Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

44. To ask the Minister for Agriculture, Food and the Marine the discussions he has had with the EU Agriculture Commissioner and the EU Budget Commissioner in regard to the need to protect CAP funding; and if he will make a statement on the matter. [41645/17]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

A very strong, clear message needs to go out from all of Government and the Minister to our European partners that there is a need for an increase in CAP funding post-2020. CAP has been very successful in ensuring a secure supply of safe food for the citizens of Europe. It is essential to support rural communities. As the Minister knows, it is essential to support primary producers and sustainable methods of food production. We have to start a very strong campaign now that under no circumstances can there be a reduction in CAP funding and that we need an increase in funding post-2020.

Michael Creed (Cork North West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am in regular contact with the Commissioner, Mr. Phil Hogan, and my European counterparts in regard to maintaining a strong CAP budget post-2020 and my position on this issue is well known. I met the Commissioner most recently at the end of August and again re-iterated the need for a well-funded CAP.

Regarding the Commissioner, Mr. Günther Oettinger, and the Commission’s final reflection paper on the future of EU finances, published on 28 June 2017, I am keenly aware of the potential implications some of the proposals within this paper would have on future CAP funding. The paper contends that economic strength, sustainability, solidarity and security must be focal points for the EU finances of the future and that future budgets needs to be simpler and more efficient and flexible. This is a principle to which Ireland can subscribe.

However, the paper outlines five possible funding scenarios, ranging from continuing with the current reform agenda to radical redesign, with the consequential effects on EU expenditure and revenue. Some four of these scenarios point to a potential reduction in the CAP budget. The paper also refers to a number of options for managing a cut in CAP funding, including reductions in direct payments to farmers, the provision of farm supports only to those under special constraints, and a requirement for member states to co-fund direct payments, which currently are 100% EU funded.

Such proposals would have a significant adverse impact on the economic sustainability of farms or impose a significant additional burden on the Exchequer, especially given that many livestock farm incomes in Ireland would be negative without direct payments. The certainty and stability the direct payments provide to farmers cannot be underestimated, as has been evident during recent market crises. Cuts in CAP could also have a negative impact on efficiency and investment on farms, with knock-on impacts on food processing and associated sectors and the rural economy generally.

It is worth noting that the amount of CAP funding per member state for Pillar 1, direct payments, and Pillar 2, rural development, is fixed until 2020 in regulations of the Council and European Parliament. Any change to these figures will require a co-decided amendment to these regulations.

Additional information not given on the floor of the House

The Commission was expected to come forward with proposals for the new multi-annual financial framework for the period 2021-27 by 1 January 2018. However, due to Brexit and other pressures, this is not likely to happen now until mid-2018. While formal discussions on the multi-annual financial framework have yet to commence, I support the retention of a strong and well-funded CAP and my position on this matter has been articulated at official and political level and is well understood by the Commissioner, Mr. Hogan, my counterparts in other member states and in the Commission. I will be working hard with my European counterparts to ensure that the CAP budget post 2020 provides a solid and effective foundation for the continued development of the agrifood sector.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I do not think we can highlight enough the importance of direct payments which account for two thirds of farm income, as the Minister knows. It is extremely important not just for the farming community but the entire economy, in particular the economy of rural Ireland.

Again, the importance of CAP cannot be over-estimated or highlighted enough from the point of view of sustainable food for the citizens of Europe and indeed markets much further afield. We all know we would like to see improvements in the governance of CAP and in some of the arrangements but what we need to focus on at the moment is the quantum of money that will be available for the budget post-2020. I know, and the Minister knows better than any of us in this Chamber, that there are competing demands and there are people at different Councils in Europe, be it at Heads of Government level or other ministerial Councils, and at parliamentary fora as well outlining the need for additional funding for defence and migration so we do not underestimate the challenge that lies ahead regarding increasing the funding for CAP. I would focus very strongly on the quantum of money that will be available for CAP in general as well as the other issues we would like to see regarding simplification, etc.

Michael Creed (Cork North West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I concur entirely with the Deputy. Since its inception, CAP has shown itself to be an extremely flexible and adaptable policy not just in terms of its original objectives of delivering food security for Europe after the Second World War but has evolved substantially since then to meet environmental concerns, the sustainability of our production systems and the public good in the area of biodiversity, water quality, etc. Notwithstanding the fact that Europe, as identified in a number of reflections in this area, faces many new challenges that were not dreamt of at the time founding fathers met to pen the Treaty of Rome, new challenges require new money. The Government's position is not to raid what is a successful existing policy instrument of the EU to meet those new challenges. In due course, we may well have to meet and consider who funds it. Nobody is putting his or her hands up at the moment to take a penny less or put in a penny more but if we are serious about CAP, that is something we will have to address at another stage.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I hope the Minister can give us an assurance that all of Government will back him fully in identifying the need to increase funding for CAP post-2020 and that whatever Council of Ministers is identified by members of the Government will be totally supportive of the need to increase funding for CAP in the next round.

Michael Creed (Cork North West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Government is entirely committed to an adequately funded CAP post-2020. There are questions as to whether it will slot in immediately after 2020 because of complications arising out of EU budgetary contributions to CAP. Notwithstanding that, it is clearly our position that Europe faces other challenges but other challenges require new money. It is not to raid the existing CAP, which is delivering in spades not just in terms of food security, quality and traceability but also sustainability and a host of other public goods. The taxpayer gets exceptional value for CAP and it is our clear position that this needs to be adequately funded post-2020.