Jackie Cahill (Tipperary, Fianna Fail)
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With all due respect to the Minister of State sitting opposite, it is disappointing that a Minister from the Department of Agriculture, Food and the Marine is not present to answer this question on the funding shortfall the Irish Cattle Breeding Federation, ICBF, is experiencing.

The background to this situation is that the Department made the decision to allow multiple companies to tender for tags. Obviously, a number of companies applied to be able to sell tags to Irish farmers. The voluntary levy which farmers paid, and which was the main source of funding for the ICBF, was highlighted on the order forms farmers received. Between 1 October and 31 March, 50,633 farmers and herdowners ordered 2.057 million tags. Some 25,069 of those herdowners opted not to pay the levy, resulting in 1,091,238 tag sets that did not contribute the levy to the ICBF. This resulted in a shortfall in funding of €414,670 for the ICBF for that six-month period.

While the ICBF has had its critics, it has played a vital role in the development of both dairy and beef herds in this country. The advancement in the economic breeding index, EBI, of the dairy herd in particular is in no small way down to the ICBF, which was founded in 1998. In recent months it was in the spotlight with regard to EBI evaluations. Leaving that aside, it has played a huge role in the advancement of beef genetics and the genetic potential of both dairy and beef herds in this country.

Unless the shortfall to which I refer is addressed by means of some mechanism brought forward by the Department, the ICBF cannot continue to operate. While there are other minor sources of funding for the ICBF, its major source is the voluntary levy from tags. As I have mentioned, the voluntary levy came into the spotlight as a result of the Department's decision to allow multiple companies to tender to supply tags. The ICBF's role is hugely important to the progression of both our dairy and beef herds.

The issue of how the ICBF will be funded into the future needs to be addressed fairly rapidly as the vast majority of tags are ordered in the period from September to spring. If there is going to be another source of income for ICBF, the Minister needs to come forward with proposals fairly quickly, in order that the ICBF will be secure and know what funding will be available to it in the future. This shortfall in funding cannot be borne by the ICBF for any length of time. Its operations will cease very quickly. I know this has been a matter of discussion with the board of the ICBF and the Department of Agriculture, Food and the Marine, but I would be greatly appreciative the Minister of State could tell us what the Department's action will be and how this funding issue will be resolved. Hopefully it will be sooner rather than later.

Seán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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I thank Deputy Cahill. We are grateful to the Minister of State, Deputy Kyne, for being here. Before I call on him, I would like to say that if a Member tabling a Topical Issue debate is not happy that the appropriate Minister is unavailable, it is open to that Deputy to have the matter deferred until such a time as he or she can be present.

Seán Kyne (Galway West, Fine Gael)
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I apologise that the Minister for Agriculture, Food and the Marine, Deputy Creed, is not here. I am taking this matter on his behalf. The ICBF was established in 1998 following a number of years of industry consultation among all stakeholders in the cattle breeding industry. ICBF is the only body approved under EU legislation, in particular Commission decision 2006/427/EC, to carry out testing, genetic evaluation and publication of breeding values for Irish dairy and beef cattle. The objective of the ICBF is to achieve the greatest possible genetic improvement in the national cattle herd for the benefit of Irish farmers and the national dairy and beef industries by collecting, collating and distributing available information of practical and scientific industry while promoting the exchange of all such information and data among breeders of cattle in Ireland.

The organisation delivers a public good in the area of cattle breed improvement, which is the foundation of a profitable and sustainable dairy and beef herd. As an advanced livestock country, Ireland has been at the forefront of utilising the latest advances in cattle breeding from around the world to ensure Irish farmers can benefit from the best genetics for their farm businesses. The organisation of the breeding industry under the umbrella of the ICBF has helped Irish artificial insemination, AI, companies maintain a competitive business and be able to provide the highest quality AI bulls to Irish dairy farmers in particular. Cattle breeding worldwide is becoming a very competitive business and a small number of global players are determined to dominate the world market. The Irish breeding sector has helped withstand these competitive pressures by organising itself under the umbrella of the ICBF.

