Irish Rural Link Submission to the Department of Agriculture, Fisheries and Food 2020 Committee 31st March 2010 Tables of contents 1. General Comments 2. Introduction 3. The Rural Economy 4. Rural Development Strategy 2007-2013 5. Farm Size and Structure 6. Weaknesses of CAP today 7. Irish Rural Link’s Vision 8. Farm Safety 9. Rural Communities & fostering the smart green bio economy 10. Climate Change 11. Renewables 12. Training 13. Conclusion 2 2 4 7 7 7 10 11 11 11 12 17 18 1 1. General Comments Irish Rural Link wish to reiterate our disappointment at the composition of the 2020 Committee, in particular the absence of a representative bringing a rural business and rural community dimension to the Committee’s work. Without this dimension we do not believe the Committee can adequately investigate the future relationship between the agri-food, forestry and fisheries sectors, rural communities and the wider rural economy. Irish Rural Link believe developing this relationship is vital to building a sustainable and resilient rural economy into 2020 and beyond. Exploiting and nurturing the opportunities for non agriculture based employment in rural areas must be integrated into the 2020 strategy. Given the Department’s central role in delivering the Rural Development Programme and particularly the priority of encouraging diversification of economic activity, the exclusion of an organisation representing the wider rural economy and rural communities from the Committee is regrettable. The omission of IRL from the Committee does not further the aim for a coherent rural development policy or linking CAP policy and the Lisbon, Gothenburg and Salzburg agendas. 1.2 Whither Synergy? The absence of a question asking “how to ensure compatibility/optimum synergy with rural development policy and develop traction is the area” is regrettable. Studies such as Pobal’s (2009) Social Cost Benefit Analysis of the Rural Social Scheme highlight the benefits of non-agricultural measures for rural areas including substantial quality of life improvements, through increased social contact; increased social capital and greater access to training, advice and information. The learning associated with iniatives and the wider opportunities other non farm based programmes may present to rural areas and rural development must be considered as part of any 2020 strategy. 2. Introduction Irish Rural Link have made a number of submissions in the past on rural development, the potential role of the CAP and the future of Agri-business. This has included discussions with the Oireachtas Committees on Agriculture and Food and Social and Family Affairs. All our submissions are guided by the principle that the wider rural economy can and must benefit from the allocation of CAP funds and developments in Irish agri-business, fisheries and forestry. Irish Rural Link have identified 5 key challenges facing the Irish rural development which have informed this submission and which must be considered in the 2020 strategy. These are outlined below and explored in more depth throughout the document. 2 Table 1 Five key challenges 1. The low skills base of many of those working part-time in agriculture and of those leaving the farming sector 2. The need for Irish farmers to diversify into new land-based enterprises which are less dependent on direct supports 3. Enhancing the role of that agriculture can play in a more dynamic rural economy and reviewing and removing constraints on indigenous, and local, niche food production and processing In the past construction offered employment for rural based people, particularly young men with a low skills based. Adequate training must always be available to this population and a review of the training and supports given to part-time farmers and smallholders must also be undertaken. These sections of the farming population are not adequately served by existing measures which focus heavily on viability to the detriment of nurturing and training such farmers to enhance productivity and make them aware of opportunities. This requires equipping and up skilling farmers with the business capacity to identify and grow opportunities in sectors such as tourism, sports and leisure and renewable energy production while addressing the challenges of an inflexible planning system. It requires greater links with the relevant departments. There is a particular need to comprehensively review the role of training agencies such as the Institutes of Technology, FAS and Teagasc in the delivery of training fit for the new demographics and changing agricultural population. A review of food production and processing, from farm to fork, is required. Challenges include limits on artisan and local food production and the power of multiples. The role of large players in the market needs to be examined, as does the future role of large cooperatives and food processors, particularly in the context of recently reported remutualisation of the industry, which in the long term may see processing remaining with PLCs and decoupling from production. The Departments of Agriculture and Enterprise must be involved in realising the significant job opportunities in the sector but we cannot rely on existing structures. While the intention of decoupling of farm payments to production of over supply, a consequence is that much farm production in Ireland is a primarily a loss making exercise now. The respective stakeholders in the industry including national government, the EU, retailers and processers need to take action to correct a food supply chain is effectively broken. It is inconceivable to think that primary producer can continue indefinitely to produce at a loss. If this indigenous industry is allowed to falter there will 3 be significant aftershocks for the wider rural economy. Legislation also needs to be reviewed to protect not only primary producers but also the consumer in the food production equation. This also needs to examine the role and long term viability of farmers markets and how to enhance them. In this regard there is a need to examine the role of local authorities in establishing local markets as well as examining the constraints placed on them because of inadequate legislation. Farmer’s markets are an integral part of European rural communities and towns. Their establishment ensures that farmers can enhance their incomes, jobs are created and the food chain is considerably shortened, which in itself contributes positively to the requirements of climate change. 