REACTION:Defending the entitlements of Irish farmers agreed under Agenda 2000 is the first priority of the Government's role in negotiating on the proposed Common Agricultural Policy (CAP) reforms, the Minister for Agriculture has said.
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Minister Walsh: Intent on protecting direct payments
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Speaking immediately after the reforms were published, the Minister for Agriculture, Mr Walsh, said while he had no difficulty with a review a "fundamental reform was another thing". He said he was intent on protecting direct payments to Ireland which were worth €2 billion annually.
Today the European Commission moved to end to the link between subsidies paid to farmers and the amount of food they produce. For Ireland, up to 20 per cent of direct payments will be redistributed towards rural development.
The numerous different payments based on the number of livestock or the size of land under cultivation will be replaced by a single subsidy based on past income.
Today’s proposed reform comes just three years after Agenda 2000 was agreed in Berlin by the heads of the 15 EU member states. This plan was supposed to enshrine the political and financial development of the European Union until 2006, including its agricultural sector.
Pointing to the different requirements being sought from farmers under the new proposals, Mr Walsh said farmers were entitled a period of stability. He added that the proposals would need careful assessment and that he expected 12 months of negotiations before there was a resolution.
Today’s proposals were described as a "breach of agreement" by the Irish Farmers Association president Mr John Dillon. He said the proposals could cost Irish farmers €300 million because there was "no guarantee that the savings from the 20 per cent cut in CAP direct payments would continue to stay within the member state".
He said the Taoiseach had agreed to reject the proposals out of hand and to fight for the entitlements provided under Agenda 2000.
But European Agriculture Commissioner Mr Franz Fischler rejected claims that Irish farmers would lose 20 per cent under the proposals.
"The money is not lost for the farming sector - the money will be spent in the future but in a different way. Therefore one can’t say that Irish farmers will lose 20 per cent of their income," he said.
He said because the money would be paid on a different basis there was no guarantee each farmer would continue to get the same amount.
Mr Fischler also pointed out that today’s proposals would assist EU enlargement.
The reform programme was welcomed by the Irish European Commissioner for Health and Consumer Affairs, Mr David Byrne who also advised against a "knee-jerk reaction" to the reform.
"I think this CAP review that is being put forward by Franz Fischler is a good one in that it is a really good attempt to reconcile the interests of farmers and consumers.
"I don’t believe as some people think that it is going to be bad for farmers. For instance it going to free them from the need to engage in bureaucracy . . . and it will also let them produce for markets", he said.
However the Irish Creamery Milk Suppliers Association (ICMSA) believes the proposals will undermine incomes in the Irish cattle and beef sector.
ICMSA president, Mr Pat O’Rourke, also said: "The proposal to introduce stringent restrictions on exports in the beef sector is a major concern and one that Ireland will have to completely oppose."
"Overall, the measures do not address income or the red tape problem but introduce a layer of audits and cross-compliance," he concluded.
The Labour Party spokesperson on agriculture, Mr Jack Wall said: "I believe that in the long term, the redistribution of 20 per cent of direct payments towards rural development may have a long term benefit for farming . ."
Fine Gael said the reforms were a "Trojan horse" preceding a rapid decline in farm numbers and having a negative affect on Irish farming.
"The 20 per cent decrease in direct payments contrasts sharply with the concept of public sector benchmarking," said party agriculture spokesman, Mr Billy Timmons. He said the Government should reject the proposals.
