Simon Coveney (Cork South Central, Fine Gael)
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I propose to take Questions Nos. 36 and 57 together.

Firstly I would like to emphasise that it is my intention in the ongoing negotiations on the reform of the Common Agricultural Policy to ensure that the reform delivers the environment in which Irish agriculture and food production can develop and prosper based on viable family farms in all parts of Ireland.

The EU Commission proposals, published on 12 October 2011, contain texts of seven draft Regulations covering the three main aspects of the CAP (direct income supports, market supports and rural development) the financing, control and inspection arrangements and transitional arrangements for 2013.

Provision is made in the Direct Payments proposal for Member States to allocate up to 5% of National Envelope to farmers situated in Areas of Natural Constraints. These are areas that we know as disadvantaged or less favoured areas. I welcome the flexibility provided by this option in the proposals. We will have to consider, in association with all of the stakeholders, whether to take up this option.

The Rural Development proposal contains the Commission's latest proposals for the delineation of Less Favoured Areas (now renamed areas of natural constraint). I am pleased that the Commission has finally accepted "soil moisture balance" as one of the bio-physical criteria to be used to determine inclusion in such areas. This was a point pressed repeatedly by Ireland with a view to ensuring that proper account was taken of the cool damp climate in Ireland and its effect of trafficability of the soil. I still have some issues with the latest Commission proposals notably concerning the percentage of land that must be affected by one of the bio-physical criteria to qualify for inclusion. I will be taking this matter up with the Commission in the course of the negotiations.