4. Supporting rural Agriculture cannot be considered in isolation from communities as key economic the wider, non agricultural, rural community. and social drivers. Trends in agriculture confirm that greater consideration must be given to enhancing the sustainability of the wider community in any long term strategy. Community based enterprise centres are drivers of rural employment. The work of IRL members such Mountmellick Development Association and Ballyhoura Development - as well as the venue for our 2009 conference Dunhill Eco Park - must be learned from, supported and enhanced. These projects have created employment in rural settings. Building linkages between such initiatives, agriculture and other industries is vital. 5. Meeting the changes to deal This can be used as an opportunity to benefit from with climate change. lower costs via water recycling, efficiency and microgeneration. The location of Ireland’s renewable energy assets is inherently rural and the potential of crops (though not affecting food production) and the role of forestry is a key consideration. Specific research on such measures environmental and economic potential and a dedicated unit in the Department ensuring measures are coordinated and coherent is required to avoid a litany of distinct ‘green wash’ measures which do little to tackle climate change and which may on occasion cancel each other out. The green economy has further potential if green technology is researched and manufactured in rural areas. Ensuring enterprise supports recognise this is vital. 4 3. The Rural Economy Rural areas are characterised by their narrow economic base. The rise in unemployment occurring across all sectors will be most difficult to resolve in rural areas which are over-reliant on primary industries such as agriculture, construction and low-level manufacturing, e.g. in 2006 34% of men in BMW region were employed in agriculture or construction while the Midland & Border regions are showing steepest drop in employment. According to Teagasc farmers relying solely on farm income have a higher probability of poverty and deprivation. Furthermore, farmers working outside the farm tend to be employed at the lower skilled end of the employment spectrum which further exacerbates their exposure to the downturn (O’Brien and Hennessy, 2008). The average farm income is below the average industrial income at less than €20,000 (Department of Agriculture, Fisheries and Food, 2009). The CSO’s “County Incomes and Regional GDP for 2006” (2009) show that the disposable income per person in 2006 in the Southern and Eastern region was 3% above the State average while the corresponding figure for the Border Midland and Western region was 8.3% below the State average. The CSO figures show that disposable income per person was highest in the Dublin region, where it was more than 12% above the State average. The Border region was 8% below the average and the Midland region was 9.4% below average. Only Limerick, Kildare and Meath were the other counties above the State average. Eight counties were below 90% of the average, with Kerry over 13% below the State average. Donegal had the lowest disposable income per person at more than 16.5% below the state average. At the level of the eight Regional Authority areas the Dublin region had the highest disposable income per person, being 12.3% above the State average in 2006. The disposable income per person of the Midland region was 9.4% below the State average in 2006 and was the lowest of the eight Regional Authority areas. The deterioration in the economy will inevitably result in an even deeper gap between the incomes of rural and urban workers. There is significant deprivation in rural Ireland with two thirds of the economically poor living in rural Ireland and almost a quarter of farm families living with an income of below the minimum wage (McDonagh, 2006). Many low-income household budgets are fully committed. A recent study indicated that in Ireland the percentage of people at risk of poverty1 is 14.3% for urban areas and 21.5% in rural areas (Bertolini, Montanari, and Peragine, 2009). Rural households’ disposable income is already below that of their urban counterparts2 and recent CSO figures have shown that disposable income per person was highest in the Dublin region, where it was more than 12% above the State average. The Border region was 8% below the average and the Midland region was The study used the Eurostat definition (at-risk-of poverty rate) as “the share of persons with an equivalised disposable income below the risk-of -poverty threshold, which is set at 60% of the national median equivalised disposable income”. The “at risk of poverty rate”, as defined above, is one of the key Laeken indicators of social exclusion. 2 Urban households record the highest disposable income at €871.43, just over 9% more than the €796.77 recorded for rural households (CSO, 2007) 1 5 9.4% below average. Only Limerick, Kildare and Meath were the other counties above the State average. Donegal had the lowest disposable income per person at more than 16.5% below the state average. According to the 2006 Census, only one in five (21.5%) of the working population of rural areas is working in agriculture (as a farmer or agriculture worker), a decline from one in three (31%) in 20023. There is clearly a significant and growing rural population who are not engaged in agriculture, and as rural areas tend to have different needs, operate at a different scale to urban areas, have different issues regarding access to services and have been harder hit by the loss of jobs in the recession and will find it most difficult to access opportunities in any future growth. This situation requires a shift away from primary production to higher value sectors and activities which will require rural communities’ to mobilise their strong track record of innovative thinking and adapting to changing circumstances, e.g. on the group water scheme. Without this transformation, economic growth will continue to concentrate on Ireland’s core regions with the highest value-added sectors and this will exacerbate regional inequalities in growth, productivity and incomes. 