Michael Healy-Rae (Kerry South, Independent)
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Question 128: To ask the Minister for Agriculture, Fisheries and Food his views on matters (details supplied); and if he will make a statement on the matter. [10075/11]

Simon Coveney (Cork South Central, Fine Gael)
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I can confirm that Ireland will be taking a very strong stance in the upcoming negotiations on the next EU multi-annual financial framework to ensure that CAP funds are protected. Ireland is committed to maintaining a strong and effective CAP which will support a vigorous consumer-focused agricultural production base in Europe.

I am committed to continued decoupling because I believe that decoupled payments provide the best basis for stability and security in income support to farmers while allowing them the freedom to respond to the demands of the market.

As to payment models, there is very little support among my colleagues in other EU member states for the current model of decoupled payments based on the 2000 to 2002 reference period. For that reason I am seeking maximum flexibility to tailor the payment model to our own circumstances in Ireland.

I agree that there is a need to avoid massive changes in payments between farmers. This is one of the reasons why I have sought flexibility in the payment models within member states and why I will be insisting that any changes that might be made to the current regime will be introduced very gradually over a lengthy period of time. As to the scale of beef imports from South America, I am well aware of the dangers posed by the current negotiations for a free trade agreement with the MERCOSUR group of South American countries. Food Harvest 2020, our strategy for growth of the Irish agri-food industry to 2020, envisages a 20% growth in output value for beef over the period. A MERCOSUR deal would raise serious questions regarding the viability of this strategy. Given the importance of the export-led agri-food industry to our economic recovery, an agreement with MERCOSUR to allow large quantities of South American food into the EU high value beef market, replacing Irish exports is something I cannot support .

Indeed the initial presentation last week from the EU Commission of its impact assessment of a free trade agreements with the MERCOSUR group of South American countries was quite shocking and confirmed the point I have been making for the past number of weeks that a MERCOSUR deal would damage EU and Irish agriculture. Ireland cannot afford to allow the Irish and European agri-food sectors to be sacrificed to get a trade agreement.

As the deputy is aware the young farmers installation scheme was closed to new applicants on 14 October 2008 and I have no plans to reopen entry to the scheme at this time. An allocation of almost €1 million has, however, been provided in 2011 to meet the remaining commitments under the young farmers installation scheme and the preceding equivalent schemes.

Under the terms of the 2010 agri-environment options scheme, all applications must be administratively checked before payment can issue to any individual and this process is ongoing. This work is being prioritised and payments will issue at the earliest possible date. While with the prioritisation of funding to deliver €5,000 AEOS scheme for 2011 and 2012, I have made provision for €25 million per year for five years to fund 2011 applications to join the scheme. I have fixed the maximum payment to any individual farmer applying in 2011 at €4,000. Further participation, beyond 2011, in agri environment schemes will have to be determined within the limits of the level of funding which will be available to my Department.

Because of the overall funding constraints and in order to ensure that as many applicants can be accepted into the scheme, the rate for designated land will be €75 per hectare.

I want to assure the deputy that I am strongly committed to the development of the beef and sheep sectors. The Food Harvest 2020 Report, developed in consultation with stakeholders across the agri food sectors, establishes a road map for development and I am personally chairing a high level group to oversee its implementation.

The Government has already committed significant funding to these sectors. Already in 2011 approximately €16.4 million has been paid through the suckler cow welfare scheme in respect of animals born in 2010, and depending on the number of successful applications, this figure has the potential to double by year end. In the sheep sector, some €54 million has been made available from the EU direct payments envelope for the three year grassland sheep scheme, while some €8 million has been committed for the sheep fencing/mobile handling equipment scheme. My Department also provides some €28 million in grant in aid to Bord Bia, which is active on EU and third country markets in promoting Irish beef and sheepmeat.

In relation to the funding of discussion groups, I am of course aware of the significant benefit of such arrangements in the dairy sector. In so far as future expenditure commitments are concerned, including for discussion groups in the beef and sheep sectors, the realities of the public finances mean that difficult choices will have to be made when it comes to allocating scarce Exchequer resources. I can assure the Deputy, however, that my approach to these matters will be informed by the need to ensure that scarce public resources are utilised to best effect to facilitate the development of the beef, sheep and other agrifood sectors.