Regarding funding since 2009, the Department of Agriculture, Food and the Marine has allocated a total of €6.238 million to the ICBF under an annual block grant and €8.08 million in infrastructural funds. Some €800,000 has been allocated towards operational costs for 2017 and €920,000 for infrastructural projects.

The ICBF is a farmer-led body which receives its funding from a number of sources including farmers, the breeding industry and the State. The funding model used by the ICBF for many years involved one third of income coming from farmers, one third from service organisations and one third from an annual grant from the Department. This model has served the ICBF well. The tag levy, which formerly raised approximately €900,000, has been a critical source of funding for the ICBF for many years, constituting approximately 20% of core funding. Recent policy changes and amendments to tag order forms resulted in a significant drop in levy collection and an absence of certainty for this funding stream, as has been referred to by the Deputy. It is broadly accepted by the various stakeholders in the ICBF that a contribution from all farmers is the fairest and most appropriate mechanism to support the work being done on the national breeding programme as it maintains farmer control of the benefits and generates benefit for all farmers. The Department has been working with the ICBF and tag providers with the objective of finding a solution that addresses the funding shortfalls but which maintains the pillar approach to funding. Discussions on this matter are ongoing and it is hoped they can be finalised in the near future.

Jackie Cahill (Tipperary, Fianna Fail)
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I appreciate the Minister of State being here and taking the Topical Issue during a timeframe when we need a solution before tags are ordered the next back end. I do not disagree with anything the Minister of State said in his statement but the nub of the issue is where the shortfall in funding is going to come from or what mechanism his Department will use to address it. He did not give any answers. We know the figures. There is a shortfall that will increase rather than diminish if action is not taken because roughly 50% of herd owners who ordered tags did not contribute. Such is human nature that if people see their neighbour is not contributing to a voluntary levy, more people will opt out of the scheme. We need a formula sooner rather than later to address adequately this shortfall.

None of us is arguing about the hugely important work that the ICBF does. As a dairy and beef farmer, I can see that the evaluation on the economic breeding index side of things is the envy of many other countries. That is why the funding is so critical for an organisation like this, which has been a success since its foundation in 1998. It would be hugely detrimental to our agricultural industry if because of a shortfall in funding, the ICBF's activities were to be restricted. While I agree fully with the sentiments expressed by the Minister of State about the ICBF, its functions and its achievements, when I got to the nub of the question about how the shortfall will be addressed, the Minister of State did not address that issue. I respectfully suggest that he convey to the Minister our anxiety about this shortfall and our concern that measures to address it are expedited as quickly as possible. It needs to be addressed and the Minister should make it a priority that the ICBF will be secure in knowing that this important pillar of its finances is catered for.

Seán Kyne (Galway West, Fine Gael)
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I acknowledge the important work done by the ICBF. The industry is very well represented on the board. It is a wide range of stakeholders in the beef and dairy sectors which demonstrates that it is an industry-led organisation. Michael Doran of the IFA is chairman while the vice chairman is Patrick Kelly of Progressive Genetics. The rest of the board consists of three IFA representatives, three from the Munster Cattle Breeding Group, two from the Irish Creamery Milk Suppliers Association, with which Deputy Cahill has had a long connection, two from the Irish Holstein Friesian Association, one from Dovea Genetics, one from Progressive Genetics, one from Pedigree Cattle Breeders and Mr. Bill Callanan from the Department. A Department official acts as the ICBF's company secretary.

As I stated in my answer, discussions are ongoing in an effort to come up with a solution to the funding shortfall. Department officials and ICBF personnel met with tag supply companies. A proposal was put to the tag supply companies - Mullinahone, Cormac Tagging and Datamars - that the tag price should be increased to incorporate the ICBF levy. I understand that further meetings are planned over the coming weeks. Obviously, if there is to be any increase in the tag prices, the Department would be required to explain why this is happening and the importance of it. I will certainly inform the Minister about Deputy Cahill's concerns and his belief that a resolution should be found very soon and the importance of the timeline for the majority of calf births from September to the following spring. I hope a resolution can be found very soon.