4. Rural Development Strategy 2007-2013 Irish Rural Link has consistently complimented those involved in the preparation and compiling of the National Rural Development Strategy 2007-2013. We note the obligations of the strategy to adhere to the European Union’s Regulations and Strategic Guidelines as well as honouring the Lisbon Agenda. We welcomed in particular the threefold increase of the budget available to specifically rural development issues under Axis 3 and 4. However, we must point out that of a total budget of €7 billion the amount proposed for rural development of €425 million represents just over 6%, and when broken down over a 6 year period may well fall short of overall expectations, as the following table shows. 3 Total no. of persons living in Aggregate Rural Areas nationally who were 'at work' in 2006 was 729,267; Total no. of persons living in Aggregate Rural Areas who classify their occupation as 'farmer' in 2006 was 139,790. The percentage of persons 'at work' living in Aggregate Rural Areas who were farmers in 2006 was 19.2%.There were 16,702 persons living in Aggregate Rural Areas who classified themselves as 'agricultural workers' in 2006. If these are added to farmers, then the percentage of those 'at work' who live in Aggregate Rural Areas who are farmers or agricultural workers in 2006 was 21.5%. In 2002 that figure was 31.0%. 6 Table 2 Breakdown of RDP 2007-13 Spending Environment and farm for the Rural Environment Scheme (REPS) and Natura Farming Forestry Rural Amount €3 billion €1.8 billion Disadvantaged Scheme €968m €481m for forestry Farm Restructuring Rural development €425m €6.499 billion Writing recently Commissioner Fischer Boel (2009) stated: With regard to the future of the CAP, I’ve given my personal view that rural development policy is where “a lot of the music will be in future”. It will do its share of the work of pulling us out of the economic crisis. And it’s also emerging as one of the main policy tools with which we can confront the challenges of climate change and water management, as well as seize the potential of renewable energy. Irish Rural Link are not convinced such broad thinking is adequately reflected in the documentation the Department has circulated as part of this consultation process which focuses too narrowly on trying to maintain the status quo. 5. Farm size and structure If we accept that almost half of all farms (Irish Agricultural Development paper, p.8) are vulnerable and that the decline in farm numbers is persistent and inevitable we need a strategy to deal with this and develop off farm economic opportunities in rural areas for these farmers and their families. A key challenge will eg laing landholders have access to a suite of supports and advice aimed at those who no longer consider full-time farming a viable option. 6. Weaknesses of CAP today 6.1 Weaknesses of CAP The EU Commission’s has a stated commitment to a “European Model of Agriculture” which “is not the same model as pursued by our major competitors elsewhere. There are many differences between ours and theirs. Seeking to be competitive should not be confused with blindly following the dictates of a market that is far from perfect. The European model is designed to safeguard the earnings of farmers, above all keeping them stable, using the machinery of the market organisations and compensatory payments.” However, given that direct payments now account for 98% of Family Farm Income, the long-term sustainability of our current agricultural model surely needs to reconsidered to ensure that it is less reliant on income supports. 7 According to the ex ante evaluation of Ireland’s draft Rural Development Strategy (AFCon, 2006) the whole programme was based on trying to stimulate rural areas on the basis of agricultural investment. There is an underlying assumption that interventions are mainly implemented via farmers who are seen as central to the rural economy notwithstanding the decline in farm numbers. Dwyer and Maye of the Universities of Gloucestershire and West of England (2009) completed a comparative analysis of the design and early delivery of the Rural Development Programmes of Ireland and England and make some interesting points. In interviews Dwyer and Maye asked participants for their views on RDP priorities and reasons for the choice of measures. Interviews with Irish officials who drafted the RDP emphasize pragmatism, with one explaining “…we were obliged to spend so much on Axis 1, so much on 2 and so much on 3. So we found ourselves looking at a menu and saying “what is going to best fit with our national priorities?””. According to Dwyer and Maye the comments also suggest a strong commitment to support for the farm sector, as part of a longstanding concern to boost farm incomes. Dwyer and Maye argue that the influence of the farm lobby emerged as particularly significant in respect of the design of the Irish RDP. This is part of a highly embedded political process. As one respondent explained, “I think farmers will see it as designed to transfer money to them, so the thing is to make it as easy as possible, as straightforward, as certain, as possible”. Dwyer and Maye state that there is perceived to be a sense of ‘inevitability’ about the orientation and emphasis of the Irish RDP towards the farm sector. As noted in the ex ante independent report: Weaknesses under Axis 3 could be developed further beyond low level of broadband availability – there is little about local social infrastructure, transport for elderly, etc. Also it would be useful to define in what context is something considered a weakness – agricultural development or quality of rural life. Issues that contribute to social exclusion are not properly looked at currently. To that end the government have worked very hard in the promotion of initiatives that benefit the poorer section of community. Yet a package worth €7 billion to the rural community completely ignores this strategy. Indeed it ignores most other national strategies as well, such as the National Spatial Strategy, the disability strategy, the National Anti-Poverty strategy etc. The real weakness of the current CAP is the less than satisfactory resources available to the wider rural community. There are compelling arguments as to why this should have been addressed. 