Dáil debates
Tuesday, 15 November 2005
Priority Questions.
EU Funding.
3:00 pm
Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 97: To ask the Minister for Agriculture and Food the discussions she has had with the EU Commission on the rural development budget; and if she will make a statement on the matter. [34273/05]
Mary Coughlan (Donegal South West, Fianna Fail)
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The proposed EU rural development funding for 2007 to 2013 will form part of the overall EU budget or financial perspective for the same period. Decisions on the overall amount and its allocations will be taken in that context.
The rural development regulation No. 1698/2005 adopted in September confirms this situation and provides that the distribution of funding between member states will be on the basis of the convergence objective, past performance and particular situations and needs. I have emphasised in discussions at the Agriculture Council that particular importance must be attached to the past performance criterion. This will allow due account to be taken of current successful programmes and the need to build on them.
Denis Naughten (Longford-Roscommon, Fine Gael)
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I thank the Minister for her response and welcome her articulation of this point at European level. Is there any indication of what type of budget the EU will have in the Irish context? Will the Minister elaborate on the modulation funding and whether it will be included in the rural development budget or used to provide breeding programmes, and so on, here? A number of Deputies and I were in Spain last week where Spanish authorities are proposing the establishment of a grant scheme for the reconstruction or refurbishment of farm cottages in areas where there has been much dilapidation. Has the Minister given consideration to a similar scheme for Ireland?
Mary Coughlan (Donegal South West, Fianna Fail)
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That does not form part of my portfolio. It is a matter for the Minister for Community, Rural and Gaeltacht Affairs, Deputy Ó Cuív. Two Ministers and their Departments are working on this rural development regulation. The Deputy should put his suggestion to the other Minister.
Denis Naughten (Longford-Roscommon, Fine Gael)
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The two Ministers are obviously not working together.
Denis Naughten (Longford-Roscommon, Fine Gael)
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If they are, the Minister for Agriculture and Food should put the suggestion to her colleague.
Mary Coughlan (Donegal South West, Fianna Fail)
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People have read about the consultation process currently taking place with the Department of Community, Rural and Gaeltacht Affairs. Concerning funding, as we did not have a decision on financial perspectives, it is unfortunate that I do not know exactly how much money we have but we have political agreement on the scheme and are proceeding on that basis. The Deputy is correct in that there is a proposal. The Commission is proposing an extra 1% of modulation from 2009, which will generate approximately €3.2 billion for the next programme. It is not clear whether this is additional or a replacement. There will have to be further discussion on that.
The Commission has also proposed that 30% of the funds be used on competitiveness and the wider rural economic objectives. This will be by political agreement. It is unfortunate that we will not know how much money there is exactly until such time as we have the relevant financial perspectives. If we proceeded on the Luxembourg Agreement, we would be successful and happy. We must await the outcome of the discussions. I would not be enamoured of a forced modulation. If it is voluntary, fair enough, but I would have concerns were it compulsory. It may cause some difficulties for Ireland in the first pillar, which neither the Deputy nor I would like to see happen.
Denis Naughten (Longford-Roscommon, Fine Gael)
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What are the plans for the present modulation fund? Will some of it go into the rural development area? Will the Minister for Community, Rural and Gaeltacht Affairs get his hands on it?
A specific problem has arisen with previous rural development budgets. Leader groups and other agencies have been very involved in developing small indigenous food companies but once those companies reach a certain threshold they no longer fall within the Leader category and, as they do not export, do not fall within the Enterprise Ireland category. They are literally left high and dry by this country's development agencies. Will the Minister assure the House that structures will be put in place to allow us to establish food companies, get them off the ground and support them in the long term? For example, Ireland has 320 artisan food companies whereas New Zealand has 2,000, which has a different structure of supporting and developing them.
Mary Coughlan (Donegal South West, Fianna Fail)
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A rule on minimum expenditure has been agreed, which is 10% for competitiveness, 25% for the environment and 10% for the wider rural economy. Leader, part of Deputy Ó Cuív's portfolio, will address these issues. We have witnessed a significant increase in the number of artisans. On the basis of decoupling, we will see future investment in the food industry, which I would like to happen in the small and medium sectors. They have been supported by Leader groups, city and county development boards and county enterprise boards.
The Minister of State at the Department of Agriculture and Food, Deputy Brendan Smith, has been vociferous in forcing the case that when companies grow past the ten employee threshold, Enterprise Ireland should be forthcoming in supporting them. I initiated a food forum two weeks ago, which is examining the implications and changes currently taking place in these enterprises. Having all of the agencies together has been informative and we can hopefully build on it.
Denis Naughten (Longford-Roscommon, Fine Gael)
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Will the Minister for Community, Rural and Gaeltacht Affairs get some of the money?
Denis Naughten (Longford-Roscommon, Fine Gael)
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How much of it?
Mary Coughlan (Donegal South West, Fianna Fail)
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A total of 10%. Deputy Naughten is obviously not enamoured.