Éamon Ó Cuív (Galway West, Fianna Fail)
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4. To ask the Minister for Agriculture, Food and the Marine his plans to provide matching funding from the Exchequer to top up the €500 million European Union package of aid to the Irish dairy and pig sectors; the method by which this money will be distributed between farmers; if the payment will be confined to dairy farmers; and if he will make a statement on the matter. [34254/15]

Éamon Ó Cuív (Galway West, Fianna Fail)
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As the Minister is aware, money has been made available by the European Union to assist the dairy and pig sectors. I am seeking from the Minister information on how this money is to be disbursed, if national co-financing will be provided and when payments will be made.

Simon Coveney (Cork South Central, Fine Gael)
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The Deputy's questions are fair. A package worth €500 million has been secured, which is a really good delivery by Commissioner Hogan, because the expectation was that the package would be a lot less. Approximately €420 million of the funding will be spent on what are called national envelopes to enable a positive impact within countries on the income of dairy and pig farmers. Ireland's allocation is just under €14 million. There is a facility through which, if we want, we can match that funding with Exchequer funding. My Department is in discussions on the matter with the Department of Public Expenditure and Reform. We need approval to provide matching funding, because to facilitate that we would have to change our Estimates. Those discussions have not yet concluded.

We had a good discussion with all of the stakeholders at the first dairy forum meeting, which took place last week. The recommendation from farming organisations was that we consider the introduction of a flat payment for farmers, which would positively discriminate in favour of smaller farmers in terms of payments. Macra na Feirme made clear that it would like to see some level of top-up or priority for younger farmers, who may be more indebted because they are trying to grow their businesses, and may be under more pressure than dairy farmers who have been around longer. I agree with those recommendations. The Department's proposals in this regard have not yet been finalised but will be based on those principles. I do not propose to pay farmers on the basis of the amount of milk they produce and, therefore, give larger farmers more money. I do not think that is where the need is. In terms of the final outcome, I think most farmers, regardless of size, will receive similar payments. We may consider giving a top-up to young farmers to encourage them, which is something I have been consistently trying to do. We will work towards getting the payments out as soon as possible. I am certain they will be made within the next six weeks.

Éamon Ó Cuív (Galway West, Fianna Fail)
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I thank the Minister for the information provided at the end of his reply, which is most useful because, as he will be aware, farmers want their payments now. Will the Minister confirm whether these direct payments will be paid to pig and dairy farmers or to dairy farmers only? Also, in the context of a top-up for our farmers, is that top-up likely to be in the region of 20%? Am I correct that the payment, unless matched with Exchequer funding, will be approximately €800 per farmer? People are anxious to know the likely amount they will receive.

Simon Coveney (Cork South Central, Fine Gael)
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It is true that farmers want to be paid as soon as possible from a cashflow point of view. On 16 October, a 75% advance payment on single farm payments will be made, which will amount to €750 million in payments to farmers, €250 million more than would normally be given out at that time of year. This is one of a number of measures to help farmers in terms of cashflow. There will be a lot of money coming farmers' way in the next few weeks.

In terms of this particular package, I do not want to give the Deputy an exact figure because no decision has been made yet on the likely top-up amount for young farmers. While I would like to give a top-up, it may not amount to a 20% or 25% top-up.

On pig farmers, I am not sure we will take the same approach to pig farmers as we do to dairy farmers. I need to speak to the industry to understand what they want. The only conversation we have had to date has been with the dairy sector in terms of how it would like money to be paid out. We want to get that done quickly. I agree that pig farmers are also under pressure, but they are under a different structure from dairy farmers in that many of them run large operations and as such are much bigger, and also, there are not as many of them as there are dairy farmers. We need to sit down and discuss with pig farmers how they would like us to spend the limited resources available for them.

The amount of money cannot be confirmed until a final decision on whether the Exchequer will provide matching funding has been made.

