Annual Report 2004 of the Minister for Agriculture and Food Annual Report of the Minister for Agriculture and Food 2004 w w w. a g r i c u l t u r e . g o v. i e We are constantly seeking to improve the information we provide to our customers and you can help us with this. We would like to hear your views on the presentation, layout and content of this Report. You can do this by writing to: Corporate Affairs Division (Annual Report), Block 6 East, Department of Agriculture and Food, Agriculture House, Kildare Street, Dublin 2, Ireland. Or by e-mail to: [email protected] Thank you © Government of Ireland 2005 The assistance of An Bord Bia and Coillte in relation to cover images is acknowledged. Price €10 This Annual Report is available on the Department's website: http://www.agriculture.gov.ie Department of Agriculture and Food Head Office, Agriculture House, Kildare Street, Dublin 2 Telephone: 01 6072000; Lo-Call: 1890 200 510 Annual Report of The Minister for Agriculture and Food Mission Statement (Statement of Strategy, 2003-2005) “Our mission is to lead the sustainable development of a competitive, consumer focused agri-food sector and to contribute to a vibrant rural economy and society” Annual Report of the Minister for Agriculture and Food 1 The Department’s Offices The Department’s Offices ����������� ����������������������� ������ ������������� ���������������������������� ������� ����� �������� ������� �������� �������� ���������� ��������� ��������� ������� �������� ����������� ���� ����� �������� ����� ��������� ��������� ������� ������ ���� ��������� ������ �������� ���� ������� �������� ���������� ������ �������� ������� ���������� ����� ������ ������������� ������ ������� �������� �������� ����������� ��������� ������� ������ ������ ��������� ��������� ������ ��������� ��������� ���� �������� ���������� 2 Annual Report of the Minister for Agriculture and Food Contents REVIEW OF THE YEAR BY THE MINISTER 4 INTRODUCTION BY THE SECRETARY GENERAL 6 ORGANISATION OF THE DEPARTMENT 8 REPORT ON DEPARTMENTAL GOALS 1. Agri-Food Development and Trade 13 2. Food Safety, Animal Health and Welfare and Plant Health 26 3. International Framework 38 4. Rural Economy and Environment 42 5. Scheme Delivery and Financial Management 46 6. Operational Capabilities 54 ABBREVIATIONS 64 APPENDICES 1. Performance Indicators 68 2. Customer Service Action Plan 94 3. Programme for Government Commitments 98 4. National Development Plan 2000-2006 – Agriculture and Food 104 5. Vote 31 – Agriculture and Food 106 6. FEOGA/EAGGF Guarantee Expenditure 2004 108 7. Prompt Payment of Accounts 110 8. Orders and Regulations 111 9. The Land Acts in 2004 120 10. State Bodies Under the Aegis of the Department in 2004 121 Contents 3 Review of the Year Review of the year by the Minister for Agriculture and Food I am very pleased to present my first Annual Report as Minister for Agriculture and Food. At the outset, I want to pay tribute to my predecessor, Joe Walsh, T.D., who in September 2004 concluded his long and successful tenure of the Agriculture portfolio. I know that all concerned with agriculture, whether at home of abroad, will share with me in acknowledging his major contribution to the development of Ireland’s agri-food industry over the years. The year 2004 was highly significant for Irish agriculture marking the commencement of a major transition in EU agricultural policy. Arising from the decision to opt for full decoupling of direct payments from production, arrangements for implementation of the Single Payment Scheme was the focus of much attention throughout the year and significant progress was made in what is a major undertaking. The Scheme will allow farmers to concentrate on producing what the marketplace wants rather than devoting disproportionate time and effort to aligning and repeatedly re-aligning farm enterprises with the requirements of ever more complex schemes, retention periods, stocking densities etc. It will also significantly reduce the amount of paperwork for farmers. In addition, a new Dairy Premium scheme was introduced in 2004. It was coupled to milk production in 2004 and based on the available milk quota held by eligible farmers on 31 March 2004. Payments commenced on target on 16 October 2004. Ireland held the EU Presidency for the first six months of the year and in relation to agriculture, substantial progress was made on all three of the Presidency objectives of facilitating the application of the Common Agricultural Policy (CAP) to the new Member States, continuing the process of simplification of the CAP initiated by the Mid-Term Review and enhancing food safety standards. The Government’s continuing commitment to the agri-food sector was evidenced with Direct Payments from my Department totalling over €1.6 billion. This commitment was also demonstrated in the December Budget, which was an extremely good one for farmers. As well as benefiting from the general improvements in taxation and social welfare measures, the Budget provided a further €20 million in tax concessions for the farming community. I was pleased to receive the Agri-Vision 2015 Report in December. The Agri-Vision Committee, which included experts from farming, the food industry, research, academia and State agencies was asked in early 2004 to review the strategy and recommendations contained in the Agri-Food 2010 Report in the context 4 of developments since that report was completed. The Report identified the rapidly changing nature of Irish agriculture and set out a vision of the future for Irish agriculture, identified the developmental adjustments that are required and forecast its potential positioning in 2015. It also rightly placed great emphasis on meeting consumer requirements and on the role of competitiveness in the context of an increasingly global market. The Report contained 53 recommendations covering diverse areas of the sector. Of particular note was the clear message that there must be action by all players in the sector, and not just by the Government, for the agri-food sector to prosper. It is clear that there are significant new challenges facing agriculture and the agri-food sector in the years ahead, with the policy framework clearly based on the principles of sustainability and market orientation. For the agrifood sector this will mean anticipating and responding to emerging consumer concerns in relation to issues such as nutrition and good health. I believe that the sector, which has developed on the basis of producing quality and wholesome food, can prosper in the more consumer-focused environment, provided increased emphasis is given to product innovation and research. Turning to the main commodity areas, I announced in December details of a new Milk Quota Restructuring Programme, following an in-depth review of the previous scheme and wide-ranging consultation. While the existing scheme had been effective in increasing average quota size, the Mid Term Review CAP reform and the WTO framework agreement made it imperative to introduce changes to accelerate this process and ensure that the maximum volume of milk will be available in a timely manner to active committed producers. I am satisfied that the new restructuring programme provides more certainty for farmers in making decisions in the medium term. The simplification of the allocation categories should also make the scheme more effective in securing the long-term future of the dairy industry in an increasingly competitive and market orientated environment. Prices for dairy products remained strong on EU and international markets in 2004, continuing a trend set in the previous year. World prices for butter, skim milk powder, casein and other milk products remained buoyant in 2004 and showed increases averaging of 23% over the 2003 prices. Export of Irish dairy products and ingredients experienced a 6% rise in 2004 to almost €1.86 billion, as Irish exporters responded well to improved demand. The prices paid to milk producers remained broadly similar to that paid in 2003. Annual Report of the Minister for Agriculture and Food John Browne, T.D., Minister of State Brendan Smith, T.D., Minister of State Mary Coughlan, T.D., Minister for Agriculture and Food The year 2004 saw a strong performance by Irish beef in European markets, with a 7.4% rise in exports to Continental Europe. According to An Bord Bia, beef exports were valued at €1.4 billion, representing almost 20% of total Irish agri-food exports, an increase of almost 8% on the 2003 value. Beef prices also remained strong for the whole year. With regard to market access, agreement on a common EU certificate for beef exports to Russia was reached in October 2004, which should improve exports there for 2005. The Algerian market for fresh/chilled beef re-opened during 2004. My Department, together with the Department of Foreign Affairs and An Bord Bia, continued in its efforts to re-open other important markets such as Iran, the Gulf States, South Africa and the Philippines. There was a strong market for sheepmeat in 2004. Supplies increased by 16% over 2003 levels, while prices remained about the same and exports increased by 17%. My Department continued to support the food industry in 2004. Support for the food initiatives in the National Development Plan 2000-2006 totals €358 million and is provided for market-focused and cohesive and comprehensive responses to the needs of the industry. The range of initiatives seek to enhance the innovative, marketing and human resources capabilities of the industry in line with consumer requirements, while ensuring that development continues to be underpinned by adherence to the highest food safety and quality standards. Progress continued to be made in 2004 across all initiatives, and by year-end some €187 million had been committed. Review of the year Another significant development was the return of responsibility for the development of the forestry sector to my Department on 1 January 2004. A study of Irish forestry strategy since 1996 was commissioned in March and was presented in September. It supported an annual afforestation target of 20,000 hectares up to the year 2035. The study forms the basis of objective and rational discussion as to how the forestry sector in Ireland should be developed. Overall, 2004 was a very eventful year in which progress and development was made across a wide range of areas, but it will undoubtedly be remembered, from an agri-food perspective, as the year which completed a highly successful Presidency of the European Union and which saw major progress made in relation to the transition to the new Single Payment Scheme. Mary Coughlan, T.D. Minister for Agriculture and Food 5 Introduction Introduction by the Secretary General by the Secretary General Following the appointment of a new Minister for Agriculture and Food in September, a draft Statement of Strategy to cover the period 2005-2007 was prepared in December 2004, in accordance with the requirements of the Public Sector Management Act, 1997. This is the fifth Strategy Statement to be published by the Department. Tom Moran, Secretary General I would firstly like to acknowledge the significant leadership role played by my predecessor, John Malone, who retired as Secretary-General of the Department at the end of 2004, and who skilfully steered the Department through a very challenging period. I would also like to acknowledge the contribution of the staff of the Department in achieving our mission and goals in 2004 and delivering a range of measures and services to a wide spectrum of customers and stakeholders. In particular, the Presidency of the European Union involved a substantial increase in the workload of the Department. There were seven meetings of the Council of Ministers, including the Informal Council in Killarney in June. Officials chaired almost 100 meetings of the various Committees and Working Groups which prepared proposals for submission to the Council. The Departments management of the Agriculture aspects of the Presidency was extremely successful. This Annual Report details progress in relation to the Department’s goal and strategies contained in our fourth Statement of Strategy, published in 2003. This describes the environment, both internal and external within which the Department operates and identifies the challenges ahead. It states our mission for a three-year period, pinpoints the goals and strategies and describes the evaluation and monitoring process. The Statement is the framework document, which encompasses all Departmental operations as it forms the basis of all the Divisional Business Plans as well as all individual role profiles. 6 Over the period covered by the new Statement of Strategy, the Department will be seen to give additional focus to issues which are of increasing concern to consumers and society more generally, and which are very much an integral part of its brief. The Department will be increasingly active in facilitating developments and programmes aimed at ensuring that the food industry can respond to emerging consumer requirements. On issues such as environmental management, whether in relation to forestry development, REPS or in other ways, the Department will equally be active in promoting a well-managed countryside, which will sustain not alone a vibrant agriculture sector, but which will add generally to the quality of life, through its contribution to air and water quality, biodiversity and recreational opportunity. Quality service to the customer continued to be a major priority. During 2004, the Department issued a Statement of Provisional Single Payment Entitlements for the Single Payment Scheme to some 133,000 farmers, including over 10,000 notifications to Special Condition cases. We also received some 17,500 applications under Force Majeure and a further 6,500 applications from farmers who commenced farming during the reference period Arrangements were put in place (including a Lo-call Helpline) for dealing with enquiries from farmers. Substantial progress was again made during 2004 across a number of key policy areas. These included ongoing development of our main agri-food industries in line with the need for greater competitiveness and increased emphasis on supplying high value added markets, both in the EU and non-EU countries. Our contribution to shaping a new CAP and negotiating an acceptable WTO outcome continued throughout 2004. It was particularly encouraging to see during the year a decrease of almost 31% in confirmed BSE cases. Our focus on consumer issues was further developed throughout the year and the Department’s Consumer Liaison Panel continued its work. In relation to the environment, a major initiative was the introduction of REPS 3. Under the new scheme, payments were increased by, on average, 28%, and for the first time there is a payment on every hectare. Annual Report of the Minister for Agriculture and Food A new ICT (Information Communication Technology) Strategy was developed in March 2004, which supports the Department’s near-term business priorities and focuses on the use of Information Technology to facilitate strategic change. The new Strategy incorporates the Department’s eGovernment strategy. In relation to the Government’s decentralisation programme, a Decentralisation Implementation Committee was set up in the Department to oversee all aspects of decentralisation of staff. Ongoing liaison took place with the Office of Public Works (OPW) to provide a single headquarters building in Portlaoise for 850 people, laboratories in Macroom for 100 people and local office in Fermoy for 100 people. The decentralisation programme and the fundamental changes to the Common Agriculture Policy agreed by the Council of Ministers in 2003 will have a very significant impact on the Department’s business. These changes to the environment in which we operate represent major challenges for the Department, but I am confident that we will adapt successfully, as we have done in adapting to policy and operational shifts in the past. Tom Moran Secretary General Introduction by the Secretary General 7 Organisation of the Department Organisation of the Department As at 31 December 2004, the Department had a staff complement of 4,753 (638 of whom workshared). There were 2,693 administrative staff, 355 in veterinary grades, 245 in inspectorate grades, 1,170 in technical grades, 190 in specialist grades and 100 in other grades. The senior management team is the Management Advisory Committee (MAC), headed by Mr Tom Moran, Secretary General and is comprised of nine Assistant Secretaries General, the Chief Veterinary Officer and the Chief Inspector. Mr John Malone retired as Secretary General on 31 December 2004. Their areas of responsibility are set out across. MANAGEMENT ADVISORY COMMITTEE (as at 31 December 2004) Jim Beecher Assistant Secretary General Bart Brady Assistant Secretary General Denis Byrne Assistant Secretary General John Fox Assistant Secretary General John Gillespie Assistant Secretary General Seamus Healy Assistant Secretary General Tom Moran Assistant Secretary General Aidan O’Driscoll Assistant Secretary General (appointed Secretary General on 1 January 2005) Philip O’Reilly Assistant Secretary General 8 Paddy Rogan Chief Veterinary Officer Tom Teehan Chief Inspector Annual Report of the Minister for Agriculture and Food Organisation Chart (as at 31 December 2004) Head of Division Agricultural Payments Policy Corporate Development Secretary General John Malone (Retired 31st December, replaced by Tom Moran) John Fox Assistant Secretary General Direct Payments –– –– –– –– –– Agri-Environment/Structures – Michael O’Donovan Area Aid/Premiums – Paud Evans Headage/Premiums/Quotas – Andy McGarrigle/Pat Lynch Integrated Controls – Vacant Agricultural Environment & Structures – Dan Gahan/Oliver Healy Denis Byrne Assistant Secretary General Market Supports/On Farm Investments/Forestry –– –– –– –– Beef Control – Tom O’Hanlon On-Farm Investments/Subsidies & Storage – Mick Prendergast Export Refunds – Ray Dollard Forestry – Ronan O’Flaherty, Diarmuid McAree Bart Brady Assistant Secretary General EU/Corporate Affairs –– EU/Trade – Tony Burke –– Corporate Affairs – Aidan Murray Tom Moran Assistant Secretary General Livestock Policy –– Meat Policy – Philip Carroll –– Meat Hygiene and Animal By-products – Andy Irving –– Milk Policy – Martin Heraghty Jim Beecher Assistant Secretary General Economics, Food & Crop Policy –– –– –– –– Food – Marian Byrne Crop Policy & State Bodies – Bridie O’Neill Economic & Planning Unit – Kevin Smyth Food Safety Liaison Unit – Joe Shortall Aidan O’Driscoll Assistant Secretary General Financial Systems –– –– –– –– Finance – Brendan Gleeson Accounts – Geraldine Mullen Internal Audit – Michael Flynn Structural Funds Division – Mick Cronin John Gillespie Assistant Secretary General Human Resources –– –– –– –– –– Management Services – Luke Mulligan Personnel – Bert O’Reilly Accommodation & ISO Project – Danny Carroll Health and Safety – Brendan McInerney Legal Services – Randall Plunkett Philip O’Reilly Assistant Secretary General Information Systems –– –– –– –– –– ISD – John McCarthy ISD – Christy Philpot ISD – Robert Butler ISD – Stephen Fitzpatrick ISD – Michael Bunyan Tom Teehan Chief Inspector –– –– –– –– –– –– –– –– –– –– –– –– Dairy Regions – Denis Corcoran Dairy HQ & Labs – John Doody Seed Certification – Vacant Livestock, Beef & Sheepmeat – Ignatius Byrne Feedingstuffs, Fertilisers, Grain, Pigs & Poultry – Dermot A. Ryan Pesticide Registration – Mark Lynch Pesticides Residues – Dan O’Sullivan Crop Variety Testing – Nicholas McGill Horticulture & Plant Health – Michael Hickey Research, Food & CODEX Co-Ordination – Tony Smith Special Farm Services, Environment & Evaluation – Matt Sinnott Crop Production & Safety – Jarlath Coleman –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– RVO South West – Pat Flanagan RVO North West – Oliver McDonagh RVO North East – Michael Fallon RVO South East – John Murray ERAD – Brucellosis – Garry O’Hagan ERAD – TB – Margaret Good Beef & Sheepmeat – Paula Barry Walsh Trade, EU, Class A Diseases – Billy McAteer Pigmeat & Poultrymeat – David Nolan BSE, Scrapie, Medicines – John Griffin Veterinary Zoonoses, Animal Health & Welfare – Pat Brangan Regional Veterinary Laboratories – Michael Gunn, Deputy Director Bacteriology VRL – John Egan Pathology VRL – Paul Collery Virology VRL – Pat Lenihan –– –– –– –– ERAD/Disease Eradication – Richard Healy Animal Health & Welfare – Tom O’Donnell Beef Assurance Scheme – Brid Cannon District Veterinary Operations – Dermot Ryan David Beehan Deputy Chief Inspector Paddy Rogan Chief Veterinary Officer Food Safety, Animal Health Martin Blake Michael Sheridan Martin O’Sullivan Deputy Chief Vet. Officers John Ferris, Director, Veterinary Research Laboratories Seamus Healy Assistant Secretary General Animal Health Footnote. Mr Paul Dillon, Director, Agriculture Appeals Office reports directly to the Minister for Agriculture and Food. Organisation of the Department 9 Report on Departmental Goals Report on the Department’s Goals for 2004 Goal 1 Agri-Food Development and Trade Develop an internationally competitive agri-food sector and support and facilitate trade in agriculture and food products. Goal 2 Food Safety, Animal Health and Welfare, Plant Health Ensure the highest standards of food safety and consumer protection, animal health and welfare and plant health. Goal 3 International Framework Achieve the optimum framework for the agri-food sector, rural economy and the natural environment at EU and at the wider international level and enhance North/South cooperation. Goal 4 Rural Economy and Environment Promote the development of the rural economy and of environmentally friendly and sustainable systems of agriculture and food production. Goal 5 Schemes Delivery and Financial Management Operate all our schemes and programmes in an efficient and effective manner, and ensure the highest standards of corporate and financial management and accountability in all our activities. Goal 6 Operational Capabilities Develop our human and physical resources, our operational capabilities and ensure the delivery of quality service to our customers, both internal and external. 12 Annual Report of the Minister for Agriculture and Food GOAL 1.0 Agri-Food Development and Trade Develop an internationally competitive agri-food sector and support and facilitate trade in agriculture and food products AGRI-FOOD DEVELOPMENT Sustaining Progress “Sustaining Progress“, which is the social partnership agreement for the period 2003-2005, has two major elements relating to this Department, i.e. the agriculture provisions and issues relating to public sector pay. As mentioned elsewhere in this report, very satisfactory progress was made in 2004 on the agriculture provisions agreed with the Farming Pillar, particularly in the following areas: ■ the outcome of the CAP Mid Term Review and the WTO negotiations has protected farm incomes and the gains achieved in the Agenda 2000 agreement; ■ mechanical grading has been introduced for cattle to encourage production for market requirements and the number of markets closed to Irish beef has been reduced; ■ ■ ■ ■ increased funding of €16 million was approved for food research projects under the FIRM programme, and the value of the prepared consumer food sector increased in 2004; the incidence of brucellosis and BSE reduced in 2004 and the review of levies in early 2004 resulted in a 25% reduction in bovine disease levies for the farming community; the published Land Bill will significantly reduce the burden of land purchase annuities for a large number of farmers and reduce the overall administrative burdens associated with land transfers; Agri-Vision 2015 Committee had Terms of Reference, which said it should “Review the strategy and recommendations contained in the Agri-Food 2010 Report in the context of developments since the report was completed.“ The Committee was comprised of experts from the farming organisations, the food industry, research, academia, the state agencies and retailing. They held regular meetings that covered a comprehensive range of topics and identified the rapidly changing nature of Irish agriculture and the issues facing the agriculture and food industries over the coming decade, such as the full implementation of the Luxembourg Agreement, the economic effects of EU Enlargement and WTO trade negotiations. The report set out a vision of the future for Irish agriculture, the changes required and its potential positioning in 2015. The report contained 53 recommendations covering a comprehensive range of areas: ■ developing a competitive Irish agriculture and food industry; ■ building a knowledge based Irish agriculture and food industry; ■ managing the regulatory environment; ■ the all-island dimension; ■ supporting the public goods output of agriculture; ■ strengthening rural development; ■ improving integrated policy response. there was increased participation in environmental schemes in 2004 particularly in REPS where the take-up is expected to increase due to the higher payment rates approved in June 2004 and progress has been made on the implementation of the Nitrates Directive. Programme for Government Very satisfactory progress was made on implementing the Programme for Government and full details are set out in Appendix 3. Agri-Vision 2015 The former Minister for Agriculture and Food, Joe Walsh established the Agri-Vision 2015 Committee to set out a vision for the agriculture and food sector over the next decade. This was to build on the work of the Agri-Food 2010 Committee, which reported in March 2000. The Goal 1.0 Minister Coughlan at the launch of the 2015 Agri-Vision Report with Committee Chairman, Alan Dukes, December 2004. 13 Competitiveness Following previous studies, which were sponsored by the Department as a result of recommendations from the AgriFood 2010 Committee, results were received of work on the important area of productivity and competitiveness. GOAL 1.0 A study was undertaken with the support of the Department’s Research Stimulus Fund by Alan Mathews and Carol Newman titled “Measuring And Understanding Productivity Growth In Irish Agriculture1“ and used data from the Teagasc National Farm Survey. Fiona Thorne examined the competitiveness of Irish milk, beef rearing, beef finishing, cereals and sheep production in “Measuring the Competitiveness of Irish Agriculture, 1996-2000“2. The cash costs for these sectors were compared with the average costs for some other EU Member States. This was facilitated by data from the Farm Accountancy Data Network (FADN) for the years 1996 to 2000. POLICY DEVELOPMENTS Policy Analysis The Minister launched the Annual Review and Outlook for Agriculture and Food 2003/2004 in May 2004. The report contained a broad range of analysis and statistics relating to the primary agriculture sector and the food industry. A fact sheet on Irish Agriculture is regularly up-dated and is available on the Department’s website www.agriculture.gov.ie, as well as a Compendium of Irish Agricultural Statistics, which was updated in November 2004. Tax Policy Budget 2004 provided a number of provisions of value to the agri-food sector. Of particular significance were the changes to the income tax exemption for land leased out on a long-term basis. The minimum age for leasors was reduced from 55 years to 40 years and the rental income exemption limits for this relief were also raised from €7,618.43 to €10,000 for leases of seven years or more and from €5,079 to €7,500 for leases of five to seven years. The accelerated rate of capital allowances for investment in necessary pollution control facilities was renewed for three years until 31 December 2006. The farming sector also benefited from an increase in the flat rate VAT refund for unregistered farmers from 4.3% to 4.4% and a 25% reduction in disease levies. There were also increases in social welfare rates including the Farm Assist Scheme (operated by the Department of Social and Family Affairs). AGRICULTURE STATISTICS OUTPUT, INPUT AND INCOME 2004 Agricultural Output At Producer And Basic Prices, Gross Value Added And Operating Surplus In Agriculture Goods Output At Producer Prices €m 4,967.6 Plus Contract Work 255.1 Plus Subsidies Less Taxes On Product 873.0 Agricultural Output At Basic Prices 6,095.7 Less Intermediate Consumption 3,409.2 Gross Value Added At Basic Prices 2,686.5 Less Fixed Capital Consumption 654.5 Plus Other Subsidies Less Taxes On Production 601.6 Less Compensation Of Employees 424.0 Operating Surplus 2,209.6 Source: CSO Preliminary Estimate Output, Input and Income in Agriculture, February 2005 14 1 Mathews, A. , Newman, C. “Measuring and Understanding Productivity Growth in Irish Agriculture”, Wissenschaftsverlag Vauk Kiel KG, Kiel, 2004, 179pp. 2 Thorne, F. (2004) “Measuring the Competitiveness of Irish Agriculture, 1996 - 2000”, Teagasc Rural Economy Research Series No.9 Annual Report of the Minister for Agriculture and Food COSTS OF PRODUCTION OF MAIN AGRICULTURE SECTORS (2003) System Costs of production of main agriculture sectors (2003) Direct costs per farm € Direct costs as % of output (excluding Direct Payments) Total costs per farm € Total costs as % of net output (excluding Direct Payments) All Systems 14,814 43% 29,698 87% Dairying 31,350 37% 57,551 68% Dairying +Other 28,592 43% 53,790 80% Cattle Rearing 5,983 55% 13,527 124% Cattle Other 8,242 58% 17,725 125% Mainly Sheep 8,111 49% 18,003 108% Mainly Tillage 26,164 43% 57,169 94% Source: Teagasc, National Farm Survey, 2003 FARM NUMBERS 2003 Number of Family Farms 135,300 Source: CSO AGE PROFILE OF FARMERS (2003) Age profile of farmers (2003) Age No. of farmers % of farmers <35 15,000 11% 35-64 92,700 69% >=65 27,400 20% Source: CSO NATIONAL DEVELOPMENT PLAN Agri-Food Measures The National Development Plan (NDP) provides for significant public investment over the 2000-2006 period in actions that directly impact on rural areas. The main agricultural element is the CAP Rural Development Plan covering the Rural Environment Protection Scheme (REPS), early retirement, compensatory allowances and forestry. Complementary measures under various Operational Programmes provide support for a wide range of initiatives under the following broad headings: ■ ■ ■ ■ ■ on-farm investment such as farm waste management and dairy hygiene; research, training and advisory services; ancillary forestry investment; installation aid for young farmers; food-related capital investment, research and marketing initiatives. Goal 1.0 Details of expenditure in 2004 and for the 2000-2004 period under the various measures are set out at Appendix 4. In 2004, overall progress was good with expenditure on target in many areas. The changes introduced to the REPS scheme deserve particular mention. These were approved by the EU Commission in May 2004 and, in line with recommendations from the mid-term evaluation of the CAP Rural Development Plan, included substantial increases in payment rates. Modulation In 2004, there was widespread public consultation and Departmental consideration on the most appropriate use of modulated funds. Modulation involves set deductions from the direct single agricultural support payments. The sums involved are then available to use for certain rural development measures – commencing in 2006. For 2006, the potential use is limited to existing measures in the CAP Rural Development Plan – REPS, compensatory allowances, early retirement and forestry – and the new 15 possibilities introduced by the CAP mid-term review – meeting standards, animal welfare, food quality, advisory services. From 2007, potential use will be extended to all measures included in the 2007-2013 rural development framework, while any multi-annual commitment measures chosen will also extend into that period. GOAL 1.0 It is estimated that some €16 million in EU funding will be available for use in 2006. This rises to €31 million in 2008 and subsequent years. It will not be possible to be definitive on these figures until after payments under the Single Payment Scheme are made. A decision on the issue will be taken in 2005 and the necessary EU approval will then be sought. On-Farm Investment and Installation Aid Schemes Work continued during 2004 on the On-Farm Investment Schemes (i.e. Farm Waste Management Scheme, Dairy Hygiene Scheme and Alternative Enterprises Scheme) and the Installation Aid Scheme, established under the aegis of the National Development Plan 2000-2006. In line with the commitments contained in the 2003 Sustaining Progress Agreement, revised Farm Waste Management and Dairy Hygiene Schemes were introduced at the beginning of 2004. The changes included an increase in the maximum income limit for farmers from 200 to 450 Income Units, higher maximum eligible investment ceilings and the introduction of a standard grant rate of 40%. As a result, there was a substantial up-turn in the number of applications received under both Schemes during the course of the year. Expenditure during 2004 on the Schemes was as follows: (see top of next column) NDP Scheme Amount Paid (€m) 16.655 Farm Waste Management Dairy Hygiene 2.952 Alternative Enterprises 0.654 Installation Aid 6.480 In addition to the above Schemes, residual payments continued under the On-Farm Investment Schemes which preceded the Schemes introduced under the National Development Plan: Pre-NDP Schemes Amount Paid (€m) 0.032 Farm Improvement (Horticulture) National Dairy Hygiene Scheme 0.025 National Farm Pollution/Control of Farm Pollution Schemes National Scheme of Installation Aid 0.400 0.548 Pullathomas Landslide Damage Relief Scheme A sum of €100,000 was paid during the year to those farmers affected by the landslide in the Pullathomas area of Co. Mayo in late 2003. Forestry Grant and Premium Schemes Responsibility for the development of the forestry sector transferred from the Department of Communications, Marine and Natural Resources to the Department of Agriculture and Food in January 2004. Funding for forestry was substantially increased during 2004. Summary of output in 2004 under all Forestry Grant and Premium Schemes. Measure/Sub-measure Grant Scheme CAP Rural Development Plan 2000-2006. Forestry Measure Regional Operational Programmes 2000-2006. Woodland Improvement Sub-Measure Woodland Improvement Forest Roads Payments €m Area Hectare (unless otherwise stated) Afforestation Grants 25.221 9,739* 2nd Instalments 10.555 Forest Premiums 54.067 0.262 50 High Pruning 0.04 64 Reconstitution 3.991 3,658 Shaping Broadleaves 0.087 659 Native Woodland 0.588 217 NeighbourWood 0.149 130 Forest Roads 1.391 70 (kilometres) * This figure only refers to the number of hectares in respect of which grants were actually paid in 2004. The actual area planted would have been somewhat higher. 