Department of Agriculture, Fisheries and Food
International Policy Developments
Tom Moran
Secretary General
8 January 2010

Context Overview and Background
– 2009 Highlights
–
Economic and Budgetary Situation
– Market Issues
–
Milk
– Beef
–
Pigmeat / Recall
– Sterling
–
International Agriculture and Food Debate
– Climate Change
– Developments at EU Level

• EU Budget
• CAP Reform
• WTO
• Preparation of Department’s 2020 Plan

Impact of Lisbon Treaty
• Scrutiny role of National Parliaments increased.
• New role for national parliaments in monitoring principle of subsidiary.
• Strengthened role for European Parliament with extension of co-decision.

EU Financial Perspectives 2013-20
• New Financial Perspective (FP) with competing pressures for funds.
• Less money overall for CAP?
- as share of budget in absolute terms?

CAP – Post 2013
Reform Proposals
• Commission Communication in mid 2010
• Legal proposals in mid 2011
• Parallel negotiations with FP
• Co-decision with European Parliament

CAP – Post 2013
Some Emerging Issues
•
CAP underpinning food security, income support and EU family farming
•
CAP supporting environmental and other public goods
• Keep Rural Development as CAP pillar 2
• Move RD to cohesion fund / Add
Pillar 3 on climate / One pillar CAP
•
National co-funding of pillar 1
•
Full EU funding of pillar 1
•
Eliminate market supports
•
Include measures to deal with market volatility
•
Equalisation of payments
•
Differentiated payments within and between MSs
•
Allow targeted recoupling
• Complete decoupling

CAP – Post 2013
Single Payment Scheme Issues
• Credibility of historic model
• Increased emphasis on delivery of public goods
• Pressure for redistribution of funds between MSs

CAP – Post 2013
Possible Single Payment Options
• EU wide flat rate
• Regional flat rate
• Base flat rate + tiered additions
• Upper and lower limits
• Caps on payments
• Application of SAPS to EU 27
• More targeted payments
• Counter cyclical payments

CAP – Post 2013
Redistribution effect of EU flat rate

CAP – Post 2013
Market Management Issues
• Reduced role for “old” market measures
• Need to address increased price volatility
• Possibilities of risk management
– insurance, mutual funds etc.

CAP – Post 2013
Rural Development Issues
• Coherence with cohesion policy
• Integration of “new challenges” in current regime
• Greater emphasis on measurable outcomes
• Balance of farming / non-farm RD measures
• Shift of funding from pillar 1 to pillar 2

WTO
• Lull in negotiations
• Uncertainty of US position
• New efforts to reach agreement in 2010
• Ireland wants a successful conclusion
• BUT, we have some problems with the current texts

2020 Plan
• Early 2009 - Ministerial decision to develop a new strategy for agri-food and fishing sector
• Department and State Bodies (Teagasc, Bord Bia, EI, BIM and Marine
Institute) undertook detailed analysis of current situation and future outlook
• Comprehensive series of papers has been prepared to inform the wider consultative process
• Current Economic, Policy Context and Outlook
• Innovative and Sustainable Food and Drinks Industry
• Future Outlook for Agricultural Commodities
• Environmental Sustainability
• Fostering the Smart Green Bio-Economy
• Plus over 20 more detailed Background Papers
• Public web-based public consultation will start in a matter of weeks
• Report expected mid-2010