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

Question 79: To ask the Minister for Agriculture, Fisheries and Food the expected impact of the EU CAP health checks on Irish agriculture, production and exports and the retention of the maximum number of jobs throughout the sector; and if he will make a statement on the matter. [11064/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context

At the outset I should state that a full screening Regulatory Impact Analysis has been carried out by my Department on the CAP Health Check and the report is available on the Department's website. That report outlines in some detail the expected impact of the Health Check proposals. The final deal secured last November differs in some respects from the original proposals. In summary, the deal I secured is worth a potential €80 million in additional payments to farmers over the coming years. In addition, the increase in milk quota will deliver some €100 million worth of additional milk production by 2014.

As regards market support schemes, in essence, the key market management mechanisms that are most important to Ireland have been protected and are left unchanged.

Good progress was also achieved as regards simplification and a commitment was secured from the Commission and the Council as regards further simplification.

As to modulation, the rate was increased by 5% as opposed to the 8% originally proposed. I am satisfied that we succeeded in getting the rate of additional modulation considerably reduced from the original proposals. It is worth noting that over 50,000 Irish farmers will be exempt from this increase. I can confirm that there will be a budget neutral effect in respect of the 70,000 farmers affected by the change as I have ensured that all the funds raised can be passed straight back to Irish farmers.

Question 80: To ask the Minister for Agriculture, Fisheries and Food the discussions there have been at the EU Agriculture Council regarding the future of the CAP post 2013; and if he will make a statement on the matter. [11867/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context

A first policy debate on the future of the CAP after 2013 took place at the informal meeting of Agriculture Ministers in Annecy in September last. In the initial debate, there was general agreement on the global context in which policy thinking must be developed. All the ministers present were concerned about global food security, increasing environmental pressures and the impact of climate change, factors which have been reflected in recent food price volatility. While a large majority of Member States favoured maintaining a strong EU agriculture policy, there were differences in emphasis from different Member States.

The French Presidency took the discussion forward at a specially convened Council in November 2008 at which it presented a series of draft conclusions for discussion by Ministers. The draft brought together aspirations on a number of broad challenges and generally understood principles on future CAP policy. It took on board the commitments made in the final Health Check negotiations to further simplification and to address the differing levels of direct payments between Member States. It also pledged that the conclusions were without prejudice to discussions on the Financial Perspectives. Unanimous agreement could not be reached on the conclusions put forward by the Presidency and they were therefore agreed as Presidency, rather than Council, conclusions.

The Czech Presidency has signalled that its main priority will be to continue discussions on the future of the CAP including an examination of direct payments with a particular focus on the differences between Member States and the system of payments. It intends to hold a full discussion on this topic at the Informal Agriculture Council meeting in May.

My own view, which I have expressed at meetings of the Council and bilaterally to my Ministerial colleagues, is that we must maintain a strong agricultural production base in the European Union in the future to take account of the challenges ahead in meeting increased demands for food. Any reduction in food production in the EU would be taken up elsewhere where less efficient production systems exist and would result in a heavier carbon footprint. We must also undertake food production and distribution in a manner that is sustainable in all its dimensions — economically, socially and environmentally.

There will be major challenges ahead from climate change, increased competition on world and EU markets, the financial crunch and other factors. We must ensure that we have the capacity to cope with the challenges and fully exploit the opportunities as they emerge. To do so our whole sector, from farm to fork, must be highly efficient and competitive. It must also be innovative, producing the products that changing consumer tastes demand, and it must be relentlessly focused on quality and safety.

To achieve these objectives, there is a continuing need for an active and appropriately resourced European agricultural policy. That policy needs to recognise the role that a cohesive agriculture & rural development policy can play in addressing future energy needs, addressing environmental concerns and providing a secure and sustainable food supply in Europe.