Dáil debates

Tuesday, 31 March 2015

Ceisteanna - Questions - Priority Questions

Rural Development Plan

2:00 pm

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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148. To ask the Minister for Agriculture, Food and the Marine the progress made to date with the roll-out of the rural development programme; and if he will make a statement on the matter. [12954/15]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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We have been waiting a long time for the rural development programme to be approved. Will the Minister confirm the rumours in a newspaper today that the programme has been approved? Will he tell us when that will become official and the legal standing of any letters of comfort that will be given?

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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The new rural development programme for 2014 to 2020 will be a key support in enhancing the competitiveness of the agrifood sector, achieving a more sustainable management of natural resources and ensuring a more balanced development of rural areas. The draft RDP was formally submitted to the European Commission on 3 July 2014, a number of weeks in advance of the regulatory deadline. The Commission's formal response to the draft RDP containing a total of 266 observations was received on 20 October 2014. Since that time, detailed and intensive negotiations have been ongoing between my Department and the Commission to secure agreement on the new RDP. These bilateral negotiations have recently concluded and Ireland's draft RDP has now been formally resubmitted to the European Commission where it has entered the Commission's final round of inter-services consultation.

While the formal approval process for the RDP has still to be completed, I am aware of the importance of the roll-out of RDP schemes. Accordingly, officials from my Department sought at an early stage to establish a very clear understanding with the European Commission as to the shape of the new GLAS, its priorities, the actions that should be applied and the rates of payment. Having reached this level of agreement, as an interim measure and to allow maximum time for farmers to prepare their GLAS plans, I launched GLAS on 23 February. Commissioner Hogan has recently announced that the Commission will issue letters of comfort to member states as RDPs complete the bilateral negotiation process, but formal adoption of the RDP will be delayed by amendments to the multi-annual financial framework. This letter of comfort will ensure that the launch of RDP schemes will not be held up by the formal approval process at EU level and will facilitate the earlier implementation of RDP schemes and supports.

When the Commission’s final round of inter-services consultation is complete and the letter of comfort has issued, the schemes and supports contained in Ireland’s RDP will be rolled out in line with the annual budgetary process. I expect to receive our letter of comfort within the next two weeks.

2:05 pm

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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What is the legal standing of a letter of comfort? In other words, does it provide legal cover against eventualities? Based on the figures the Minister sent me last week, can he confirm that taking into account inflation, which is real for farmers in terms of the continued increase in prices, the RDP 2014-2020 is 20% less than the real value of the RDP 2007-2013?

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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First, the letter of comfort is a practical measure that will enable me to approach the Departments of Finance and Public Expenditure and Reform to have schemes opened and to commit to payment of moneys in that regard. It is not ideal but it is a solution that allows us to get schemes open, which is what farmers want. While I would rather that at this stage we had a full approval process for our RDP, the Commission, the Government and the Department are satisfied that a letter of comfort will provide the necessary level of financial and legal cover that we need to be able to get schemes open.

Second, the Deputy will be aware that payments under Pillar I and the budget for the CAP have been maintained at more or less the same level as previously but they are not index linked. In other words, they will not increase every year with inflation. From a lobbying point of view, during the process of agreement of the rural development programme and Common Agricultural Policy, CAP, farmers were clear that what they wanted was no less in actual terms than they got the last time. That is what was achieved.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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Based on the figures the Minister sent to me last week, in actual cash terms this rural development programme is 10% less than the last one. No account is taken of inflation. Inflation is real yet farmers are being paid the same amount now as they were being paid seven years ago. This is the same as the Government proposing next that workers be paid 1950 wages and saying that they are being given the same amount of cash as they were given in 1950, which is quite farcical. Can the Minister confirm that the figures he provided to me last week are correct? Can he further confirm that he sought advice from the Attorney General as to the legal status of the letter of comfort, and when the genomics, TAMS, organic and knowledge transfer and animal welfare schemes will open?

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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With respect, the deal was done in the budget over 12 months ago.

Surely it is not just dawning on the Deputy now.

2:10 pm

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I have been saying it for a year. I keep reminding the Minister.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I assume the numbers given to the Deputy last week were correct because we try to give out correct numbers.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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The Minister gave them.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I assume they were as we give out correct information all the time when we are asked parliamentary questions. The Deputy is trying to make a big issue of the budget now, 12 months after it was agreed. It is a bit late in the day for him to make that case, with all due respect.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I have made that case since. The Minister can check my documentation. I am just reminding the Minister.

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
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I call Deputy Martin Ferris for the next question.

Photo of Martin FerrisMartin Ferris (Kerry North-West Limerick, Sinn Fein)
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Go raibh maith agat, a Leas-Cheann Comhairle.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I asked a simple question about when these genomic schemes would open. The Minister did not even try to address it.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I am sorry-----

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I asked specifically him about the Attorney General and he did not even try to address it. He likes to waffle on-----

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
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We are up against the clock on this one. The Minister-----

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I will answer it. What was the question? Was it when the beef genomic scheme would open?

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I also asked about TAMS, organic and knowledge transfer, and animal welfare schemes.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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As soon as we get the letter of comfort, which we expect in the next two weeks, we will open these schemes in sequence. It is likely the schemes will open one after the other in May and June. We cannot open them all at the same time for good practical reasons. However, there will be a roll out of schemes one after the other, and TAMS and the genomics scheme will both be prioritised. However, there will also be support for the islands, which I hope the Deputy will welcome, and increases in the organic scheme. There are many other schemes to be rolled out over the summer.