Commission says 5% cut to CAP allocation will be retained in 2014

The 5% cut imposed on Ireland’s 2013 CAP allocation will be retained in 2014, under transitional arrangements announced by the European Commission yesterday.

The commission also proposes to incorporate the financial impact of the European Council conclusions of Feb 8, even though these are still subject to agreement of the European Parliament. This would also see “external convergence” introduced in 2014, earlier than expected.

As Ireland is mid-table in terms of the per capita size of its CAP envelope, it will be minimally affected by the introduction of convergence — ie the CAP funds of the EU’s top recipients in per capita terms will be reallocated to new entrant member states.

An IFA spokesman said the 2014 Single Farm Payments would be paid under the present system, but expects that yesterday’s announcement also means payment levels may be adjusted. The IFA expects that the rural development commitments which the EU has made for 2013 will continue to be met until the new programme is in place.

Meanwhile, IFA members yesterday protested outside the EU ministerial trade talks in Dublin Castle to demand that any deals agreed should not hit Irish agricultural, notably beef, pigs, and poultry sectors.

“The bilateral negotiations between the EU and Canada and trade talks with the US are on the agenda,” said IFA deputy president Eddie Downey. “Both Irish and European negotiators need to be careful that agriculture is not sacrificed in these negotiations, and that our meats and dairy sectors, which underpin total agricultural economic output of over €20bn, are not placed in the firing line.”

Mr Downey said Taoiseach Enda Kenny and Trade Minister Richard Bruton need to be very strong to ensure the concerns of Irish agriculture are not brushed aside in the EU drive to secure bilateral deals with Canada and the US.

“It is clear Canada is seeking access for a substantial volume of beef imports into the EU and there is no doubt the USA will be seeking a major increase in the volumes they already have on the valuable EU market,” Mr Downey said.

He claimed it was unacceptable that trade commissioner Karel de Gucht was ready to inflict damage on the Irish and European livestock sector with a substantial increase in beef imports from an EU-Canada trade deal. He said de Gucht cannot be allowed to negotiate in a similar, damaging, way in the EU-US negotiations.

Mr Downey said European producers and consumers will not accept imports from production systems where the use of hormones in beef, BST growth promoters in milk, and the beta-agonist drug ractopamine in cattle and pigs — all banned in Europe — is common practice.

“Europe cannot agree to any imports which fail to meet EU standards on the critical issues of food safety, traceability, environmental protection, and animal welfare,” he said.