Bernard Durkan (Kildare North, Fine Gael)
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Question 131: To ask the Minister for Agriculture, Fisheries and Food if he has received communications from the various representative bodies regarding the expected negative impact of budget 2009 cutbacks and their implications for the farming and food producing sector; his views on the hardship expected to be caused by his imposition of reductions in funding in areas likely to affect sheep producers, investment in the future of agriculture such as installation aid, farm waste management and the abolition of farm retirement provisions which would have encouraged younger people into the sector; if there is an implicit over reliance on the rural development programme as a mechanism for invigorating agricultural production and exports in the future; and if he will make a statement on the matter. [43955/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I have received a number of representations, directly and indirectly, from various interest groups outlining their views on the impact of the 2009 budget for my Department and requesting that I reconsider my decisions.

The situation is that the 2009 budget was framed against the background of a serious deterioration in the public finances which required difficult decisions to be made on the allocation of the limited resources available. I made these decisions in the best interests of the agriculture, food, fisheries and forestry sector following detailed analysis of my Department's programme of expenditure and careful consideration of all of the options available.

Despite the economic and budgetary situation, funding of €1.8 billion gross is provided for my Department in the 2009 Budget. When combined with EU funding of about €1.4 billion next year, this represents a very substantial provision for the support and development of the agri-food sector.

In framing the details of the budget for my Department, my priorities were to ensure that the available resources were targeted on a range of measures that would maintain the productive capacity of the agriculture, food, forestry and fisheries sector, to continue the development of the sector within the budgetary constraints and to ensure that it is well positioned to achieving its full potential and benefit from future economic growth.

The Rural Development Programme, 2007-2013, which provides for total expenditure by my Department of about €5.4 billion, EU and Exchequer, is only one element of an overall approach to the development of the sector. The Rural Development Programme covers a range of measures including the Rural Environment Protection Scheme, Compensatory Allowances in Disadvantaged Areas, the Early Retirement Scheme, On-Farm Investment, and Agricultural Training. These complement a range of nationally funded schemes such as the Welfare and Breeding Scheme for Suckler Cows and the Forestry Afforestation and Support Schemes. In addition, payments of about €1.3 billion are made under the Single Payment Scheme each year. Last week, in the Council of Ministers, I negotiated changes in the 'Health Check' to the Common Agricultural Policy which will yield further benefits to Irish agriculture.

Despite the level of on-going support, there is no room for complacency. I will keep all aspects of my Department's expenditure under close scrutiny during 2009 to ensure that my objectives are achieved and, in the normal course, I will also review spending priorities in the context of the preparation of the 2010 Estimate for my Department.