David Maxwell (Cavan-Monaghan, Fine Gael)
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I ask the Taoiseach about this week's announcement on the nitrates derogation for Irish farmers. Ireland's nitrates derogation is extremely important to the sector. Farmers have shown a willingness and a commitment to improve water quality. The nitrates directive introduced a set of measures for farmers to minimise the loss of nutrients to water from farming. For example, it sets rules on the storage of manure, it identifies periods when slurry must not be spread on land and it places limits on the application of chemical fertiliser. Farmers have embraced these measures. A core element is the limit on the application of organic manure to land, which, in effect, sets a legal limit on the number of livestock the land can carry. The nitrates derogation provides for a higher limit based on scientific criteria such as high rainfall and crops that take up more nitrogen such as grass. It is subject to the farmer implementing additional actions. This is what makes Ireland's grass-based agriculture unique among other European agricultural systems.

The confirmation by the European Commission that we must achieve compliance with the habitats directive to secure a derogation is a significant change. It is vital that we secure an extension of the derogation and that the best possible case is made to the European Commission. We must therefore address this challenge. Does the Taoiseach believe that appropriate assessment at the catchment and sub-catchment scale is the optimal approach to dealing with nitrates derogation compliance?

We need an approach that is reasonable, manageable and robust to help farmers retain the derogation. Since 2022, farmers have embraced significant regulatory changes under the current Nitrates Action Programme. There is now unprecedented engagement across the entire agrifood sector towards the objective of reducing agriculture's impact on water quality. Farmers are investing in slurry storage and low-emission slurry spreading through the State-backed TAMS. They are joining voluntary programmes like the ASSAP and Farming for Water and are improving biodiversity on farms through ACRES. Data published earlier this month by the EPA confirmed a 10% reduction in nitrates concentration in rivers in most regions this year. The EPA data gives cause for optimism that the measures are starting to deliver results. It is clear to be seen that the farming community has stepped up to the plate in being progressive. With the ending of the derogation at the end of the year, it is alarming that farmers around the country who have up to this point done everything asked of them could end up being penalised even though they are not the problem.

As it is part of our programme for Government, I ask that the Taoiseach, the Tánaiste and the Minister, Deputy Heydon, do everything possible to secure the best deal for farming going forward and that we have a framework going into 2026 that gives farmers direction and certainty for their future.

Micheál Martin (Cork South-Central, Fianna Fail)
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I thank the Deputy for raising this important question because the nitrates derogation is of course a critical element in the economic sustainability of many family farms and the broader rural economy in Ireland. I acknowledge the huge efforts being made by farmers in terms of the water quality issue and compliance. Water quality remains the fundamental issue as does the Habitats Directive. However, the Government has said it will do everything in its power to make the case at EU level to secure the retention of the nitrates derogation given our unique grass-based production model.

There is an unprecedented engagement across the entire agrifood industry to drive improvements in water quality. I have established a Cabinet subcommittee on water quality to co-ordinate these efforts, with the most recent meeting last month. I have also raised this issue and the issue of derogation with the Commission President, Ursula von der Leyen. The Minister, Deputy Heydon, has raised the derogation with the European Commissioner for Environment, Water Resilience and a Competitive Circular Economy, Jessika Roswall. The Minister has invited her to Ireland to witness first hand our grass-based system and the importance of our derogation. We are currently engaging with the Commission on the process and have made two presentations to the nitrates committee, the important advisory committee made up of member states. We will continue to engage with that committee and with Commission officials.

The Minister for agriculture and the Minister for housing brought a memo to Government last week, highlighting progress on the development of the next Nitrates Action Programme and engagement with the Commission to agree a pathway to secure a continuation of our nitrates derogation. The Commission recently wrote to Ireland regarding the need for compliance with the Habitats Directive, in addition to meeting the objectives set under the water framework directive. This change has significant implications. The Commission's request of course arises from the ongoing case by An Taisce challenging the validity of our action programme and derogation which is currently before the courts with a number of questions referred to the European Court of Justice. There is other jurisprudence with the Dutch case and the implications of that. Based on that and the advice from the Attorney General there is a clear need for the State to develop a process to ensure the next action programme and derogation are compliant with those requirements.

The Minister, Deputy Heydon, is engaging intensively with stakeholders, including farm organisations and industry, as part of the process of developing Ireland's case for continuance of the derogation post-2025. The Department of agriculture has also provided an update to the agricultural water quality working group this week and we are looking at the optimal way to proceed from a catchment perspective. We will do everything we possibly can to secure the future of farmers in this respect.

David Maxwell (Cavan-Monaghan, Fine Gael)
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I thank the Taoiseach for his reply. As I said, the programme for Government states that the Government will do everything in its power to make the case at EU level to secure the retention of the nitrates derogation, given our unique grass-based production model, and will work with farmers, industry, State agencies and local authorities to develop evidence-based solutions to assist farmers in improving the water quality. Maintaining the derogation is critical for the 7,000 farmers who avail of it, and for the broader rural economy. Approximately 60% of the milk produced in Ireland comes from farms in derogation. Irish farmers have done so much in water quality emission reduction and compliance. It is vital farmers have certainty as soon as possible. We must avoid the cliff edge at the end of this year when the derogation is due to end. The latest developments in the renewal process will be concerning for farmers. They need certainty to invest in their farms and to encourage future generations into the sector. I know the Minister, Deputy Heydon, has been engaging intensively with the stakeholders in these latest developments and I ask that every effort possible is made by everyone across Government to support this work to ensure the best outcome for Irish agriculture. FDI from foreign companies is welcome, but farming has been the backbone of the rural economy for generations and we need to keep it there.

Micheál Martin (Cork South-Central, Fianna Fail)
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I appreciate that farming and the food industry have been extremely important to the national economy, but of course it is particularly important to regional economies and to communities across the length and breadth of the country in terms of purchasing power and the impact on other sectors, the supply chain and so forth. It is a significant industry in Ireland, and farmers are taking unprecedented actions to improve water quality. We are providing financial support to farmers in this regard. We have the Farming for Water European Innovation Partnership. That is a budget of €60 million, led by the local authorities water programme in partnership with Teagasc and Dairy Industry Ireland. That is providing financial support for specific targeted actions to improve water quality. Approximately 3,600 farmers have applied for support under the Farming for Water EIP. It aims to support up to 15,000 farmers over five years to 2029. Of course, there are also 54,000 farmers participating in ACRES. We will do everything we possibly can. We are working collectively on it as a Government and using all avenues at our disposal to get the right result.

Verona Murphy (Wexford, Independent)
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Before we move to questions on policy or legislation, I welcome Tom and Catherine Lyons and their family, Vicky, Alex, Daniel and Lily, to the Dáil. They are all from Ardagh in County Limerick.

We will move on to questions on policy or legislation. I remind Deputies that each question and answer is one minute in duration.