Michael Creed (Cork North West, Fine Gael)
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Question 44: To ask the Minister for Agriculture, Fisheries and Food the new initiatives she proposes to deal with the crisis in the sheep sector. [26973/07]

Mary Coughlan (Donegal South West, Fianna Fail)
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The sheep sector is a hugely important part of the overall Irish agri-food sector and I believe it has a very good future. The sector's future depends on its ability to meet the needs of the market. The downward trend in production and an ageing consumer profile point to both supply and demand issues. I am confident, however, that a framework is being put in place to address these issues.

The basis of that framework is the 2006 sheep strategy report and the subsequent implementation report, which was presented to me last April. The strategy report addressed the current position of the industry and the options for ongoing development. It sets out a series of recommendations covering areas such as production, research, advice, processing and marketing. The goal is to facilitate the development of a more profitable sheep sector covering lambproduction, lamb processing and marketing sectors of the industry. Most of the recommendations in the strategy report fall to be implemented by the industry itself and it is too early at this stage to assess their impact. The recommendations are supported by my Department through assistance for breeding and management, processing facilities, mechanical grading and quality assurance.

In addition and in line with the group's report, sheep farmers are major beneficiaries of various schemes being operated by my Department. Under REPS 4, a new supplementary measure aimed at sheep farmers has been introduced. A budget of €28 million a year has been allocated to fund the proposed new supplementary measure at an overall cost of over €170 million for the period to 2013.

In addition to the measures being taken at producer and processor level, Bord Bia's marketing and promotional efforts will be critical. Bord Bia will continue to organise strategic marketing campaigns in selected European markets. France will continue to be a priority and its promotions there are run in conjunction with the major retailers and cover over 1,200 outlets. The downward trend in lamb consumption within the EU presents a real challenge. To address this challenge, Bord Bia is collaborating with its French and British counterparts to develop a three-year generic lamb promotion on the French market to promote lamb to younger consumers. This campaign, which amounts to a major new initiative on the European lamb market, is due to commence early next year.

With the co-operation of all stakeholders and in line with the approach set out above, the sheep sector can continue to make an extremely valuable contribution to the agri-food sector and to the economy as a whole.

Michael Creed (Cork North West, Fine Gael)
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I thank the Minister for her reply. Does she agree we are witnessing a mass exodus of sheep farmers from the industry accompanied by a very significant drop in sheep numbers, and that if this trend continues there is a real danger that the industry will lose its critical mass to enable it to survive and prosper because of economies of scale? If she accepts that contention does she not agree that while the sheep strategy review takes a long-term strategic view of the industry, it fails to take cognisance of one significant issue, which is that if we do not protect the number of farmers in the industry by way of meaningful financial input directly into the sector, we will not have the basis of an industry to protect and allow to prosper in a few years' time? As a result, will the Minister consider a similar scheme to the suckler cow grant scheme she introduced in the beef sector? Will she consider a ewe grant to stabilise sheep numbers now so that we can safeguard the industry?

I accept that Question No. 46 addresses this subject specifically. The suspension of the farm investment scheme grant, which had a specific fencing grants section targeted at the sheep sector for handling facilities etc., will seriously undermine the on-farm viability of a number of these enterprises. Will the Minister consider, even in a targeted way, restoring the grant scheme specifically for that sector?

Mary Coughlan (Donegal South West, Fianna Fail)
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Perhaps we should consider one of today's publications which contains an article regarding the sheep sector this week with the headline "Buyers are plentiful and prices are holding", which is good to see. The Deputy is right in pointing to a reduction in the number of sheep kept on the land, which is mainly because we are now in a decoupled era. However, I have taken a personal interest and invested considerable time and energy in the implementation of the sheep strategy. I provided funding and we considered many aspects. I agreed to the full implementation of the report, on the basis of which, in conjunction with the strategy group, we considered how it could be targeted. Under the state aid rules and because we are in a decoupled era, we were not in a position to introduce a specific scheme. However, in doing so we have targeted two types of approach, one within REPS and the other specific to hill sheep farmers under a special national reserve measure. Those were the two targeted investment programmes.

If we are to produce quality lamb and be in a position to be competitive in the market, we must consider the consumer. The consumer profile is not good and we need to address that issue. This is why we are working with the initiative to which I have spoken. A number of Members of the European Parliament, including some Irish parliamentarians, have also been working on a sheep strategy group that we are considering tying into. As the Deputy is probably aware, the Oireachtas Joint Committee on Agriculture, Fisheries and Food has been invited to participate in that promotion at the beginning of December. We have targeted specific sectors.

On the farm improvement scheme, I introduced a scheme and, according to figures available at present, approximately 8% of applicants so far have looked towards the fencing grant and the mobile units. I will evaluate the scheme on the basis of the closure and will ascertain, arising from an enormous number of applications to the Department — approximately 6,000 to 7,000 over five days — the Department's priorities.