16 Annual Report of the Minister for Agriculture and Food FOOD INDUSTRY Development Programme for the Food Industry Funding for the food initiatives in the NDP 2000 -2006 is provided under the Productive Sector and Employment & Human Resource Development Operational Programmes. These “food“ initiatives, which take account of the recommendations of the Food Industry Development Group and the Agri-Food 2010 Committee, are marketfocused and designed to provide a cohesive and comprehensive response to the needs of the industry. Administered jointly by the Department and the development agencies, the range of initiatives seek to enhance the innovative, marketing and human resources capabilities of the industry in line with customer requirements, while ensuring that development continues to be underpinned by adherence to the highest food safety and quality standards. NDP Approvals and Expenditure for 2004 Measure Capital Investment Expenditure Expenditure 2004 2000-2004 (€m) (€m) 10.50 34.26 Research ■ In-Company Research 1.57 8.79 ■ Food Institutional Research (FIRM) Marketing & Promotion 6.74 32.14 4.71 28.71 Human Resources 1.55 9.46 25.07 113.36 Total Under the Capital Investment Measure, the Department administers a scheme to assist capital projects in the horticulture, potato, eggs, grain and livestock marketing and processing sectors. During 2004, 41 projects were awarded funding of €14.65 million. Expenditure in relation to these projects will materialise in the 20052007 period. Expenditure in 2004 totalled €3.6 million in respect of projects awarded in 2002. The following table shows expenditure and awards by sector to date. Sector Expenditure (€m) 2004 Expenditure (€m) 2000- 2004 Awards (€m) 2000-2004 HORTICULTURE 0.380 1.716 3.638 POTATO 0.336 0.907 7.224 NIL 1.176 2.756 GRAIN 2.826 6.839 12.607 LIVESTOCK 0.058 0.265 4.229 TOTAL 3.600 10.903 30.454 EGGS Goal 1.0 17 In relation to the Food Institutional Research Measure (FIRM), 110 projects were awarded funding following general calls in 2000 and 2004 and a targeted call in 2001. An amount of €7.46 million was paid out in 2004 in respect of these projects. The following table shows awards and expenditure under the various research themes to date. GOAL 1.0 Theme Expenditure (€m) 2004 Expenditure (€m) 2000-2004 Awards (€m) 2000-2004 CONSUMER FOODS 0.998 4.802 7.745 DAIRY 1.041 4.046 8.152 DNA TECHNOLOGY 1.055 1.267 2.167 FOOD INGREDIENTS 0.257 2.854 3.207 FOOD SAFETY 1.055 6.604 8.057 FOOD VIRUSES 0.362 0.776 0.947 0.0 0.213 0.607 MEAT 0.855 2.996 6.919 MISC 1.052 3.672 6.457 NUTRITION 0.152 2.387 2.539 PROCESS DESIGN 0.137 1.267 1.380 RESIDUES 0.180 0.430 0.630 TSE 0.316 0.772 1.198 7.46 32.086 50.005 FOOD WASTE TOTAL An Bord Bia An Bord Bia has responsibility under the An Bord Bia Acts 1994-2004 to promote, assist and develop the marketing of Irish food, livestock and horticulture, including amenity horticulture, on the home and export markets through the provision of innovative market development, promotion and information services. The Board has overseas offices in eight strategic locations, Amsterdam, Chicago, Frankfurt, London, Madrid, Milan, Moscow and Paris. In July 2004, following the enactment of the An Bord Bia (Amendment) Act, 2004 which merged Bord Glas with Bord Bia, the Board assumed responsibility for the marketing and promotion of horticulture, including amenity horticulture. The Act also provided for dedicated horticultural representation on the Main Board and for the establishment of a Subsidiary Board for horticulture. This was established in 2004. Food Marketing and Promotion initiatives of the National Development Plan. Bord Bia operate two grant schemes to assist the marketing capabilities of micro, small and medium-sized enterprises food companies – the Market Improvement Assistance Programme and the Market Participation Programme. It also operates Quality Assurance Schemes for beef, pigmeat, eggs and horticulture. Bord Glas Grant-in-aid of €2.5 million was provided to Bord Glas in 2004 to support production, marketing and consumption of horticultural produce. Bord Glas was amalgamated with Bord Bia on 1 July 2004. Teagasc Funding of €117 million was provided to Teagasc for research, training and advisory activities by way of Grantin-Aid and funding under the National Development Plan, 2000-2006. Expenditure by Teagasc in 2004 was approximately €159 million. Research Stimulus Fund & the United States/Ireland Co-operation Programme An Bord Bia is funded via Grant-in-Aid, statutory levies, service fees and industry income. The Grant-in-Aid for 2004 was €17 million, including €4.7 million under the 18 In 2004 the Department spent €0.6 million under the Research Stimulus Fund of the National Development Plan and €0.05 million on the United States/Ireland Co-operation Programme in Agricultural Science and Technology. Annual Report of the Minister for Agriculture and Food Agricultural Promotion Schemes (Council Regulation No. 2826/2000) The Department concluded a one-year contract with Irish Egg Marketing Ltd to fund an information campaign to inform consumers about new rules on the marking of eggs. The campaign has a budget of €150,000 and is being funded 50:20:30 by the EU Commission, the Department and Irish Egg Marketing Ltd. COMMODITIES REPORT Beef The policy framework under which the beef sector operates is the Agenda 2000 Agreement. It provides for increased compensation for farmers through direct payments. Premia in the beef sector amounted to €789 million in 2004. This was the last year of premia payments to farmers, as under the Mid Term Review of the Agenda 2000 Agreement, the nature of support has changed. Under the reformed Common Agricultural Policy, market supports will now come as part of a Single Payment Scheme, decoupled from production. This new policy framework will require a more marketoriented approach by farmers, with a renewed focus on competitiveness, quality production and producer/ processor relationships. Total slaughterings at export premises for Irish beef in 2004 decreased to 1.74 million head compared with 1.76 million in 2003. Steer slaughterings were down 6%, heifer slaughterings were down 5% and cow slaughterings were up by 3%. 2004 saw another strong performance by Irish beef in European markets with a 7.4% rise in exports to Continental Europe to 174,000 tonnes. The UK continued to be the main single market outlet for Irish beef with 264,000 tonnes exported to this market in 2004. The EU comprised 90% of our total exports compared with 83% in 2003. According to Bord Bia beef exports were valued at €1.4 billion in 2004, which represented almost 20% of total Irish agri-food exports, an 8% rise on 2003. In the last three years, the focus of the Irish beef industry has been to broaden and expand its market reach at EU retail level, shifting its orientation away from international commodity markets and into the higher priced internal EU marketplace. This has coincided with reduced dependence on support measures such as intervention and export refunds. An increased presence in this highly sophisticated, high value market is the key to the success of the beef industry in the long term. Russia continued to be our main Third Country market with a total of 47,000 tonnes exported there in 2004. Goal 1.0 Live Cattle Exports Irish cattle exports were 135,000 head during 2004, which represented a fall of 39% on 2003 levels, due mainly to the high prices available on the domestic and high value Continental markets. The majority of cattle exported were weanlings and stores, which accounted for over 69% of the total at 93,000. Calf exports were 35,000 head, the majority of which went to the Netherlands. Exports to our principal market, Northern Ireland, increased by 18% to 47,000 in 2004 compared with 40,000 in 2003. Spain and Italy continue to be major markets for Irish cattle, with 21,000 exported to Spain and 20,000 to Italy during 2004. Exports to Third Countries fell from 37,000 in 2003 to almost 12,000 in 2004. Beef Prices Beef prices in 2004 remained strong for the whole year. Prices in all three categories (steers, heifers and cows) reached their highest levels in six years. Looking at the average prices for cattle over the year, all three categories display significant increases with steers up 9%, heifers up 8% and cows up by 16% on 2003. Prices remained higher in 2004 than for the comparative period in 2003 during virtually the whole year thus providing a consistently good return for the producer during 2004. Market Access for Beef Exports of beef to Third Countries amounted to 55,000 tonnes, with Russia remaining our major Third Country outlet. An agreement on a common EU certificate for beef exports to Russia was reached in October 2004, which should improve exports there for 2005. While the Egyptian market was open, trade was restricted by particular supply conditions laid down for exports from Ireland. The Algerian market for fresh/chilled beef reopened during 2004, with hopes for the re-opening of the frozen market in 2005. This will boost trade in the region. Markets in general were affected by a reduction in exports to Russia and increased international competition. The Department, together with the Department of Foreign Affairs and An Bord Bia, continued in its efforts to re-open other important markets such as Iran, the Gulf States, South Africa and the Philippines. Beef Carcase Classification Responsibility for the Beef Carcase Classification Service passed to the industry on 1 August 2004. The Department’s role is now one of supervision and control. Three systems were approved following authorisation tests conducted in 2003 in accordance with the provisions of EU Regulation 1215/2003. Machines are now installed in 24 meat plants accounting for almost 95% of our beef exports. The remainder of the meat plants use Department trained factory employees to classify. 19 Cattle Breeding GOAL 1.0 The Irish Cattle Breeding Federation (ICBF) was formally established in 1997 to develop national cattle breed improvement programmes to achieve the greatest possible genetic improvement in the national herd for the benefit of Irish cattle farmers, the dairy and beef industries and its member organisations. It is a co-operative in which the AI centres, Milk Recording organisations, Cattle Herd Book Societies and the main farmer associations are shareholders. During 2004 ICBF took a number of further major steps forward in the operation and establishment of a national cattle-breeding infrastructure. The Animal Events system recorded 423,000 calf births, an increase of 32% on the 2003 figure. The cattle breeding database fully supports the information requirements of most of the cattle herd books in Ireland. Milk recording processing was conducted directly from the database for over 6,000 herds and almost 400,000 cows. Dairy trait genetic evaluations were produced routinely four times during the year in accordance with an internationally established timetable. The economic values used in the EBI were updated and an extensive education campaign conducted in association with Teagasc. As a result, the EBI is now well established as the main criterion for dairy cattle breeding decisions in Ireland. Prototype across breed genetic evaluations for calving traits and the full range of beef traits were developed in 2004, with full implementation planned for early 2005. These evaluations make use of the extensive calving, beef performance and slaughter data now being routinely collected and assembled in the ICBF database. Funding of €706,000 was provided under the National Development Plan to assist with these projects. Having taken over the operation of the National Bull Performance Testing Centre at Tully in September 2002, ICBF held its second sale of bulls in March 2004. By the end of 2004, the Centre was full to capacity, with bulls whose overall merit exceeds the highest average achieved in the history of the Centre. Farmer feedback continues to be very positive with major bull studs now keen to contribute bulls. A new Irish Shorthorn Society Co-operative LT.D. was established during 2004 at the request of Irish Shorthorn breeders. This Society intends to heighten the profile and awareness of the merits of dairy, beef and dual-purpose Shorthorn cattle in Ireland. Sheep There was a strong market for sheepmeat in 2004. Supplies increased by 16% over 2003 levels, while prices were about the same as in 2003, reflecting good demand 20 on the home and export markets. Nearly 3.23 million head were slaughtered at export plants, reflecting increased disposals of ewes and lambs, influenced by good prices and by the impact of decoupling on the sector. Exports increased by 17% to 51,500 tonnes with the UK and Germany showing the biggest increases, while France remained the principal export market with 33,500 tonnes. Direct payments to farmers under the 2004 ewe premium and ewe national envelope scheme totalled €107.4 million, as compared with €109.3 million for 2003. It was the final year for the ewe premium scheme, following the decision to decouple direct payments from 1 January 2005. Milk Prices for dairy products remained strong on EU and international markets in 2004, continuing a trend set in the previous year. World prices for butter, skim milk powder, casein and other milk products remained buoyant in 2004 and showed increases averaging of 23% over the 2003 prices. Export of Irish dairy products and ingredients experienced a 6% rise in 2004 to almost €1.86 billion, as Irish exporters responded well to improved demand. The prices paid to milk producers remained broadly similar to that paid in 2003. As part of the Mid-Term Reform of the CAP, the first intervention price reductions for butter and SMP were implemented on 1 July 2004. These reductions will result in 25% cut in butter intervention price over four years and 15% cut in SMP intervention price over 3 years. The reductions will be partly compensated by way of direct payments to dairy farmers, which in 2004 amounted to over €60 million. Following the publication of the Prospectus Report in 2003 which set out a strategic development plan for the dairy sector, the Minister met with all of the major players in the dairy industry to discuss the findings of the report and to encourage their implementation. The Report identified the need for increased efficiencies and scaling up of production in the sector to enable it develop in an increasingly internationalised marketplace. Decisions regarding future investment and strategic direction now rest with the individual enterprises in the industry. Quota Management The Milk Quota Restructuring Scheme is the main means by which milk quota is acquired by producers. Under the 2004 scheme about 174 million litres (38 million gallons) of quota was redistributed to 11,000 producers, just less than half the producers currently in production. The maximum price for quota was set at €0.31 per litre, the same price as 2003. Annual Report of the Minister for Agriculture and Food The changes made in 2003 to the Milk Quota Regulations expanded the Partnership framework to provide for the registration of New Entrant/Parent Milk Production Partnerships. In the 2004 Restructuring Scheme, 87 qualified young farmers were allocated quota for the purpose of forming New Entrant/Parent Milk Production Partnerships. There are now a total of 261 such partnerships. In addition there is a total of 37 Standard Milk Production Partnerships, 15 of which were formed in 2004. The volume of pigmeat exports in 2004 fell by 3% compared to 2003. Domestic consumption remained steady at 146,000 tonnes cwe. Exports to all destinations reached 117,000 tonnes cwe. The UK continued to account for just over half of Irish pigmeat exports while the balance was divided equally between other EU and third countries. The main international markets were Japan, USA and Russia. In the milk quota year 2003/2004 Ireland’s deliveries of milk exceeded the national quota by 26 million litres and a super levy liability of €9.57 million became payable to the EU Commission. New Milk Quota Restructuring Scheme Changes announced to the milk quota restructuring scheme in 2004 included the introduction of a fixed price for the sale and purchase of quota at 17.5 cents per litre (80 cents per gallon) in the 2005 Scheme, with a reduction of at least 5.5 cents per litre (25cents per gallon) to a price not exceeding 12 cents per litre (55 cents per gallon) for the 2006 restructuring pool. The new arrangements also reduce the allocation categories to two on a 350,000 litre (77,000 gallons) divide with a 2:1 distribution ratio. The two allocation categories will simplify the existing scheme. The new fixed price takes account of the decoupled support payments and the fact that quota sold in 2005 would not include the value of the decoupled dairy premium. The restructuring scheme will continue to operate on a co-op collection area basis and in the event of quota purchased under the programme not being sold within three months of purchase. A mechanism will be put in place to distribute such quota on a national basis. Poultry Indigenous poultrymeat production in 2004 increased by 4.5% from the previous year and this represented a total of approximately 125,000 tonnes. The market was competitive and the upward trend in imports continued, but prices in 2004 remained stable for both producers and processors. Exports volumes increased in 2004 and were valued in excess of €230 million. This figure includes processed poultry products and prepared meals. Pigmeat Eggs The Irish pigmeat market in 2004 was satisfactory. Positive factors that helped the market were a decrease in feed prices towards the latter half of the year and the temporary introduction of export refunds at the beginning of the year. The average price paid to producers was €133/100kgs, (grade E carcases, excluding VAT), an increase of 8% compared to 2003. The Irish price was over 96% of the EU average. The volume of egg production in 2004 was 569 million eggs. More than 90% of eggs sold are produced in accordance with the Egg Quality Assurance Scheme operated by Bord Bia. 2.7 million pigs were slaughtered in 2004, a decline of 4.5% on the 2003 kill. This was due in particular to continuing live exports to Northern Ireland, and to a reduction of approximately 6% in the number of pigs produced. Goal 1.0 Cereals A bumper EU harvest in 2004 saw total grain production reach an estimated 284 million tonnes, an increase of 57 million tonnes on the drought-affected harvest of 2003. In the EU-15 Member States, total production is forecast at 221 million tonnes, while the 10 new Member States had an estimated production of 63 million tonnes. 