Volatility has to be dealt with

New environment scheme It should be ready in the next two to three weeks; we're still awaiting approval from the European Commission - by and large we have approval in principal, we have some details to be finalised. The broad outline of the scheme has been given to the farm organisations and my department people have been consulting with other interested parties, and so we would hope to be finalising within the next two to three weeks. It's a tight deadline... This has been a very difficult process, getting approval for this particular scheme through the European Commission. My officials have been working consistently over a considerable period with officials in Brussels to get a scheme in place that we are happy with; we have made substantial progress. We are conscious that people will need time to prepare their applications, but we will have it announced and all the details out in time so that all those who wish to participate will have adequate time to submit their applications. There are roughly 10,000 people exiting REPS 3 and those are by and large the cohort of people that will be facilitated with this new scheme. And if there are more applications? We would have to have a criteria of selection. At the minute we have the highest level ever of participation in REPS - 12 months ago there were 46,000 people in REPS, today there's well in excess of 63,000 people in it. That's a huge uptake and increase in participation in the last 12 months. We believe that the provision for 10,000 should be adequate to meet the demand on the new scheme. Farm incomes What I've been arguing in Europe - it's in the context of the reform of the Common Agriculture Policy as well - is that we need adequate measures in place to deal with volatility, because in successive years there's volatility in some of the commodities, it can be beef, it can be dairy, it can be cereal, and unfortunately it can nearly be all of them in some difficult years. The global economic turmoil has resulted in a lack of credit in the system, it has resulted in the consumer having less disposal income, there has been downward pressure on prices. The consumers in the international markets to which we send products are opting for cheaper cuts of beef and they're down trading in the purchase of food products, so there's huge pressure there and it's been extremely difficult for many farmers with the sudden and sharp deterioration in prices. What I argue in Europe is that we need to put in place more than the existing market support measures that have put a floor under the price, we need now to put in place measures that will prove effective when there is volatility, and the one thing you can be certain about in trading is that every few years you will have volatility, and unfortunately there are not enough of adequate measures there to deal with that, so we need a new suite of anti-volatility measures. Farming by calendar The Nitrates Action Programme under which there are specified dates for particular farming activities, and specifically the spreading of slurry, is a matter for the Dept. of the Environment. Due to the very wet seasons in 2008 and 2009, I put forward a strong case to the minister for the environment to extend the dates, and in 2008 we had them extended to the end of November and in 2009 the spreading period was extended as well. That's built in to our Nitrates Action Programme. Very shortly a review of the Nitrates Action Programme will take place, that will naturally involve an input from our own department to the Department of the Environment and a new Nitrates Action revised Programme has to go to the European Commission in the middle of this year. I'm conscious of those particular issues. They are issues farmers constantly raise with us, because the weather patterns have been varying in recent years. Reform of CAP post 2013 Discussions have commenced for the reform of the Common Agriculture Policy post 2013. This is a huge issue for the European Union. At the same time as those discussions take place the budgetary prospectus, the financial prospectus for the EU from 2013 up to 2020, will be decided as well, and the amount of money available for the CAP will be decided at those talks. We've laid down a particular marker that we want to see direct payments remain, I have flatly rejected the idea of a flat rate payment. We believe that payments should be targeted at the farmers. We also believe that there should be adequate support for market management measures in regard to export refunds, intervention aid, public and private storage and new anti-volatility measures. So they're some of the key issues within what's known as pillar one - direct payments and market support - and pillar two of the CAP is the broader heading of funding for rural development. Within that pillar, measures to help sustain the environment, protect the environment, such as the agri-environment measure, there's some funding under that pillar for such schemes and we also believe that system should remain as well, and also provision should be made for schemes to improve efficiency and make us more competitive as an industry. There is a big task ahead and I want to ensure we get the best possible deal as a country. Retailers One issues that concerns me, the department, and the government as well is the growing power of the multiples and the retail consolidation. In Europe I have been pushing the commission and the commissioner to draw up appropriate legislation, regulations, to ensure that there's a fair return to everybody in the food chain. At present there has been a very serious drop in prices for different commodities, but that's not reflected in the price paid by the consumer and this is an issue that needs to be addressed throughout all of Europe and I took the opportunity on a number of occasions at Councils of Ministers meetings to highlight the particular difficulties facing the sector due to inadequate prices going back to farmers and by definition their income decreasing. The major multiples have a duty not just to their shareholders and the consumer, but also the primary producer and the processor and the manufacturer, who in this country are producing top quality, healthy nutritious food and I believe that we need a system that will ensure that everybody gets their fair share of the end price. The tanáiste will bring forward code of practice, and in view of the fact that we export 85% of our food products, it's important that similar measures be implemented in all European countries to which we export food.