Brendan Smith (Cavan-Monaghan, Fianna Fail)
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731. To ask the Minister for Agriculture, Food and the Marine the outcome of the most recent European Agriculture and Fisheries Council; and if he will make a statement on the matter. [24110/16]

Michael Creed (Cork North West, Fine Gael)
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The most recent Council of Agriculture Ministers was held on 18 July, in Brussels.

The main outcome was the presentation by the Commission of a further package of measures to deal with the ongoing market difficulties, particularly in the dairy sector. The key component of this is a new fund of €500 million, which is in turn comprised of two elements. The first is a €150 million voluntary EU-wide measure that will compensate farmers for reducing their milk output in the final quarter of 2016 compared to the same period in 2015.

The second is a €350 million fund that will be allocated to Member States in the form of national envelopes, which Member States can use in accordance with their domestic circumstances, but with specific conditions attached. Details on the latter are still to be finalised, and my Department is engaging closely with the Commission and with other Member States with a view to agreeing these details as soon as possible. Ireland’s allocation from the fund will be €11.09 million, and this can be topped-up by 100% with national funding. Member States will be required to notify the Commission by 1 November 2016 of the measures to be adopted.

Other measures in the July package include the extension of SMP intervention and private storage from September 2016 to February 2017 (and a commitment to avoid market destabilisation when releasing product), and the payment of advance payments of 70% for the basic payment scheme and 85% for RDP schemes from October 2016. The Commissioner also undertook to consider a sector-specific income stabilisation tool as part of the forthcoming mid-term review of the 2014-2020 MFF.

This represents a considerable success from an Irish viewpoint. Firstly, the threat of the available funding being entirely conditional on supply control has not materialised. Secondly, there is considerable flexibility for Member States in using the 70% of the package that has been earmarked for national envelopes. While there is still some work to do here, I am determined that the maximum possible flexibility will be achieved, in line with the arguments that I have been making strongly in recent months.

In addition, the Commission has agreed to calls that I have consistently made recently for a high level of advance payments under Pillar and Pillar 2 schemes in 2016, which will provide a welcome cashflow boost for farmers. I am also very pleased that it has chosen to extend the operation of SMP intervention and private storage from the end of September 2016 to the end of February 2017. This is again in line with Ireland’s views on the best approach, as we see intervention as the most effective and cost-efficient response to the current difficulties. It is also important to note that the Commissioner undertook to avoid any market disturbance when the time comes to release stocks from storage.

Other items discussed included proposals from the Commission to simplify the implementation of greening, an update on the current state of play in relation to international trade issues, and an outline of the work programme of the Slovak Presidency, which took over the reins of Council at the beginning of this month.