Dáil debates

Thursday, 18 April 2013

Topical Issue Debate

Beef Technology Adoption Programme

2:35 pm

Photo of Paul ConnaughtonPaul Connaughton (Galway East, Fine Gael)
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I thank the Ceann Comhairle's office for the opportunity to raise this issue. This is a relatively new scheme that has been running for only two years. It is a welcome development from the Department of Agriculture, Food and the Marine and from the Minister, Deputy Coveney. If we are to meet our Harvest 2020 production targets, it is important that all farmers are on the same plain and continue to work with each other and advise each other on best ways of carrying out such work.

There is an issue with the scheme at present in that quite a number of farmers, in particular in County Galway, have not received any payment for it. The reason I raise this today is that the issues in a number of these cases seem to be very small. They seem to be issues that should be easy to fix and the punishment for the issues raised seems over the top. For example, one elderly man missed due to health reasons one of the five meetings that he was supposed to attend and his penalty was 100%. It seems excessive that a man who would miss one of these five meetings for health reasons is then thrown out of the scheme or not paid. Certainly, it has been communicated to him that he will not be paid.

There are other issues related to the BVD eradication scheme announced by the Department last year. Whereas last year it was not compulsory to take part in it and it was up to the farmer, this year that has changed. The vast majority of farmers did not know that going into the scheme this year. They now have been disqualified from it.

There are other issues where a great deal of this information is to be submitted online. If one ticked one box wrongly, there was no second chance. There was no way around it and the penalty was that one would receive no payment for it.

This, as we all will be aware, is against the backdrop of agriculture being in terrible crisis due to the bad weather. The issue of the fodder crisis has been raised in the past week already. The Department might consider these figures quite small, but for the individual farmer this is extremely serious. I call on the Minister today to ensure whatever can be done is done in order that these farmers are paid as soon as possible.

There is another issue with the agri-environment options scheme, AEOS, another farm payment. This problem arose last year and the Department does not seem to be able to get on top of it. Farmers have carried out the work they were expected to do. The Department is based in Johnstown Castle in Wexford from where it seems nearly impossible to get information. Over recent months I have become aware of farmers who have still to receive payment for this work and on telephoning the Department, one is told to come back to them in two weeks, three weeks or a month. Today, I telephoned to find out the position in the cases of two farmers and was told there are penalties on their applications. The farmers concerned do not know that.

As I stated, all of this is against the backdrop of a fodder crisis in the sector where farmers literally cannot afford to feed their cattle, and that will cause significant issues. The Minister cannot be blamed for the weather but he must understand where we are. I now hear talk of the Government encouraging the banks, the credit unions and co-operatives to be more lenient with farmers, but does it not understand that these are the ones with whom the farmers have the issue? The farmer needs the money to pay back the co-operative and the bank. Why would they be any easier in lending to these farmers in a situation where they are the ones to whom the farmers are supposed to be giving the money?

What I want to get across to the Minister is that there are issues with this scheme that are not being resolved. Farmers have still not been paid on their AEOS payments. It is impossible to get information out of Johnstown Castle as to why there is a problem on a farmer's application. If there is an issue, let us fix it. Allow the farmer the chance to fix that problem. These farmers need help and they are not getting it. We need to get it to them as soon as possible.

Photo of Dinny McGinleyDinny McGinley (Donegal South West, Fine Gael)
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I wish to convey the apologies of the Minister, Deputy Coveney, that he could not be in the House to discuss this important issue.

To set the context, in February last year, the Minister announced the launch of a beef technology adoption programme, BTAP, as a key element in driving the ambitious targets for the beef sector in Food Harvest 2020. Based on the discussion group model, the programme is intended to provide participants with the knowledge and the skills necessary to reduce costs and increase profit margins on their beef farms for which there is significant potential. While engaging in the discussion groups, participating farmers develop business plans which will enable them to set targets and track progress over the three years of the programme. Annually, participants also undertake two tasks, from a menu of eight, to assist them in improving performance in a number of areas at farm level.

The beef sector is a critically important part of the economy from an employment and export earnings point of view. It is playing an important role in Ireland's economic recovery, as is the food and agrifood sector generally. Mindful of this, the Minister made €5 million per annum available to fund BTAP, which is designed to run for three years, from 2012 to 2014.

