John O'Mahony (Mayo, Fine Gael)
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I thank the Ceann Comhairle for selecting this important issue for discussion on the Adjournment. The difficulty in respect of this matter relates to the fact that the livelihoods of upland farmers in the Owenduff-Nephin Beg range in north and west Mayo are being decimated as a result of the discriminatory way in which their share of modulation money from Europe is calculated. Some €18 million in funding is available to 30,000 Irish sheep farmers and the payments in respect thereof are calculated on the basis of ewe numbers rather than on hectares. In other words, it is done on the basis of 2.5 ewes per hectare.

Problems arise because Nephin Beg is a special protection area, SPA. This means that all sheep farmers operating there have been obliged to drastically reduce their stock numbers as a result of the five-year pilot programme aimed at protecting the range from the effects of overgrazing. Most of these farmers had no choice but to reduce their stock numbers by 30% to 50%. This is a serious impediment because they are obliged to remove their animals from the mountains for prolonged periods. This, in turn, has an effect on the type of farming in which they can engage on their low-lying lands. On one hand, these farmers are suffering because they have been obliged to destock, while, on the other, their payments are being drastically reduced because their grants are calculated on ewe numbers. The simple solution to this problem would be to calculate their payments on the basis of the number of hectares they farm rather than on that of stock numbers or to introduce a special calculation method in respect of SPAs.

The problem to which I refer is confined to the Nephin Beg region and to Connemara in County Galway. As a result, the introduction of a special calculation method would not trigger a series of claims from farmers in other areas. The Minister for Community, Rural and Gaeltacht Affairs, Deputy Ó Cuív, is aware of the situation that obtains in Connemara and is sympathetic to the plight of the farmers there.

It is vital that immediate action be taken in order to resolve this matter, particularly in view of the fact that another issue is on the horizon for the farmers of Nephin Beg. I refer to the fact that their entitlement to payment under the new REP scheme will be drastically reduced. Under REPS 4, farmers received €242 per hectare. If the new proposals are accepted, the payment will be reduced to €75 per hectare. This is unfair and unjust and represents another attack on the sheep farmers who are trying to eke out a living in the upland regions.

There is no cost involved to the Exchequer in respect of this matter because what is at issue is modulation money from Europe. This matter relates to fairness and justice. We often discuss fairness and equity in this House. People do not mind taking the pain if they are treated fairly. A group of sheep farmers in the Nephin Beg range have not been treated fairly. Under the new arrangements coming down the track, that will continue to be the case.

I appeal to the Minister of State, Deputy Killeen, and the Minister for Agriculture, Fisheries and Food, Deputy Smith, to ensure that action is taken. Someone must shout stop.

Tony Killeen (Clare, Fianna Fail)
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Fáiltím roimh an deis a thug an Teachta Ó Mathúna dom freagra a thabhairt ar an ábhar tábhachtach seo thar cionn mo chomleacaí an tAire Talmhaíochta, Iascaigh agus Bia, an Teachta Breandán Mac Gabhann.

The sheep sector is an important part of the agricultural economy and plays a vital role in preserving our rural economy, landscape and environment. The Minister for Agriculture, Fisheries and Food, Deputy Smith, is fully aware of the difficulties the sector is facing. In that regard, he has announced a number of initiatives in recent times to assist the sector.

Deputy O'Mahony will be aware that last autumn the Minister announced that payments would be made to eligible farmers under the upland sheep payment - a once-off payment worth €7 million in total and financed from the single farm payment national reserve. Payments in the region of €5 million had issued by the end of last year, with the additional top-up payment from the remaining €2 million due to be paid shortly. The decision to use this funding - the only funding available from the single farm payment national reserve - in this manner was in clear recognition of the particular difficulties being experienced by Irish sheep farmers. The upland sheep payment is payable to those farmers who declared their sheep under the 2007 and the 2008 sheep census and who declared mountain-type grazing under the 2009 disadvantaged areas scheme.

It was decided to use €18 million of the €25 million in additional funding for each of the years 2010 to 2012, inclusive, to which we gained access following the agreement reached under the CAP health check on a grassland sheep scheme to support incomes in the sheep sector. This means that an additional €54 million will be made available to the sector during the next three years. The payment will be made in the form of a grassland sheep area payment, which will place no additional administrative burden on sheep farmers and will mean that the payment of aid can be made by the Department in an efficient and timely manner. The Department is working on the finer details of the scheme in order to ensure that it will meet its objectives. These details are currently being finalised and it is expected that an announcement in respect of the scheme will be made shortly. As further evidence of the Minister's commitment to the sheep sector, an additional €8 million for sheep fencing and mobile handling facilities, to assist sheep farmers in reducing labour input, as part of a new targeted on-farm investment scheme, has also been made available.

With regard to the sheep farmers in the Nephin Beg area, when the single payment scheme was implemented in 2005 the calculation of the payment entitlements of such farmers was based on the years 1997-1998, before destocking commenced. This facility was introduced in the scheme in recognition of the specific circumstances of those sheep farmers who had been obliged to destock under the provisions of a REPS plan, a commonage framework plan or other recognised agri-environment plans. This mechanism allowed those affected farmers to benefit from their full single payment, based on their actual sheep farming activities prior to the necessary destocking. These farmers continue to benefit from that level of single payment.

Special provision has also been made for these farmers under the rules of the disadvantaged areas scheme. Under this scheme, applicants are normally required to have a holding with a minimum stocking level of 0.15 livestock units per forage hectare. However, a special derogation is made for those farmers who have been obliged to destock. Where it is evident that such farmers were obliged, due to the provisions of a REPS plan, a commonage framework plan other agri-environment plan, to destock to the extent that their stocking level has fallen below the minimum level required under the disadvantaged areas scheme. In such circumstances, the stocking level as defined in the relevant plan is deemed acceptable under the scheme, with full payment being made to the farmers concerned subject to the other conditions of the scheme having been satisfied. I am in a position to conclude, therefore, that not only has the Minister made every effort to assist the sheep sector in general but he has also sought special provisions to assist sheep farmers in the Nephin Beg area to whom Deputy O'Mahony refers.