.

Regarding the residential zoned land tax, allowing more time is welcome, but not just time is needed. We need a solution. Even the Taoiseach intervened and made a commitment to farmers that a solution would be found, but one has still not been found. Farmers are getting bills of tens of thousands of euro. They are going to the councils, some of them have to go to An Bord Pleanála and some have suffered costs, yet they are still getting hit with these bills. This issue needs to be sorted out as quickly as possible.

How much of the €14 billion climate and nature fund will the Minister seek for farmers? It is an important fund and farmers will need their fair share of it, given what they are going to be asked to do in the coming years.

Regarding the overall budget for farmers, he does not have to listen to the Opposition parties if it does not want to, but the farming organisations are disappointed. Much more could have been done. There is little in the way of new measures. That the budget for farmers will be reduced next year is very disappointing, given all of the challenges they face. It is unacceptable that the CAP budget is staying the same, we have a reduced budget for next year and we are sending money back to Europe that should have been spent.

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