Dáil debates
Thursday, 29 April 2010
Ceisteanna - Questions
Grant Payments.
Michael Creed (Cork North West, Fine Gael)
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Question 4: To ask the Minister for Agriculture, Fisheries and Food the strategic objectives he will achieve through the delivery of his recently announced sheep scheme; and if he will make a statement on the matter. [17247/10]
Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The sheep sector is a valuable part of the economy with two-thirds of its product destined for export and its future dependent on its ability to meet the needs of the market. I have always acknowledged this fact and have developed a strategy to provide specific supports to the sector.
On the financial side, I assigned â¬7 million from the 2009 single farm payment national reserve to 13,000 hill sheep farmers under the uplands sheep payment. As the Deputy is aware, earlier this month I launched a three-year â¬54 million grassland sheep scheme, the funding for which comes from unused single payment funds. Its main objective was to provide a much-needed boost to sheep farmers' incomes. As the scheme focuses on flocks with breeding ewes, it should also provide an incentive to farmers to maintain their production levels, which is vital for the future of a viable sheep industry in Ireland. This scheme should underpin other initiatives being taken to assist the sector. Bord Bia will spend up to â¬1 million this year on the promotion of sheep and lamb at home and abroad and Teagasc has allocated almost â¬1.5 million for sheep research during the course of this year.
Work is also being undertaken by the Department, its state agencies and the industry on foot of the recommendations of the sheep industry development strategy group, commonly known as the Malone report. This report provides a clear framework for progress for the sector. While the responsibility for implementing most of the group's recommendations fall on the industry, several are within the remit of the Department and the state agencies under its aegis, which have made significant progress in implementing them.
I refer to some of the initiatives taken, including the establishment of Sheep Ireland to take over the Department's current breed improvement programme and develop a new one. An interim sheep board, comprising representatives of farming organisations and breeders, will oversee this process with the Irish Cattle Breeders Federation providing the technical and professional service required. Another initiative is the establishment of the lamb quality assurance scheme in 2007. This scheme is operated by Bord Bia and now has approximately 8,085 participants. In addition, Bord Bia has also intensified its efforts to promote lamb on the home and export markets. Together with its UK and French counterparts, it is part of a generic promotion campaign on the important French market. Finally, Teagasc has developed a comprehensive plan to restructure its sheep support services, including a better farm programme for sheep, which aims to establish focal points for the on-farm implementation, development and evaluation of technology relevant to the sheep sector. This approach provides an opportunity to engage with sheep farmers on the use of the latest management practices and to identify research and development needs.
The support provided for processing facilities under the beef and sheepmeat capital investment fund underlines the Government's commitment to the sector. Also, under the rural development programme, an indicative figure of â¬8 million has been allocated for sheep fencing and mobile handling facilities to help sheep farmers in reducing labour input. I am confident all the initiatives outlined will be of significant assistance in developing a strong and sustainable sheep sector in future.
Michael Creed (Cork North West, Fine Gael)
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The Minister's credibility with the sheep farming community is at an all-time low. Even the â¬7 million promised for upland farmers has not been paid in full to date, never mind the â¬27 million promised in May 2007, which was a figment of Fianna Fáil's imagination in the lead-up to the election.
We are where we are in terms of the national economy and its finances because the stock response to any problem is to throw money at it. This is why I am critical of the â¬54 million sheep scheme announced by the Minister. All it does is throw money at the problem and it has no strategic objective underpinning it and such a provision should have been considered. Since the critical issue in the sheep industry is the free-fall of breeding ewe numbers in recent years, it would have been a desirable objective for the Minister to have indicated to participants in the scheme that one of the objectives over the three years should be to increase ewe breeding numbers by 5%. At least that would have reversed the free-fall and provided a sustainable future for the industry. That is one objective that could have been achieved.
Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I totally disagree with Deputy Creed. We are not throwing money at anything. We are providing a very valuable investment.
Michael Creed (Cork North West, Fine Gael)
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The Minister is simply throwing money at it. There is no objective.
Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I noticed Deputy Creed's statement on the Wednesday after Easter when I launched the scheme. I recall that he both welcomed it and criticised it the same sentence.
Tom SheahanMichael Creed (Cork North West, Fine Gael)
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I am pleased the Minister reads my press releases.
Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Of course I do. I introduced the â¬7 million upland sheep scheme last year. That was the totality of the funding available from the unused funds to which I had access in 2009. I stated I would dedicate that funding to the sheep sector because of the difficulties it has gone through. More than â¬5 million of that â¬7 million has been paid out. Queries were made to certain people. It is not all-----
Michael Creed (Cork North West, Fine Gael)
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What about the â¬27 million?
Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The figure was â¬7 million in 2009.
Michael Creed (Cork North West, Fine Gael)
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What about the â¬27 million promised in May 2007?
Brendan Smith (Cavan-Monaghan, Fianna Fail)
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We are discussing the upland sheep scheme now. More than â¬5 million has been paid down. We have introduced schemes that are altogether administratively simple, under which we do not have a necessary inspection process that costs money. I refer to the new â¬18 million scheme. Department officials were engaged in widespread consultation with each of the farming organisations. We sought a balance between the needs of the sheep farmers on hill land and low land. I believe one of the first things we must do is arrest the decline in the flock numbers in the country.
Michael Creed (Cork North West, Fine Gael)
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What has the Minister done about it?
Brendan Smith (Cavan-Monaghan, Fianna Fail)
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We are providing assistance now. Sheep farmers and their representatives have warmly welcomed this investment, which is very important and will maintain an increased-----
Brendan Howlin (Wexford, Labour)
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I call Deputy Creed for a brief supplementary question.
Michael Creed (Cork North West, Fine Gael)
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The fact that the farm organisations welcome it does not of itself make it correct or right. It does not mean that when one is spending public or taxpayers' money one simply throws it at a problem without any strategic objective underpinning it. Notwithstanding the fact that the IFA and others have welcomed it, I stand by my criticism that throwing â¬18 million at the sheep sector is not the solution. We should have sought to spend the â¬18 million but to seek a return for that investment. We seek for those involved to increase breeding ewe numbers and improve the gene pool of the national flock by running a pedigree ram with the flock or whatever. These are strategic objectives but I regret to say this scheme has all the hallmarks of the Fianna Fáil strategy that got us into the mess we are in by throwing public money at problems with no strategic objectives underpinning them.
Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I totally reject what Deputy Creed has said. I refer to genetics. We have established Sheep Ireland which will be very important for improving the genetics. People will not remain in a sector if they do not get an adequate return.
Michael Creed (Cork North West, Fine Gael)
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The Minister should have realised that during the past two years while they were losing their shirt.
Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The market decides that as well. This is a support to help the industry to maintain a critical mass such that we have adequate product for the processing industry as well. We export two thirds of what we produce in this country. This very important sector is worth â¬250 million per annum. The targeted additional funding that is to be provided will arrest the decline in numbers that has occurred over recent years. I believe it will set the sector on a firm footing to expand, rather than stand still, in the future.