Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 72: To ask the Minister for Agriculture, Fisheries and Food the changes she would wish to see emerge from a review of the 2003 CAP reform. [13094/08]

John Browne (Wexford, Fianna Fail)
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I presume the Deputy is referring to the health check of the CAP, which is currently underway. The first phase of this process was completed with the agreement of Council conclusions at the meeting of the Council of Ministers in March. I was generally pleased with the outcome. The next phase will begin when the legislative proposals are published in May. Bearing in mind that the review is intended to be a fine-tuning exercise of the 2003 reforms and not a fundamental reform, I expect the outcome to be limited in terms of policy change but strong on delivery of improvements to current systems.

The main change which I would like to see emanating from this review is the delivery of further operational simplification to farmers in a way that brings genuine and tangible benefits at farm level. By this I mean simplification of those elements of the single payment regulation that are causing unnecessary bureaucracy, such as the restrictive rules on management of the national reserve, the modulation refund, the lack of advance payment options and so on. I am also anxious to simplify cross-compliance by removing redundant statutory management requirements. In this regard I have submitted practical suggestions on simplification, which I trust the Commission will take on board when framing the legislative proposals.

Second, I would like to see some widening of national discretion to address specific issues that may arise. I am thinking of the references in the Commission communication to an expanded article 69, the option of moving to flatter rates of payment, the establishment of minimum payment areas or amounts, and risk and crisis management measures. The health check should provide options to member states to adjust the common support mechanisms in a way that suits them best, and we should not impose the same solutions on all.

I remain opposed to the proposed increase in the modulation rate. While I am fully supportive of measures under pillar 2 of the CAP I do not believe that they should be funded at the expense of a reduction in funding for pillar 1. I would like this review to provide the certainty and stability that farmers need to adapt to the decoupled payment regime.

Another important issue is that of milk quotas. Assuming their abolition by 2015 as envisaged by the Commission, I want to see a soft landing. A gradual increase in quotas is the most sensible and logical way to achieve this. Clear and final policy decisions are needed so that stakeholders can plan their production decisions over the coming years with confidence. In addition, I am seeking to retain the existing market management measures in place to cater for any price volatility that may occur with the expiry of restrictions.

Martin Ferris (Kerry North, Sinn Fein)
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I thank the Minister of State for his reply. I welcome the fact that part of his forward strategy concerns simplification, which is of great importance particularly as everything surrounding the CAP is so bureaucratic. Many politicians and farmers supported CAP reform in 2003 because they believed it would preserve farmers' interests in future. There are major concerns at the moment, however, particularly concerning the WTO talks and subsidies. There are serious worries about these matters. Does the Minister agree that trust has been abused by Commissioner Mandelson given his willingness to go along with the demands of others at the WTO talks concerning EU support grants? Would the Minister also agree that the Lisbon treaty's proposed further diminution of national sovereignty and representation bodies will make it more difficult to defend Irish interests if the treaty is accepted? I would like to know the Minister's stand on the present talks, which are central to the survival of Irish farming. There is huge concern, particularly within the IFA. I heard the Minister referring to this earlier, so I would like to know what is the position.

John Browne (Wexford, Fianna Fail)
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Commissioner Mandelson and the WTO talks have very little to do with the CAP health check. The Minister for Agriculture, Fisheries and Food, Deputy Mary Coughlan, has raised all the issues and concerns relevant to Irish farmers, such as simplification, modulation, milk quotas and market management mechanisms. She has appointed two groups to advise her, one to look at proposed changes to the health check and the other to act as the dairy consultative committee. The Minister is being well advised on the difficulties farmers face and the need for changes to the health check. From a political point of view, talks will begin in Slovenia in late May.

Tom Sheahan (Kerry South, Fine Gael)
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If milk quotas were increased through reform of the Common Agricultural Policy, would the increase be divided evenly between all interests or would some of it be ring-fenced to facilitate new entrants and small producers?

John Browne (Wexford, Fianna Fail)
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Regarding the milk quota, Ireland believes a soft landing is essential to ensure a smooth transition.

Tom Sheahan (Kerry South, Fine Gael)
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We heard this before but my question was specific.

Brendan Howlin (Wexford, Labour)
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I will allow the Deputy to speak again shortly but must let the Minister of State answer first.

John Browne (Wexford, Fianna Fail)
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We would favour fairly ambitious annual adjustments and have asked the Commission to conduct an analysis of the impact of increases greater than 1% and 2%, which have already been carried out.

Tom Sheahan (Kerry South, Fine Gael)
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May I be more specific?

Brendan Howlin (Wexford, Labour)
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The Chair cannot dictate the nature of the response given. I will allow Deputy Sheahan and Deputy Creed to put questions.

Tom Sheahan (Kerry South, Fine Gael)
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For the benefit of the Minister of State, I will be more specific. Will some of the increase be ring-fenced to facilitate new entrants and small producers?

John Browne (Wexford, Fianna Fail)
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No, not on this occasion.

Michael Creed (Cork North West, Fine Gael)
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We are not talking about the 2% that has already been secured across the board, we are talking about what may come through the CAP health check.

Mary Coughlan (Donegal South West, Fianna Fail)
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That has not been decided yet.

Michael Creed (Cork North West, Fine Gael)
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We urge the Minister to consider new entrants and the viability of smaller producers in the context of moving towards a liberalised regime without milk quotas. Will the Minister consider the case of farmers affected by the farm development plans, who have received compensation from the Department and who are waiting in the wings regarding the milk quota increase?

John Browne (Wexford, Fianna Fail)
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The answer to Deputy Creed's last question is no.