Paudge Connolly (Cavan-Monaghan, Independent)
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Question 3: To ask the Minister for Agriculture and Food her proposals to address the threat posed to pig and poultry farming and mushroom production by the maximum nitrogen and phosphorus fertiliser limits of the nitrates directive; the predicament of County Monaghan pig and poultry farmers and mushroom producers in terms of having to dispose of surpluses of over 100,000 tonnes of poultry litter, 90,000 tonnes of spent mushroom compost, 150,000 tonnes of pig slurry and residual materials from public sewerage works; and if she will make a statement on the matter. [6082/06]

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, Deputy Roche, who recently introduced regulations to give legal effect to Ireland's national action programme under the directive.

In the context of the nitrates directive, it is not possible to talk in terms of the disposal of surplus manure. An underlying principle of the directive is nutrient balance, which means that nutrients may be spread on land only to the extent that they will be taken up by crops. I am aware this has implications for pig and poultry producers in particular, as they generally will not have enough land of their own to utilise the manures that their activities generate. Considerable efforts have already been made to alleviate the impact of the nitrates regulations on the pig and poultry industries and to help farmers in meeting their obligations.

A significant concession was secured in December, just before the regulations were finalised, when the European Commission recognised that 80% of the country's pigs are produced in units licensed by the EPA under the integrated pollution control directive. As a result, the regulations provide that the EPA must review all licences by October 2007 but that, in the meantime, these producers will not be bound by the provisions of the nitrates regulations on nutrient management. This means that, until a producer's licence has been reviewed by the EPA, he or she can continue to operate under the terms of the existing licence. It also means the farmers taking producers' slurry will be able to operate under their existing nutrient management plans. This provides a vital window for the larger pig producers to adapt to the new regulations, for example, by finding additional spread lands, modifying their feeding regimes or acquiring new machinery for separating solids and liquids.

My officials are in negotiations with the European Commission on a revised farm waste management scheme and I met the Commissioner last week to emphasise the importance of the matter. The revision of the scheme will make it available for the first time to pig and poultry producers. Among the proposed improvements is an increase in the grant rate for both animal housing and slurry storage from the current rate of 40% to 60%, with 70% being available in some counties. Other elements of the scheme will include significantly higher investment ceilings and the removal of any minimum income requirement from the scheme.

Given that pig and poultry manure is high in phosphorus, there will be a limit to the amount of land on which it can be spread. The most suitable outlet for this kind of manure is tillage land.

Additional information not given on the floor of the House.

There is more than enough tillage land in the country to utilise all the pig and poultry manure but I am conscious that not all producers have tillage land available nearby. The high liquid content of pig manure makes it expensive to transport. Pig producers should, therefore, start looking seriously at technology for separating solids and liquids. Subject to Commission approval of the new farm waste management scheme, I plan to offer grant aid for that kind of technology. I also urge other farmers to show solidarity with pig and poultry producers by taking their manure instead of using chemical fertiliser. I have asked Teagasc to undertake a promotion campaign to demonstrate the nutrient value of slurry and the savings that farmers can achieve by substituting it for chemical fertiliser. I am also urging REPS planners to encourage their clients to use pig manure on their farms.

Most of the controversy in recent days has centred on the nutrient management provisions of the regulations. These were finalised following difficult negotiations with the Commission's scientific experts, with both Departments making use of the advice provided by Teagasc. It was the Commission, however, which determined the final content of the regulations. Teagasc has recently indicated that it may be possible to review part of the advice it had given on the application of phosphorus in a way that could improve the effectiveness of the regulations. The Government and the European Commission saw merit in allowing Teagasc time to elaborate this new advice and, accordingly, the Minister, Deputy Roche, announced a brief de facto deferral of the implementation of part 3 of the regulations. Teagasc has been requested to provide, as a matter of urgency, the necessary scientific case to support any revision of the phosphorus tables in the regulations. The two Departments will carefully consider any submission received from Teagasc, while also bearing in mind that any proposals for revision of the phosphorus tables will have to respect the environmental requirements associated with the nitrates directive and meet with the agreement of the European Commission.

Teagasc has not been specifically requested to review its advice on nitrogen issues. However, if its revised submission on crop nutrient requirements suggests further beneficial adjustments to the regulatory regime, these will of course be considered. The possibility of such further adjustments will also depend on their respecting the environmental requirements involved and on their acceptance by the European Commission. The disposal of residual materials from public sewerage works is not a matter for my Department.

