Dáil debates

Thursday, 26 April 2018

Ceisteanna - Questions - Priority Questions

Common Agricultural Policy Review

10:30 am

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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1. To ask the Minister for Agriculture, Food and the Marine the steps he is taking at European Union level to ensure a fully funded Common Agricultural Policy post 2020 and to prevent cuts to the existing budget in the next programme over 2021 to 2027; and if he will make a statement on the matter. [18460/18]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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I ask the Minister the steps he is taking at European Union level to ensure delivery of a fully funded Common Agricultural Policy, CAP, post 2020, and to ensure there will be no cuts to the existing budget in the next programme, which will run from 2021 to 2027. The Minister knows the CAP represents up to 75% of average farm incomes and it is absolutely crucial that the budget be maintained. There is a tremendous onus on the Minister to do everything within his capacity at a European level to ensure the budget is protected. I look forward to hearing what steps he is taking to achieve that objective.

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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The future of the CAP is of enormous importance for the agriculture sector in Ireland and across Europe. The CAP has evolved considerably and very effectively in recent years in response to changing market, consumer and environmental demands. It also plays a central role in delivering the smart, sustainable and inclusive growth sought under the Europe 2020 strategy. It is important that the CAP continues to evolve in a way that supports the achievement of European priorities, particularly in the context of securing a strong CAP budget for the post-2020 period. This can only be achieved by reinforcing the relevance and effectiveness of the policy in helping to achieve broader societal goals. This is something that I strongly believe in and will continue to actively pursue at Council level as the debate on the future CAP and its budget intensifies over the coming months.

There will be budgetary challenges arising not only from the UK decision to exit the European Union but also from the need to address other EU policy challenges such as those relating to migration, security and growth. In that regard, the CAP should not be seen as a policy of the past, and it is already addressing some of these new challenges. The Taoiseach, in his address to the European Parliament in January 2018, already indicated that Ireland is open to contributing more to the EU budget but only if the money is spent on policies that contribute to the advancement of the European ideal. More clarity will be provided next Wednesday, 2 May, when the European Commission publishes its multi-annual financial framework, MFF, proposals.

Key to delivering as strong a CAP budget as possible is ensuring that we form alliances with like-minded member states where it is possible. In that context, I regularly meet my European ministerial colleagues at the Council of European Agriculture Ministers and separately in more formal bilateral meetings. In that regard, on 16 April, I met the Austrian Agriculture Minister while on 25 April I met the Dutch Agriculture Minister. This will be followed by meetings with the French, Germany and Danish Ministers on 2 May and 3 May. These meetings give me the opportunity to discuss future CAP policy and funding. Ultimately, the approval of the MFF is a matter for the European Council and it will be ratified by the European Parliament.

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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As the Minister pointed out in his response, the CAP will be crucial in the next number of years for farm families right across the country. The next number of weeks will be crucial politically in how the Minister addresses this matter.

There may be up to 20 member states that at this stage have indicated a willingness to increase the budget to ensure there is no cut in the CAP or other programmes. With Brexit and the resulting €3 billion hole, there is immediate pressure on the budget, even before we consider the pressure from other budget lines with requests for increased funding. Will the Minister outline those countries that are at this stage resisting an increase to the budget? It is absolutely crucial we build alliances with like-minded countries but there is a tremendous onus on the Minister to ensure he engages with those countries that are not yet favourable to increasing the budget so as to impress upon them the importance of them contributing more to Irish agriculture, especially in light of the impact of Brexit on the agriculture sector.

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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To the best of my knowledge, the outliers, if I might use that term in the context of those resisting a commitment to increasing the budget contribution, include the Dutch, the Danes, the Austrians and, if I am not mistaken, the Swedes. As the Taoiseach stated, we are committed to contributing more to the EU budget. The Deputy's figures relating to the consequences of the UK departure are slightly conservative, as this could be in excess of €4 billion. As I stated, yesterday I had a meeting with the Dutch Minister and I have had bilateral meetings with the Danish and Austrian Ministers. I engage on a rolling basis in bilateral meetings with all Ministers across Europe, and I will continue to do so. Officials in my Department also meet their counterparts.

This is of enormous financial importance. The point is very often lost that we are net contributors to the EU budget; we pay more than we receive. However, in the agriculture area, the pattern in skewed in the other direction and we get more from the CAP than we contribute to that budget. It is very important and we are working effectively and diligently to try to ensure an adequately funded CAP.

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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The backdrop to this is of exceptional concern. The European Commission previously indicated a range of options that could mean cuts of anything from zero to 30% in the CAP budget.

In recent days, Commissioner Oettinger outlined a potential cut of 6% in the CAP budget. It is crucial that the percentage of the budget ring-fenced for CAP remains so dedicated. The overall budget must be maintained and there must be no slippage in terms of the percentage of the European budget which goes towards agriculture.

Documents relating to the next programme from the European Commission regarding the framework for CAP were leaked recently. A €60,000 maximum for single farm payments is outlined in these documents. Will the Minister back that cap given that he has failed to achieve the commitment in the programme for Government to reduce the maximum cap to €100,000? The onus is on him to ensure that he uses his offices to achieve the €60,000 cap.

As regards the option for co-financing of Pillar 1 payments, our objective must be to ensure it comes from the central European budget. However, in a worst-case scenario where that does not happen, is the Minister open to co-financing Pillar 1 payments at State level to ensure that there will be no decrease in farmers' payments?

10:40 am

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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On the latter point, I ask the Deputy to reflect on the fact that we are absolutely resisting the co-financing of Pillar 1 payments because that would skew the performance of the Internal Market and the commonality of the agricultural policy. We must resist co-financing at every opportunity because it could mean that rich member states could put their hands in their pockets and supplement their farmers to the disadvantage of other member states. One of our core objectives is to remain the commonality of CAP.

On capping, we exhausted all opportunities in the context of the programme for Government commitment, which it was not possible to achieve within the current CAP. There is resistance across Europe to reducing the cap below €150,000. We are supportive of a reduced cap and we welcome the content in the-----

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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Will the Minister back the reduction to €60,000?

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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If the Deputy were listening, he would have heard me say that we welcome the proposal and are anxious to ensure that it is put in place.

The issue of adequate funding for CAP is a current and ongoing debate and, as the Deputy stated, proposals will shortly be published by Commissioner Oettinger, who is responsible for the budget. However, that is not the end of it and these matters will develop in the coming months. We have categorically stated that we are prepared to increase our contribution. We have also stated that we acknowledge that Europe faces new challenges in terms of security, etc., but that such new challenges require new money rather than raiding the budget of an existing and successful policy.