Malcolm Noonan (Carlow-Kilkenny, Green Party) | Oireachtas source

Gabhaim comhghairdeas leis an Seanadóir. I thank Senator Kyne for raising this important issue. I am pleased to announce that after three years of negotiation, a final political agreement on the main elements of the next Common Agricultural Policy was agreed by the Council of Ministers in Luxembourg yesterday. This has been a long and challenging negotiation. The overall agreement will provide member states with flexibility to take account of national circumstances as they implement the new Common Agricultural Policy.

It has been clear that the next Common Agricultural Policy would aim to support farmers undertaking greater environmental actions. Some 25% of the direct payment envelope will now be dedicated to eco-schemes. These schemes will support farmers to undertake additional environmental actions. Work is under way on the preparation of these proposals and for Ireland, a key objective will be to create eco-schemes that will engage as many farmers as possible to effectively deliver environmental change. There will be new conditionality requirements including a good agricultural and environmental condition, GAEC, for the protection of wetlands and peatlands, as the Senator referred to. Ireland has been clear throughout the negotiations that the standards to be set for GAEC 2 cannot prohibit agricultural activity on these lands and I am pleased to state we have secured this in the final text. Member states will be able to define their national standards for each GAEC, tailoring them to specific local needs and characteristics. Ireland's Pillar 2 measures already include a high level of support for environmental actions and this is expected to continue in the next CAP. Farmers have clearly demonstrated their desire to undertake such actions and they will be offered appropriately designed schemes.

The Commission's original proposal included a number of redistribution elements and the European Parliament equally has strongly supported compulsory redistribution. This is a complex issue and the farming bodies have different views on it. Under the next CAP, a set redistribution of 10% has been proposed. The proposal agreed will also allow member states to consider if there are other ways of achieving the redistribution needs identified nationally and to demonstrate this in the national CAP strategic plan. This type of flexibility is important. We need to have time to consider this complex issue nationally.

The proposals will also provide member states with broad flexibility to implement capping of payments. Ireland has sought greater flexibility in this regard throughout the negotiations. The proposals provide for 100% capping for any payments above €100,000 and for the ability to further reduce any payments above €60,000.

The process of internal convergence which exists in the current CAP will continue bringing every farmer up to a level of 85% of the national average entitlement value. Young farmers will continue to be supported under the next CAP. An amount equal to 3% of the direct payment envelope will be allocated to support them. Ireland already provides considerable national support for young farmers through the taxation system which provides strong support for transfers and farm partnerships.

Under the new CAP, farmers and other beneficiaries receiving direct payments who do not implement proper employment conditions as set out in the relevant EU legislation may be subject to an administrative penalty. This is the first time that EU agricultural legislation will include a social dimension. In reality, very few Irish farmers employ external labour and there will be a two-year lead-in period before commencement to allow for implementation of the new proposals.

The new CAP will also change to a more performance-based model. There will be a greater emphasis on the results and outcomes from the expenditure and this will bring greater clarity with regard to the considerable achievements of the CAP policy. For some time, especially as we move forward with the preparation of the national CAP strategic plan, we have been engaged in a process of intensive national consultation. This will continue and intensify as we develop our plan. It is vital to have this national engagement. I believe that farmers are ready and willing to engage. It will be our job to explain all of the new possibilities for farmers and to encourage them to participate in the new schemes in the next CAP. I believe that all parts of the farming community will be ready to participate in this debate in an open and transparent way. The market and consumers want farming and food production to meet higher environmental and climate expectations and the next CAP will be ready to help farmers with this challenge.