1. The increased rationalisation of farm holdings means that more and more people will be disconnected to farming, but will want to remain within their own community, or at least have the choice. The benefits of a younger population remaining within their own community are huge in terms of its economic and social sustainability. 8 2. 40% of our overall population live in dispersed settlements, and therefore require a much higher level of service. The viability of such services depends on our ability to link a range of national strategies in such a way as to ensure their success in terms of community access. This strategy is likely to contribute to the rationalisation of farm units, and by extension the number of families who can live and work in their own areas. 3. The strategy could present Government with a golden opportunity to redesign a whole range of education and training initiatives, based on the establishment of a comprehensive education and training programme, which would be available to all ages. While the support of small enterprise is likely to increase under the strategy, obstacles such as planning, poor basic infrastructure, and lack of cohesion in the availability of health and social services, are not addressed. 4. Failure to link the spending to the range of other strategies geared to tackling rural development. 5. The support of farming is essential; however CAP needs to make available resources allowing the more sustainable use of land. There is some assistance available to those who wish to go down the alternative energy route, but nowhere near what is be possible, particularly in the establishment of a bio fuel processing industry as an example. The Common Agricultural Policy after 2013 is an opportunity to diversify and build a truly resilient rural economy. The challenges facing rural areas in Ireland are the narrow economic base, the ongoing restructuring of agriculture, developing the potential of these areas as a source of energy and as leisure destinations, regional inequalities, geographic peripherality and rural disadvantage. After 2013 the focus must be on developing opportunities for off-farm working, for part-time farmers, the children of farmers and for the rural population who are not involved in farming. Rural areas are characterised by their narrow economic base, e.g. in 2006 34% of men in BMW region were employed in agriculture or construction while the Midland & Border regions are currently showing the steepest drop in employment. A social group significantly impacted upon by the decline in construction are part-time farmers who supplemented farming income with off-farm work in construction. In many cases they worked full-time in construction and undertook farming in their off hours. A study by Teagasc (2008) has shown that participation in the off-farm labour market plays an important role in ensuring the sustainability of farm households and in insulating farmers from relative poverty. These figures show that in future the focus must be on developing opportunities for off-farm working, for part-time farmers, the children of farmers and for the significant rural population outside farming. The preponderance of small holdings remains extremely high. Unfortunately in the global economy, which we now inhabit, this may mean holdings that are no longer viable in economic terms. It could be argued that staying with a failed and in the long term unsustainable model, without looking at real and long term solutions is a 9 weakness of the CAP and this must be addressed. This is why the process looking at the shape of CAP after 2013 initiated by the Minister is welcome. According to Eurobarometer figures published by the European Commission in March 2010 a majority of Irish people believe actions “to develop the rural areas while preserving the countryside” should be dealt with at a national, rather than European level. Also significantly more Irish people than the EU27 figure believe developing rural areas while preserving the countryside should be a priority for European agricultural and rural development policy. This suggests a recognition of the range of non-agricultural actors which exist in rural areas and that agricultural policy can and should support wider rural development but that the Irish government should drive this. 6.2 CAP consultations Details of when the Department of Agriculture is publishing the findings of its previous CAP post-2013 consultations as considering both in isolation will not contribute to a coherent vision for Irish agriculture, particularly as the supporting documentation on CAP post 2013 notes that the tabling of detail proposals for the future of CAP is likely to occur as early as 2010. 7. Irish Rural Link’s Vision According to the White Paper on Rural Development the overall goal of rural policy in Ireland is to create “vibrant, sustainable rural communities” and avoid “geographic displacement”. Teagasc note that, “without off-farm employment, 70 per cent of the farm families would be in a vulnerable position …... the long term sustainability of farming depends on the availability of off-farm employment”. It is difficult to see how the a policy which directs over 90% of its funding to agricultural interventions promotes rural development objectives as they are set out in the White Paper on Rural Development and provides opportunities for off-farm working. OECD research suggests that many assumptions suggesting the inevitable decline of rural economies are not borne out by the facts. Evidence from OECD member states does not show that all have buoyant rural regions but that many buoyant rural economies do exist. The conclusions that the OECD has drawn on its research to date is that successful rural economies require: Good transport and communications infrastructure; A shift in focus from subsidising declining industries to making strategic investments in rural regions; A focus on local specificities as a means of generating new competitive advantages, such as amenities (environmental or cultural) or local products (traditional or labelled). Key to the OECD view of successful rural regions is that they achieve comparative advantage through valorisation of local assets. While the local asset to be exploited may or may not be food-based it is likely to need the involvement of land-owners. 