Charlie McConalogue (Donegal, Fianna Fail)
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25. To ask the Minister for Agriculture, Food and the Marine the criteria he is considering for the design of a new scheme for sheep farmers, under the rural development programme; and if he will make a statement on the matter. [21617/16]

Michael Creed (Cork North West, Fine Gael)
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The new programme for Government commits to the introduction of a scheme for sheep farmers under the rural development programme, with a budget of €25 million to be provided in budget 2017. This scheme, in addition to the existing supports available to sheep farmers under the basic payment scheme, the green low-carbon argi-environment scheme, GLAS, the areas of natural constraint, ANC, scheme and the targeted agricultural modernisation scheme, TAMS, will make a vital contribution to ensuring the continuing viability of the sheep sector in Ireland. This commitment is a clear acknowledgement of the contribution the sheepmeat sector makes to the agrifood economy, generating an output value of €320 million in 2015 and supporting 34,000 farm families directly, as well as providing several thousand jobs indirectly in rural areas.

As regards the specifics of the scheme design and operation, my Department has engaged in extensive consultation with farm organisations. In addition, two weeks ago they met officials of the European Commission to discuss the proposed new scheme in the context of the specific requirements of the rural development programme. Any such scheme must comply with the rural development regulation. My officials are working on the final details of the scheme in the light of these consultations. The scheme is being proposed as an animal welfare scheme under Article 33 of the rural development regulation. All eligible actions will have to be linked with improving animal welfare conditions for applicant flocks and payments will be calibrated to compensate farmers for costs incurred or income forgone as a result of such actions. Eligible actions must be verifiable and controllable and must go beyond the normal standards of husbandry practice.

My objective is to ensure the scheme is administratively simple, both for applicants and my Department, complies with EU regulations, makes a real contribution to the development of the sector and is available to the maximum possible number of participants, including both lowland and hill sheep farmers.

Charlie McConalogue (Donegal, Fianna Fail)
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It is welcome that there is a commitment to and movement on introducing the €25 million scheme to assist the sheep sector. It is very necessary because incomes in the sheep sector have been under pressure in recent years and we have also seen a reduction in flock numbers, something which needs to be arrested. The average income of a sheep farm family is just over €15,000, of which a very high proportion, not far off 100%, is made up of farm payments. Will the Minister elaborate further on the structure of the new scheme? It is crucial that the mistakes made with the beef data and genomics programme which was regarded by farmers as being particularly cumbersome, leading to a lower take-up than had been predicted, are not repeated. Will the Minister comment on the requests made to him by hill farmers, in particular, for a €5 top-up payment and the need for a single menu? Is this something he is considering and plans to introduce, particularly in the light of the fact that the sector has been much less profitable in recent years, particularly for hill sheep farmers?

Michael Creed (Cork North West, Fine Gael)
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I do not want to get dragged into a cul-de-sac, but it is interesting to note that, with respect to the aforementioned beef data and genomics scheme which I believe will do for the beef sector what the electronic identification, EID, scheme has done for the dairy sector, there is a huge demand to have it reopened to new applicants. I do not believe it is flawed but that, over time, it will prove itself as regards the merits of the beef herd in terms of genetics and climate control measures. It is a signficant scheme. I acknowledge the allocation of €25 million for the scheme and appreciate the interest and co-operation of the Deputy. We have discussed the matter both off-camera and in the Chamber previously. It represents a significant investment in the sector, but not to over-egg it, it is relatively small in terms of what can be achieved in ewe numbers. The sector has waited long enough in the queue for such recognition.

I am very anxious to have a practical scheme that will take account of on-farm management practices on both lowland and hill sheep farms. The menu of options farmers will be invited to buy into will reflect the range of management practices followed. I have met representatives of hill sheep farmers and the IFA. I have also discussed the matter witth Macra na Feirme and the ICMSA. My Department has had even more extensive consultations on these matters. I do not propose to have a top-up payment. An across-the-board payment will be made to all those involved, but the menu of options will take account of the different management structures in place on individual farms.

Charlie McConalogue (Donegal, Fianna Fail)
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I thank the Minister for his reply. When does he expect to receive final approval for the scheme and to complete the process of engagement with Brussels in signing off on the range of options to be offered and the structure and make-up of the scheme? He has indicated that he is not looking at the option of having a top-up payment for those involved in hill sheep farming sector, in particular. Will he elaborate on his reasons for not going down that route in the light of the fact that the hill sheep farming sector indicates that welfare measures can be more costly in their implementation for hill sheep farms and the fact that the sector has been operating at a loss for the past year or two? Will there be one menu from which sheep farmers will be able to choose regarding the range of the welfare options available or does the Minister plan to introduce two menus for lowland and hill sheep farmers?

Michael Creed (Cork North West, Fine Gael)
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My ambition is to have payments made in 2017 as per the commitment made in the programme for Government and, therefore, to conclude the negotiations with the Commission. In that respect, I appreciate that sometimes we await decisions from the Commission and that sometimes we have to finalise the paperwork. We have a broad outline of the scheme and are discussing the detail with the Commission. That process will continue, but I hope to get Commission approval in 2016 and be in a position to invite applications, if not late this year, certainly early in 2017 with a view making payments at the earliest possible date thereafter. What I am aiming to achieve with the scheme is that it will include a menu of options that will reflect the different management practices associated with either lowland or hill sheep farming and that, therefore, there will not be additional costs incurred by hill sheep as opposed to lowland sheep farmers in the suite of options available. The necessity for a top-up payment would not arise because there would be appropriate measures in place for hill and lowland sheep farmers.