21 GOAL 1.0 2004 was a reasonably good year for cereal producers in Ireland. The weather was broken for most of the harvesting period this year, but a fine spell in late August and early September helped to bring in a good harvest. Record yields were achieved on many farms, with winter wheat and spring barley in particular producing a consistently high yield. The overall area under cereals was in the region of 299,000 hectares. Cereal production was up considerably, with total production reaching 2.253 million tonnes, an increase in excess of 100,000 tonnes on the 2003 harvest. Total wheat production at 955,000 tonnes accounts for most of this increase. Barley production amounted to 1.153 million tonnes, while production of oats was at 145,000 tonnes. Preliminary estimates put output value at €166 million – a decrease of 3.4% on the 2003 figure, while EU arable aid payments of €133 million were made in 2004. Early indications show a drop in the sowing of winter cereals, with initial estimates suggesting that winter sowings are back by up to 25% in some areas. This situation is a due to a combination of the bad weather experienced during peak sowing time in autumn 2004, uncertainty concerning entitlements following decoupling, and farmers reconsidering their conacre options in the light of the new Single Payment Scheme. Sugar There was no reduction in quotas for the 2004/2005 marketing year as exports were within WTO limits. A very good harvest was reported and contracted beet delivered had a high sugar content due to the good weather and was sufficient to more than fill the full quota. A total of seven inspections were carried out during the production season to verify sugar production, along with an annual stock count of all storage facilities. In July the EU Commission published broad proposals for reform of the EU sugar regime. In October, a WTO Panel ruled against aspects of the regime. The EU decided to appeal the ruling. The Commission is expected to produce formal legislative proposals for reform in May or June 2005, after the outcome of the WTO Panel appeal. Potatoes While acreage declined, improved yields generated an extra 50,000 tonnes of production. This led to an oversupply situation in the market and downward pressure on prices. Horticulture The Scheme of Investment Aid for the Commercial Horticulture Sector was launched in 2001 under the National Development Plan 2000-2006. Under the first two rounds of the scheme a total of €5.3 million was paid out to some 300 applicants. Under Round 3 in 2004 a sum of €3.12 million was paid to 97 applicants. Mushrooms continued to be the most important horticultural crop. Market returns remained under pressure, however, and a number of growers ceased production. The Mushroom Task Force was set up in December 2003 to address the problems facing the industry. A Report was issued in May 2004 and made a number of recommendations aimed at securing the future viability of the industry. Implementation of these recommendations is ongoing. Minister of State Brendan Smith, T.D. meeting with the members of the Mushroom Task Force Implementation Group, December 2004. Rationalisation of the fruit and vegetable sectors continued at production, packing and marketing levels. Most mushroom growers and many fruit and vegetable producers are now members of producer organisations and can therefore take advantage of aid under the Common Organisation of the Market (COM) for Fruit and Vegetables to better meet market and environmental needs. A number of Producer Organisations amalgamated in 2004, leading to further concentration in supply. The market for nursery stock continues to expand. This sector plays a very important support role in making a wide range of high quality plants available to Irish garden centres. 22 Annual Report of the Minister for Agriculture and Food Crop Variety Testing Seed Certification In the region of 330 varieties of grass, clover, barley, wheat, oats, maize, sugar beet and potatoes were evaluated in National and Recommended List trials in 2004. Overall, conditions for sowing and harvesting crops in 2004 were good and no major difficulties were encountered. Varieties of agricultural crop species marketed in Ireland must be listed on the Irish National Catalogue of Agricultural Plant Varieties, or the EU Common Catalogue of Varieties of Agricultural Plant Species, and only certified seed of these varieties may be marketed. Certified seed must meet certain quality standards for varietal identity and purity, germination capacity and disease levels. The main components of the Seed Certification Scheme comprise a field inspection service; pre and post control testing; EU Comparative Trials; seed sampling, testing and labelling. A detailed statistical database is maintained on the Certification Scheme; information on seed availability is released to the seed trade and Agri-media on a regular basis. The varieties of each species considered most suitable for Irish producers, given our environment and range of soils types, were selected from these trials and published in Recommended List Booklets and on the Department’s website www.agriculture.gov.ie. No. of Varieties Evaluated in 2004 Grass 82 Clover 13 Cereals 170 Maize 25 Sugar Beet 30 Potatoes 8 Open Days for the Irish Seed Trade Association and the Maize Growers Association were held at The National Crop Variety Testing Centre, Backweston, Co. Kildare, during the year. The Tops Farm, Raphoe, and the Crop Variety Testing Facilities, both at Kildalton Agricultural College and Moorepark, Fermoy hosted groups interested in the various trials being carried out. A number of grass and cereal trials were carried out with a view to ascertaining those varieties better suited to more extensive agricultural systems. This work is ongoing. Cooperation continued with the Malting Industry with the provision of agronomic data from official trials, as well as varietal samples for evaluation and analysis in order to determine their malting potential. Genetically Modified Crops Work is continuing in the Department towards the development of policy in relation to Genetic Modification (GM) issues in the area of crop production. The Working Group, (comprising representatives of the Department of Agriculture and Food, the Department of the Environment, Heritage and Local Government, the Environmental Protection Agency and Teagasc), established by the Department to examine the issues involved in the coexistence of GM crops with conventional crops and organic farming, is expected to present its Report in early 2005. Goal 1.0 Total Area of Crops Approved for Certification in 2004 (ha) Cereals 9,778 Potatoes 1,338 Pulses 31 Grasses 45 During 2004, 194 varieties were maintained in vitro at the Potato Laboratories, Tops, Raphoe, Co. Donegal. Approximately 28,300 potato minitubers from 12 different potato varieties were grown in virus proof tunnels and approximately 100 tonnes of pre-basic seed potatoes were produced on the farm. Five new potato seedlings were tested for distinctness, uniformity and stability as prescribed by the International Union for the Protection of New Varieties of Plants (UPOV). A reference collection of potato varieties was also maintained. Agricultural and horticultural seeds subject to official certification also require to be officially tested for purity and germination to ensure compliance with EU seed regulations. These tests were carried out at the Department’s Seed Testing Station and almost 11,000 were carried out in 2004. Forest Reproductive Material The Forest Service is responsible for implementing Council Directive 1999/105/EC on the marketing of forest reproductive material. Forest reproductive material (FRM) is a collective term to describe seeds, plants and cuttings, which are important for forestry purposes. The aim of the legislation is to ensure that FRM which is marketed is from approved suitable sources and is clearly labelled and identified throughout the entire process from seed collection to processing, storage, plant production and delivery to the final end user. 23 GOAL 1.0 The main activities in 2004 were as follows: 24 ■ Registration and auditing of suppliers of FRM – seed collectors, nurseries, seed and plant importers; ■ Issuing of Certificates of Provenance for seed collections; ■ Maintaining National Register of Seed Stands in association with COFORD; ■ Issuing export documents to other Member States; ■ Advising public and trade concerning FRM regulations; ■ Participated, under the Irish Presidency, the Biennial meeting of the National Designated Authorities for the equivalent OECD scheme for the control of forest reproductive material moving in international trade. HORSE INDUSTRY Irish National Stud Company Ltd. To date the State has purchased shares in the Company to the value of almost €12.7 million. The funds have largely been channelled into the purchase of top quality stallions. The acquisition of these stallions has underpinned the success of the Stud and brought the Company back from a loss-making position in the early 1990’s to a viable and profit making operation today. The Stud and gardens continue to be one of the country’s main tourists attractions. Irish Horse Board The equine industry, with its many and varied facets, including show jumping, racing, leisure activities, breeding and training, is a very important one. It contributes substantially to the generation of income from a valuable alternative farm enterprise, to employment, tourism, rural development, and the social, community and cultural life of the country and the economy as a whole. The Department paid €525,000 to the Irish Horse Board (IHB) in 2004. Racing Academy and Centre for Education In 2004 grant assistance amounting to €1.3 million was paid to the Racing Academy and Centre for Education (RACE) for the fitting out of new facilities at the recently constructed equestrian centre. This Centre will facilitate the centralising and delivery of activities on site and will allow RACE to further develop, improve and expand it’s existing facility for the training of young people entering the horse racing industry. National Development Plan 2000-2006 Under the National Development Plan 2000-2006 (NDP), the Department funded the construction of a farriery school at RACE. Farriery has been identified as an important support service for the horse industry and Annual Report of the Minister for Agriculture and Food the availability of quality farriery is seen as critical to the production of marketable quality horses. Grand aid of €712,447 has been paid by the Department towards the costs of establishing a farriery school at RACE. The Department made a payment of €28,687 in 2004 towards the cost of setting up a Farriery Register, which has been made available to the industry in booklet and electronic form. The Department also provided €309,832 under the NDP in 2004 to the University of Limerick, towards the cost of developing and delivering third level non degree courses in equine science, to meet the ongoing needs of the horse industry. Access to quality diagnostic and research services into Equine Diseases is equally important for the breeders of thoroughbred and sport horses. For this reason the Department has provided €2.979 million in grant assistance under the NDP to the Irish Equine Centre to assist it in providing enhanced services to best meet the needs of the horse industry in the period 2001-2004. There are a variety of equine schemes funded under the NDP, some of which are administered on behalf of the Department by the Irish Horse Board, that have the specific objective of improvement of equine quality. These include the Stallion Performance Testing Scheme, Quality Mare Competitions and DNA testing to verify pedigree. Other areas of activity focusing on improvement in equine quality funded under the NDP, which also involve the IHB, include Studbook Establishment and Development, formulation of Genetic Indexes, Promotion and Marketing and the Quality Stallion Purchase Incentive Scheme. The Department provided €2,079,263 under the NDP up to the end of 2004 to the Irish Horse Board for these services. Funding of €191,823 was provided to breeders for the purchase of quality stallions for breeding purposes over the same period. The Irish Thoroughbred Breeders Association (ITBA) has received funding of €32,098 under the NDP for education training and promotional activities. Goal 1.0 25 GOAL 2.0 Food Safety, Animal Health and Welfare and Plant Health Ensure the highest standards of food safety and consumer protection, animal health and welfare and plant health FOOD SAFETY The Department continued to implement policies to ensure that food is produced to the highest possible standards of safety. It pursues this objective through the deployment of over 1,700 staff in monitoring, surveillance and inspection services along the links of the food chain. A lot of this work is now governed to a large extent by a service contract with the Food safety Authority (FSAI). An amendment was made to the service contract in June 2004 to include food labelling for products such as fruit juices and jams covered by product specific EU directives. There is continued collaboration between the Department and other agencies on the development of food safety legislation. These include the Department of Health & Children, the Department of Communications, Marine & Natural Resources, the Food Safety Authority of Ireland, Food Safety Promotion Board (Safefood), and the North/South Secretariat. There is also well established communications with the Food and Veterinary Office, the European Commission and other European and international agencies. The Department made a number of presentations to various groups, and has attended exhibitions. It has also published leaflets to help raise awareness among them of their primary responsibilities in producing and supplying safe food. Food Labelling A report on food labelling was presented to the Minister in December 2002. It contained 21 recommendations covering general labelling rules, policy and enforcement, consumer education and awareness and origin. The enforcement of all of the food labelling regulations has now been centralised in the FSAI. This will not only streamline the enforcement measures, but it will also provide a one-stop shop for any complaints on mislabelling of food. In relation to the labelling of the origin of meat, two Regulations on the labelling of poultry meat were introduced at the beginning of 2004. The first of these Regulations required poultrymeat (loose and prepackaged) originating in a country outside the EU to bear an indication of the country of origin when offered for sale in a retail premises. The second, required information regarding class, price per unit weight, condition and slaughterhouse details in respect of loose poultrymeat (i.e. non-prepackaged) to be provided to the consumer. 26 Controls on Imports of Animal Products for Human Consumption from Third Countries To ensure protection of public and animal health EU harmonised controls are applied to all imports of animal products (including fish) into the EU at approved Border Inspection Posts (BIPs). Animal products entering the EU must have health certification and have been obtained from approved countries and establishments that have production and processing controls equivalent to those within the EU. Where a consignment is found not to comply with the animal and public health import conditions it is seized either for re-exportation to the country of origin or for destruction. Importers are required under EU and national legislation to pay fees towards the cost of these border controls. Where an outbreak of animal disease occurs in an approved third country, or in a third country region, the EU may invoke safeguard measures controlling or banning import until the risks to public health and EU economic production have been removed. During 2004 safeguard measures were applied in respect of outbreaks/suspected outbreaks of: ■ Avian Influenza in Thailand, Peoples Republic of China including Hong Kong, South Korea, Cambodia, Indonesia, Malaysia, Japan, Laos, Pakistan, Vietnam, Canada, South Africa and United States of America, and ■ Newcastle Disease in Bulgaria Dublin Port and Shannon Airport have BIP facilities that are approved for application of veterinary and public health checks and this is also where the import safeguard measures are applied. During 2004 total of 17,915,364.24kg of animal products comprising 488 consignments (363 in 2003) were checked and approved for entry into the EU through these BIPs. During 2004 one consignment of animal products (12 in 2003) was rejected. Annual Report of the Minister for Agriculture and Food Registration as an importer of animal products is a national prerequisite and over 530 importers and their agents were registered under new legislation (S.I. No 269 of 2004) during this year. for import of ‘intermediate’ products have yet to be adopted. During 2004 a total of 441 consignments of animal by-products were presented for entry into the EU through Irish BIPs (430 during 2003). To reduce risks to public and animal health, the EU adopted a Regulation providing for the banning of the personal importation from most third countries of animal products such as meat and milk for own consumption. Travellers to these countries and those providing them with travel services have been advised not to bring such products in personal luggage. In co-operation with the Port and Customs authorities, checks are carried out at airports and ports. During 2004 a total of 1,269 confiscations for destruction were made (4,101 in 2003) comprising a total of 4,775kgs of animal products (13,147kgs in 2003). The Department’s Food Safety Liaison Division issued import licences for the following purposes during 2004 (2003): In addition 28 non-compliant small commercial consignments comprising a total of 17,929kgs were discovered at airports/ports where there are no BIP facilities. These were seized for destruction on account of non-compliance with import regulations. During 2003 a total of 32 consignments weighing 26,700kgs were discovered and destroyed. Licences are issued for re-importation of consignments of Irish products that have been rejected by the importing country’s competent authority or by the consignee. Such consignments must re-enter the EU through a BIP. A total of 19 re-import licences were issued during 2004 (49 in 2003). Under authorisations issued by the Department of Communications, Marine and Natural Resources, the Department’s BIPs also operate EU border controls on imports of fish from third countries. The number of consignments presented for checks in 2004 was 229 compared to 158 during 2003. Controls on Imports of Animal By-Products and of Samples from Third Countries not Destined for Human Consumption The provisions of Council Regulation (EC) No 1774/2002 on animal by-products are applied to imports from third countries by the BIPs. Products include those destined for use in the manufacture of in vitro diagnostic equipment (IVD), for pharmaceutical use and for the manufacture of technical products. Licences are also issued for importation of samples of animal products used for trade exhibition purposes or for research, as well for importation of non-harmonised animal products in accordance with national rules. This latter has applied in particular to import of products for IVD manufacture as harmonised provisions in Regulation 1774/2002 Goal 2.0 Import Licence Category 2004 2003 Trade & Research Samples 160 90 Non-harmonised products. 