€1.4bn ‘will promote vibrant agri-food sector’
Ms Coughlan said the provision represents a 10% increase over the projected outturn for her department in 2004. In addition, she signalled her intention to carry forward capital savings of almost €18 million from 2004, bringing the total voted funding available to her department next year to €1.4 billion.
In addition to the national estimates provision, EU funded direct payments to farmers and market supports will amount to almost €1.9bn in 2005. This will bring total potential gross expenditure by her department to about €3.3bn, the highest level in recent years, she said.
Ms Coughlan said a reduced provision for food safety, animal health and welfare and plant health, from €187.7 million in 2004 to €170.6 million in 2005, should be seen in a positive context, arising primarily from significant reductions in the incidence of BSE, TB and brucellosis.
IFA president John Dillon said while Exchequer expenditure on agriculture next year is planned to increase by 19%, this masks an underspend of 12% or €107 million in the current year. When both factors are taken into account, the net estimate for 2005 is a 5% increase on the equivalent figure for 2004.
He said the Government must honour commitments agreed in the national partnership agreement, Sustaining Progress, to have 55,000 farmers participating in the Rural Environment Protection Scheme (REPS) by 2006 and must restore the 2005 funding levels for the scheme already agreed.
Fine Gael spokesperson Denis Naughten said it was pointless providing the funds unless the department itself is prepared to sell the schemes to the various sectors of the industry. He said the department was slashing the food safety, animal health and welfare budget by 9% at a time when there is increasing public disquiet over the safety of produce.
The early retirement scheme and installation aid schemes are receiving a cut of 8%, even though there is a strong uptake on the schemes in the current year. Support of forestry is also being cut by 5%.
Sinn Féin’s Martin Ferris said the Estimates will be insufficient to maintain the Teagasc research facilities which are being closed down. It was disappointing that Teagasc has not been given the necessary funding to both maintain its current level of operations and to expand at this time of radical change within Irish farming.
Labour spokesperson Dr Mary Upton said the reduction in investment in the budget for food safety and animal health and welfare is one of the most disappointing features of the Estimates.
“There can be no possible justification for cutting this budget by 9% at a time when BSE cases remain high; public concern about vCJD is very salient and food safety issues are of huge concern to many consumers,” she said.
