Michael Collins (Cork South West, Independent)
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4. To ask the Minister for Agriculture, Food and the Marine the steps he has taken at EU level to highlight the problems caused by tariffs and taxes on fertilisers (details supplied); the results he has achieved; and the timeframe for when these issues will be resolved. [12572/17]

Michael Collins (Cork South West, Independent)
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I am sure the Minister is aware that nitrogen fertiliser prices in Ireland have increased by up to seven times since last June. As a result, nitrogen prices are approximately €60 per tonne more expensive that they were last summer. Tariffs and taxes on fertiliser in Europe are costing Irish farmers approximately €32 million per annum. This is making Irish commodities uncompetitive against imports from outside the EU. It is also affecting dairy farmers, who had a desperate year last year because of low milk prices, and grain farmers, many of whom are in danger of going out of business. Beef and sheep farmers are badly affected too, as are the 8,000 or so GLAS farmers who are still awaiting their payments from the Department. Is the Minister taking steps at European level to highlight the problems caused by the tariffs and taxes on fertiliser?

Michael Creed (Cork North West, Fine Gael)
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I am aware that fertiliser costs comprise a significant area of expenditure on Irish farms. I strongly believe the elimination of fertiliser tariffs and anti-dumping duties could help farmers to reduce their input costs.  According to EUROSTAT, fertiliser is the third most important expenditure item on EU farms, accounting for €19.2 billion of expenditure in 2014. Fertiliser prices have increased significantly in recent years, partly due to the protection provided by the imposition of duties on non-EU imports. Opportunities to manage price risk through hedging mechanisms have also been limited. In February 2016, the International Food and Policy Research Institute published a report on the effects of import duty elimination on competition in the EU fertiliser market. The report concluded that the protection afforded to EU manufacturers by the application of anti-dumping duties and customs tariffs is costing farmers up to €1 billion per annum.

Against this background, I asked the Commission to consider a temporary suspension of customs tariffs and anti-dumping duties on fertilisers in the lead-up to the March 2016 meeting of the Agriculture and Fisheries Council. I actively pursued this issue at Council level throughout 2016 with the Commission and in consultation with Council colleagues.  I raised the issue again at the January 2017 meeting of the Agriculture and Fisheries Council, when I asked the Commission to address the significant overpricing of fertilisers in the EU brought about by the imposition of anti-dumping duties on imports. Commissioner Hogan acknowledged the desirability of bringing about lower prices but indicated that it was proving difficult to achieve, despite considerable efforts on his part with other member states and internally within the Commission.

The 2016 payments under the green low-carbon agri-environment scheme, GLAS, represent the first full year of payments under the scheme.  They are being paid in weekly instalment runs as issues with outstanding GLAS cases are resolved. Further payments are issuing on a weekly basis, with payments valued at over €110 million now having been issued. Over 84% of participants have now been paid.  All GLAS applications must pass regulatory controls and validations, as is the case with all EU co-funded schemes. The outstanding cases are being reviewed on a case-by-case basis to resolve the individual issues in each instance.

Michael Collins (Cork South West, Independent)
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While I appreciate some of the steps that have been taken, this issue is unfortunately taking many farmers who are purchasing fertiliser at the moment right over the edge. I also appreciate the steps the Minister has taken to provide cheap finance to farmers, but I am aware that some farmers who are looking for such finance are being turned down by banks. While the provision of €150 million is a start, I have been told it would not solve the problems in the pig sector alone, never mind the problems all across the farming sector. The big uptake of low-interest loans proves that there are huge cashflow problems on many Irish farms. I am aware of the continuous delays in making GLAS payments because many farmers are ringing my office to say they have not been paid. They are probably ringing the Minister's office as well. We have been told that these delays are caused by a technical issue. As Deputy Danny Healy-Rae said at last week's meeting of the Joint Committee on Arts, Heritage, Regional, Rural and Gaeltacht Affairs a strike of a hammer against a machine might sort it out. The Department of Agriculture, Food and the Marine is failing to sort it out. How can 8,000 farmers still be waiting for the GLAS payments? It is unjust and unfair in times when people are struggling. The cost of fertiliser is taking many farmers over the edge. I ask the Minister to intervene personally. The Minister mentioned Commissioner Hogan, who needs to stand up for Irish farmers in the dairy, beef and grain sectors, who are struggling at present. The grain sector is awaiting compensation that was voted for in this House. That money has to be given to the grain farmers.

Michael Creed (Cork North West, Fine Gael)
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As I said in my response, I have raised this issue at European level. I appreciate that the cost of inputs is something we can endeavour to address. I have raised this issue at meetings of the Agriculture and Fisheries Council. Commissioner Moscovici, rather than the Commissioner for Agriculture and Rural Development, Mr. Hogan, is responsible for anti-dumping tariffs because it is a competition issue. Obviously, this issue has been raised by Commissioner Hogan at Commission level. I would be less than honest if I failed to acknowledge that this initiative does not have widespread support. There are member states with significant indigenous fertiliser industries that are protected by these tariffs and anti-dumping levies. That adds a cost to agriculture. Nonetheless, I am personally committed to continuing to raise this matter. I do not think it would be accurate to say this issue lends itself to an easy solution. I should mention in the interests of accuracy that there are not 8,000 GLAS farmers. The number of farmers remaining in the scheme is approximately 5,000. I acknowledge that this is 5,000 too many. We are doing everything we can to address that issue. There is ongoing engagement between my Department and the farm organisations on the grain issue.

Michael Collins (Cork South West, Independent)
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The Minister has said that giving farmers relief in respect of the increased cost of fertilisers caused by tariffs "does not have widespread support" in Europe. This is one of many serious issues for Irish agriculture at present. What steps are being taken by the Minister to deal with those issues? It looks to me that something is being done this year, but what has been happening in the last number of years as this problem has been growing? As I have said, many farmers are struggling greatly. I would like the Minister to elaborate on the technical issue that is holding up the making of GLAS payments to 5,000 farmers. I mentioned 8,000 GLAS farmers earlier because that was the figure a number of weeks ago. If someone in Schull has a technical issue, he or she will get a man to sort it out within half an hour. I cannot understand why it seems to take three months for such issues to be sorted out in the Department of Agriculture, Food and the Marine. Is a belt of a hammer needed to sort it out? It sure as hell is not being sorted out at present.

We had a vote on a compensation programme for grain farmers here. The Minister should remember that his Government did everything possible to stop the grain farmers from getting compensation. The Government lost that vote so why have the farmers not yet got their compensation? The people, through this Dáil, voted against the act of not giving that compensation.

Michael Creed (Cork North West, Fine Gael)
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I have not heard from Deputy Collins about the way compensation might be paid. As I stated to others, where there is a way there is a will. We are still searching for the way and we have not heard any detailed proposals from the Deputy on that. We would be very interested to hear about that.

What are the technical issues? They are myriad and are as many as there are applicants awaiting payment, which is the unfortunate reality. We are working through those on a case-by-case basis. Some of them relate to actions associated with individual plots and some concern plots that may have been split. Some of them relate to the correlation between the green, low-carbon agriculture scheme, GLAS, actions and the basic payment application submitted. There are almost as many as there are individual applicants waiting to be paid. The issue is each individual application must be eyeballed and there must be a solution found for each application. If the Deputy has a man in Schull who can sort these out in half an hour, we would be delighted to hear from him or her. There is a very dedicated team in the Department working on this.

I apologise to farmers who are awaiting payment and I appreciate their position. We are working through this as quickly as we can and, as I stated, 84% of farmers have been paid. I understand the position of those still awaiting payment.