Liam Twomey (Wexford, Independent)
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Question 123: To ask the Minister for Agriculture and Food his views on whether it is the IFA's considered view that the recommendations of the draft nitrates directive action programme are unnecessary, unworkable and unaffordable for farming here. [16262/04]

Joe Walsh (Cork South West, Fianna Fail)
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The implementation of the nitrates directive is in the first instance, a matter for the Minister for the Environment, Heritage and Local Government. Ireland is legally obliged to put into effect an action programme for the further implementation of the nitrates directive. The European Court of Justice, in its judgment on 11 March 2004, held that Ireland had not fulfilled its obligations under the nitrates directive by reason of its failure to establish and implement an action programme in accordance with Article 5 of the directive. It is open to the court, on the application of the European Commission, to impose substantial fines against Ireland if early action is not taken to give full effect to the directive. Furthermore the terms of the action programme need to be finalised at an early date given that EU co-funding of schemes such as REPS, disadvantaged areas compensatory allowance, early retirement and forestry is conditional on satisfactory implementation of the nitrates directive. Compliance with the directive has also been specified as one of the conditions for farmers' participation in the single payment scheme following the decoupling of farm supports from production.

My Department has had ongoing contact with the Department of the Environment, Heritage and Local Government on the development of a draft action programme giving further effect to the directive. This draft action programme was presented in December 2003 to representatives of the main farming organisations and other stakeholders, who were invited to submit their comments. Written submissions on the draft action programme have been received from some 70 stakeholders, including all the main farming organisations, and a revised draft is being prepared by officials of the Department of the Environment, Heritage and Local Government together with officials from my Department. Direct discussions have also taken place between officials of the two Departments and the farming pillar under Sustaining Progress.

Under Sustaining Progress, the Government is committed to using the flexibility of the nitrates directive to seek European Commission approval for a derogation allowing organic nitrogen limits of up to 250 kg. per hectare per annum. After the draft action programme is finalised and submitted to the European Commission, a derogation proposal designed to take account of the unique characteristics of Irish agriculture will also be submitted. In the context of finalising the derogation proposal, the objective is to achieve approval for appropriate derogation arrangements in a manner that underpins the future of our commercial agriculture sector.

A number of significant steps have been taken to address the costs at farm level of the implementation of the draft action programme. The Government, in Sustaining Progress, stated, "recognising the importance of the Nitrates Directive and its impact on certain farmers, a number of initiatives shall be taken in the context of optimising the use of available EU and national budgetary resources." These initiatives included a review of REPS with higher payment rates and changes to the terms and conditions of the farm waste management scheme and dairy hygiene scheme including, in particular, increasing the income and eligible investment ceilings.

The improvements in the farm waste management schemes and the dairy hygiene schemes are already in place, and today I have launched an amended REP scheme which will deliver an average increase of 28% in payments to farmers. The scheme of capital allowances for expenditure on farm pollution control has been extended to the end of 2006, and a committee is currently examining issues associated with the possible introduction of low cost wintering facilities such as earthen bank tanks for the storage of livestock manures.