Gay Mitchell (Dublin South Central, Fine Gael)
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Question 28: To ask the Minister for Agriculture and Food the discussions she has had with the European Commission regarding the impact of the special beef premium overshoot on farmers; and if she will make a statement on the matter. [17331/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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Ireland was the first member state to opt for full decoupling of direct payments when, in October 2003, it was decided to introduce the single payment scheme with effect from 1 January 2005, the earliest date that the new regime could be implemented. The overshoot issue arises from transition from the animal-based to the decoupled system.

Each member state has a regional beef ceiling for bulls and first-age premium animals, and Ireland's regional ceiling for the 2004 special beef premium scheme was 1,077,458 animals. It was expected that the numbers of animals submitted for premium in 2004 in Ireland under the special beef premium scheme would show an increase compared with previous years, as farmers would wish to benefit from the premium on their eligible animals before the scheme ended on 31 December 2004. However, the level of applications was such that the regional beef ceiling was exceeded by 18%.

The decision to opt for full decoupling was arrived at following careful consideration of all options and a widespread public consultation process. A very persuasive factor in that process was the suggestion that farmers in those member states that decoupled fully would not be disadvantaged during the transitional period. The level of the overshoot of the regional ceiling is attributable to the ending of the special beef premium scheme in 2004, and application patterns, both in total numbers of animals applied for and the timing of lodging applications, strongly suggest that to be the case.

I am seeking a solution to this issue and will continue to do so with the European Commissioner. I have already raised the issue with the Commissioner on a number of occasions. My Department has also forwarded a detailed submission to the European Commission dealing with the matter. I am urging that appropriate measures be put in place to alleviate the difficulties encountered by beef farmers in Ireland.

Denis Naughten (Longford-Roscommon, Fine Gael)
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I thank the Minister for her response. Perhaps I might focus on the fact that the Minister claims to have raised this issue several times with the Commissioner. Why did she know nothing about it when the Commissioner was interviewed here? If the Minister had raised the matter on not only one but several occasions, surely, when the Commissioner arrived in Ireland, she would have been up to speed, but that does not seem to be the case from her interviews.

The Minister stated that she is urging that appropriate measures be taken. Perhaps she will outline what she is talking about. When the Minister made the point to the Commissioner and explained to her the commitment given by her predecessor that Irish farmers would not lose out by opting for full decoupling, especially beef producers in this instance, what was her reaction? What is the Commission's position regarding that commitment?

Mary Coughlan (Donegal South West, Fianna Fail)
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The Deputy has described the issue regarding the Irish Farmers Journal incorrectly, since the Commissioner was asked about the question before I had approached her — interviews often take place before conversations. Second, she was not here, and that interview took place in Brussels. I have met the Commissioner three times on the issue and departmental officials have met at secretary general and director general levels, as well as within the Cabinet. I have met all the farming organisations on this issue, some of them twice, if not three times.

The Deputy is right that something must be done, both for reasons of equity and because, as the former Commissioner said to the former Minister, there should be no disadvantageous decisions as a consequence of the transformation to a decoupled system. Those are the very strong points of view that I have put forward to the Commissioner and the Commission, and that has been followed through in several examples of its impact on farmers, many of whom, to be fair, have not changed much their production or methods. There are others who have done otherwise, as we all know.

The Deputy will also know that the people on the second punch are being penalised because the scheme is an overall one between the first and second punches. In addition, many farmers did not castrate their animals this year because they were entitled to the bull premium. It is a very serious issue in my constituency and, I am sure, in County Roscommon, where there is a great deal of beef production. There is a 28% reduction on first-age premium animals and 23% on second-age animals. That is a very large differential. The Deputy is correct to point out that if decoupling did not occur, then we would not have this problem. On that basis, I have made strong representations to the Commission on this issue. This does not affect anyone under 25 and I have paid the money thus far to those over 25. The Deputy should check out a copy of the Irish Farmers' Journal the following week where the Minister clarified this.

Denis Naughten (Longford-Roscommon, Fine Gael)
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The Minister met the Commissioner on three occasions. What did she say about the case the Minister put forward? Did she agree, disagree or did she express any opinion? By the time the Minister spoke to her on the third occasion, she surely must have checked out the situation.

Mary Coughlan (Donegal South West, Fianna Fail)
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In Europe, it takes quite a while to have everything evaluated. Initially, the issue goes to the DG and its officials are also involved. I advised the Commissioner on the political ramifications of this issue. She has been in consultation with her own officials to look at this issue. I will speak to her again next Monday and I will impress upon her the necessity of a favourable decision on the basis of equity and due to decoupling.