Paudge Connolly (Cavan-Monaghan, Independent)
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I too congratulate the Minister of State, Deputy Wallace. We will soon have plenty of agricultural expertise outside north Dublin. I regret that I did not hear the remainder of the Minister's reply because I hoped it would deal in more depth with the issues of chicken litter and mushroom compost. I am sure that she is aware of the disagreements between the IFA and Teagasc and that the former has withdrawn from partnership talks as a direct result of its unhappiness with the nitrates decision. Yesterday, the secretary to the IFA, Mr. Jim Devlin, told a European committee meeting that there would be detrimental consequences for the intensive farming industry.

I refer specifically to the pig, poultry, mushroom and grain producers where, because of the interdependency that exists in those sectors, knock-on effects are created when difficulties arise. Issues also arise for tillage farmers, who said they will not be able to store the nutrients they are expected to spread on their land. All the groups concerned will experience significant difficulties in the future. What assurances for the future can the Minister give to pig producers? With poultry and mushroom producers, they represent the lifeblood of my Cavan-Monaghan constituency. She raised the issue of finding land on which to spread the manure but the land is not available and farmers must depend on the good-will of third parties. However, no farmer will be able to take slurry or chicken litter.

With regard to short-term derogations, it took Denmark and the Netherlands two years to receive their derogations. Currently, Austria is also seeking a derogation. I welcome the Minister's comments on these matters.

Mary Coughlan (Donegal South West, Fianna Fail)
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The Deputy has raised a number of issues. I appreciate the problems in the Cavan-Monaghan area, although that is not to detract from the other parts of the world that have issues with the pig and poultry sector. The Minister of State and I have met the Monaghan people on a number of occasions. There are a number of problems, the first of which is a lack of information. This is a major problem which is why I placed an advertisement in the newspapers and I hope, now that Part 3 has been set aside until further information is available, that we can bring this matter to finality as quickly as possible. We need to meet the farmers, talk to them and support them.

In recognition of the pig and poultry sector, I have provided funding this year specifically for new technologies to support both industries, including centrifuge systems to reduce liquid waste, new technologies for chicken litter and a number of other proposals. We have invited proposals from people and are anxious to work with them to ensure that these new schemes will progress. Under the farm waste management scheme, I will provide some funding to the pig industry which will allow it to be recognised for the first time and be supported to the best of our ability.

It is important that farming fraternities work together and that people support each other. Most pig producers have customers and their concern is based on a fear of the customer, that the implications of the directive will be such that they would lose their single farm payment.

Denis Naughten (Longford-Roscommon, Fine Gael)
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They are looking at six months in jail, never mind the single farm payment.

Mary Coughlan (Donegal South West, Fianna Fail)
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We are doing our best——

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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We must move onto Question No. 4.

Paudge Connolly (Cavan-Monaghan, Independent)
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I have a brief question to pose.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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We have spent more than seven minutes on this question.

Paudge Connolly (Cavan-Monaghan, Independent)
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I would have thought——

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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The Deputy's initial supplementary question took more than three minutes, so we must move on.

Paudge Connolly (Cavan-Monaghan, Independent)
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Can I ask a very brief question? There was no reference to the mushroom industry and——

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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I call Question No. 4 in the name of Deputy Crawford.

Paudge Connolly (Cavan-Monaghan, Independent)
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There are ten new centrifuge technologies but how many of them will be located in the middle of the intensive farming industry?

Mary Coughlan (Donegal South West, Fianna Fail)
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That will depend. The people in the Deputy's county have met us on a number of occasions. We have also met the Northern Ireland authorities.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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We must move on.

Mary Coughlan (Donegal South West, Fianna Fail)
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There is undoubtedly an opportunity for cross-Border initiatives for that industry and that is the way forward. I have the money, will and support and they are also to be found in Northern Ireland. I believe we can work together and look after the people in Monaghan.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Deputy Connolly was not happy with the north Monaghan proposals.

Paudge Connolly (Cavan-Monaghan, Independent)
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No, I was not.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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He did not even examine them.

