‘I think we are beyond the worst of the crisis’

Political reporter Juno McEnroe talks to minister Simon Coveney.

Agriculture isn’t the most colourful portfolio to oversee. Similar issues haunt successive ministers such as EU farming payments.

But Agriculture Minister Simon Coveney strikes a fresh note, driving ahead with support for the growing agri-food sector. He lists off big-name companies who have thrown their millions into agricultural areas.

In fact, the Fine Gael TD suggests Ireland has passed through the worst of the economic crisis.

A betting tax to help the racing industry is set to be fast-tracked and Mr Coveney also concedes that he underestimated Enda Kenny.

In an interview with the Irish Examiner, the Cork South Central TD said Ireland was beyond the worst of the economic crisis.

“I think we probably are. Next year’s budget won’t be easy but I don’t think it will be as hard as this one.”

Ireland raised billions of euro on private markets last year, with borrowing rates falling to 4% from 14% 18 months before, he said, adding: “Ireland could raise its own money now if it had to, in my view. But we don’t have to until the end of the bailout programme.”

He dismissed suggestions Irish farmers were creaming it off EU subsidies under the Common Agricultural Policy (CAP) deal.

“There’s not too many millionaires in farming, let’s get real.”

The minister said most full-time farmers got between €10,000 and €25,000 in EU payments a year and the average was €270 per hectare.

But higher income farmers would be hit by next year’s CAP deal outcome, he said.

“What the commission proposes is that everybody gets the same, the average payment per hectare. I don’t agree with that.

“I don’t agree if somebody does little or nothing with their land they should get the exact same as someone who’s intensely farming it.

“If my negotiations fail, I’ll get a very big backlash from farmers.

“The high earners will all lose but will lose through varying degrees. The more you’re on at the moment, the more your losses will be in percentage terms. The closer you are to the average, the less you’ll lose.”

He said the Government was expecting between a 2% and 3% cut in direct payments to Irish farmers. Annually, 130,000 farmers share between €1.2bn and €1.3bn in direct payments.

“If there’s a significant cut to the overall CAP budget because there’s a cut to the EU budget, which there may well be, then we’re trying to limit the damage there. I think there may be some cuts there.”

Hundreds of millions of euro had been invested in recent years in Ireland’s agri-food sector, which now employs 200,000 people, he said.

A previous claim the sector was a “twilight industry” had been proved untrue, Mr Coveney insisted.

“I see this sector as the most important in the Irish economy bar none, in fact by far.”

Indeed, recent investments back this claim up.

These include Kerry Group who are pouring €100m into 900 jobs in Kildare for the world’s most advanced food innovation centre and who have partnered with a leading Chinese brand to supply dairy ingredients for the infant nutrition in China.

Other companies like Glanbia have spent €80m on milk drying facilities and expansions while Dairygold has invested €120m in facilities in Mallow and Dawn has a €200m contract with McDonald’s for beef burgers.

Plans for an online betting tax to fund the racing industry will also be fast-tracked, the minister said, to speed up its approval in Brussels.

Doubts remain if the tax will be ring-fenced for horse and greyhound funds. But the new tax could raise at least €15m a year.

He added: “I spoke to Michael Noonan about it and said he was going to try and fast-track it, to get it out early in the new year.”

Despite talk of a Cabinet reshuffle later this year, Mr Coveney is content to remain in agriculture. The minister — who previously was part of a failed coup against Enda Kenny as Fine Gael leader — also admits that he underrated his party leader.

“Like a lot of people, I underestimated Enda Kenny. I think since he became Taoiseach, he’s been nothing short of a phenomena, in terms of his energy levels and his positivity.

“Like a lot of people, I underestimated someone who has become an extraordinary political leader at a very difficult time.

“He’s one of those extraordinary people that just doesn’t do pessimism, he just doesn’t do negativity, whenever he’s in the room he insists on listening to solutions, answers, focusing on the future.

“My job at the moment is to help to build and to give leadership to put the infrastructure in place to allow our industry or expand and grow to its full potential. I hope I’m given a chance to stay in this job and see that through.

“All I can do is focus on doing the best job in my own ministry. To be perfectly honest, I’d be happy to stay here [for the whole term].”