CAP cut in EU budget
Deputy Charlie McConalogue, supported by Deputy Kevin O'Keeffe, warns that the proposed EU budget could mean a large real-terms cut to CAP and asks if Brexit is being factored in. The Taoiseach says Ireland will oppose any CAP cut, seek to protect key EU programmes, and work with allies while being prepared to contribute more if others do too.
In the last couple of hours the European Commissioner for Budget and Human Resources, Mr. Günther Oettinger, has announced the multi-annual framework for the EU budget from 2020 to 2027, which includes a proposed 5% cut to CAP over that seven-year period. If that 5% that has been proposed by the European Commission is added to an average of 3% inflation over those seven years, that could amount to a cut to CAP of 26% by the year 2027. That is what farmers could be facing, and considering that many sheep and beef farmers in this country depend exclusively on CAP payments for their net income, such a situation cannot be tolerated.
Following on from this morning's announcement, I ask the Taoiseach to set out his plans for working with other European leaders to ensure the budget is not cut and the incomes of farm families are protected over the coming years.
Comment on this
We will have to ask the Minister, Deputy Doherty.
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All I want to know is whether Brexit, which will have an enormous additional impact on agriculture, has been factored into the cut that has been announced today.
Comment on this
It is a long time since we had 3% inflation. I think we have had deflation more recently than we have had 3% inflation.
Comment on this
We are on an upward trajectory.
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Leaving that aside, the Government has already indicated its position on the new EU budget, which will not kick in until 2021. We have given our very strong view that CAP and other well-functioning programmes like Erasmus and Horizon should not be cut. Our negotiating position will be that there should be no cut in CAP payments to farmers. We have indicated that this country is willing to increase its contribution to the EU budget to protect these well-funded programmes, as long as other countries are willing to do likewise. We will work with our allies across the Union to achieve that.