10 The implementation and development of these elements of a buoyant rural economy must be supported by the Common Agricultural Policy post 2013. All future rural development funding programmes need to be much more sector neutral and focus on job creation and the long-term sustainability of the rural economy instead of subsidising declining sectors. Revisions should be made to ensure that Axis 3 and the Leader Axis receive a significantly larger share of funding. Announced in July the new strategy for a rural broadband scheme, provided under Axis 3, is an example of how funding should be directed in the future to benefit the entire rural economy. In his comments at the time Minister Smith pointed out that the provision of adequate broadband facilities is an issue of considerable importance for farmers and for all rural dwellers and that he was happy to work with Minister Ryan in this regard. The initiative between the Departments of Agriculture and Communications shows the type of cross department working that is required to advance rural development and which should be supported in the CAP. 8. Farm safety Irish Rural Link is a member of the Health and Safety Authority’s Farm Safety Partnership and a strategy for the agri-food, forestry and fishing sector must include commitments to making agriculture as safe as possible. 9. Rural Communities & fostering the smart green bio economy Consideration for the rural communities where much of any proposed employment and development will be based is notable by its absence in the supporting documentation. The necessary supporting infrastructure- including broadband and other physical infrastructure- as well as educational, further learning and 3rd level opportunities must be part of any strategy in order to take advantage of the jobs dividend envisaged. 10. Climate Change Irish Rural Link consider the challenges and opportunities related to the Climate Change element in the Department’s call for submissions as overarching and it informs all aspects of this submission. Farming is a water and energy intensive activity and water is an increasing cost to farmers and obligations under the Water Framework Directive reinforce the need for farms to make the most efficient use of water possible. Farming’s intensive use of water has implications for the water reserves of the wider community. Farms have large areas of roofed sheds and concrete yards and there is significant scope to harvest, collect and recycle the water from these, enabling it to be used in farm activities or - if suitably treated - as high quality drinking water. Every farm should be required to develop a Water Management Plan and supports would be supplied similar to the present Farm Waste Management Scheme. Supports would be available to farmers to assist them in developing the water conservation 11 plan. Assistance would then be available towards the implementation of that plan over a period of time. The plan should set out the development of systems to harvest rainwater as part of the overall effort to reduce the farm’s use of water. An applicant farm’s Water Management Plan would be required to outline ways rain and waste water will be collected and reused efficiently. Supports could also be provided to allow farmers develop Energy Management Plans. Such supports would be required to be spent on more energy efficient plant and machinery and on making farm buildings more energy efficient. 11. Renewables 11.1 Introduction According to the Rural Development Programme Ireland 2007-2013 (2007) renewable energy production can create economically and environmentally sustainable enterprises and play an important role in the provision of employment. The document states that the development of a policy and overall strategic framework for this sector will be prioritised in the coming years. The Government’s small scale microgeneration plans are only beginning to be rolled out. Teagasc have however questioned whether the microgeneration scheme is sufficient, arguing that the prices guaranteed fall short of international standards and that it discriminates against farmers and households who receive their electricity from a source other than ESB Customer Supply (Caslin, 2009). The IFA have described it as a “missed opportunity” lacking long term political commitment (quoted in Young, 2009). 11.2 Opportunities in renewables Renewable energy production can create economically and environmentally sustainable enterprises and can play an important role in providing employment opportunities in rural areas. The greatest potential for renewable generation is likely to be in the least developed regions where opportunities to make the best use of natural resources such as wind, wave and bioenergy production are found. These opportunities will arise across the economy in primary production, electricity generation, manufacturing and services. It has been estimated that the number of jobs in the renewable energy industry globally in 2007 was 2.4 million, of which 1.1 million were in biofuels production (NESC, 2008). The International Energy Agency gives a clear explanation of employment from biomass, (IEA, 2002): “Direct employment results from operation and construction of conversion plants as well as production and transportation of biomass. Indirect employment is jobs generated within the economy as a result of expenditures related to biomass fuel cycles and induced jobs are secondary jobs created by increased spending in the region.” The Irish Farmers Association believe that up to 5000 jobs can be created in biomass here. The Western Development Commission (WDC) (2008) estimates that by 2020, using wood to produce heat energy could be worth an 12 additional €15 million per annum to the economy, create up to 900 additional jobs in rural areas. The WDC argue that creating manufacturing and research opportunities in the region would create more jobs as their projections assume the CHP technology would be imported into the region. Biomass is just one aspect of the renewable energy sector. A Marine Institute & Sustainable Energy Ireland study in 2005 calculated that 1,900 jobs could be created by 2020 if Ireland continued to invest in marine energy technology. ECOTEC Research and Consulting Ltd. (with a number of other organisations) undertook a comprehensive study during 1998 and 1999 to quantify the employment and economic impacts of renewable energy in the former EU15 (ECOTEC et al., 1999). The study investigated direct, indirect and subsidy impacts. It estimated that net new employment in the Republic of Ireland from renewables would be over 11,000 full-time-equivalents (FTEs) by 2020 (relative to a 1995 baseline). One FTE is equivalent to more than 30 hours of work per week all year round. It has been estimated that the development of renewable energy heating systems in Northern Ireland and border counties in the Republic of Ireland (the INTERREG Region) could result in a “… total of 1,650 new full time local jobs for the installation, operation and maintenance of RE heating systems: 650 for wood heating (300 Installers, Technicians & Engineers, plus 350 Farm, Transport and Contract Workers to Supply the Wood Fuel); 500 for heat pumps (Installers, Technicians and Engineers); 100 for solar thermal systems (Installers, Technicians and Engineers); 400 jobs in associated construction and installation activities.” (Action Renewables and SEI, 2004: 4). 