Michael Moynihan (Cork North West, Fianna Fail)
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Question 1: To ask the Minister for Agriculture; Food and the Marine his plans for agri-environment options scheme for REP scheme 3 farmers in 2012, the number of farmers who will be affected by the decision not to open an AEOS scheme this month, the amount of money he anticipates saving; and if he will make a statement on the matter. [23454/12]

Simon Coveney (Cork South Central, Fine Gael)
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I want to re-emphasise my commitment to the agri-environment schemes in general, which put environmentally-friendly farming to the forefront and which recognise the vital role farmers play in delivering public goods for the benefit of all society. This commitment by Government is matched by the enthusiasm of Irish farmers who have shown a keen willingness to engage with environmental issues since the introduction of the first agri-environmental scheme.

REPS, which was the first such scheme, was introduced in 1994 to promote ways of using agricultural land which are compatible with the protection and improvement of the environment, biodiversity, the landscape and its features, climate change, natural resources, water quality, the soil and genetic diversity. There are currently almost 30,000 participants still in REPS.

The successor to REPS, AEOS, is a more targeted agri-environment scheme and is part-funded from modulation funds under the CAP health check. The scheme specifically targets the three challenges of halting biodiversity loss, contributing to the improvement of water quality and combating climate change, that have been assigned the highest priority at European level and those that have been identified as needing urgent action. There are currently about 15,000 participants in AEOS 1 and 11. The scheme builds on the important environmental work carried out under REPS and will go some way towards addressing the serious challenges of sustainability and conservation.

My own ongoing commitment, and that of the Government, to agri-environmental schemes are evident in the funding of €243 million which has been provided to meet commitments under REPS and AEOS in 2012. The commitment is also clear from the fact that despite serious budgetary pressures, I re-opened AEOS to new entrants last year. Deputy Moynihan will point to the fact that there was a surplus last year, but we had to budget for a multi-annual REPS scheme. The problem was this year and next year, not last year.

Nevertheless, I know that farmers are concerned as to whether there will be a new AEOS scheme. It was not possible or appropriate to open an AEOS scheme this May. I do want to open a limited and more targeted scheme this year, which is what I said on budget day. That is what I hope to deliver. I hope farmers will be able to apply for that before the end of September. We are undertaking a review of commonage framework programmes at the moment, which may well change the stocking rate levels within those framework programmes. They may well be a factor in the qualification criteria for any new AEOS scheme. So, instead of opening it in May, we are hoping to get sanction from the Department of Finance to open a much more limited scheme, which I have discussed with farm organisations repeatedly. I have been consistent on this, so hopefully we will open it for applicants by the end of September, if we can get sanction to do so.

Michael Moynihan (Cork North West, Fianna Fail)
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I thank the Minister for his reply. I am glad that after nearly 12 months he has acknowledged that there was sufficient funding in place for 2011 for the AEOS scheme. At the time, he constantly said there was no funding for it, so I am glad he has acknowledged that now.

The Minister said that the AEOS scheme would be targeted. Many farmers are living in severely restricted regions and have sought this scheme. Therefore, targeting the scheme must be the way forward.

The Minister said he was reviewing the packages concerning the commonage framework, but what are the prospects in September? What are the indications from the Department of Finance at this stage for funding an AEOS scheme, which is vitally important? Some 13,000 farmers have come off REPS 3 who, for the first time since 1994, have no avenue open to them to continue in an environment scheme. What are the prospects of funding such a scheme within the available budgets as outlined for 2012? Given the Minister's discussions with the Department of Finance, what is the likelihood of having such a scheme in place in September? What is the Minister hoping the scheme will target at that stage?

Simon Coveney (Cork South Central, Fine Gael)
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Those are all very reasonable questions. My answer, which I have been giving consistently, is that at the moment we cannot afford to put together an AEOS scheme that will cost as much as the AEOS scheme I introduced last year. We do not have the budget for that. Looking at the figures, we will have to make substantial savings again this year, in terms of the budgetary ceiling under which I must operate, unless I can negotiate an increase in that ceiling. However, I am not in the business of promising something and then not being able to deliver upon it on budget day. That is why I have consistently said that I will have to get approval to do this, and we will apply for that. This will be a more targeted scheme which will not be as broad as late year's scheme or as AEOS I. I have spoken to farm organisations about that and I will continue to talk to them about it during the summer.

If there is a new scheme, I want it to prioritise farmers who are working in SAC, Natura or commonage areas. In some cases, those categories are farming under severe restrictions in terms of what they can produce and the kind of stocking rate at which they can produce. There should be some recognition of that. In addition, they have a specific obligation to look after the environment because of the sensitivity of the land they are farming.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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Thank you, Minister. We are over time.

Simon Coveney (Cork South Central, Fine Gael)
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That is why I want to prioritise those people. However, it will be a matter of whether we have the budget to do it, as to whether we can broaden it outside those categories.

Michael Moynihan (Cork North West, Fianna Fail)
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May I ask a brief supplementary?

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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I am sorry but we are over time. Six minutes are allowed per question and we have taken nearly seven minutes. We will now move on to Question No. 2 in the name of Deputy Jonathan O'Brien. Two minutes are allowed for the Minister's initial reply and four minutes for supplementaries.

Simon Coveney (Cork South Central, Fine Gael)
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If Deputy Moynihan wants to talk to me afterwards, I will happily clarify anything for him.