Michael Creed (Cork North West, Fine Gael)
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Question 88: To ask the Minister for Agriculture, Fisheries and Food his position on the proposed change to the calculation method of the single farm payment in the context of ongoing negotiations on common agricultural policy reform; and if he will make a statement on the matter. [4245/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Formal negotiations have yet to commence on the future of the CAP and in that respect there are no proposals to change the calculation method of the single farm payment. However, policy debates have begun in a number of member states, including Ireland, and at EU level on the shape and direction of future EU agricultural policy. Among the issues that are being debated are the shape and format of the future single farm payment.

There is active debate about the credibility of the current historic payment model, based on average coupled payments received between 2000 and 2002, and the current differentiation of direct payment rates between and within member states. This debate is in part about the distribution key for national envelopes that provide the financing for the single payment and to the models used by individual member states to allocate their national envelopes among individual farmers.

There is a view in some member states that the rates of payment should be equalised between member states by applying an EU-wide flat rate. Some others believe payments should continue to be differentiated according to historical uptake, land use, land quality, production costs, and so on. A large number of potential payment models have been suggested in the formal and informal discussions to date.

As to my position, I oppose an EU-wide flat rate payment and I continue to see significant advantages to the historic model. While this view is supported by some others, there is little doubt that the number of member states that actively support the historic model is reducing. In this context, it is important that we look carefully at all the alternatives so that we can play a full part in the debate as it evolves. Some useful research has already been done on other payment systems but this work will need to be extended and intensified with greater stakeholder involvement.

I launched a public consultation process in July last inviting interested stakeholders to let me have their views on what EU agriculture policies would best serve Ireland and the EU in the years to come. I was pleased with the number and quality of the submissions received. In continuation of stakeholder involvement, I intend to establish a consultative group to advise on the best policy options for Ireland in the forthcoming negotiations, including with reference to direct payment models.

It is early days in these negotiations and I will meet the new Commissioner well in advance of any proposals being tabled to, among other things, outline my position on the type of payment system that will best serve the interests of Irish farmers. I will also continue to keep in close contact with colleagues in other member states on these matters. My overarching view is that, first and foremost, we need a strong and adequately resourced CAP after 2013. This is a point I have pressed strongly in discussions to date and for which there is good support in the Agriculture Council.

Michael Creed (Cork North West, Fine Gael)
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I welcome the Minister's reply. I heard alarm bells ringing when I read the Minister's press release of 30 December last where he stated, "For example, there is huge pressure for changes to be made to the historic basis used to calculate single farm payments and I believe we owe it to ourselves to at least examine the alternatives".

I am pleased the Minister now sees that the national interest is in ensuring that resources are targeted at people in active production and whereas the reference years that were used in the previous CAP reform, of 2000, 2001 and 2002, need to be updated, we need to ensure that resources are targeted at those in active farming, and the flat rate is obviously not a runner.

On the broader issue, what initiatives does the Minister plan to ensure that the budget is adequate? It appears there is a softening up process going on at present for a reduced budget for the Common Agricultural Policy. We need to forge alliances to put food security of the Union centre stage. If one puts that centre stage, one must have the resources to back it.

I welcome recent comments, for example, by an unlikely source, the UK Secretary of State for Agriculture who stated that food security in the Union was now as important as energy security. We need to work on those kind of alliances. There will be an east-west fault-line in the negotiations, but it must be remembered that new accession states witnessed a rise in commodity prices. We need to forge alliances and I want to know what efforts the Minister is making to ensure there is an adequate budget and to ensure that the single farm payment is targeted at those who are involved in active primary production of commodities.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I share Deputy Creed's views on the issues on which he has touched. At a Council of Ministers meeting in September 2008 under the French Presidency we had our first discussion on the future of the Common Agricultural Policy. At that meeting I, along with some other members, outlined that we had to have an adequately resourced CAP and that my preference would be that we should know the parcel of money that we will have for CAP in the financial perspectives going forward to 2020. In the meantime the issue has also been discussed under the Czech Presidency, and under the Swedish Presidency as well. There were no Council conclusions on those issues, but there were extremely worthwhile discussions.

We have reached a point where in December last, at a meeting in Paris, 22 of the 27 member states signed up to a declaration on the need to have, first and foremost, an adequately and well-resourced CAP. We were active in that group. That group grew from work that we did along with the French Minister, the German Ministers and some others, and thankfully, it reached the stage where 22 member states attended the meeting and signed up to this declaration.

I want to see the CAP resourced adequately so that we have food security in Europe, we protect the food production base in Europe, we protect, encourage and assist family farming, and we are also active in supporting rural development. Deputy Creed's comment on supporting active farmers is one that I share absolutely.

Michael Creed (Cork North West, Fine Gael)
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Arising from the Lisbon treaty, the Parliament is now a co-decision maker in respect of the agriculture budget and there is a big job to be done in ensuring that the agriculture budget is protected and increased. There are traditionally hostile elements within the Parliament to the Common Agricultural Policy. People ask why we should spend 40% of our budget on the Common Agricultural Policy. We should, because it is one of the few areas where we have a common policy. We spend one third of what the Americans spend in supporting their agricultural primary producers.

We need to have a proactive approach in the Parliament as well. Has the Government given any thought to a strategy that embraces the new co-decision function of the Parliament in respect of the reformed Common Agricultural Policy?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Deputy Creed is correct on the co-decision and the influence of the European Parliament. Some time ago officials at senior level within my Department met all our MEPs and gave them a full briefing on the Common Agricultural Policy discussion document. I hope to meet all the MEPs when I attend the next Council of Ministers meeting in February. In the meantime the rapporteur of one of the groups of the agriculture committee of the European Parliament will visit me, I think, next week to discuss this report. We intend to keep our MEPs fully briefed and to work with them very closely, and we want to do the same with the Joint Committee on Agriculture, Fisheries and Food.

The assistant secretary general in charge of this division gave a detailed presentation to a Teagasc conference last week outlining the situation as it is evolving, the particular interests of other countries and the different models and how they would affect us, negatively or positively.

I would like to see the joint committee involved in that discussion as well. I thank the spokespersons who contributed and responded to my invitation last summer to send us a submission on the Common Agricultural Policy. Shortly, I will put together a consultative group representative of the industry to work along with us, at Department, Government, Oireachtas and European Parliament levels in what is an important issue for this country.