A deal which will see a continuation of payments from the EU for rural development programmes from 2007 which includes improved afforestation grants and a doubling of funds for Leader groups was agreed last night in Luxembourg by the EU farm ministers.
Ministers for Agriculture Mary Coughlan and the Gaeltacht, Mr Ó Cuív welcomed the agreement reached by the council of agriculture ministers in Luxembourg on funding for rural development for 2007 to 2013.
Ms Coughlan said the agreement provided an excellent support basis for the agricultural and other rural sectors.
The deal covers a wide scope including on-farm investment, agri-environment measures, support for young farmers, food processing and Leader and allows flexibility for the continuation of current successful measures.
The disadvantaged areas eligible for compensatory allowances have been copperfastened. The agreement confirms earlier indications that possible changes will not be introduced before 2010.
Through its emphasis on partnership, the agreement ensures wide consultation with stakeholders on national rural development plans and programmes. The Minister plans to commence the consultative process in the coming months.
Minister of State John Browne, who also attended the negotiations, said that the provisions on forestry would allow this important sector to continue to thrive. The support measures which are much improved on those originally proposed, extend from planting to downstream processing.
They include a maximum EU funded planting grant of 80 per cent, with possible state aid to supplement this rate.
The Ministers said the deal overall was an excellent outcome for Ireland. While actual rural development allocations must await EU budget agreement, this does not preclude progress on the preparation of a national rural development plan.
Mr Ó Cuív said the big news for rural development in this agreement was the stipulation that at least 10 per cent of the money Ireland receives under the rural development fund will now be spent on the provision of services in the wider "outside the farm gate" rural economy.
Apart from the provision of basic services for the economy and rural population, there is a new provision which will cover cultural and leisure activities. Mr Ó Cuív said he was very pleased with the possibilities this presented for supporting the traditional culture of rural areas.
A 5 per cent rate was also stipulated as the minimum funding to be made available to Leader type projects, which is almost double the present level of funding. What all this effectively means, Mr Ó Cuív said, is a considerable increase in the provision for the type of "outside the farm gate" rural development programmes covered by the Department of Community, Rural and Gaeltacht Affairs.