Noel Coonan (Tipperary North, Fine Gael)
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Question 5: To ask the Minister for Agriculture; Fisheries and Food his views on the recently leaked document on Common Agricultural Policy and to indicate, on foot of the proposals, the efforts he has made, and plans to make, to develop strategic alliances at a European level in order to deliver on Ireland's objectives for a reformed CAP; and if he will make a statement on the matter. [41014/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I would prefer to avoid direct comment on a leaked document. It is at most a draft and may change as it goes through the inter-services consultation process within the Commission. That said, in so far as the draft communication reflects the main issues that have been under discussion in the CAP debate over recent months, I can outline the following.

My overarching view is that we need a strong and adequately resourced CAP after 2013 to ensure security of food supply, to maintain family farming in Europe and, above all, to promote competitiveness and innovation. I support continuation of the current two-pillar structure. I also remain committed to full decoupling. It has been a success for Ireland and is the best way of underpinning the incomes of small family farms, while allowing them respond to market opportunities.

With regard to funding, I note the Commissioner's intention to achieve a more equitable distribution of funds between member states, as expressed during his recent visit to Ireland. I am prepared to look at the various options but all member states must be realistic on this. I am opposed to an EU-wide flat-rate payment because of the wide variations in the type and cost of farming across the EU. Instead we need to start with the current distribution mechanism and work from there. In so doing it is vital that we use the most accurate basis for comparing funding levels, that is to say eligible area.

Ultimately I want a distribution mechanism that is fair, that underpins competitiveness and sustainability and supports the viability of Irish farming and that takes into account the wide diversity and differing costs of farming across the EU. This argument applies equally to distribution of the direct payment funds in pillar 1 of the CAP and the rural development funds in pillar 2.

With regard to any proposals for redesign of direct payment models, I favour allowing member states considerable flexibility in this area, as is currently the case. The agri-ecological and social conditions of farming vary hugely within the Union and Ireland needs to have the flexibility to apply the payment model that best suits our conditions. In that regard, while there may be positives for Ireland in the increased emphasis on delivery of public goods from farming, we must bear in mind that, under cross-compliance, EU farmers are obliged to comply with the statutory management requirements of 18 EU regulations to qualify for payment. These requirements cover the broad spectrum of animal health and welfare, respect for the environment and the sustainable management of our natural resources and contribute substantially to the production of public goods from farming.

There are suggestions that payments in respect of less favoured areas should move from pillar 2 to pillar 1. The key issue is whether the funding moves with the measure. I have a strong preference for retaining LFA payments in pillar 2 where they can be targeted at those most in need. Not all member states utilise the option to pay LFA payments and it is difficult to understand in those circumstances the move from discretionary payments in pillar 2 to obligatory payments in pillar 1.

As to the market support measures for the future, I favour the continuation of market support measures at safety-net level, together with some flexibility to adapt or enhance them as needs arise. We will also need to examine additional measures to address the much increased volatility of markets.

Noel Coonan (Tipperary North, Fine Gael)
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I thank the Minister for his detailed reply, much of which we agree with. This is my first time dealing with CAP reform during Question Time and I would like to continue in a vein of support because this is an area of vital national interest and it is important that we achieve the best possible result. I refer to the proposals in the report of the Joint Oireachtas Committee on Agriculture, Fisheries and Food going forward. I look forward to working with the Minister from that point of view.

What are the Minister and the Taoiseach doing about seeking support from their colleagues in the Union regarding the CAP to secure major benefits for Ireland from our allies in Europe? The first part of the problem is to ensure the budget for the CAP is not tampered with and is, at least, maintained because it represents a huge opportunity for the agriculture industry bearing in mind the global population will increase by 1.5 billion by 2012. The Minister of State referred to the production of biofuel crops earlier and anaerobic digestion. Food security is important. The leaked document would lead one to believe that the EU will allow greater co-financing by national governments. What do the Minster and the Government think of that, given the constraints on our domestic budget?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I thank Deputy Coonan for his support and I look forward to working with him and his colleagues.

With regard to our allies, the first discussion I had on CAP post-2013 was at the September Council meeting in 2008. There have been numerous discussions on this issue at Council meetings since then at which I have advocated the Irish position strongly and in a positive manner. I have outlined this to the House and to the joint committee. Naturally, I have met colleagues separately outside the formal Council meetings and we have discussed the CAP on numerous occasions. I recall bilateral meetings in Poland and Hungary last July about this issue. We do not share views on all aspects of the policy but we share a strong view on the need to have an adequate budget, to which the Deputy correctly referred. I also visited Finland and the German Minister was in Dublin recently. I have meetings set up with the British Secretary of State for Environment Food and Rural Affairs, Ms Caroline Spelman, and Mr. Bruno Le Maire, the French Minister of Agriculture and Fishing. We have worked with like-minded member states to build up alliances.

The Taoiseach has used the opportunity at every Heads of Government meeting to outline the case for a properly and adequately resourced CAP. On the morning the EU Agriculture Commissioner attended a meeting of the Oireachtas Joint Committee on Agriculture, Fisheries and Food, we had a meeting with the Taoiseach where he outlined the view again that there was absolute support on the part of the Government for the adequate resourcing of the CAP post-2013.

Noel Coonan (Tipperary North, Fine Gael)
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I thank the Minister for his response. It is important that our MEPs play an active role in this as well.

Does the Minister endorse the proposals in the report of the Oireachtas Joint Committee on Agriculture, Fisheries and Food?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I have not had the opportunity to read the document yet. Hopefully, I will get an opportunity over the weekend but I am sure it is positive. Whenever I have appeared before the committee, all members have shared the same views and priorities. Bart Brady, former assistant Secretary General in the Department contributed to the work carried out by the joint committee and he is one of the eminent experts in the Union on CAP.

We ensure that we use every opportunity to outline the necessity for a properly resourced CAP. The Taoiseach does so, as do I, at every Council meeting. It is important and none of us can ever emphasise enough that the CAP is about food security for all the citizens of Europe, the protection of rural communities, the management of our natural resources and ensuring family farming survives in Europe and the citizens of Europe have access to affordable food and it is not about the transfer of funds to farmers or the agrifood industry.

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