Gerard Murphy (Cork North West, Fine Gael)
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Question 119: To ask the Minister for Agriculture and Food the current status of the nitrates directive; and if she will make a statement on the matter. [26207/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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The implementation of the nitrates directive is a matter in the first instance for the Minister for the Environment, Heritage and Local Government. Ireland's national action programme under the directive was formally submitted to the European Commission by the Department of the Environment, Heritage and Local Government on 29 July 2005. The next step is for the Minister to make regulations to give legal effect to the action programme. My Department, supported by Teagasc, has been assisting the Department of the Environment, Heritage and Local Government in finalising these regulations. I expect the Minister of that Department to publish the draft regulations shortly for public consultation.

The final but extremely important stage of the process is for Ireland to secure a derogation from the general organic nitrogen limits in the directive so that farmers can operate, under appropriate conditions and controls, up to a level of 250 kg of organic nitrogen per hectare. My Department and Teagasc developed the derogation proposals in consultation with the Department of the Environment, Heritage and Local Government. There have been preliminary discussions with the Commission about the derogation application and I will be pressing strongly to have these discussions concluded as early as possible in 2006.

To help farmers meet their obligations under the action programme, I am seeking approval from the European Commission for significant improvements in the farm waste management scheme. These include increasing the grant rate from 40% to 60% and to 70% in the counties in Zone C, a top-up of 5% to 10% for young farmers, higher investment ceilings and the extension of the scheme to the pig and poultry sectors.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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The nitrates directive was introduced in 1992, yet farmers still have no idea where they stand. The Minister stated grant aid for waste management purposes will be introduced by 1 January 2006 but did not indicate whether or when the derogation permitting the use of 250 kg of organic nitrogen per hectare.

In light of a recent breakthrough in the area of pig manure as a result of a decision of a Spanish court, has the Minister re-examined the use of pig and poultry manure as fertiliser? As she and my constituency colleague, the Minister of State, Deputy Brendan Smith, are aware, pig and poultry are among the most important industries in Counties Cavan and Monaghan and the Border region in general. Has the Minister examined the implications of the court case? The ruling makes clear that pig and poultry manure are classified as fertiliser as opposed to waste. Will the Minister consider changing so-called waste management grants to manure or fertiliser storage grants and treat these important pig and poultry by-products in the appropriate manner? Will she also ensure that the greatest possible amount of these products can be spread on other farms without imposing excessive red tape? Does she accept the Commission's contention that excessive red tape must be eliminated?

Mary Coughlan (Donegal South West, Fianna Fail)
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I am surprised the Deputy did not thank me for recognising the significant implications of my proposals for his constituency and deciding to increase grant aid. He did, however, reflect——

Denis Naughten (Longford-Roscommon, Fine Gael)
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We have not seen much grant aid yet.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The Deputy will see it in January.

Mary Coughlan (Donegal South West, Fianna Fail)
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The issue is before the European Commission. It is my intention to activate the scheme from the beginning of next year when applications will be sought. In the period prior to Commission approval being given, those preparing to develop new facilities should make appropriate preparations, for example, securing the necessary planning permissions.

The derogation would be important for approximately 10,000 dairy farmers. It was on that basis that the Department initiated discussions with the Commission prior to the initial action plan being agreed. I am anxious to deal with this issue in its entirety as quickly as possible. While we can revisit history and what has been done since 1992, recriminations will not sort out the issue. No side, whether the farming fraternity, Government Departments or political parties, was eager to progress the issue. Hindsight, as the Deputy will be aware, is 20/20. The grant aid has been introduced in recognition that the directive will have implications for farmers. I am delighted the scheme we have proposed to the Commission gives greater recognition to small farmers. The directive's implications are as important for small farmers as for larger farmers, a fact reflected in the decision to increase the investment ceiling to €120,000. The Department has tried to strike a balance between the interests of small and large farmers.

On the classification of the scheme, I agree the use of the word "waste" is counter-productive. Pig and poultry manure is regarded as an asset rather than a waste and on that basis the Department is investigating new technologies and methodologies for dealing with it. This will also involve examining further proposals to support the sector.

The outcome of the recent Spanish court case is being evaluated. However, an initial examination indicates that it does not have major implications for Ireland. That said, the matter has not been definitively addressed and the Department is continuing to examine its implications.

Séamus Pattison (Carlow-Kilkenny, Labour)
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We must proceed to the next question.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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Will the grant aid be based on actual or estimated costs?

Mary Coughlan (Donegal South West, Fianna Fail)
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The scheme will include an annual review.

Séamus Pattison (Carlow-Kilkenny, Labour)
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I remind the House that speakers have one minute to put supplementary questions and to answer them.

Mary Coughlan (Donegal South West, Fianna Fail)
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I do not want to see builders taking a hand out of farmers.

Denis Naughten (Longford-Roscommon, Fine Gael)
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The Minister should show us the colour of her money.

Mary Coughlan (Donegal South West, Fianna Fail)
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I look forward to doing so.