513 648 Food Safety Research Food Safety is a priority theme under the Food Institutional Research Measure of the Productive Sector Operational Programme 2000-2006.To date, a total of €8 million has been awarded for 17 food safety projects. Topics include research to detect and control food pathogens such as E. Coli 0157:H7, Salmonella, Listeria and Campylobacter, the development of Hazard Analysis of Critical Control Points (HACCP) system in meat, research into factors influencing the formation of acrylamide in certain food products and the development of a National Food Consumption database for children for risk assessment of food borne chemicals. National Beef Assurance Scheme The purpose of the National Beef Assurance Scheme Act 2000 (No. 2 of 2000) is to further guarantee the safety of beef and beef products by: ■ implementing an effective animal identification and tracing system; ■ developing high standards of production and processing; ■ enforcing these standards through a registration and approval system. One of the objectives of the National Beef Assurance Scheme is that all persons engaged in the primary production and processing of cattle and beef (farmers, marts, slaughterhouses, meat processors, bovine animal feed manufacturers and other keepers of cattle) will be registered and approved under the Act. Delays in commencing the inspection process and alternative mechanisms for the inspection of farmers are being examined. Consequently S.I. No. 723 of 2004 (National Beef Assurance Scheme Act, 2000 (Approval) Order, 2003) was adopted to extend the period for participants to apply for approval under the Scheme. 27 Dairy Hygiene Statutory Instrument No. 9 of 1996, which lays downs the rules for the hygienic production and processing of milk and dairy products, continued to be enforced in accordance with the terms of the service contract with the Food Safety Authority of Ireland. The Dairy Science Laboratories continued to carry out their testing function for Market Support Schemes, Certification for Export, and Food Safety. Sampling for food safety based on risk assessment which contributes to a more efficient testing regime continued to be implemented. GOAL 2.0 A round of inspections under the programme for the Animal Health Inspection of dairy cows was brought to a successful conclusion. Veterinary Medicines and Residue Surveillance The viability of Ireland’s food production industry is underpinned by a healthy animal population. Legal and proper use of approved veterinary medicines (including vaccines) plays an important part in ensuring the continued high animal health status of our national herd, and by implication, the health of consumers of Irish food. The Department, in co-operation with the Food Safety Authority of Ireland and the Irish Medicines Board (IMB), oversees and implements important controls in this area in terms of approval and distribution of veterinary medicines, implementation of residue surveillance measures e.g. (National Residue Plan) and follow-up enforcement activities. 2004 saw the finalisation of a major EU review of medicines legislation with the publication on 31 March 2004 of Regulation (EC) No 726/2004 and Directive 2004/28/EC. Member States must transpose the relevant EU legislation into national law by 30 October 2005. The new legislation contains some important improvements which are designed to address the ‘medicines availability’ problem in the veterinary sector. These include measures to stimulate development of new treatments through data protection and facilitating the conduct of clinical trials. National licensing systems will also be improved particularly through a more effective ‘mutual recognition’ mechanism which, in tandem with improvements to the ‘cascade’ (under which veterinarians can authorise ‘off-label’ use), should contribute to greater availability of veterinary medicines in smaller markets like Ireland. Specific measures are also included to improve the availability of treatments for horses, recognising that many horses do not enter the food chain. The EU legislation also includes a general requirement for all veterinary medicines for food-producing animals to be subject to veterinary prescription. However, at the request 28 of Ireland and some other Member States, the legislation also provides for exceptions to this general principle to be made under a Commission comitology procedure. It can be expected that during 2005, the Commission will finalise criteria for the operation of this exception clause. At national level, the Department continued to implement on an ongoing basis a number of controls in relation to veterinary medicines in order to safeguard public health and also animal health and welfare. The Animal Remedies Act 1993 and Regulations made thereunder provide a comprehensive legislative basis for licensing of veterinary medicines (including the role of the Irish Medicines Board (IMB) insofar as that body acts as competent authority under the legislation) and also licensing of premises engaged in the commercial distribution of veterinary medicines. In February 2004, the Minister announced the outcome of a review of the national legislation taking account of operational experience, relevant developments since its enactment, including a Report from the IMB on the availability of intramammary veterinary medicines and the EU dimension – current and prospective. Having engaged in consultation with stakeholders during 2004, the Department expects to finalise the details of the legislative changes early in 2005. In 2004, over 1000 individually licensed products, 70 wholesale distribution outlets and 740 retail premises were regulated in accordance with the detailed requirements of EU & National legislation. The manufacture, distribution and sale of medicated feedingstuffs and intermediate products for the manufacture thereof is also subject to regulation by the Minister under the European Communities (Animal Remedies and Medicated Feedingstuffs) Regulations, 1994 as amended by the European Communities (Animal Remedies and Medicated Feedingstuffs) (Amendment) Regulations, 2003. The use of medicated feedingstuffs is prohibited except under and in accordance with the terms of a veterinary written direction issued by a registered veterinary surgeon. Medicated pre-mixes must be authorised by the Irish Medicines Board. In 2004, there were in the region of 35 licensed medicated feed manufacturers. This licensing regime has been extended to embrace home mixers. National Residue Plan The Department also implements a comprehensive National Residue Plan designed to protect consumers from illegal residues, be they of banned products (such as growth promoting hormones), licensed medicines (these usually arise where animals enter the food chain before expiry of the prescribed withdrawal period for the medicine concerned), or Annual Report of the Minister for Agriculture and Food environmental contaminants. The Residue Plan covers 11 food-producing species (including aquaculture, where operation of the Plan is managed by the Department of Marine and Natural Resources). During 2004, in excess of 40,000 samples were taken and tested at officially approved laboratories for 18 residue groupings. All positive results are followed up by an investigation on the farm of origin with a view to taking the necessary enforcement measures up to and including legal action. Since 2000, official testing has been complemented by a statutorily based regime under which primary processors are obliged to implement residue-monitoring measures. This regime, which involves annual submission to the Department for approval of individual residue plans, makes it mandatory for processors to subject suppliers, whose animals or animal products test positive, to significantly intensified monitoring. This regime of self-monitoring is subject to Department scrutiny. Veterinary Practice Bill 2004 In October 2004, the Minister for Agriculture and Food published a Bill to replace the existing legislation governing regulation of the veterinary profession in Ireland. The primary purpose of this legislation is to bring regulation of the veterinary profession fully up to date, taking account of the many developments in the environment within which the profession operates since the original legislation was enacted. It was also appropriate that greater transparency should be introduced into regulation of the profession in the public interest and that broader legal developments should be reflected particularly in relation to disciplinary proceedings. The Bill is comprehensive and consists of 11 Parts (139 sections) and four Schedules. The new legislation provides in particular for: ■ A broader membership of the Veterinary Council to reflect interests such as education, consumers and food safety and a better balance as between veterinarians and others; ■ A wider basis on which registration may be granted and for registration of specialists in particular areas of veterinary medicine; ■ The establishment of standards for continuing professional education, compliance with which would be a pre-requisite for retention on the register; ■ A new model to deal with complaints and a broader range of proportionate sanctions; ■ For the first time, statutory recognition of veterinary nurses; Goal 2.0 ■ The establishment and monitoring of standards of veterinary premises; ■ The Veterinary Council to be given certain investigative powers. It is expected that the Bill will be enacted into law in 2005. Control of Agriculture Inputs Four pieces of EU legislation on animal feedingstuffs were transposed into national law during the year 2004: ■ SI 185 of 2004 European Communities (Feedingstuffs) (Method of Analysis) (Amendment) Regulations 2004; ■ SI 424 of 2004 European Communities (Feedingstuffs) (Genetically Modified Feed) Regulations 2004; ■ SI 711 of 2004 European Communities (Protein Feedingstuffs) Regulations 2004; ■ SI 205 of 2004 Marketing of non EEC Fertilizers Regulations (Amendment) Regulation 2004. In order to monitor feedingstuffs and fertilisers for compliance with statutory requirements some 2,100 inspections were carried out at points of import, feedingstuff manufacturing premises, feed material stores, intermediaries and on farms. This involved the taking of more than 3,600 samples of feedingstuffs for analysis to determine compliance with feedingstuffs legislation. The Department routinely analyse all animal feed for the presence/absence of processed animal proteins. The inspection programme also includes both random and targeted routine sampling and analyses of feedingstuffs for nutrient composition and levels of additives and Undesirable Substances and Products. There were also 80 inspections carried out at fertiliser manufacturing/importer premises and retail outlets which involved the taking of 399 samples all of which were analysed for primary nutrients and secondary nutrients. There were 56 samples taken at ground limestone manufacturing premises all of which were analysed. Inspections continued on the implementation of Council Directive 95/69/EC laying down the conditions and arrangements for approving and registering certain establishments and intermediaries operating in the animal feed sector. During 2004, a further 230 establishments were approved as intermediaries of additives or premixtures and 81 on-farm mixers were registered or approved. The new Standard Operating Procedure governing the sampling and analysis of feedingstuffs for processed animal proteins negotiated with the industry became fully operational in 2004. 29 GOAL 2.0 Marian Finucane, Chairperson of the Department’s Consumer Liaison Panel visiting Abbotstown Laboratory, September 2004. CONSUMER LIAISON PANEL The Consumer Liaison Panel was established in January 2002 to strengthen communication between the consumer and the Department. Its Terms of Reference are to liaise on general consumer and client issues in relation to the activities of Department and to comment on the flow of information both to and from the public. The Panel consists of representatives of the Consumers Association of Ireland, the Irish Congress of Trade Unions, the Irish Countrywomen’s Association, the Voluntary and Community Sector Platform and nominees of major food retail outlets. In July, the Minister announced the appointment of Ms. Marian Finucane as Chairperson of the Panel. Some of the issues reviewed during 2004 were food prices, Rural Environment Protection Scheme, BSE, and Genetically Modified Organisms. Having discussed the issue of food prices at length, the Panel in October 2004 invited tenders from parties interested in conducting an assessment of data sources on the price of food in Ireland and devising a model for monitoring food prices and the share of these prices absorbed at different stages of the supply chain. The successful tenderer has now commenced work on the assignment and the finding will be submitted to the Panel in late 2005. Once considered by the Panel the findings will be presented to the Minister for Agriculture and Food. 30 ANIMAL HEALTH AND WELFARE Animal Identification and Trace Back System The animal identification and tracing system is fully operational and is used to verify the origin, identity and life history of cattle entering the food chain. During 2004 the second CMMS (Cattle Movement Monitoring System) Statistics Report for 2003 covering Ireland’s cattle population of 6.6 million animals was published. The Report contains a considerable amount of very useful data abstracted from the database. For example, it shows that there were 2.14 million calf births, almost 1.5 million mart movements, over 800,000 farm-to-farm sales and 2.3 million disposals. The quality of the system is such that data from the CMMS is used for a diverse range of purposes including animal tracking for disease purposes, compilation of analytical reports, marketing of Irish cattle at home and abroad and for the provision of information to individual farmers on the number and status of animals in their herds. During 2004 the database was further enhanced and developed to ensure and improve the accuracy and integrity of data. The Animal Identification Movement (AIM) System is an Internet based computer system which when fully developed will be a generic animal database covering cattle, sheep and pigs. It will integrate and upgrade the existing animal identification and movement systems, including CMMS, NSIS (National Sheep Identification System) and NPITS (National Pig Identification and Traceability System). AIM will enable farmers to view and process their animal identification and movement details online, using the latest internet-based technology. Annual Report of the Minister for Agriculture and Food During 2004 most elements of the tagging module of AIM were completed and put into production. In addition, two new facilities were provided under AIM: ■ an online Herd Profile Enquiry system, and ■ and a new facility to register calf births online. The Online Herd Profile Enquiry facility allows farmers to view online details of their cattle herd profiles as well as movements in and out of herds during a specified period. The facility to register calf births online through the Department’s website allows farmers to complete applications for the registration of calf births over the Internet. It is expected that this service will be widely used and that it will encourage greater take-up of electronic facilities in transactions with the Department. Class A Disease – Monitoring and Control BSE A total of 126 BSE cases were confirmed in 2004. In addition, standard precautionary measures, including whole herd depopulation, was applied in one further case where the suspect animal tested positive to a rapid BSE screening test, but where it was not possible to obtain a definitive confirmation. This total of 126 cases represents a decrease of almost 31% compared with the previous year’s total of 182. This dramatic reduction in case numbers comes against a background of intensive active surveillance for the disease involving 703,552 rapid BSE tests at meat factories and knackeries etc. Falling case numbers, and the continuing increase in the age profile of positive animals, provide a positive indication that the enhanced control measures introduced in 1996 and 1997 have had a major effect on the exposure to animals born after that time to the infective agent, and that the incidence of the BSE will continue to decline as older animals leave the system. Mammalian Meat and Bone Meal and Poultry Offal The manufacture, purchase and use of mammalian meat and bone meal is governed by the provisions of the Diseases of Animals Act 1966 (Transmissible Spongiform Encephalopathies) (Meat and Bone Meal and Poultry Offal) Order 2002 (S.I. 551 of 2002). Under this Order the Department operates a licensing system to control manufacturing, purchase and use of mammalian meat and bone meal and 15 licences were issued during 2004 for the purpose of manufacture of meat and bone meal. The above Order also provides for controls on the incorporation of poultry offal into feedingstuffs for animals which are not kept, fattened or bred for the production of food and the sale of such feedingstuffs into which poultry offal has been incorporated. Four licences were issued in 2004 for the purpose of incorporating poultry offal in the manufacture of pet food. The Order also specifies conditions relating to storage and transport (dedicated vehicles) of these products and provides for a ban on the use of mammalian meat and bone meal in fertiliser. This Order introduces a ban on the keeping of dried pet food containing mammalian meat and bone meal on farms and also places a ban on the feeding of mammalian meat and bone meal or poultry offal to any animal intended for food consumption. Breaches of this Order constitute an offence under the Diseases of Animals Act 1966. There were no prosecutions undertaken under the provisions of the Order in 2004. European Communities (Diseases of Animals Act 1966) (Transmissible Spongiform Encephalopathies) (Meat and Bone Meal and Poultry Offal Order 2002) Regulations 2002 (S.I. No 550 of 2002). These Regulations provide the technical measures necessary to give full effect to the EU regime in relation to the control of the manufacture, sale, purchase, feeding and storage of mammalian meat and bone meal and poultry offal. These Regulations complement S.I. No. 551 above. Scrapie