11. 3 Renewables Case Study - Westmeath Local Energy Audit Any attempts to reduce energy consumption and develop innovative alternative energy sources must be developed with consideration to local assets, knowledge and experience. Completed in 2007 the Westmeath Local Energy Audit, commissioned by Westmeath Community Development, assessed the renewable energy potential available in Co. Westmeath, with a focus on agricultural and rural development. Renewable energies investigated included: the growing of bioenergy crops such as oilseed rape, miscanthus and willow; the production potential of wind energy and hydro-power in addition to Co. Westmeath’s wood energy resources. It also identified possible market outlets. It examined renewable energy activities underway in Co. Westmeath such as the production of biodiesel, anaerobic digestion and others. 11.4 Renewables Recommendations Irish Rural Link make the following policy recommendations which are required to ensure rural communites are empowered to take advantage of the opportunities renewable energies offer and create sustainable jobs. 13 11.4.1 Co-operatives It is Irish Rural Link’s opinion that any proposals to boost micro and local level energy production will fail unless local groups are sufficiently fostered. Community energy co-operatives should be supported. Such co-operatives would comprise a cross section of rural communities. It will support local communities who are exploring options for alternative energy production. These co-operatives would be established to develop renewable energy solutions, appropriate to local circumstances and requirements. The supports would foster the development of such co-operatives from producer and discussion groups, leading to the formation of co-ops. Energy co-operatives aim to promote and facilitate locally the development and use of renewable energy for the benefit of the co-operative members. The main purpose of the co-operative is: Developing locally available renewable energy resources by and for the cooperative members Reducing the expenditure on energy (electricity and heating) sourced from outside the county/area and maintain the expenditure within the local community 75% of wind turbines in Denmark owned by local co-operatives (see Appendix 2) and the model can also be used for anaerobic digesters etc. Opportunities may include the development of a community bio-digester (anaerobic digester) and combined heat and power plant (CHP) run off the biogas. Slurry from local farms would be the major energy source and the heat may be used to heat community buildings or local houses with the electricity sold to the grid. This also mitigates the ecological risk of the significant amounts of slurry produced by farms and creates an odourless fertilizer reducing nuisance to communities. Green waste (such as lawn clippings etc.) from across the community could also be used as a fuel source. Such a development may be most appropriate for locations where development is clustered. This is an opportunity to widen the economic base of communities. Any pilot schemes can develop synergies with existing Leader groups and other local structures. 11.4.2 Training & Education for a green rural economy Our work has identified a gap in the information available to rural communities on renewables and climate change. These include: Accreditation and Standardisation of Renewable Energy Training The growth in the renewable industry industry has lead to an increase in demand for training in all renewable technologies. This rapid growth has led to an explosion in the number of training schemes available as there is an increased demand for a properly trained green workforce. There is an urgency to ensure that this new workforce is of a consistent and high standard and that it develops at the same rate as 14 the renewable energy market is evolving. The objective of any training would be to deliver core knowledge and skills on all facets of renewable technology. A single, Europe-wide, green-collar certification scheme is essential at this stage to ensure a supply of qualified workers who will be able to exploit the new job opportunities both in Europe's as well as Ireland’s emerging green economies. The European Computer Driver License (ECDL) that operates with computer training could be a good template to follow. The implementation in Ireland of European initiatives to train, accredit and certify trade professionals in new 'green-collar' trades needs to be implemented. Properly-certified workers from this type of system will have a clear advantage in gaining employment as well as pursuing the possibility of enhancing their education in renewable energies technologies in other European Countries. Any new training recognition could be modelled on the Spanish government's approval of 18 new professional certificates, which represent the official accreditation of professional skills for certain labour market activities in that country. Those participating in this level of training should be able to obtain good, stable employment in the emerging green industries. Education in renewables Responses to a questionnaire distributed by Westmeath Community Development Ltd at a recent information evening on micro-generation grants highlighted the urgent need to provide comprehensive training on renewable energy for individuals and community groups in the county. This need is reflected in the large attendances that are turning out at the information