Mary Coughlan (Donegal South West, Fianna Fail)
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I will let the Deputies fight among themselves. The Ceann Comhairle is above all that. He must keep order.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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Question 4: To ask the Minister for Agriculture and Food when the new grant scheme will be available for farm waste management; if she is satisfied with the terms of such a scheme; and if she will make a statement on the matter. [6079/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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The revised farm waste management scheme will be introduced by my Department as soon as the required EU state aid approval has been received. A formal application seeking Commission approval for the revised scheme was submitted on 30 September last. The application has been the subject of ongoing negotiations between the Commission and my Department in the intervening period. A number of outstanding issues remain, in particular the reluctance of the Commission to accept that a period longer than one year is required for completion of all necessary works by Irish farmers. This is the key issue for us given the large volume of work to be undertaken and the particular need to ensure consistency with timescales and deadlines already agreed in the context of Ireland's action programme on implementation of the directive.

Last week I met Commissioner Fischer Boel and explained to her the importance of this issue for Irish farmers and the urgent need for the early introduction of the revised scheme. The Commissioner was positive in her response and I am confident that the outstanding issues can be resolved quickly.

I am satisfied that the new scheme, when introduced, will provide a very satisfactory financial package for Irish farmers who are required to undertake works to comply with the additional requirements of the directive. I have provided a sum of €43 million in this year alone for the scheme and I envisage a total expenditure of close to €250 million to complete the programme. Subject to receipt of the said EU approval, the proposed changes will include the introduction of a standard grant rate of 60%, with 70% being available in the four zone C counties, for both animal housing and slurry storage. The current standard grant rate for such work is 40%. The scheme will be extended to include horses, deer, goats, pigs and poultry, and mushroom compost. The extension of the scheme to the pig and poultry sectors is particularly significant.

The revised scheme will also see an increase in the maximum eligible investment from €75,000 to €120,000 per holding and the removal of any minimum requirement from farming from the scheme so that all small farmers can participate. The scheme also incudes the introduction of a new 40% grant rate for specialised equipment with specific environmental advantages subject to a maximum eligible investment of €80,000 in the case of decanter centrifuge systems and dry feeding systems for pigs and €40,000 in the case of specialised slurry spreading tankers and related equipment. Eligibility for aid under the scheme of earth-lined stores will be included as soon as the technical specifications for such are finalised.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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I welcome Deputy Mary Wallace as Minister for State at the Department but I am a little concerned about my colleague, the Minister of State, Deputy Brendan Smith, who must sit between the two Marys. It may be dangerous.

Mary Coughlan (Donegal South West, Fianna Fail)
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The Deputy is jealous.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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The Minister is dead right.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The Deputy will have to apply to join me.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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I appreciate the Minister's response but many farmers are anxious to get ahead with the necessary provision of animal housing. The announcement of the scheme was made on 29 July last. The scheme was not sent to Brussels for approval until 29 September. The Minister has advised that farmers should apply for planning permission but it is difficult to do so without knowing to what types of developments the grant aid will apply. There are no specifications as such for earthen banking, for example, or other types of development.

Does the Minister have any idea when the scheme will be up and running and when farmers will have a simple form to fill out? Will we have a situation similar to that which pertained in the past where there is a 60 page form that will take an enormous amount of time and effort by farmers, or highly paid advisers, to fill out? The Minister said that the scheme will be open to small farmers, those with fewer than 20 livestock units. Has that been finalised? If so, such farmers should not have to pay enormous sums of money to specialist advisers.

Mary Coughlan (Donegal South West, Fianna Fail)
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I will not be political. It is not like me, so I will rise above it.

Denis Naughten (Longford-Roscommon, Fine Gael)
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The Minister might as well be political. She is like a broken record and has been apolitical every time she has stood up.

Mary Coughlan (Donegal South West, Fianna Fail)
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I am often more political than Deputy Naughten. Farmers with fewer than 20 livestock units will be included in the scheme. I have seen the forms and the supplementary information, which have been simplified to the best of our ability. I agree with Deputy Crawford that people should not have to pay an exorbitant sum of money to have small jobs done. The documents are ready for the printers, with a view to going very quickly. I hope to have the earthen bank specifications ready in the next few days.

The only impasse we have had on the state aid rule has been a lack of trust on the part of the Commission that the reason we were introducing this scheme over a three-year rather than one-year period was to undermine the directive. I assured the Commissioner that was not the case and that the real reason was that farmers would find it difficult to get people to do the necessary work. I do not want a situation whereby farmers are forced to pay high prices because of tight deadlines when that should not be the case. She has taken on board our genuine concerns. I wrote to her on Friday, following my meeting with her on Thursday, which was very positive and I expect to receive sanction soon. Then we will disseminate the information to everybody as quickly as possible. I have also freed up staff to ensure there will be no delays with inspections and support for farmers.