Thomas Pringle (Donegal, Independent)
Link to this: Individually | In context | Oireachtas source

833. To ask the Minister for Agriculture, Food and the Marine if he will commit to 100% matching funding to be used as direct payment per dairy farmer as part of the €350 million aid package agreed by the EU Council of agriculture ministers in July 2016 in which Ireland was allocated €11 million; and if he will make a statement on the matter. [27245/16]

Michael Creed (Cork North West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am fully aware of the pressures on farmers right now and I have committed to working with all the stakeholders, both at national and EU level, to address these issues and ensure that we continue to have a sustainable and resilient sector. In order to address the ongoing difficulties in the Dairy markets at EU and international level, the Commission presented a further package of measures at the Agri-Fish Council on 18 July 2016.  The main component of the package is a fund of €500 million, which is in turn comprised of two elements:

The  first is a €150 million EU-wide measure to compensate farmers for reducing their milk output in the final quarter of 2016 compared to the same period in 2015 (at a rate of 14c/kg). The detailed rules regarding this measure  were agreed at EU level on August 25 and the Commission provided the legal provisions to give effect to this measure earlier this month.  The Scheme is currently being implemented in Ireland and some 4,400 milk  producers have applied, indicating that they propose to reduce milk production by 72m litres in the Oct – Dec 2016 period over the same period last year.

The  second element of the EU July 2016 package, to which the Deputy refers, is  a €350 million fund that will be allocated to Member States in the form of national envelopes, which each Member State can use in accordance with  their domestic circumstances. Whilst eligibility criteria will apply, Member States are afforded a large degree of flexibility in terms of the  measures they might adopt.  Ireland’s allocation from the fund will be €11.09 million. Member States will be required to notify the Commission by 1 November 2016 of the measures to be adopted.

I will consider the question of national co-funding on this latter element in the context of deliberations on budgetary matters and taking into account the pressures across the agri food sectors.