events taking place through-out the country advertising and promoting different brands of micro wind turbines now available in Ireland. Sadly there is no co-ordinated training taking place in Ireland at present. A training model worth exploring to deliver on this challenge would be the Solarteur model. Solarteur-Training was originally developed in Vienna, Austria. The European Solar Schools, founded in Vienna in 1993 by Dr. Werner Rauscher, was the first to design an educational curriculum to train qualified electricians, plumbers, roofers, tin-smiths, cooling technicians etc. to design, install and service energy production systems powered by renewable energy sources. The goal of the European Solar Schools was to train a labour force who could offer services that allowed consumers sustainable energy options while creating new job opportunities and economic security for a professional labour force trained with a view towards the future. This new model of training the labour force to use traditional skills they possessed in the context of renewable energy development and production was a great success and led to an alliance with five other European countries. In this programme, the alliance formed by the success of the model of the European Solar Schools developed an international educational certification standard in line with the "Leonardo da Vinci" European training program. Seventeen Solarteur Schools are presently operating in seven European countries with more opening on a regular basis. Thousands of Solarteur engineers have been graduated and now earn their living designing and building a sustainable future in a new economy. 15 In the town of Gussing, Austria, a Solarteur School was established in 2003 through the cooperation of the Town of Gussing, The European Centre for Renewable Energy and Solar Projects Ltd. The Solarteur Schools currently offer training in the fundamentals of renewable energy production as well as advanced training. In addition to training craftsmen, the Solarteur Schools also has a training program for individuals who want to teach the curriculum at new Solarteur Schools worldwide. With many of our agricultural colleges closing or recently closed throughout Ireland, perhaps in view of the original use of these facilities and the land bank that is available beside many of them, there may be opportunities to replicate and develop this model in a number of locations strategically placed throughout Ireland in order to deliver renewable energy training. 11.4.3 Joined Up Thinking and a One Stop Shop There is a need to roll out a comprehensive support and advisory structure nationally to fast-track the establishment of community renewable energy projects. This would act as a local one-stop-shop for interested parties making enquiries regarding all aspects of renewable energy production and energy conservation and deliver a comprehensive service to community groups that need expert technical, legal and financial advise on renewable energy projects. This could also serve as a contact for communities to negotiate a stake in commercial projects being developed in their area as well as exploit the opportunity of establishing renewable energy co-operatives. It is related to the reorganisation of energy agencies outlined below. 11.4.4 Planning for renewables Many renewable energy initiatives never get off the ground because of difficulties with obtaining planning permission for their projects. Certain county development plans have excluded areas that are perhaps more suited to the production of renewable energy. There is a strong case that there should be more clarity in this area and that counties should be clearly zoned as to their suitability and as to whether applications would be acceptable when planning proposals are put forward. Interestingly in Denmark there are no exceptions and the entire country is zoned suitable regarding wind energy production. Barriers to manufacturing in rural areas and a bias in the planning system against nontraditional enterprise in a rural setting means that renewable energy businesses seeking to operate in rural areas, providing a range of jobs to rural dwellers, find this difficult. Planning policy must not be too rigid as to prevent such businesses from operating or expanding. 11.4.5 Audits As noted above any attempts to reduce energy consumption and develop innovative alternative energy sources must be developed with consideration to local assets, knowledge and experience. Local energy audits should be completed to cover all the country. Each area’s Audit would identify own unique mix of opportunities and resources in a given area and propose a model to harness the renewable energy potential of the area’s land, topography etc. Responsibility for eliminating duplication 16 may be given to local energy agencies which need to be restructured to make them fit for purpose (see below). Role of Local and Regional Energy Agencies There are currently almost 180 regional and urban energy agencies throughout Europe. 12 of these are situated in Ireland and were established in 1998 as a joint initiative between their respective local authorities and the European Commission, DG TREN under the SAVE II program. Funding for the agencies is provided by the individual Local Authorities and local bodies. The aim of each agency is to support the development of sustainable development initiatives in its region. Depending upon the individual requirements of each region the agencies also focus on Renewable Energy Sources and Energy Conservation and Management. Unfortunately there is little public understanding or knowledge of the role of these agencies and they should be overhauled to cover the entire country with a clearly understood remit, including the promotion of local energy audits. 11.4.6 Enterprise support and mentoring Forfas and InterTradeIreland (2008) note that the Environmental Goods and Services (EGS) market includes a significant number of specialised start-ups and small companies. These firms face difficulties in accessing start-up and growth finance common to all small firms. Measures to improve seedcorn financing and remove market failures in the access of finance for these firms will continue to be important, particularly due to the credit crunch. As noted in the Zengia case study above, mentoring from professionals skilled and knowledgeable about the sector is vital to nuture enterprise and this knowledge should be built up in our enterprise agencies. 