Charlie McConalogue (Donegal, Fianna Fail)
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38. To ask the Minister for Agriculture, Food and the Marine if all RDP 2014 to 2020 funding will be fully expended by the end of 2020 in all RDP schemes; if the targets for scheme participation levels will be reached; and if he will make a statement on the matter. [47190/17]

Charlie McConalogue (Donegal, Fianna Fail)
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I want to ask the Minister if he expects all of the rural development programme monies from 2014 to 2020 to be fully expended by the end of 2020 across all rural development programme schemes and if all targets for scheme participation levels will be reached. I would appreciate if the Minister would update us on that matter.

Michael Creed (Cork North West, Fine Gael)
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Ireland’s rural development programme 2014–2020 represents a substantial investment by both the EU and the national Exchequer in the agri-food sector and in Irish farmers. The programme is co-funded by the EU’s European Agricultural Fund for Rural Development, EAFRD, to a sum of €2.19 billion over the programme lifespan. This EU funding is supplemented by Exchequer funding, bringing the total allocation to €4 billion, a substantial vote of confidence in Irish farming. The programme covers a suite of measures, both ambitious and broad, and supports all farming sectors. These measures reflect the issues, challenges and opportunities which Irish agriculture faces, and were put in place after lengthy consultation and analysis. The programme aims to enhance competitiveness, to encourage more sustainable farming practices and to deliver real and quantifiable results for rural communities and the rural economy generally.  Achieving these results is very much dependant on farmers engaging with and participating in the various schemes and initiatives on offer and I am pleased to say that, as with previous rural development programmes in Ireland, farmers are enthusiastically signing up to schemes under this rural development programme. In fact, Ireland leads other member states in terms of our implementation of the rural development programme and currently has the second highest rate of drawn-down of EU funds among all member states. The average EU financial rate for draw-down of funds up to the end of August 2017 was 22.68%, whereas Ireland’s execution rate was 39.01%. This progress is testament to the successful roll-out, uptake and implementation of schemes under the programme to date.

I fully anticipate that based on current up-take and projections, the entire budget allocation of some €4 billion for the rural development programme will be spent and that the entire €2.19 billion of EU co-funding will be drawn down.  It is expected that the majority of funds will be spent by the end of 2020, although there will be some carry-over. Under EU regulations governing the rural development programme, funds for multi-annual commitments entered into by the end of 2020 may be claimed up to the end of 2023. Rural development programme spending is also subject to the annual Estimates process and budgetary rules, but this should not affect the overall spend and any European Agriculture Fund for Rural Development, EAFRD, funds unspent in a year are carried forward to subsequent years.

In terms of rural development programme participation levels, I am pleased to say that there has been excellent uptake to date.  At this stage of the programme, some multi-annual schemes such as the green low-carbon agri-environment scheme, GLAS, beef data and genomics programme, BDGP, and the organic farming schemes are now closed and are fully subscribed. Other schemes such as areas of natural constraint, ANC, are applied for on an annual basis, and others such as the targeted agricultural modernisation scheme, TAMS, will continue to recruit participants in tranches. 

Reaching the targets set out within the rural development programme is central to meeting the objectives of the programme and to producing the desired results and outcomes.  It is therefore important that progression toward these targets is kept under review. To this end, and in line with EU regulatory requirements, my Department carries out an annual review of implementation by reporting on indicators collected on all schemes and measures. This annual implementation report, and a citizens summary on the results of this assessment is, once approved by the Commission, published on the Department’s website. We will continue to review the implementation of the programme to ensure that we are on target to meet all identified objectives and that all EU funding is fully drawn down.

Charlie McConalogue (Donegal, Fianna Fail)
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The Minister continues with the fallacy that all is hunky-dory with the rural development programme when it is clear that he and the Government are failing to live up to the promises they made about spending on the programme and the participation rates across the various schemes. At present, only 30% of the funds have been used, which means that €2.7 billion of the funds promised to farmers have still to be spent by the end of 2020. Participation rates across all the schemes are running behind target. For example, participation in the beef data and genomics programme, BDGP, is 27% behind the original target of 35,000 participants. The participation rate in the knowledge transfer group schemes is running at nearly 50% behind the target, with 19,000 farmers signed up when the initial objective was 27,000 farmers.

