Dáil debates

Tuesday, 1 July 2008

Priority Questions

Departmental Reviews.

3:00 pm

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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Question 79: To ask the Minister for Agriculture, Fisheries and Food if he will undertake a review of his Department's programme of activities, services and schemes available in view of the of tightening budgetary environment; if so, when he expects to complete such a review; and if he will make a statement on the matter. [25678/08]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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My Department implements a broad range of schemes and services in the agriculture, forestry, fishing and food processing sectors. It is responsible for voted expenditure of some €1.9 billion in 2008 and also acts as paying agency in respect of EU funding for direct payments to farmers and market supports which total about €1.4 billion.

A high proportion of the Department's Vote relates to large demand-led schemes, for example, the REPS, the farm waste management scheme, the farm investment scheme, forestry, the less favoured areas scheme, grants for marketing and processing projects and the new suckler cow scheme, which together account for more than €1 billion in the Vote in 2008. Expenditure under these schemes is contingent on a variety of factors outside of the Department's control. These include farmer confidence, the availability of finance, the rate of completion of capital projects, weather and other factors.

The agencies under the Department's aegis — Teagasc, Bord Bia, BIM, the Marine Institute and the Sea Fisheries Protection Agency——

Photo of P J SheehanP J Sheehan (Cork South West, Fine Gael)
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There will be nothing to protect soon.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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——together account for over €250 million of the Department's Vote this year to ensure that investment in the farming, forestry, fisheries and food sectors continues to play a critical role in encouraging innovation, improving competitiveness and ensuring protection of the environment.

Expenditure, receipts and the achievement of key outputs are very closely monitored on an ongoing basis with a view to delivering the best possible service to stakeholders and to achieve key targets within the budget allocations agreed by the Oireachtas. Value for money reviews are undertaken on a regular basis. In addition, on the initiative of the Minister for Finance, the Department has been engaged in an efficiency review with a view to identifying measures which might be taken in order to effect improvements in efficiency in service delivery generally.

The Department's main contribution to this process was to commit to a further reduction of 200 in staff numbers over the next few years. Further initiatives to reduce costs and improve efficiency are under consideration.

I intend to continue with this prudent, ongoing approach to managing the Department's finances while taking due account of any decisions taken by Government in the context of the current more challenging fiscal situation.

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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I am nearly as wise as I was before the Minister responded, but I expect all will become clearer after the House rises. I appreciate that many of the schemes funded by the Department are demand led and the Department will have no choice but to honour those schemes.

An issue that exercised us on Question Time on the past number of occasions is the sheep sector and, in particular, a package of €28 million, which was promised in May 2007 in the lead up to the general election. In the last series of oral questions the Minister confirmed that a total of €9,000 out of the package of €28 million had been paid. Will the Minister assure the House that particularly vulnerable sector of Irish agriculture, the sheep farming sector, will not be asked to carry the can in respect of efficiencies or cutbacks — call them what he may — and that package, although it requires to be re-tailored to fit the needs of the sheep sector which is in decline, will be ring-fenced for the sheep sector?

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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I will come back to Deputy Creed with more detail. I will write to him during the week because I do not have statistics with me on the take-up there may have been in the meantime since he tabled that parliamentary question.

I assure him that I met individual farmers and others familiar with the sheep sector. There are concerns about the decline in numbers for some time but, thankfully, there has been an improvement in prices which was badly needed. It is an area in which I want to take a particular interest because it is one that needs some assistance and needs confidence built back into it. North of the Border, as I have gathered from speaking to officials in the Department there and the Minister, they have been finding similar problems to ourselves in the sheep meat sector, and it is an area we want to help.

I do not want to be too prescriptive, but quite a large percentage of the recommendations of the John Malone report into the sheep sector have already been implemented. Some of them are in the course of implementation as well. I do not want to state the specific percentage — I do not recall it exactly. I will send Deputy Creed a note on the sheep sector, in particular, over the next few days.

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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I appreciate that. The complexity of all of this is difficult to grasp in a short space of time. Will the €28 million fund be ringfenced and remain for the sheep sector? That was a promise made. It is a fund that has not been drawn down. It was promised because it is a sector in crisis. It was a fund that was established with so many strings attached that it proved virtually impossible for the sheep sector, highland or lowland, to access it.

Given the Minister has made a specific commitment to the sheep sector and has had discussions with his Northern Ireland counterparts, will he investigate — this is slightly aside from the main thrust of this question — the potential of the wool industry? It is a sector that has been virtually a "discard", if I may import the term from the marine industry. It is an asset that has been virtually discarded in recent years, but may be coming back into vogue. The Minister might look at it, both from an insulation perspective and from a wool and yarn perspective.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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I also had discussions with Ministers from the other devolved administrations in our neighbouring island on a number of issues. We have been making arrangements to hold formal meetings — these were more informal meetings.

One of the issues we will have down for discussion at the next North-South Ministerial Conference on Agriculture that comes up relatively shortly is the issue of sheep and, obviously, the all-island health status which is a regular issue on which we continue to make progress. It will be one issue that I will be discussing in the meetings being arranged at North-South Ministerial Conference level with Minister Gildernew and her officials.

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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And he will ringfence the €28 million. He will not let it slip away.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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As Deputy Creed will be aware, we review on an ongoing basis the particular demands on each of the subheads in the Department. Sometimes there can be pressure on one subhead. Other times there can be a reduced draw down on another subhead. At times, in my limited knowledge of Government finances, there can be a transfer between subheads within a Department depending on the particular pressures at different times.

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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Is that a "No"?

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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I will not mislead Deputy Creed or any Member of the House. I do not know what draw down there has been on that particular scheme to date.

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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â'¬9,000.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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As Deputy Creed will be aware, sometimes the draw down can change considerably in a short space of time——

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Ceist Uimhir 80 in ainm on Teachta chéanna.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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——but I will not give him information that would not be accurate.

Photo of P J SheehanP J Sheehan (Cork South West, Fine Gael)
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It paid a rich dividend for the Government before the last election.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Deputy Sheehan, these are Priority Questions.