Dáil debates

Wednesday, 29 June 2011

Other Questions

Common Agricultural Policy

3:00 pm

Photo of John BrowneJohn Browne (Wexford, Fianna Fail)
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Question 29: To ask the Minister for Agriculture; Fisheries and Food the progress made to date in relation to reform of the Common Agricultural Policy. [17630/11]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I am pleased to have an opportunity to comment on the state of play regarding the Common Agricultural Policy review. Given the general nature of the question, I could respond for a long time, although the Leas-Cheann Comhairle would not allow me to do so. It is noteworthy that we will know by this evening what is the opening position vis-À-vis the Common Agricultural Policy budget. The Commission will hold what is probably its most important meeting in a long time this evening to decide and confirm the opening statement on the financial perspectives for the European Union. As part of this process, we will find out what proportion of EU funds it is proposed to allocate for the Common Agricultural Policy and in support of food production.

The Agriculture Commissioner, Mr. Dacian Ciolos, will make a strong case for maintaining the current budget level following the end of the current CAP process as well as allocating an additional amount of money to take account of the accession of Croatia should it join the European Union in the next two or three years, as is likely. Rather than trying to secure agreement to maintain the agricultural budget as a percentage of the overall budget, the Commissioner is seeking to have a specific figure maintained. I support his position which is more likely to be achieved.

The proposed Common Agricultural Policy for 2013 will be €61.2 billion and we are seeking to have this amount carried over into 2014, 2015 and beyond. In addition, we are seeking further funding to take account of the possibility of new member states acceding to the European Union. Croatia, as I noted, is first in line. While we will make a case for increasing the agriculture budget, if the starting position is that €61 billion will be provided for the CAP annually, we will be able to work with such an outcome. This is a positive story which we should welcome if it is achieved. While I am not saying this scenario will be the outcome, it is the result sought by the Commissioner. We will have the relevant information this evening. If this is the starting position, we will try to build on it in the 18 months or thereabouts during which negotiations will take place.

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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This evening will be the starting point and we will then deal with the manner in which Common Agricultural Policy funding is distributed to farmers and farm families. Over the years, 20% of farmers have received 80% of the premiums from the European Union. In the long and protracted negotiations over the next 18 months, the Government must ensure it obtains the greatest possible amount of funding to encourage Irish primary producers to continue producing top level product. I ask the Minister to be mindful that individuals, companies and organisations should not receive disproportionate funding while those at farm gate level are not given a fair deal. The possibility of changing the system whereby 20% of farmers receive 80% of funding should be seriously examined.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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Six months ago, people inside and outside the House were talking about a reduction in the Common Agricultural Policy budget of between 15% and 30% in actual terms. We are now talking about maintaining the position as is and trying to build on it. We have, therefore, come a long way and this progress should be recognised. We have not yet achieved this outcome and it is possible we will be disappointed by the results of the Commission meeting this evening. Let us wait and see what will be the outcome.

We have managed to gain some traction around issues such as food security and the need to protect food production and the farming base in the European Union in the years ahead. France and Germany have come on board in this effort. I pay tribute to officials in my Department who are working every week at European level to get the point across to people who have not shown a significant interest in the food industry and farming that food is a very important industry for the European Union from a food security point of view and must be protected.

On the issue the Deputy raised, there will be a long debate on how the overall fund is distributed and redistributed among countries which have done well in the past from the Common Agricultural Policy and countries which have not done so well. There will also be a debate on how Ireland spends the overall national envelope from CAP. I will continue to argue that we should have the flexibility to decide the most appropriate way to spend the funds we receive from the European Union to promote our priorities for farming, which are different from the priorities of many other countries.