The green low-carbon agri-environment scheme, GLAS, in particular, is running behind the promised commitment the former Minister, Deputy Coveney, made on behalf of Fine Gael and the Government in respect of the rural development programme and the €1.4 billion over the course of the scheme. On the basis of calculations and responses to parliamentary questions which I have received, it is clear that the maximum spend now will be no more than €214 million per year. The former Minister, Deputy Coveney, promised it would be €250 million per year when the scheme was at its maximum. When one calculates all of that, it means that spending under GLAS can be no more than €1.18 billion by 2021. That is allowing for it to run into the next rural development programme and for everybody in GLAS to be fully paid. It is over €200 million less. It is time for the Minister to come clean. Either he will spend the money or he should state that farmers were sold a pup when the former Minister, Deputy Coveney, announced that the scheme would provide €1.4 billion over the course of the rural development programme.

Michael Creed (Cork North West, Fine Gael)
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Quite simply, I disagree entirely with the Deputy's analysis. It is not borne out by the facts. The average rate of drawdown across the European Union is 22.68%. Ireland's drawdown is 39.01%. We are way ahead of the posse in terms of our drawdown of the EU element of the rural development programme and across the range of schemes. The Deputy referred to GLAS. More than 50,000 farmers, or almost every second farmer in the country, is a participant in GLAS. It is the flagship scheme. It is a critical part of the rural development programme and of our climate change strategy in conjunction with the BDGP, for example. These are multi-annual schemes. With regard to GLAS, I am currently waiting for thousands of farmers to submit nutrient management plans in order that we can pay them this year. However, we are still contractually committed to paying them for five years and the budgetary commitment-----

Charlie McConalogue (Donegal, Fianna Fail)
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How much will that add up to at the end of five years?

Michael Creed (Cork North West, Fine Gael)
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As I have said repeatedly, there will be a full drawdown of 50,000 applicants over five years-----

Charlie McConalogue (Donegal, Fianna Fail)
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What is the figure?

Michael Creed (Cork North West, Fine Gael)
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Average payments are approximately €4,500.

Charlie McConalogue (Donegal, Fianna Fail)
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Tell me the total figure.

Michael Creed (Cork North West, Fine Gael)
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To the best of my recollection, it is approximately €300 million. It is 50,000 farmers and an average payment of almost €4,500. If the farmer has Natura lands, there is a possibility of a top-up up to €7,000.

Charlie McConalogue (Donegal, Fianna Fail)
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When every last GLAS farmer is paid, what will the total figure be?

Pat Gallagher (Donegal, Fianna Fail)
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Deputy McConalogue will be able to ask another question.

Michael Creed (Cork North West, Fine Gael)
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I can get the exact figures on that for the Deputy. I acknowledge the Deputy's right to be wrong, and consistently wrong-----

Charlie McConalogue (Donegal, Fianna Fail)
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The Minister must be looking in the mirror.

Michael Creed (Cork North West, Fine Gael)
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-----but we will draw down all of the funding under the rural development programme and we will honour all of the contractual obligations we have under the scheme.

Charlie McConalogue (Donegal, Fianna Fail)
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The Minister says he will draw down all the funding from Europe under this scheme. He consistently sticks to that line. However, the rural development programme is co-funded. It has a European element and that is co-funded from the Exchequer. The Minister is very deliberately talking about what he is going to draw down from Europe. The reality is totally different from what the Minister is presenting. Need I remind the Minister again that the former Minister, Deputy Coveney, promised more than €1.4 billion? I have the press releases with me from the Irish Farmers' Association, IFA, the Irish Creamery Milk Suppliers Association, ICMSA, the Irish Cattle & Sheep Farmers' Association, ICSA, the Irish Farmers' Journaland, importantly, from the then Minister, Deputy Coveney, that promise more than €1.4 billion and €250 million per year. This year GLAS is at its maximum and only €214 million is being spent. When that is rolled out to the end of 2021, and that means rolling it into the next rural development programme and allowing every farmer currently in GLAS to be paid every penny due to him or her under the scheme, the maximum that will amount to will be almost €250 million less than the more than €1.4 billion promised by the former Minister, Deputy Coveney. That is the reality. Either Deputy Coveney sold a pup and misled the farming community and the farming press when he announced the GLAS scheme or this Minister is underspending and failing to deliver on his commitment. Which is it? It is time to step up, be honest and let farmers know the situation.

Michael Creed (Cork North West, Fine Gael)
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What I am saying today is what I have repeated on numerous occasions. The rural development programme is a scheme of €4 billion, with €2.19 billion in EU funding and the balance funded by the Exchequer. We are on target to draw down all of the EU funding and to pay all of the matching funds required to draw down that funding. GLAS is the flagship scheme in the rural development programme. More than 50,000 farmers are contractually committed for five years and we will honour all of them. We are on target to draw down all of the funding available from Europe under the rural development programme.