Éamon Ó Cuív (Galway West, Fianna Fail)
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Will the Minister confirm that the funding provided by Europe will be of the magnitude spoken about? I accept that the Exchequer funding issue is still up in the air. On Exchequer funding and the Minister's ability to get this money for the dairy sector, the sheep sector is also under huge pressure. The grassland scheme has been withdrawn from that sector. Perhaps the Minister, when seeking funding for the dairy sector, will also seek funding for a direct payment scheme for sheep farmers, which, as he will be aware, is being sought on behalf of that sector by the farming organisations such as the Irish Cattle and Sheep Farmers' Association and the Irish Farmers' Association. Will the Minister ask the Minister for Public Expenditure and Reform for an equivalent amount of money to be paid on a pro ratabasis to sheep farmers?

Simon Coveney (Cork South Central, Fine Gael)
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This is populist stuff that the Deputy knows is not possible. There is no additional package for sheep farmers. What we are talking about is a fund provided by Europe of €500 million to support the dairy and pigmeat sectors because they have particular pricing problems this year.

The price of lamb has not collapsed this year. I know sheep farmers are under pressure, which is why we made a decision as part of the new Common Agricultural Policy, CAP, to decouple the sheep grassland scheme. In order to protect that €17 million or so, we decoupled it and added it directly to single farm payments to make sure they could hold on to it.

Éamon Ó Cuív (Galway West, Fianna Fail)
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The Minster knows the majority of them will not because they are under the €150 per hectare. Over the period of this CAP, that money is going to amount to nothing. If the Minister does not know that, he should.

Michael Kitt (Galway East, Fianna Fail)
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The Minister to conclude.

Simon Coveney (Cork South Central, Fine Gael)
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That is not true. Deputy Ó Cuív was one of the people looking for redistribution. To argue against redistribution for a sheep farmer because he has the sheep grassland scheme factored in to his single farm payment----

Éamon Ó Cuív (Galway West, Fianna Fail)
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I am not arguing against redistribution. The Minister always twists what I say.

Michael Kitt (Galway East, Fianna Fail)
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The Minister has the floor.

Simon Coveney (Cork South Central, Fine Gael)
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Deputy Ó Cuív is wanting it both ways.

Éamon Ó Cuív (Galway West, Fianna Fail)
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I do not. I want redistribution and I want the farmer to keep his sheep payment.

Simon Coveney (Cork South Central, Fine Gael)
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He is uncomfortable with that, which is why he is questioning me now.

Michael Kitt (Galway East, Fianna Fail)
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The Minister to conclude.

Simon Coveney (Cork South Central, Fine Gael)
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We have taken every opportunity we can to support the sheep sector. We will do that through targeted agricultural modernisation schemes, TAMS and single farm payments in terms of redistribution, where sheep farmers are the big winners. We also did it when we decoupled and added to a sheep farmer's single farm payment what he would previously have been getting under the sheep grassland scheme.

Deputy Ó Cuív knows what the rural development programme, RDP, looks like now. He also knows that if we are going to change or introduce a new scheme that has not been provided for in it, we would need formally to change the RDP with the Commission. That takes time. There is no plan to introduce a separate headage payment type scheme, which seems to be what the Deputy is looking for. If he was in my position he would not be able to do it either.

Éamon Ó Cuív (Galway West, Fianna Fail)
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I would not have done what the Minister did in the first place.

Simon Coveney (Cork South Central, Fine Gael)
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Exactly. Farming would be a lot worse off.

Éamon Ó Cuív (Galway West, Fianna Fail)
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It would be a lot better off. The vast majority of farmers would be a lot better off.

Michael Kitt (Galway East, Fianna Fail)
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Please, Deputy Ferris has the floor.

Éamon Ó Cuív (Galway West, Fianna Fail)
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I dealt with the price issue and a fair CAP.

Simon Coveney (Cork South Central, Fine Gael)
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We have introduced the maximum CAP.

Michael Kitt (Galway East, Fianna Fail)
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I am sorry. Deputy Martin Ferris.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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Are they finished?

Michael Kitt (Galway East, Fianna Fail)
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Go on, please, Deputy Ferris, make some progress.