12. Training Rural communities have a strong track record of innovative thinking and adapting to changing circumstances, with the group water scheme just one example. Irish Rural Link is aware that rural communities are curious about, and receptive to, knowledge regarding environmental protection and sustainable development. However our work has identified a gap in the information available to rural communities on such matters. A budget must be retained to enable rural community based organisations to avail of training and development services, information seminars etc. as part of building the capacity of local communities. This training could involve how to conduct environmental audits, the implications of climate change etc. The availability of this funding will allow the wider rural communities to access expertise on rural development issues so the communities can create their own strategies for an environmentally, economically and socially sustainable future. 17 13. Conclusion Supporting and developing synergies with the wider rural economy must be central to any vision of Irish agriculture going forward. Examining how rural development is funded and the emphasis of our rural development policy must be key. 18 References & Reading Action Renewables and SEI (2004), Renewable Energy Academy – Interreg IIIA Grant Application Form – Part B, (Unpublished) Renewable Energy Information Office, SEI, Bandon, Co. Cork AFCon (2006), Rural Development Programme 2007-13: Ex Ante Evaluation, AFCon Management Consultants with Jim Dorgan Associates Bertolini, P., Montanari, M. and Peragine, V. (2009), “Combating Poverty and Social Exclusion in Rural areas” http://ec.europa.eu/social/main.jsp?catId=88&langId=en&eventsId=158&furtherEven ts=yes Carnegie Commission for Rural Community Development (2007), A Charter for Rural Communties, available at http://www.carnegieuktrust.org.uk/files/main/A%20Charter%20for%20Rural%20Co mmunities.pdf Caslin, B. (2009), “Microgeneration Small Power with a Potential Big Impact”, Teagasc Central Statistics Office (CSO) (2009), County Incomes and Regional GDP for 2006, available at http://www.cso.ie/releasespublications/documents/economy/current/regincome.pdf Connolly, L., Kinsella, A., Quinlan, G. and Moran, B. (2009) National Farm Survey 2008, Teagasc, Athenry Department of Agriculture, Fisheries and Food (2009), “Fact Sheet on Irish Agriculture 2009”, available at http://www.agriculture.gov.ie/media/migration/publications/2009/February2009.doc Department of Agriculture (2007), Rural Development Programme Ireland 20072013, Dublin: The Stationery Office _____________________ (1999), Ensuring the Future - A Strategy for Rural Development in Ireland; White Paper on Rural Development, Dublin: The Stationery Office Dwyer, J. and Maye, D. (2009), “Comparing CAP Rural Development Programmes: Insights from Policy Design, Delivery and Context”, Rural Policy News, Vol.1, No.2, available at http://www.irishrurallink.ie/Publications/IRL%20Rural%20Policy%20News%20Sum mer%2009.pdf 19 ECOTEC Research and Consulting Ltd., Energy for Sustainable Development Ltd., EUFORES, Forum für Zukunftsenergien e.V., IDEA, Observ’ER and O Ö Energiesparverband (1999), The Impact of Renewables on Employment and Economic Growth. Project supported by the European Commission’s ALTENER programme, contract number 4.1030/E/97/009. Birmingham, United Kingdom European Commission (2010), Europeans, Agriculture and the Common Agricultural Policy, Eurobarometer Results for Ireland, available from http://ec.europa.eu/public_opinion/archives/ebs/ebs_336_fact_ie_en.pdf Fischer Boel, M. (2009), “Rural development policy is still delivering for Ireland and the EU”, National Rural Network, available at http://www.nrn.ie/general/2009/09/commissioner-fischer-boel-rural-developmentpolicy-is-still-delivering-for-ireland-and-the-eu/ Forfas and InterTradeIreland (2008) Environmental Goods and Services Sector on the Island of Ireland: Enterprise Opportunities and Policy Implications, Dublin: Forfas Government of Ireland (2008), Building Ireland’s Smart Economy, Dublin: The Stationery Office _________________ (2007), Delivering a Sustainable Energy Future for Ireland, Dublin: The Stationery Office _________________ (2007), Rural Development Programme Ireland 2007-2013, Dublin: The Stationery Office Healion, K. et al (2005), Bioenergy Training and Education Needs, SEI, available at http://www.sei.ie/Renewables/REIO_Library/Biomass/Bioenergy_Training_Needs_a mended_Fnl.pdf International Energy Agency (IEA) (2002), World Energy Outlook 2002, Paris: IEA Irish Rural Link (2009), “Renewable Energy and Rural Job Opportunities”, Irish Rural Link Briefing Note 09.04, available at http://www.irishrurallink.ie/Publications/Briefing%20Note%20IRL%20Renewable% 20Job%20Opportunities.pdf _____________ (2008), “Renewables: Opportunities for Rural Communities or Not!”, Rural Policy News, Ed.1, pp. 14-15, available at http://www.irishrurallink.ie/Publications/10548%20Irish%20Rural%20Link%20Polic y%20Newsletter.pdf Joint Committee on Enterprise, Trade and Employment (2008), Report on the potential to establish local enterprises and create jobs based on the generation and utilisation of energy from renewable energy resources, available at http://www.oireachtas.ie/viewdoc.asp?DocID=9921 Morgenroth, E. 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(eds), (2009), An Examination of the contribution of offfarm income to the viability and sustainability of farm households and the productivity of farm businesses, http://www.teagasc.ie/research/reports/ruraldevelopment/5490/eopr-5490.pdf Pobal (2009) Social Cost Benefit Analysis of the Rural Social Scheme, Dublin: Department of Community, Rural and Gaeltacht Affairs Teagasc (2008), “An examination of the contribution of off-farm income to the viability and sustainability of farm households and the productivity of farm businesses”, http://www.agresearch.teagasc.ie/rerc/downloads/Final%20Report.pdf Western Development Commission (2008), Biomass CHP Potential in the Western Region: An Assessment, available at http://www.wdc.ie/documents/BiomassCHPMarketPotentialintheWesternRegionanAs sessment.pdf Young, P. (2009), “Wind turbine returns don’t add up”, Irish Farmers Journal, 28th March 2009 21