Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 84: To ask the Minister for Agriculture and Food the way in which it is intended to maintain food supply with hygiene and traceability standards throughout the European Union in the future in view of World Trade Organisation and CAP reform; if, further to the statement by the EU Commissioner, EU farmers will have to find alternatives; the way in which the five hundred million population of the European Union can rely on continuity of food supply; if EU Member States are resorting to subsidisation; and if she will make a statement on the matter. [18820/06]

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

The European model of agriculture, which is enshrined in the Common Agricultural Policy, is based on maintaining competitive, multifunctional and sustainable farming dispersed throughout the Union while one of the core principles of the CAP is to assure the availability of supply. The EU ensures the highest standards of hygiene and traceability throughout the food chain through a range of food safety, consumer protection, veterinary and environmental legislation and other requirements. These policies are, and will continue to be, supported by substantial funding for the CAP and rural development. Funding for the period to 2013 was agreed in the decision on the Financial Perspective 2007-3013 at the European Council in December 2005. I am satisfied that the CAP as it has evolved following successive reforms is reflected in the EU's negotiating mandate, as agreed by the Council of Ministers, for the current WTO negotiations. The EU mandate provides that the terms of a new WTO agreement will not undermine these reforms or require a further reform of the CAP.

A key component of the most recent CAP reform was the introduction of decoupled support payments to farmers which are no longer linked to production. The new Single Farm Payment means that, for the future, farmers are 'free to farm' subject to the cross-compliance requirements which require that land must be kept in good agricultural condition and environmental and animal welfare conditions must be respected. Farmers' production choices will, for the future, be determined by what the market wants rather than by the range of subsidies on offer. In those circumstances, farmers may decide to diversify rather than continue with traditional enterprises. The development of, and investments in, the agriculture and food sectors are government by the terms of the CAP and rural development policy and by strict State Aid rules which apply equally throughout the Union which together are designed to prevent the re-nationalisation of the CAP and distortion of trade or competition.