Michael Creed (Cork North West, Fine Gael)
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I cannot disagree with much of what the Minister has said. However, much of it relates to the long term. To ensure its survival the industry needs a direct cash injection into the hands of those at the coalface. The Minister is not offering any ray of hope to those in the sheep industry who have seen their incomes plummet. The Minister may well pluck a headline from the newspapers relating to sheep prices this week — I will not dispute the figures she quotes — but based on confirmed figures, incomes from sheep farming have plummeted. If we want to keep people in the industry and attract young blood to it, we must show that it can deliver a tangible financial reward for their commitment and investment of time, which is not the case today. If it is important to protect the industry and if it were possible to introduce a €100 suckler cow grant, why is it not possible with a political will to introduce a similar ewe grant scheme to stabilise sheep numbers? I am not prescriptive about it, the Minister can dress it up and call it whatever she likes, but we need a proposal to stabilise sheep numbers, which are in freefall. Talking about encouraging consumption in the future——

Séamus Kirk (Louth, Fianna Fail)
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Can we have a question from the Deputy?

Michael Creed (Cork North West, Fine Gael)
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——is laudable, but without something tangible in these farmers' pockets they will not be there to reap the benefit of the turnaround when it comes in the long term. The farm income scheme had a targeted grant for facilities and fencing, which with one fell swoop the Minister has removed. That grant was of real practical benefit to sheep farmers many of whom were interested in the grant which is now gone. Will the Minister consider reintroducing it, specifically focused on the sheep sector? This is something concrete the Minister can do with a political will. Will she also consider for the sheep sector a similar scheme to the suckler cow scheme?

Mary Coughlan (Donegal South West, Fianna Fail)
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The answer is no.

Tom Sheahan (Kerry South, Fine Gael)
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Shame.

Mary Coughlan (Donegal South West, Fianna Fail)
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Once again Fine Gael Deputies are not aware of any of the European Commission rules.

Michael Creed (Cork North West, Fine Gael)
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If the Minister can do it for suckler cows she can do it for sheep.

Mary Coughlan (Donegal South West, Fianna Fail)
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The suckler cow scheme is a welfare scheme.

Michael Creed (Cork North West, Fine Gael)
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We could have a welfare scheme for sheep also.

Mary Coughlan (Donegal South West, Fianna Fail)
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It addresses the issue of quality, not numbers.

Michael Creed (Cork North West, Fine Gael)
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On a point of order——

Mary Coughlan (Donegal South West, Fianna Fail)
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There is no way I can introduce any scheme targeted towards numbers.

Michael Creed (Cork North West, Fine Gael)
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The review group deals with quality matters.

Séamus Kirk (Louth, Fianna Fail)
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That is not a point of order. We have a problem with Priority Questions.

Michael Creed (Cork North West, Fine Gael)
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We have a problem with priority answers.

Séamus Kirk (Louth, Fianna Fail)
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Five Priority Questions need to be addressed and other Members want to get to their questions. We are being held up now.

Mary Coughlan (Donegal South West, Fianna Fail)
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The Deputy believes he knows the answers to everything, but he knows the answers to nothing at this time. He should stop pointing his finger; a little manners in this House would help. I will tell him what is happening.

Michael Creed (Cork North West, Fine Gael)
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The Minister should take a chill pill.

Mary Coughlan (Donegal South West, Fianna Fail)
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I do not need a chill pill. I will not rise to the opposition. Through REPS 4 €28 million is available to farmers in a specific mixed grazing scheme. Hill sheep farming applications are in and are being reviewed. They are happening now. ICBF is working at present with the sheep breeding industry. Some time ago I established a Teagasc centre of excellence, which is working with farming enterprises to consider all the issues, including the processing sector. The investment has been made and the closing date is Friday, so investment will be made in the processing side. Further discussions on clarification are needed for the processing sector. That all represents ongoing work. At the moment REPS 4 farmers will receive specific targeted funding towards the sheep sector in addition to that for the hill sheep sector. That is the existing financial aspect. The rest is ongoing work done in consultation with all those involved in the sheep sector as well as a targeted marketing approach to encourage people under 45 years of age to eat sheep meat.

Séamus Kirk (Louth, Fianna Fail)
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We will need to move on to the next question.

Michael Creed (Cork North West, Fine Gael)
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May I ask a final brief question?

Séamus Kirk (Louth, Fianna Fail)
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The Deputy may ask the question if he keeps it very brief.

Michael Creed (Cork North West, Fine Gael)
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In an effort to get something tangible from today's encounter will the Minister defer the Commission proposal for the electronic tagging of sheep scheduled for 2008, given that the fencing and handling grants have been abolished? Farmers regarded those grants as representing a way for them to comply with the electronic tagging system.

Mary Coughlan (Donegal South West, Fianna Fail)
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It is a Commission proposal and we have gone beyond it in many ways. I have reviewed the tagging regime as it discommoded many farmers. Neither of those is exclusive. The sheep fencing and handling facilities were requested during the discussions.

Michael Creed (Cork North West, Fine Gael)
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They are gone now.

Mary Coughlan (Donegal South West, Fianna Fail)
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I will deal with that on the question regarding the farm improvement scheme. However, that has nothing to do with the electronic tagging issue. Further discussions and consultation will take place with all those involved.

Michael Creed (Cork North West, Fine Gael)
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It will be introduced in 2008.

Mary Coughlan (Donegal South West, Fianna Fail)
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We have worked towards that process and what the Commission proposes to introduce is more difficult than what we currently have.