Government urged to be ‘steadfast’ in its opposition to CAP budget cuts

Industry leaders in the Irish agri-food sector are in unanimous agreement on the need to resist proposed cuts to the EU’s agriculture budget.

With the presidency currently residing in Cyprus, sitting EU Council president Herman Von Rompuy has proposed significantly deeper cuts of €74.5bn in the seven-year budget, with €22bn of these cuts to come in agriculture alone.

Agriculture Minister Simon Coveney was quick to reassure Irish farmers that he, the Taoiseach and the Tánaiste would all prioritise the issue of Ireland’s need to retain the current agriculture spend at EU council meetings over the coming week to 10 days.

Mr Coveney said: “The defence of our CAP funding remains at the core of the Irish Government’s stance in the negotiations of the seven-year budget. The Tánaiste will be making the Government’s position very clear at negotiations in the General Affairs Council on Monday and Tuesday, as will of course the Taoiseach at the European Council next Thursday and Friday.”

Ireland East MEP Mairead McGuinness said farmers were alarmed by the intense political pressure in Brussels to further cut the EU budget for 2014-2020 beyond what had already been mooted.

Ms McGuinness said the initial Cypriot presidency proposal of €50bn in cuts involved a reduction in the agriculture budget, with a proposed cut in direct payments of 1.7% on an annual basis.

Ms McGuinness said: “It is estimated that rural development funding will be reduced by 7%, with the direct payments budget reduced by 2.7%.

“What is even more worrying is that these figures are being tabled before the heads of state and governments meet next week. The current intense political pressure could result in further reductions.

“The proposals from Agriculture Commissioner Ciolos are based on the budget put forward by the Commission, that is, before the current cut proposals. Uncertainty on the budget will impact on progress towards CAP reform. Less money for direct payments and rural development may result in a less ambitious CAP reform,” she said.

IFA president John Bryan has called on the Taoiseach and the Irish Government to redouble their efforts ahead of next week’s heads of government summit meeting, to ensure CAP funding levels are maintained.

“Taoiseach Enda Kenny must resist strongly any attempt to reduce EU funding for Ireland for the 2014- 2020 period, which is up for decision in these negotiations.

“Ireland receives €1.6bn per year in EU CAP funding, which is a vital support for the economy. This must remain in place to support the single farm payment and rural development measures, which are crucial to underpinning our farming and food production and our expansion plans under Food Harvest 2020.”

John Bryan said the CAP budget cuts being proposed by Mr Von Rompuy would have grave implications for Ireland’s envelope of funding. “Farm production in this country will be adversely affected if there are any cuts to the overall CAP budget.

“Our Taoiseach must be steadfast in his approach and insist that there is no deviation from the funding levels proposed by the EU Commission.”

Meanwhile, ICMSA president John Comer noted that the cuts that were previously being proposed were already disastrous for Irish farming, and described Mr Von Rompuy’s proposal as reckless and “an effective cessation of CAP as a meaningful component of EU policy as a proven and secure method of providing affordable quality food to the EU’s consumers.

Mr Comer said: “This simply is the point at which the Government has to indicate that it will be impossible for Ireland to accept a policy that so disproportionately and unnecessarily bears down upon an absolutely key sector of our national economy.

“Mr Van Rompuy’s proposals would mean very substantial cuts in direct payments, as well as the budget available for price supports and the budget for Pillar II supports, such as REPS and Disadvantaged Areas Schemes,” he said.

The ICMSA leader said the proposals would effectively destroy the benefits that flow to Ireland from CAP. He said it is of supreme importance that the Irish Government immediately moves to strengthen a coalition of EU member states that will “counter this deliberate strategy by certain states to effectively end the policy that has given Europe’s people excellent, secure and affordable food for decades.”