EU policy in relation to Scrapie continued to evolve in 2004. From October 2003, flocks in which Scrapie is confirmed are being genotyped, and only those animals most susceptible to the disease are being depopulated. The regime in place prior to that date involved full flock depopulation. Former Minister of State, Liam Aylward, T.D., during a visit to the Equine Project in Fettercairn, Dublin, March 2004. Goal 2.0 In May 2004 the Department established a National Genotype Programme. The overall objective of this voluntary scheme is to enable sheep in the national flock, 31 particularly breeding stock, to be identified by genotype and raise the level of resistance to Scrapie among Irish sheep by promoting the use of the most Scrapie resistance animals for breeding. port or airport by a licensed operator approved by the Department of Agriculture and Food. Regular monitoring of the proper disposal of international swill is carried out by Department staff in addition to random checks to ensure that swill is not being fed on pig farms. Rabies Control – Entry of Pet Dogs and Cats into Ireland GOAL 2.0 Ireland has been free of rabies since 1903 and until recently operated a control system based on compulsory 6 month quarantine for all imported pet dogs and cats (other than those imported from the U.K., which is also free of rabies). Following significant advances in rabies vaccination, blood-testing and animal identification methods a harmonised EU system for the movement of pet animals, both intra-Community and from third countries, came into effect in July 2004. Pet dogs and cats can now travel directly into Ireland provided that: Under the Department’s active surveillance programme a total of 20,277 sheep were rapid tested for Scrapie at meat factories and knackeries. This programme together with the reporting of suspect animals, led to the identification of 29 new flocks with the disease in 2004. Compensation payable under the current scheme includes live valuation of the breeding animals. A rate for factory lambs is payable in accordance with the average factory price per kg., pertaining to the week of slaughter, and a hardship payment of €28 per breeding ewe. Additionally, the Department genotypes entire flocks and a limited number of replacement rams, free of charge. ■ The animal is travelling from an eligible country on an approved transporter; ■ The animal is identified by means of a microchip; ■ The animal has been vaccinated against rabies; ■ The animal has, at least six months before entry, been successfully blood-tested for rabies anti-bodies*; ■ The animal has been correctly treated against tick and tapeworm*. (*conditions specific to Ireland, UK and Sweden). The evidence that an animal complies with the last four conditions is contained in the ‘passport’, a document standardised throughout the EU. Swill The Diseases of Animals Act, 1966 (as amended), Diseases of Animals (Feeding and Use of Swill) Order, 1985 (SI No 153 of 1985), Diseases of Animals (Feeding and Use of Swill) (Amendment) Order, 1987 (SI No 133 of 1987) and Diseases of Animals (Prohibition on the Use of Swill) Order, 2001 (SI No. 597 of 2001) prohibits the collection and feeding of swill to animals indefinitely for reasons of animal health, but permits the feeding of certain non-animal products and milk products to animals. A licence is required to remove international swill from ports and airports under the above Swill Orders. International swill may only be removed from a 32 Annual Report of the Minister for Agriculture and Food Class B and Other Diseases – Monitoring and Control Bovine Tuberculosis and Brucellosis There was a further marked decline in the incidence of both TB and Brucellosis in 2004. The number of TB reactors is expected to be about 25,000 or some 3,000 lower than the number recorded in 2003. The number of Brucellosis reactors fell by about 26% over 2003 levels. More significantly, the number of depopulations and the number of animals removed were 60% lower than in 2003. Bovine Brucellosis The incidence of Brucellosis continued to decline in 2004. Annual herd incidence in 2004 was 0.16% compared with 0.76% in 1998. The number of reactors has declined from 6,417 in 1998 to 664 in 2004. The aggressive depopulation and extended rest period policies, as well as other measures in force continued to be applied and contributed to the decline in the disease. Since the current intensive brucellosis programme began in 1998, very considerable progress towards eradication has been made, as outlined below. Brucellosis Statistics Number of Reactors Number of Newly Restricted Herds 1998 6,417 1,081 1999 4,545 875 2000 3,590 659 2001 3,112 553 2002 1,530 430 2003 900 324 2004 (Est) 664 283 The volume of blood testing was just over 4.7 million samples in 2004. The main testing measure is now supplemented by monthly Bulk Milk Testing from each dairy herd and blood sampling of cows in slaughter plants, which has proved very effective in disclosing a number of reactors that might otherwise not have been detected. Bovine Tuberculosis The levels of disease have been falling in recent years. In 2004, circa 25,000 reactors were disclosed compared with 45,000 reactors in 1998 and 1999. The revised wildlife programme continued to be rolled out. Goal 2.0 The 2004 TB eradication programme was completed with 97% of the 124,500 cattle herds tested within the twelve-month window. A total of approximately 7 million animals were subject to at least one test within a twelve-month window and approximately 8.5 million animal tests were carried out. The transition from the old computer system, which had operated since 1986, to the new Animal Health Computer System (AHCS), incorporating electronic data transfer from the testing Veterinary Surgeons and also CMMS, continued during 2004. The final sites will transfer to AHCS early in 2005. Research into the role of wildlife in the epidemiology of the disease continued. The Four Area Badger Study, was completed and the report (“The Impact of Badger Removal on the Control of Tuberculosis in Cattle Herds in Ireland“ J M Griffin et al, Preventive Veterinary Medicine, Elsevier, 2005) was placed on the PVM (Preventive Veterinary Medicine) website (www.sciencedirect.com). This study, which showed that the removal of badgers resulted in significant reductions in the incidence of TB in cattle, essentially validated the findings of the earlier East Offaly Project. The badger Vaccine Development Project, which is ongoing, aims to address the problems of TB in the badger population and to identify measures to reduce the level of TB transmission between badgers and cattle, including the development of a TB vaccine for badgers. Prosecutions In 2004 the Special Investigation Unit continued the investigation of irregularities in the Bovine TB and Brucellosis Eradication Schemes and in bovine identification and registration. Resulting from those investigations six successful prosecutions were obtained during the year and seven further cases were submitted for prosecution. Four cases were withdrawn on legal advice and 36 cases await hearing. Dealers The Disease of Animals Acts 1966 to 2001 (Approval and Registration of Dealers and Dealer’s Premises) Order, 2001 (S.I No.79 of 2001), which came into effect in March 2001, defined a dealer as “a person who purchases an animal or poultry and sells and supplies such animal or poultry to another person within a period of 45 days“. All dealers must be approved and registered with the Department. All premises used by a dealer must be individually approved for that purpose. By the end of 2004, a total of 1,926 dealers had been approved; ■ 328 dealers with premises, and ■ 1,598 dealers without premises (Agents). Review procedures were put in place to assess applications for renewal of Dealers registrations. 33 On-Farm Market Valuation Scheme The On-Farm Market Valuation Scheme replaced the Reactor Grant Scheme from 2 April 2002. Approximately €26.8 million was spent on all compensation elements of the TB and Brucellosis Eradication Schemes during 2004. This was a significant reduction on 2003 expenditure (€36.8 million) and resulted from the general decline in disease levels. Bovine Diseases Levies GOAL 2.0 Receipts from disease levies amounted to approx €17 million in 2004. Following a review of the levies in 2004 and in light of the ongoing improvement in TB and Brucellosis levels and the consequent reduced costs of the Schemes, the Bovine Diseases Levies rates were reduced by one third with effect from 1 January 2005. The reduction is worth some €5 million to farmers in a full year. Johne’s Disease Johne’s Disease is a notifiable disease regulated by the Johne’s Disease Order, 1955 (S.I. No. 86 of 1955) and is a Class B disease. Johne’s Disease is caused by infection with Mycobacterium avium subspecies paratuberculosis (MAP). Most affected cattle are infected early in life by ingestion of MAP through colostrum, milk, faecal contaminated teats, water, feed or surfaces. Adult animals can become infected but it is rare, and they usually have other problems such as deficiencies with their immune system. In 2002 the Department in an effort to raise consciousness of the disease and to promote higher standards of hygiene management practices and calf rearing published and distributed two booklets on Johne’s disease, one of which was aimed at the farmer and the other at the private veterinary practitioner. Notwithstanding this and other measures that had included the purchase and slaughter by the Department of diseased animals, a conclusion was reached that the approach that this country had hitherto adopted to tackling the disease in the past needed to be reviewed. While the disease is notifiable, there is no obligation on the State under the provisions of the Johne’s Disease Order, 1955, to purchase and slaughter animals affected with Johne’s Disease, notwithstanding the fact that the Department had until recently employed the practice of purchasing affected animals. During 2003 and 2004, the Department met with key interested parties such as Teagasc, Veterinary Ireland, ICBF, the cattle breeding societies, the dairy co-ops, farmer representative bodies and others to discuss 34 possible approaches to tackling the disease. This process secured a general acceptance and an understanding by the key parties of the problem. It was accepted that success would only be achievable if all concerned made a sustained commitment to tackle the problem within an integrated and more effective policy approach. Arising from this, the Department drew together the various outputs and identified both short and longerterm imperatives. The objective is to put in place and implement a new fully integrated and effective approach to addressing the problem in which each of the stakeholders will play a defined and sustained role. Fallen Animal Collection Scheme This Scheme provides for the subsidised collection of fallen bovine animals from farms and their subsequent rendering and the disposal of the resultant meat and bone meal. The rendering and disposal of fallen animals other than bovines is also supported under the Scheme. The Scheme was introduced in 2001 with the aim of minimising licensed on-farm burials, improving the existing fallen animal collection service and facilitating BSE-testing requirements. Total expenditure under the Scheme in 2004 was €20.3 million. Grants Scheme A Capital Grant Scheme for Animal Carcase Disposal was introduced in 2002 under the National Development Plan. The aim of the scheme is to aid investment in appropriate facilities for the handling and storage of fallen animals with an emphasis on establishing a comprehensive animal collection service in areas of the country not already served. Under the scheme, funding will be provided to improve wastewater collection and treatment. In 2004, capital expenditure of €57,011 was incurred in respect of one application and as a balancing payment for another application. Animal By-Products Legislation During 2004, the Animal By-Products Section continued to implement the system of controls provided for in Regulation (EC) No. 1774/2002 on the collection, transport, rendering, storage and disposal of animal by-products. These Regulations prohibit the recycling of animal by-products into the animal feed chain, set down a number of various methods for their use or disposal and strengthen controls, traceability and enforcement measures in this sector. The European Communities (Animal By-Products) Regulations of 2003 – SI 248 of 2003 gives full effect to Regulation (EC) No. 1774/2002. Annual Report of the Minister for Agriculture and Food Meat and Bone Meal Disposal Farm Animal Welfare Advisory Council. The ban on the feeding of meat and bone meal (MBM) to farmed animals, introduced at the end of 2000, continued in 2004. The purpose of the Council, which is representative of a broad spectrum of interested parties, with different perspectives on animal welfare, is to seek consensus and provide advice to the Minister on issues relating to the care and welfare of farm animals. Arising out of an EU-wide tender process in late 2003, contracts were signed with 3 contractors to dispose of approximately 166,000 tonnes of meat and bone meal (MBM), blood meal and poultry meal, which had remained in store since early 2001. By the end of 2004, approximately 53,300 tonnes had been disposed of at approved incineration facilities in the U.K. and Germany at a cost of €6.75 million. In 2004, the Department also subsidised the disposal of approximately 29,000 tonnes of unsterilised MBM at a cost of €5.5 million. This meal had been in long-term storage and was disposed of by incineration at two approved incineration facilities in the UK. The costs of disposing MBM produced in 2004 were borne by the industry. There are no approved facilities for the disposal of MBM in Ireland. All MBM produced must be exported for disposal or put into storage pending dispatch abroad. In 2004, some of MBM produced was put into storage. At the end of the year, the quantity of MBM in storage amounted to 78,000 tonnes. ANIMAL WELFARE Protection of Farm Animals The Protection of Animals Acts, 1911 and 1965, are the principal statutes governing cruelty to animals in Ireland. The legislation is enforced by the Garda Síochána, who may, on receipt of a complaint, investigate and bring a prosecution against any person alleged to have committed an act of cruelty against an animal in this country. Reported cases of cruelty to or neglect of animals were investigated by officers of the Department in conjunction with the Gardaí or veterinary staff of the Local Authorities. Staff were proactive in dealing with cases involving welfare compromised animals at a number of locations around the country. The Protection of Animals Kept for Farming Purposes Act, 1984 has been supplemented by the European Communities (Protection of Animals Kept for Farming Purposes) Regulations 2000 (S.I. No 127 of 2000) giving effect to Council Directive 98/58/EC (as amended by Council Regulation (EC) No 806/2003). This sets the standards concerning the protection of animals kept for farming purposes and requires owners and people in charge of animals to ensure the welfare of their animals. Goal 2.0 In 2004 the Farm Animal Welfare Advisory Council (FAWAC) introduced an Early Warning/Intervention System for Animal Welfare Cases involving the Department of Agriculture and Food, the Irish Farmers Association and the Irish Society for the Prevention of Cruelty of Animals. This system commenced as a pilot system in Counties Donegal, Roscommon, Carlow, Wexford and Kilkenny. The objective of this system is to provide a framework within which farm animal welfare problems can be spotted before they become critical or overwhelming. This will in turn facilitate timely, effective and sensitive intervention or the provision of assistance by, as appropriate, public agencies, neighbours, farming bodies and welfare groups. The new system will allow for concerned individuals to approach their local IFA representatives, their local SPCA or indeed the Department in the knowledge that the matter will thereafter be dealt with in the most effective, timely and sensitive manner. However, where circumstances so warrant, it is recognised that prosecutions may be taken by the Department of Agriculture and Food. The role of the Garda Síochána under the Protection of Animals Act 1911 (as amended) is also acknowledged. Scientific Advisory Committee on Animal Health and Welfare This Committee is comprised of scientific experts with experience in a variety of disciplines such as animal husbandry, animal behaviour, bacteriology, clinical medicine, epidemiology, parasitology and virology. The principal function of the Committee is to provide the Minister with advice, from a scientific perspective, on issues where independent expert opinion is warranted. Horns On Cattle – Best Practice To Prevent Animal Welfare Problems Leaflets entitled “Dealing with Horns of Cattle – Best Practice“ and posters entitled “Horned Cattle Welfare Guidelines“ were produced in 2004. These contained advice from an animal welfare point of view to farmers and others involved in the trade as to what is acceptable in terms of horns on cattle when they are presented for sale or export. The leaflets and posters were circulated to Farm Organisations, Livestock Marts, Teagasc Offices and District Veterinary Offices. 