The Minister believes that for the sector to reach its development potential, farmers must take steps to improve profitability. This means focusing on better management at farm level, improving breed quality, reducing the negative impact that poor animal health can have on efficiency, and ensuring they produce the kind of animal that the market requires.

The Minister is confident that this programme can provide an important stimulus to standardise on Irish farms the kind of focus on profit that is necessary to make a success of any business enterprise.

The beef sector, which had an excellent year in 2011, with a 15% increase bringing the value of exports to €1.8 billion, again grew significantly in 2012 when the value of exports increased to €1.9 billion. However, there continue to be challenges to be faced, particularly given the financial pressure on consumers arising from an extremely difficult global economic environment. It is for this reason that a continued focus on producing high-quality beef while maintaining competitiveness is critical for the sector. It is self-evident that the industry can only grow and develop if that growth is profitable for the primary producer and this programme can play an important role in ensuring that is the case.

In first year of the programme, while a total of 6,563 applicants had initially been accepted into the programme having been confirmed as satisfying the programme eligibility criteria, by the end of 2012, a total of 4,809 farmers involved in 440 discussion groups had successfully completed the first year, with €4.5 million paid to participants. The balance of 1,754 were found not to have to have attended the requisite number of discussion group meetings and-or had not satisfactorily completed the required two tasks. Appeals were subsequently lodged in respect of 600 of those who had not been paid and these are in the process of being examined. Some 101 have been confirmed as being eligible on the basis of the additional data submitted in support of the appeals.

The Minister remains ambitious for the beef sector and is confident that with a positive and collaborative approach from stakeholders the sector can build on its already excellent reputation. The sector is a key element in the Food Harvest 2020 Strategy and the BTAP is a vital tool in realising its great potential.

2:45 pm

Photo of Paul ConnaughtonPaul Connaughton (Galway East, Fine Gael)
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I thank the Minister of State for his response. My issue is not with the scheme, which is doing what it should do. I regret that the Minister cannot be here - I understand he is extremely busy as all Ministers are at the moment. I believe it is important for the Government to appoint a new Minister of State at the Department of Agriculture, Food and Marine owing to the workload the Minister is facing and the importance of the sector.

I cannot complain about much in the Minister of State's reply. I understand the merits of the scheme and that is not the problem. The issue is with the farmers yet to be paid. In order to drive the sector forward, if people sign up to complete a scheme, they should be paid when they expect to be paid. The problem is that the appeals are taking considerably longer than they should take. The issue with AEOS is getting the information from the Department to individual farmers to explain what needs to be done. The Minister of State mentioned that some of them had not attended discussion group meetings. As I said, one farmer did not attend owing to health reasons and did not get his payment. That is completely over the top and that should not be the case.

I understand the scheme and welcome it. If anything we want to see it extended. However, individual farmers, particularly those in Galway, who have not been paid, need to be paid. The Department needs to work with them through the beef discussion groups or elsewhere as soon as possible. These farmers are on their knees at the moment. They cannot go to the banks or to the co-operatives. Instead of forcing them to these places, they should be given the money they deserve and for which they signed up. It needs to be expedited in any way possible. The resources need to be allocated to help these people out. That help must come over the next two to three weeks. There is no point in it coming in the next couple of months - we need delivery on this now. These farmers are in a very tough situation with massive debts. Let us get them the money they deserve so that they are not forced to go to the banks. They should be given an opportunity to do what they do well. Only then can the sector drive on from there.

Photo of Dinny McGinleyDinny McGinley (Donegal South West, Fine Gael)
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I appreciate the Deputy's concern. Coming from a similar area, I understand the importance of this. I am sure the Deputy would agree it was an imaginative and creative scheme as proven by the number of applicants. Of 6,563 applicants, 4,809 have successfully completed and €4.5 million of the allocated €5 million has already been paid out. Based on what the Deputy has said, some of the payments appear to have been delayed. His concerns, and mine, will be brought to the Minister's attention. Given that the Minister has a great understanding of agriculture, I am sure he will do everything possible to expedite any payment that is due and is not yet processed. Some 600 appeals are in process of which more than 100 have already been assessed successfully. Taking everything into consideration, significant progress is being made on the matter. I know farmers want to get whatever is owing to them as soon as possible.