Cautious welcome for EU rural development package

There has been a broad but cautious welcome for the outline EU Rural Development package which was agreed in Luxembourg on Monday…

There has been a broad but cautious welcome for the outline EU Rural Development package which was agreed in Luxembourg on Monday night which will drive that sector from 2007.

However, unease has been expressed by the agriculture sector and Opposition politicians that until the current budgetary row is resolved, the level of funding remains unclear.

Both the Fine Gael agriculture and food spokesman, Denis Naughten, and his MEP Leinster colleague, Maireád McGuinness, warned that there were no guarantees of what level of future funding will be agreed.

Ms McGuinness described the agreement as "a step in the right direction" and said the fact all countries agreed on the policy direction of rural development sent a positive signal at a fraught time for the EU.

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The Irish Farmers' Association's president, John Dillon, has said adequate funding commitments must now be secured by the Government to ensure effective implementation the EU Rural Development Programme.

"Although the agreement of EU Agriculture ministers is broadly positive, the failure of the heads of government to agree on the EU budget after 2007 means that it is still unclear what allocation Ireland will secure from the European Agriculture Fund for Rural Development," he said.

Mr Dillon expressed disappointment that the EU Rural Development Programme has reduced the maximum planting grant payable for forestry from 100 per cent to 80 per cent in disadvantaged areas and 70 per cent elsewhere, and that the term over which the premium will be paid will be cut from 20 to 15 years.

Oliver Cassidy, chairman of Comhar Leader na hÉireann, the umbrella body for Leader companies, said he was delighted at the 100 per cent increase for the development groups contained in the agreement .

The Irish Cattle and Sheepfarmers' Association's rural development chairman, John Heney, has said that although he welcomed the EU aspiration of a rural development package the agreement would prove meaningless if funding was cut as a result of EU budget financial details not being agreed.