35 Welfare of Calves, Pigs and Laying Hens VETERINARY LABORATORY SERVICES Inspections took place in respect of the welfare of calves, pigs and laying hens and reports were completed in compliance with EU requirements. Work on a scheme of grant assistance for welfare improvements in the pig production sector was progressed. The functions of the Veterinary Laboratory Service (VLS) include the provision of advice, clinical and laboratory diagnostic services to herdowners and Veterinary Practitioners and the ongoing research into scheduled animal diseases and animal diseases of economic importance. On-going work in the VLS concentrates on research and development to improve diagnostic methods. Animal Welfare Inspection System (AWIS) GOAL 2.0 This system was extended from the existing area of on farm inspections to include animal welfare during transport inspections. The main locations where these inspections are carried out by the veterinary inspectorate are at livestock marts and in lairages of the slaughter plants. Training seminars were provided to facilitate staff in operating the new system. Animal Welfare Organisations In 2004 the Minister approved grants totalling €1 million to 83 animal welfare organisations involved in the direct delivery of animal care and welfare services throughout the country to assist in their work during 2004. The organisations concerned had approached the Department during 2004 seeking financial assistance. This was the largest ever annual disbursement by the Department to animal welfare bodies and covered organisations in every county in the country. The 2004 grants bring to €4.76 million the total amount of financial assistance made available by the Minister to such organisations since 1995. The VLS is also involved in the control and monitoring of exotic and endemic animal diseases, which are required under EU legislation. The Central Veterinary Research Laboratory (CVRL) is the National Reference Laboratory (NRL) for a range of exotic diseases. The CVRL, in association with the Central Meat Control Laboratory was designated the NRL for zoonoses in 2004 (S.I. 154, 2004). Confirmation of all BSE and scrapie suspect cases – including TSE (BSE/Scrapie) rapid-test positives – is carried out at the TSE NRL in the Histopathology Section of CVRL. The TSE NRL is also responsible for monitoring performance of all private laboratories approved to carry out TSE rapid tests under EU 999/2001. As well as collaborating with University College Dublin (UCD) on research projects on TSE’s of cattle and sheep, the Histopathology Section also manages a number of studies on sheep flocks infected with classical and atypical scrapie. The Histopathology and Biochemistry Sections of CVRL also provided specialist support for the Department’s Regional Veterinary Laboratories. In addition to its diagnostic pathology service to farmers and their veterinary practitioners, Dublin Regional Laboratory was involved in studies on Mycoplasma infections and the epidemiology of botulism. As an EU, National Reference Laboratory for mammalian and poultry virus diseases, Virology Division successfully completed proficiency ring trials, reviewed and updated contingency plans and introduced molecular diagnostic techniques for a number of Organisation Internationale des Epizooties (OIE) listed diseases. Surveillance for exotic viral diseases was expanded. National serological surveys were performed for Foot and Mouth disease, Swine Vesicular disease, Classical Swine Fever, African Swine Fever, and Avian Influenza; as well as a wild bird survey for Avian Influenza virus. Minister Coughlan at the presentation of funding for an ambulance to Irish Blue Cross, November 2004. 36 A comprehensive virological laboratory service for diagnosis, surveillance, disease control programmes, and statutory and trade purposes was provided to the State Veterinary Services, the Regional Veterinary Laboratories, private veterinary practitioners and the livestock and poultry industries. Annual Report of the Minister for Agriculture and Food Food safety control was a significant issue for the Department’s Bacteriology/Parasitology Division in 2004. A database containing information on over 500,000 microbiological tests is now in place, which will facilitate an early alert system for food safety alerts as well as allow more effective monitoring of trends in food safety. It is involved in a number of projects on food safety in collaboration with UCD, Teagasc, Dublin Institute of Technology, the Veterinary Science Division, and the Department of Agriculture and Rural Development, Northern Ireland. The Division also participated in an EU funded network on antimicrobial resistance and took part in three EU ring trials during the year. PLANT HEALTH Plant Protection The Department’s Plant Protection Service carried out activities to protect and maintain the country’s plant health status. The action programme included the following range of activities: ■ ■ ■ ■ ■ ■ Relevant plants and plant products imported directly into Ireland from third countries were subjected to mandatory plant health inspections and released only after it had been determined that EU plant health requirements had been met; An EU requirement that national surveys be conducted for various harmful organisms, including those for which Ireland has protected zone status, was fulfilled; Monitoring of premises registered under the Plant Health Registration Scheme, and of other outlets where material subject to plant health requirements moves in trade, continued throughout the year; Quarantine and harmful organisms were intercepted on a number of occasions but all of these were dealt with successfully and none became established in the country; The Ring Rot and Brown Rot control measures continue to be implemented. To date Ireland is one of the few EU countries within which this disease has not occurred; An EU-wide survey for Sudden Oak Death revealed that the pathogen was more widely distributed in the Community than anticipated and measures are to be extended to try and contain the disease; Goal 2.0 ■ Following the spread of the pest of maize known as the Western Corn Rootworm (Diabrotica virgifera) throughout Europe, measures were introduced to contain its spread. A survey of the maize crop in Ireland indicated that the pest is not yet present here. Forest Protection The Department’s Forest Service is responsible for implementing the forestry aspects of Council Directive 2000/29/EC on protective measures against the introduction into the Community of organisms harmful to plants and plant products and against their spread within the Community. The forestry aspects include the provisions relating to wood, wood packaging, forest plants and Christmas trees. The main forest protection activities in 2004 were as follows: ■ National forest survey for pine wood nematode; ■ National forest survey for sudden oak death; ■ National forest surveys for 10 forest pests and diseases for which Ireland has Protected Zone status within the EU; ■ Inspection of wood imports; ■ Inspection of wood packaging associated with imports of goods of all kinds; ■ Provision of an advisory service concerning wood import regulations and general forest pest and disease matters. In relation to exports the Forest Service is responsible for the implementation of the International Plant Protection Convention’s new International Standard for Phytosanitary Measures (ISPM) No. 15, Guidelines for regulating wood packaging in international trade. The main activities in 2004 were as follows: ■ Registration and auditing of producers of wood packaging, kiln operators and fumigation companies; ■ Advising Irish exporting companies concerning ISPM No. 15; ■ Issuing of Phytosanitary Certificates for the related wood packaging scheme for exports of goods of all kinds to China. 37 GOAL 3.0 International Framework Achieve the optimum framework for the agri-food sector, rural economy and the natural environment at EU and at the wider international level and enhance North/ South cooperation Former Minister for Agriculture and Food, Mr Joe Walsh, T.D., with EU Agricultural Ministers, Killarney, May 2004. EU PRESIDENCY Ireland held the Presidency of the EU from January to June and the Department was directly involved in facilitating agreement on the main policy changes, which were negotiated during the first half of the year. The main achievements of the Irish Presidency were in facilitating the integration of the ten new Member States that joined the EU on 1 May into the Common Agricultural Policy, reaching agreement on the reform of the Common Organisations of the Markets for Mediterranean Products and advancing the EU’s programme of legislation for food safety. The reform of the support regimes for cotton, tobacco, olive oil and hops in the ‘Mediterranean Package’, which was agreed by the Council of Ministers in April, represented a further major step in enhancing the market orientation and the future sustainability of the Common Agricultural Policy (CAP). The reforms extended the principles agreed in the Mid-Term Review in June 2003 to the sectors concerned. Other reform measures that were adopted by the Council during the Irish Presidency related to the flax and hemp regime, organic farming, beekeeping and a programme for the conservation, characterization, collection and utilization of genetic resources in agriculture. In the area of food safety there was agreement on controls on food and animal feed and on the four legislative texts known collectively as the ‘Hygiene Package’ which update, reform and consolidate EU legislation on the hygiene 38 of foodstuffs. The proposal for rules on hygiene for animal feed, on which political agreement was reached during the Irish Presidency, was finally adopted at the Council on 21 December. This Regulation lays down conditions and arrangements for traceability and for registration and approval of establishments in the feed industry. Despite intensive efforts, the Irish Presidency failed to secure agreement in the Council on the Commission’s proposals relating to improvements in the arrangements for animal transport. The Netherlands Presidency subsequently concluded an agreement on a compromise which excluded the issues of journey time/rest cycle, reduced stocking densities and resting of animals on vehicles which had proved sensitive during the Irish Presidency. Several policy issues, including the report on the operation of the EU’s beef labelling regime, were examined and discussed by the Council during the year. The Council also reviewed, on a regular basis, developments in the negotiations on the Doha Development Round and the proposed EU/Mercosur free trade agreement. There were seven meetings of the Council of Agriculture Ministers, including the Informal Council in Killarney, chaired by the Minister during the Irish Presidency. The Informal Council in Killarney from 10-12 May was attended by Ministers from the 25 Member States and the candidate countries of Bulgaria and Romania, as well as Turkey. On the basis of an Irish Presidency discussion paper, the Ministers debated how best to communicate the EU’s CAP reform and trade concessions in the context Annual Report of the Minister for Agriculture and Food of international trade negotiations. The debate will influence the manner in which the EU communicates and negotiates in the future. In the second 6 months of the year, there were detailed discussions, but no decisions, on the Commission’s outline proposals for the reform of the sugar regime and on a new framework for rural development both of which were published in the second half of the year. Significant progress was made towards concluding the negotiations on the new WTO round in the framework agreement, which was concluded in July. Other EU Policy Developments In July 2004, the Commission presented proposals for the support framework for rural development for the period 2007-2013 (COM(2004)490) and for new rules on financing the CAP (COM(2004)489) as part of the package of proposals on the next Financial Perspective. The Commission also presented outline proposals for reform of the sugar sector in July (COM(2004)499). The Department examined and responded to all these proposals in the ongoing negotiations at Working Group, Special Committee for Agriculture and Council levels. Within the broad policy framework as agreed by the Council of Agriculture Ministers, the day-to-day regulatory and trading framework of the agri-food sector is determined by decisions taken at Management Committees and at meetings of veterinary, phytosanitary and technical groups. The Department’s staff attended 630 EU meetings in 2004 in total. Almost 100 of the meetings of the various Committees, Working Groups and the Special Committee for Agriculture, which prepare proposals for submission to the Council, were chaired by Department officials during the Irish Presidency while the seven Council meetings were chaired by the Minister. Maintaining Effective Relationships The Department maintains effective relationships with the EU institutions and Ministries in other Member States through our diplomatic officers abroad and through direct bilateral contacts. Department staff are based in the capitals of six EU Member States (UK, Germany, France, Spain, Italy and, since September 2004, Poland) as well as Brussels (EU) and Geneva (WTO). As part of their responsibilities, these staff service international organisations where appropriate (FAO, WFP, OECD). Goal 3.0 Minister Coughlan meeting the newly appointed EU Commissioner for Health & Consumer Protection, Mr. Markos Kyprianou, 25 November. The official contacts with the Council Secretariat, the Commission and the European Parliament and other Member States were intensified during the Irish Presidency to ensure satisfactory progress on the work programme. On 27 January, the Minister presented and discussed the Presidency’s work programme with the European Parliament’s Committee on Agriculture and Rural Development and Committee on Environment, Public Health and Consumer Policy. The Department also continued to foster relationships with the new Member States and the applicant countries during the year. As part of this process, the Department hosted visits by Ministers and officials from many of the countries and provided guidance, advice and training as requested. The Department also undertook several visits to the countries at Ministerial and official levels and participated in a twinning arrangement with ARMA, the Polish Implementing and Paying Agency for EAGGF (Guidance). World Trade Organisation (WTO) Agreement was reached among WTO member countries in Geneva in July 2004 on a framework for the new round. The framework sets out the general rules or structure of the new agreement. The detailed arrangements for implementing the framework will be the subject of further negotiations. The main elements of the framework agreement, insofar as agriculture is concerned, are as follows: 39 Domestic Support ■ there will be a substantial reduction in the levels of trade-distorting domestic support in member countries; ■ a cap will be introduced on the Blue Box category of payments, i.e. direct payments to farmers under production-limiting programmes based on fixed land areas, fixed crop yields or fixed numbers of animals; ■ there will be a review of the Green Box category of payments or subsidies, i.e. those which have no or minimal trade-distorting effect. GOAL 3.0 Market Access ■ there will be a substantial improvement in market access for all products through tariff reductions; the tariff cuts will be implemented through a tiered formula in which the higher tariffs will be subject to higher cuts; ■ WTO members may self-select a number of sensitive products for special treatment; however, there will be substantial improvements in market access for all products based on a combination of tariff cuts and tariff quota commitments. Export Subsidies ■ all forms of export subsidies will be phased out in annual instalments “by a credible end date“, i.e. the parallel elimination of export refunds, export credits (with limited exceptions), the trade-distorting practices of State Trading Enterprises (STEs) and Food Aid not in conformity with disciplines to be introduced. Special and Differential Treatment or more favourable terms and conditions for developing countries will be an integral part of all elements of the new round. The framework agreement represented a satisfactory outcome from Ireland’s point of view. As a result of the Mid-Term Review, the EU’s decoupled direct payments qualify for Green Box status. The payments will, therefore, be exempt from reduction in the future. The selection and treatment of sensitive products will be an internal matter for the EU and the objective will be to ensure the most favourable treatment for nationally sensitive products, especially beef and dairy products. The objective of ensuring parallel treatment for all forms of trade-distorting export practices was secured, thereby ensuring that the framework agreement will result in equal competition for all exporters on the world market. 