Cuts of €114m difficult to find, says Coveney
Last December’s expenditure report set 2012-2014 expenditure ceilings for each department. Agriculture was asked to cut 8.5% of its budget, or 8% if last year’s increased ceiling is discounted.
The five-year suckler welfare scheme is coming to an end, but will still cost €12m next year for calves being born at the moment, compared to its usual €25m per year. Funding for REPS is €185m this year, and will fall to €168m next year, because there are fewer farmers in it. However, the new AEOS costs €20m per year. A potential saving of €10m is seen in the early retirement scheme.
Marketing processing grants will cost €23m this year. “We have companies that have already received agreement on grant aid from the department and it is up to them as to when they draw that down,” Mr Coveney told the Oireachtas Joint Committee on Agriculture, Food and the Marine. “With regard to renegotiating the relationship with temporary veterinary inspectors, TVIs, in our factories, they have been very progressive in terms of discussing modernising and improving their role and helping us find savings. We are trying to save another €1m in this area. We are also seeking to make savings on Teagasc programmes.
“Essentially we are being asked to make savings on the current side of €87m and on the capital side of €27m, that is, €114m which will not be easily found,” said the minister.
“It is a more difficult environment in which to put a budget together than this time last year when there had been a combination of good weather, good yields and good prices in most sectors, with the exception of pigs and potatoes.
“I have the twin priority of trying to ensure farmers can be as profitable as possible from the marketplace while recognising that many farmers do not have the capacity to make a good deal of money from the marketplace and are heavily reliant on the schemes and the single farm payment for their income.”
Mr Coveney said that since 2009, there have been savings of about €70m in running his department and staff numbers were cut by about 900. “In respect of the 58 district veterinary offices around the country, we are in the process of reducing the number to 17, while maintaining the same standard and quality of services that farmers expect. In fact, we are improving the service.
“However, we will not find €114m in one year from efficiency gains.”
He said last year’s increased ceiling for capital expenditure of €168m will be retained in the coming years, but savings of €27m on the capital side — which pushed last year’s capital envelope up to €195m — are not available this year.
