Written answers

Wednesday, 7 October 2015

Department of Agriculture, Food and the Marine

Budget Submissions

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

11. To ask the Minister for Agriculture, Food and the Marine the extent to which he expects to be in a position to reassure the farming community in regard to the various issues it has raised with him in its recent budget submission; if the various farm support payments are paid and up-to-date in line with expectations; if a means can be found to address the issue of fluctuating food prices, with a view to achieving a greater equilibrium; if he remains satisfied regarding the future prospects of the sector; and if he will make a statement on the matter. [34188/15]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The budget submissions of the farming organisations are mainly concerned with taxation and expenditure. Taxation policy is primarily the responsibility of the Minister for Finance. However I have on-going contact with Minister Noonan to ensure that taxation policy reflects the Government’s commitment to agriculture, as evidenced by our cooperation on the ‘Agri-taxation Review’, which was published as part of Budget 2015.

The Agri-taxation Review is a comprehensive taxation strategy for the sector and the Government’s commitment to agriculture was evidenced by the immediate implementation of the majority of its recommendations. Of course it was not possible to implement all of the recommendations in one budget. My Department and I have been engaged with the Department of Finance on the outstanding recommendations from the Review and other taxation matters, including those raised by the farming organisations, which are being considered in the context of Budget 2016.

In relation to expenditure, my intention is to ensure that all resources available to my Department will be managed to provide the optimum economic benefit to the agri-food sector in terms of realising its future potential. Expenditure so far this year is in line with profiles and it is expected that this will continue over the remaining quarter.

As a small open economy which exports the vast bulk of its main agricultural commodities, Ireland will always feel the effects of volatility on world markets:

- Direct payments provide a valuable source of farm income support and act as a hedge against price volatility. The measures in the 2014-2020 Rural Development Programme will provide vital support through farm investment, agri-environment and knowledge transfer schemes.

- The package introduced by the EU Commission recently to address difficulties in the dairy and pigmeat sectors reflects the majority of the demands I presented to them. The concession made by the Commission to allow advance payments of 70% under the direct payments scheme and 85% for rural development schemes, which will be of major benefit in easing the cash flow of farmers.

- Income averaging for farmers, extended in last year’s Budget from 3 to 5 years, allows a smoothing of the tax liability in any given year to balance out fluctuations in commodity prices.

- I have regular meetings with the CEOs of the main banks, and I know that all are aware of the difficulties in prices this year, and are planning accordingly in terms of managing loans.

With regard to future prospects, Food Wise 2025, the new ten year strategy for the agri-food sector published in July this year, builds on the successful vision of Food Harvest 2020. It identifies the opportunities and challenges facing the sector and provides an enabling strategy, with detailed recommendations, which will allow the sector to grow and prosper.

Comments

No comments

Log in or join to post a public comment.