Martin Ferris (Kerry North, Sinn Fein)
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Question 33: To ask the Minister for Agriculture, Fisheries and Food his views on the future of the Common Agricultural Policy; and if he will make a statement on the matter. [16699/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The Common Agricultural Policy will provide the main policy framework for development of the primary agriculture and agri-food industries in Ireland and the EU to 2020 and beyond and it is of the utmost importance that it continues to underpin the development of a competitive and vibrant agricultural sector. My overarching aim is for a strong and properly resourced CAP guided by the twin principles of competitiveness and sustainability. I am very conscious of the importance to the EU of ensuring security of food supply and maintaining family farming in Europe. However, particularly as an exporting country, I am also conscious of the need for competitiveness and innovation. I would wish to see all of these objectives clearly reflected in the new CAP.

Full decoupling has been a success for Ireland and I remain committed to this approach. Decoupled payments remain the best way of underpinning the incomes of small family farms, while allowing them respond to market opportunities. It is also important to ensure adequate recognition for the high standards that apply to agricultural production in the EU. There is pressure from a number of sides for redistribution of funds between Member States. I am prepared to look at all options on this, but will also require our partners in Europe to be equally realistic in their expectations. Ultimately the distribution mechanism must be fair and must underpin the goals of competitiveness and sustainability. Any new mechanism must take into account the wide diversity of farming between Member States. Pillar 1 direct payments are income supports and we must recognise that the cost of living and cost of farming vary widely throughout the EU.

Many of our partners in Europe are now questioning the credibility of the historic basis of direct payments. I am opposed to an EU-wide flat rate payment and continue to see significant advantages to the historic model. I am prepared to look at the alternatives, particularly if other countries move from the "historic camp". However, we need to find a basis that is acceptable and fair to all Member States and that meets our objectives of improved competitiveness and sustainability.

It is clear that there will be increased emphasis on the delivery of public goods, as well as an increased focus on measurable outcomes. Within this, there will be continued emphasis on "new challenges" identified in the Health Check. There are positives for Ireland in this, and I am open to engagement in the debate, provided that it does not come at the expense of the income support function of direct payments. As to market supports, my view is that the existing tools are appropriate and I believe there is broad agreement on this among Member States. For the future, I believe that there is also a need for new tools to address increased market volatility. We will look closely at the possibilities offered by risk management measures, for example. We would also be interested in examining the merits of systems that underpin revenue or income.

My view is that the core purpose of rural development policy is to support farmers in developing their productive capacity while securing the environment and ensuring the well being of the wider rural society. In this regard, I support continuation of the current two-pillar structure. Ireland's recent revised Rural Development Programme shows a clear focus on competitiveness and sustainability and points the way forward for that pillar. Axis 1 measures, particularly those directed at investment and which promote competitiveness, perform a pivotal role in encouraging efficiency and innovation in farming for the future. I believe that these measures are critical to the future of Irish and European farming and should be maintained and enhanced.