Question 34: To ask the Minister for Agriculture; Fisheries and Food his views on whether decoupled direct payments remain the best way of underpinning the incomes of small family farms; and if he will make a statement on the matter. [21856/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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At a recent special debate in the Seanad on the future of the CAP post-2013, I set out some of my views on the need to ensure security of food supply and to maintain family farming in Europe. It must be borne in mind that negotiations on the future on the CAP post-2013 are taking place against the background of an EU budget review and a new EU financial perspective for the period 2014 to 2020. Ireland will play a central and very active role in these negotiations and will be stressing the importance of a strong and properly resourced CAP in the future. The major issue at present is the amount of funding that will be available for the CAP after 2013, which in turn will put pressure on the share of the EU budget going to agriculture and the share going to Irish agriculture.

With regard to the single farm payment system, I do not see any compelling reason to change from the current historic model for determining single payments. The historical model has a distinct advantage in linking the payment with the level of farming activity, albeit farming activity in 2000 to 2002. I have made my views on the benefits of the historic model clear at meetings of the Council of Ministers and in bilateral discussions with other member states and the Commission. However, Ireland is in a small minority of member states who take this view while I am prepared to look at alternatives, particularly if other countries move from the historic camp. There is a need, however, to find a basis that is acceptable and fair to all member states and one which meets our objectives of improved competitiveness and sustainability.

I consider that maintaining a strong decoupled direct payments system is fundamental to maintaining and stabilising farm incomes, especially at times of increased market volatility. Direct payments remain the best way of underpinning the incomes of small family farms, while allowing them respond to market opportunities. However, there is also a need to retain the capacity and flexibility to react promptly and effectively to market instability and price volatility and therefore to maintain some level of market supports.

The core purpose of rural development policy is to support farmers in developing their productive capacity while securing the environment and ensuring the well-being of the wider rural society. The continuation of a two-pillar system includes the recently revised rural development programme which focuses on competitiveness in the form of targeted investments and sustainability in the form of an agri-environment scheme with benefits for all.

I thank the Minister for his reply. What timeframe does he envisage for the current CAP negotiations? I ask him to outline Ireland's role in those discussions. What are the main issues in these negotiations?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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With regard to timing, the Commission is expected to issue a formal communication later this year. Prior to the formation of the new Commission, it was expected during the time of Commissioner Mariann Fischer Boel that the communication would issue in the middle of this year. However, the Commission was delayed in being established by a number of months. It was expected to take office in the middle of November but it took office on 15 February, therefore, the timeline has been delayed by a few months. Therefore, we are talking about having a formal communication from the Commission later this year. The formal legal text will follow in mid-2011. Based on previous negotiations, we can be certain that those communications will not be issued in advance of the expected deadlines. They generally run much later.

With regard to the discussions to date, the last four EU Presidencies have held policy debates on the future of the Common Agricultural Policy. France had a general discussion in September 2008 on policy orientation. The Czech Republic focused on the single payment issues, while Sweden dealt with rural development. Meanwhile, Spain - the current holders of the Presidency, up to the end of June - dealt with market management.

Ireland has been active in all the negotiations. In mid-December 2009, we were one of the leading members in putting together a group of 22 member states who signed a declaration in Paris. At that time, we outlined our determination to ensure that the CAP would be adequately resourced. In the meantime, I have had several bilateral discussions with other agriculture Ministers. There will be an important official meeting to discuss those issues in my Department tomorrow, featuring the most senior civil servants from five member states.

Michael Creed (Cork North West, Fine Gael)
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The Minister will be aware that 90,000 farmers in Ireland receive a payment of €10,000 or less. For example, last year, the average beef income was approximately €13,000. Therefore, about 75% of income is coming from the single farm payment.

Brendan Howlin (Wexford, Labour)
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The Deputy is supposed to be asking the question, not answering it.

Michael Creed (Cork North West, Fine Gael)
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In that context, has the Minister given any thought to establishing a minimum payment? The Commissioner's view is that the historical model is unsustainable, which suggests that we at least need to tweak, modify or change the current model in some way. Does the Minister support the principle of a minimum payment to retain as many farmers as possible on the land? What is his view on that?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I share the view that we should be supporting active farmers. Whatever about drawing a minimum, I know where I would draw a maximum line. I am not going to say where, however.

Michael Creed (Cork North West, Fine Gael)
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The Minister cannot tease us like that.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I said we would have discussions in regard to models that we have done, so we will let the Deputy in on some of the thinking. However, there are always calls to public representatives' offices when the figures are published, which include some people with very large payments. I believe there should be a cut-off point and it should be directed more towards active farmers. There is a good case to be made for orienting it towards the lower-income farmer.

Seán Sherlock (Cork East, Labour)
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Earlier, the Minister referred to the consultation process and said that the Commission will publish documentation. Can Members of this House be provided with an insight into the views of the Irish permanent representation in Brussels? In that way we could be made aware of how the process is progressing.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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There is absolutely no problem with that. The Irish permanent representation in Brussels will be echoing our views. On both ministerial and official level, the Department has ongoing contacts, including dialogue and briefings, with MEPs of all parties on a weekly basis. In addition, there is interaction between our MEPs and our permanent representatives in Brussels. I understand that our officials provide useful material to all MEPs concerning debates in the European Parliament. That material is readily available.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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Does the Minister accept that without the single payment area aid, farmers in constituencies such as ours would have little income, if any? This is an extremely serious issue. The Minister said he has met other EU Ministers for agriculture, but will he make every effort to form a group to guarantee the single premium, rather than some other funding that would not be as beneficial to Irish farmers?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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As I said earlier in response to Deputy Blaney's question, Ireland was one of the very active members in putting this particular group together, along with France, Germany and Austria. Last December, we got 22 of the 27 member states to sign up to the need for proper CAP resources. Within that group of 22 not everyone shares the same view on the direct payments system, but we are working on this with a number of countries. I mentioned earlier that an official meeting is taking place tomorrow, in which I will be participating. Apart from Council of Ministers meetings, I have had numerous bilateral meetings with other Ministers. Such meetings will continue in June, as well as in July when the Dáil is in recess.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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The Minister will not get all of it.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Neither will the Deputy, but he should.