Supply Resolution for the 2009-2010 Main Estimates

Part of Executive Committee Business – in the Northern Ireland Assembly at 1:00 pm on 15 June 2009.

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Photo of William McCrea William McCrea Shadow DUP Leader of the House of Commons, Shadow Spokesperson (Communities and Local Government), Shadow Spokesperson (Environment, Food and Rural Affairs) 1:00, 15 June 2009

I speak as the Chairperson of the Committee for Agriculture and Rural Development, and I will limit my comments to the Estimates that are relevant to that Department.

This has not been an easy year for the agriculture industry, and everyone who knows that industry is aware of the challenges, including the high costs of fuel, feedstuffs and fertilisers that are impacting on farm businesses across the sector. In addition, the severe weather in the summer of 2008 played havoc with, in particular, the potato and cereal sectors. I therefore thank the Minister of Finance and Personnel and his Executive colleagues for agreeing to lessen the burden on small but important parts of the industry through the hardship schemes for the fishing and potato industries. Those small amounts of money have been important in securing family businesses and have certainly not been taken for granted. I also welcome the additional £2·3 million that has been made available for the south Down fishing village programme. That will provide much-needed support to communities that have been negatively impacted as a result of the difficulties faced by the fishing industry on which they are dependent.

Overall, the Department of Agriculture and Rural Development will see a net increase in its cash requirement of just over £40 million. That is to be welcomed. The highest proportion of that, some £29 million, relates to the farm nutrient management scheme, which will allow Northern Ireland to be compliant with the EU nitrates directives. It should be noted that, as with most schemes of that nature, the grant that is payable represents only 40% of the total cost of carrying out those works, the balance of 60% having been found by the farm businesses. That represents a major investment in Northern Ireland’s rural economy by farm business at a time of severe economic downturn.

I am sure that the House will agree that we ought to congratulate farmers on their bravery in investing their hard-earned moneys in their businesses and in the economy. I also call on the Department of Agriculture and Rural Development to ensure that it processes the outstanding claims with as much speed as possible, because most farmers will have had to borrow money in order to invest. It would be a total injustice to them and their willingness to support their local and national economies if they had to incur huge bank fees because of the apathy of the Department in processing claims. That is vital because many farmers have not received much help from the banks. In fact, fees have been burdensome at a time when farmers have had so many other economic pressures. It is therefore very important for the Department to pass on the money as quickly as possible, and all steps must be taken to allow that to happen. If positions must be rejigged within the Department to make that happen, that must be done, as many farmers have received a half payment but are still short of the other half and have had to subsidise that for the benefit of everyone and the environment.

Although it is not strictly relevant to the debate, my Committee also notes the willingness of family farm businesses to invest in the modernisation of their enterprises.

I call on the Department to examine critically its budget provisions in the Northern Ireland rural development programme to determine whether shortfalls in parts of the overall programme budget can be transferred to that worthwhile and well-supported scheme. The leverage of approximately 60% of overall costs from the private sector — the farmers themselves — will massively boost the local economy and local businesses beyond those that are involved in farming. For example, it will boost light engineering and processing companies. I ask the Executive to encourage that to be a reality, because it is vital to get the money circulating in Northern Ireland. I take my hat off to the farmers, who, in these times in which they face so many challenges, are up-front in investing their own money in the industry’s future and in the Northern Ireland economy.

Although the Committee supports the Department in such matters, it is concerned about some traditional allocations, particularly that for disease control. We note that an element of the £12·5 million increase given to the Department’s central policy group is for animal disease compensation. I am not sure whether that figure includes the bid for an additional £6 million that was made in the June monitoring round. Irrespective of that, it is evident that the Department is not controlling the diseases that are most relevant to Northern Ireland agriculture, particularly TB. The Minister of the Environment has given the Department of Agriculture and Rural Development approval for a limited badger cull, yet DARD has been totally inactive on that. The Committee calls on the Department to take the brave decision to eradicate animal diseases, thus saving the Northern Ireland block more than £60 million a year. That is no small amount of money, so the Minister must take every possible action to ensure that the money is well spent. I am sure that the Minister of Finance and Personnel will consider the situation very carefully, because that is a recurrent amount of money that is being spent in Northern Ireland. The underlying problem of eradication of disease is not being dealt with. Action must come from the Department of Agriculture and Rural Development.

The Committee notes that the spring Supplementary Estimates identify a number of significant decreases, for reasons such as the reallocation of administrative budgets. We appreciate that those decreases are subsequently reallocated across Departments and the Northern Ireland block, but we are concerned that they are happening. Therefore, we call on the Minister of Agriculture and Rural Development to assure the Committee and, more importantly, the rural community that the decreases will not result in a decline in the provision of front line services to rural Northern Ireland.

The Committee is pleased at the additional moneys that are coming to the Department. We hope that the Department will continue to work with the industry to promote a stronger, more vibrant industry and rural economy.