40 Examination of detailed technical issues and negotiations for the preparation of specific commitment levels commenced in September in Geneva and continued on a monthly basis in the WTO Committee for Agriculture meeting in Special Session. The Commission negotiates in the WTO on behalf of the EU on the basis of a mandate agreed by the Council of Ministers. EU Enlargement Ten new Member States acceded to the EU on 1 May 2004 (Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia) during the Irish Presidency of the EU. The Informal Council of Ministers meeting in Killarney in May was the historic, first meeting of the Council in any formation after enlargement. In March 2004, arrangements were made to extend the Mid-Term Review reforms of June 2003 to the new Member States as the reforms were agreed after the accession negotiations had been concluded. The negotiations on the agriculture ‘chapters’ in the negotiations with Bulgaria and Romania were concluded during the Irish Presidency. The two new Member States will join the Union in 2007. DEVELOPMENT AID Between January and June 2004, the main focus of work in this area was on ensuring an effective Irish Presidency of the EU. The Irish Presidency team succeeded in bringing about the ratification of the International Treaty on Plant Genetics Resources for Food and Agriculture (ITPGRFA). This treaty, which was some eight years in negotiation, will help ensure the preservation of plant genetic material and thus help protect food security in developing countries. The other main task of the Presidency was the Intergovernmental Working Group, which was set up by the UN Food and Agriculture Organisation (FAO) to draw up a set of Voluntary Guidelines on the Right to Adequate Food in the Context of National Food Security. During the Irish Presidency a comprehensive EU position on these guidelines was agreed. Final negotiations were completed in the latter half of 2004 and the guidelines were agreed in September. The FAO European Regional Conference took place in Montpellier in May and Minister of State Treacy represented Ireland. Speaking on behalf of the EU, he spoke about the importance of the EU’s comprehensive approach to development policy and the need for all to make greater efforts to meet the Millennium Development Goals. In the later half of 2004 the Department made its largest donation yet of extra budgetary funding to FAO of €358,327. Funding was directed towards the FAO Global Rinderpest Eradication Programme, the implementation of the ITPGRFA, and the FAO/WHO Codex Trust Fund, which helps developing countries, participate in Codex Alimentarius the Global Food Standards Organisation. Annual Report of the Minister for Agriculture and Food During 2004 the Department continued its support for the valuable work of the United Nations World Food Programme (WFP) with its highest ever-annual donation of €4.83 million in June 2004. The donation was made by Minister Walsh and coincided with WFP’s major internal management conference, which took place in Dublin. The Department was pleased to be among the first donors to provide aid to WFP on New Year’s Eve, when €1 million was donated to WFP by Minister Coughlan for use as logistical support to enable food aid to be more effectively delivered to those areas affected by the Indian Ocean tsunami. NORTH/SOUTH CO-OPERATION ■ The development of an All-Island Animal Health Strategy for control of animal movements and the prevention, containment and eradication of epizootic diseases in Ireland; The Department also continued its support for the United Nations young professional scheme, and two Associate Professional Officers and two Junior Professional Officers took up their positions with WFP in early 2005. ■ The development of an All-Island Plant Health and Research Strategy including co-operation between both jurisdictions in relation to plant protection products; The Department’s Economic and Planning Division finalised a public sector expenditure review of our contributions to the FAO and WFP, and this review was submitted to the Houses of the Oireachtas and published on the Department’s website www.agriculture.gov.ie in October 2004. ■ Liaison on issues arising at WTO, EU enlargement and the Mid-Term Review of the CAP; There was continued good cooperation between the North and South in mutual areas of interest in the agriculture sector. Since the suspension of the Assembly in Northern Ireland co-operation has been continued on a “care and maintenance basis“. The areas that have been progressed since the Good Friday Agreement are: The following new areas of cooperation have been targeted for development: ■ Crop Variety Testing; Participation in International Fora ■ Organic Farming; Overall Irish Interest in the EU’s 6th Framework Programme for Research and Development (FP6) is co-ordinated by Forfas, whilst officers from the Department act as National Delegate and National Contact Point for the ‘Food Quality and Safety’ Theme area. As well as involvement at EU level, the Department participated in information briefing sessions for researchers and industry personnel in order to generate maximum Irish participation. The Department also participated in drafting of the EU 7th Framework Programme. ■ Coexistence of GM and non-GM crops; ■ Training. The Department acts as the Codex Contact Point for Ireland and co-ordinates Irish involvement in the various activities of the Codex Alimentarius. As part of this function the Department operates the Irish Codex Advisory Committee (ICAC) comprising representatives of relevant Government Departments/Agencies, the research and academic community, the food industry and consumers. During 2004 the ICAC met on 4 occasions and contributed to the formulation of the Irish position at the 14 Codex sessions to which Ireland sent delegations during the year, 11 of which were led by Department officers. During the Irish Presidency of the EU the Department chaired the Council Working Party on Codex, which prepared the EU position in respect of 10 Codex sessions and acted as EU spokesman at these sessions in accordance with agreed competence arrangements. Goal 3.0 41 GOAL 4.0 Rural Economy and Environment Promote the development of the rural economy and of environmentally friendly and sustainable systems of agriculture and food production SUPPORTING ENVIRONMENTALLY FRIENDLY FARMING Rural Environment Protection Scheme (REPS) In 2004 negotiations with the European Commission on changes in REPS, which were formulated following a wide-ranging consultation process with stakeholders, were brought to a successful conclusion opening the way for the introduction of REPS 3 which was launched in June 2004. REPS 3 includes new pro-active elements so that a farmer does not simply conserve the existing environment, but restores or enhances it. The European Commission have welcomed these new elements and the manner in which the proposals were developed in association with all interested parties. REPS 3 also takes account of undertakings in Sustaining Progress to seek Commission approval for higher payment rates. As a result it offers substantially increased payments to farmers (the average increase is 28%). It is also designed to be more farmer-friendly in its operation and documentation. At the end of 2004, there were about 42,500 farmers participating in REPS. Some 12,500 of these were in REPS 3 and the remainder were in REPS 2. The scheme remains 75% co-funded by the EU and since its introduction in mid-1994 it has delivered, in financial terms, over €1.5 billion in payments to farmers. These payments have not only benefited the individual recipients but have made a significant contribution in sustaining rural communities and the rural environment. 2004 saw the highest expenditure on the Scheme in any single year since its introduction in 1994, some €208 million. Demand for the new scheme has been very encouraging and even greater demand is expected following the introduction of the Single Payment Scheme in 2005. Farm Waste Management Scheme The Farm Waste Management Scheme is operated under the aegis of the National Development Plan 2002-2006. Details are given in Goal 1 under National Development Plan. Scheme of Early Retirement from Farming By the end of 2004, just 5,450 of the original 10,250 participants in the 1994 Scheme of Early Retirement from Farming remained in the Scheme. A further 2,600 farmers had applied to join the Scheme that commenced in November 2000. The number of new applications received in 2004, at 321, was significantly down on previous years. The main reason for this is the uncertainty created by the CAP Mid Term Review proposals. Expenditure on both Schemes in 2004 was just under €73 million. Organic Food and Farming The pilot project on demonstration farm walks was completed in 2004. The open days were well attended and the information provided by the host farmers was very useful. The Department proposes to extend the project in 2005. The Organic Market Development Group produced an information leaflet entitled “Guide to Organic Food and Farming“. The Guide was developed to inform consumers, in an easy-to-read format, about organic food and farming. Substantial financial supports for the organic sector continue to be available through REPS and the Scheme of Grant Aid for the Development of the Organic Sector, which was approved under the National Development Plan 2000-2006. Good Farming Practice Agenda 2000 required farmers, in receipt of Disadvantaged Areas Compensatory Allowances, Livestock Premia, Arable Aid, On-Farm Investment Grants, Installation Aid or REPS payments, together with transferees under the Scheme of Early Retirement from Farming, to comply with good farming practice. The Department’s Good Farming Practice publication of 2001 was distributed to all farmers. It sets down the standards that must be complied with in relation to the environment, hygiene, animal welfare, animal identification and registration, and animal health. Penalties are incurred for breaches of these standards. NATIONAL CLIMATE CHANGE STRATEGY Former Minister of State, Noel Treacy, T.D., receiving first report of the National Steering Group for the Organic Sector, April 2004. 42 In 2000, the Government published the National Climate Change Strategy (NCCS) to implement the Kyoto Protocol. The target set for the agriculture sector is to reduce annual emissions by 2.41 million tonnes (Mt) Annual Report of the Minister for Agriculture and Food CO2 equivalent (requiring a decrease from 17.94 Mt in 1990 to 15.53 Mt in 2008-2012, a cut of 13.4%). Emissions from agriculture in 2002 amounted to 18.72 Mt. CO2 equivalent. The most significant targets for the agriculture sector relate to reductions in emissions of methane (CH4) and nitrous oxide (N2O). Analysis undertaken by FAPRI-Ireland on the expected impact on greenhouse gas emissions from Irish agriculture of the Luxembourg CAP Reform Agreement of June 2003 shows that in the case of full decoupling of aid from production (the option chosen by Ireland) emissions of greenhouse gases from agriculture are projected to decline. However, this analysis was based on the assumption that all EU-15 countries would opt for full decoupling. FAPRI-Ireland is now updating its analysis to take account of the fact that some EU-15 countries opted for partial decoupling. This projected reduction in emissions, if realised, would represent a significant contribution from the agriculture sector to meeting the national Kyoto Protocol target. For the EU as a whole, the target under the Kyoto Protocol is a reduction of 8% in greenhouse gas emissions below 1990 levels by 2008-2012. A recent report by the European Environment Agency shows that between 1990 and 2002, the EU-15 reduced its greenhouse gas emissions by 2.9%. The Environmental Protection Agency (EPA) has indicated that Ireland’s greenhouse gas emissions have reduced but are still about 25% above 1990 levels. A research programme, managed by the EPA, is being undertaken under the Environmental Research Technological Development and Innovation Programme 2000-2006. Research objectives include the establishment of reliable inventories of greenhouse gas emissions from agriculture and the identification of potential actions that could be applied to reduce emissions of methane and nitrous oxide. The EU Emissions Trading Directive (2003/87/EC) has been transposed into Irish law by the European Communities (Greenhouse Gas Emissions Trading) Regulations 2004 (S.I. 437 of 2004) under which the EPA has been assigned responsibility for its implementation in Ireland. Emissions trading, provided for under the Kyoto Protocol, is designed to lower the overall costs of achieving emissions targets by establishing a market for greenhouse gas emissions allowances. Large industrial installations, including those in the food and drinks sector, will engage in pilot emissions trading from 2005, in advance of a mandatory regime for global emissions trading to be introduced from 2008. Goal 4.0 Gothenburg Protocol The European Communities (National Emissions Ceilings) Regulations 2004 (S.I. No. 10 of 2004) give effect to EU Directive 2001/81/EC concerning national emissions ceilings for certain atmospheric pollutants (sulphur dioxide, nitrogen oxides, volatile organic compounds, and ammonia) arising from commitments in the Gothenburg Protocol on Transboundary Air Pollution. Ammonia is the atmospheric pollutant of principal relevance to agriculture, which is the source of 98% of Ireland’s ammonia emissions (from animal excreta). The limit on national annual ammonia emissions, to be achieved by 2010, is 116 kt (1990 emissions were 127 kt). AGRI-ENVIRONMENTAL ISSUES The Department continued to be in continuous contact with EU and national agencies and with other Government Departments in relation to agricultural aspects of emerging environmental policy. During 2004, the Department worked closely with the Department of the Environment, Heritage and Local Government on a range of issues such as further implementation of the Nitrates Directive and biodiversity. Nitrates Directive The responsibility for the Nitrates Directive is in the first instance the responsibility of the Department of Environment, Heritage and Local Government. Ireland submitted an Action Programme for further implementation of the Nitrates Directive to the European Commission on 22 October 2004. The Action Programme was developed following a comprehensive consultative process by the Department of the Environment, Heritage and Local Government in consultation with the Department of Agriculture and Food and reflected the recommendations of independent advisor, Mr. Denis Brosnan. The Department was also involved, in conjunction with Teagasc, in the preparation of a scientific case for a derogation from the 170kg per hectare per annum organic nitrogen limit. However the Commission considered that revisions to the Action Programme were required. A response has been provided to address the Commission’s concerns. The Department will continue to be involved in negotiations with the European Commission on the nitrates issue during 2005 with a view to obtaining agreement on the Nitrates Action Programme. Biodiversity In 2004, a Biodiversity Unit was established in the Department (in Johnstown Castle, Co. Wexford) in line with a stated requirement in the National Biodiversity 43 GOAL 4.0 Plan, published in 2002 by the Department of the Environment, Heritage and Local Government. The establishment of the unit reflects the significant role that agriculture plays in implementation of the National Biodiversity Plan. The Unit worked with the Department of the Environment, Heritage and Local Government regarding the review of the National Biodiversity Plan and also represented the Department on the National Platform for Biodiversity Research and at the “Biodiversity and the EU – Sustaining Life, Sustaining Livelihoods“ conference in Malahide in May 2004. Contribution of Forestry to Rural Economy Nutrient Management Plans on non-REPS farms It is estimated that there are in the region of 16,000 people employed in the wider industry with approximately 4,000 employed in forest crop establishment and harvesting and in excess of 6,000 employed in timber processing. In addition, research suggests that every 5 jobs created directly in forestry support an additional 3 jobs indirectly elsewhere in the economy. There are also over 16,000 farmers who own private plantations and derive a tax-free income through premium payments. Revised estimates indicate that, outside of REPS participants, up to 2,500 farmers had nutrient management plans in place during 2004. This estimate, in addition to numbers in compliance with bye-laws made by local authorities requiring the preparation of nutrient management plans, includes individual cases where the preparation of a nutrient management plan was included as a condition of planning permissions, Teagasc or other farms where research, monitoring, training or demonstration is carried out, and cases where individuals have chosen to have a plan prepared for their farm for other reasons. Fertiliser Use Phosphorus use has declined by approximately 34% since 1989/90 when sales of 64,573 tonnes were recorded. (The fertiliser year runs from 1 October to 30 September). The figure for 2003/04 was 42,661 tonnes down from 43,832 tonnes the previous year. Nitrogen usage has decreased to 362,525 tonnes in 2003/04, which is 18% below the 1998/99 figure when nitrogen use peaked at 442,916 tonnes. Irish forest policy is built upon the principles of Sustainable Forest Management (SFM), as established at the Third Ministerial Conference on the Protection of Forests in Europe (Lisbon 1998). Irelands forest cover at 700,000 hectares, or 10% of land area, is significantly behind the EU average of 35%, despite very favourable climatic conditions for tree growing. The policy objective is to increase our forest cover to 17% by 2030 in order to create an economically viable timber sector, compatible with protection of the environment. Current processing capacity is reckoned to be 3.26 million cubic meters in sawmills and 1.77 million cubic meters in panel mills. Expenditure in the Forest Service totalled €101.95 million in 2004, compared to €82.72 million in 2003. This 23% increase reflected the increased allocation to the forestry area in 2004. Approximately 11,000 hectares of new planting was achieved during the year. This expenditure encompassed payments in respect of premiums, investment and the support programme. The support programme embraces essential support for forest roads and forest reconstitution and woodland improvement schemes. The programme also supports Native Woodland development and the Neighbour-Wood Scheme to develop woodland amenity, mainly broadleaf in and around villages, towns and cities. Some other aspects of schemes delivery included: ■ Felling applications had a turnaround of two months; ■ Afforestation and support schemes payments had an average turnaround of 3 months; ■ There was a turnaround of 5/6 weeks in dealing with appeals; ■ The development of IForIS, a map-based payment and information system which will deliver faster payments, continued in 2004 and should be live by mid-2005. Minister of State John Browne TD at the launch of the Devil’s Glen Sculpture, Ashford, Co. Wicklow, 19 December 44 Annual Report of the Minister for Agriculture and Food Goal 4.0 45 GOAL 5.0 Scheme Delivery and Financial Management Operate all our schemes and programmes in an efficient and effective manner, and ensure the highest standards of corporate and financial management and accountability in all our activities SCHEME OPERATIONS Effective and Efficient Schemes Delivery Over one million payments valued at €1.333 billion issued to farmers during 2004 under the various EU Livestock Premia, Disadvantaged Areas Compensatory Allowances and Arable Aid schemes, of which €830 million related to payments made under the 2004 schemes. The commencement dates for payments as set down in the Protocol on Direct Payments to Farmers were observed. Over the past number of years the Department, in consultation with the farm bodies, and with the progressive use of information technology, has made major progress in simplifying the application procedures under the various schemes. The changes introduced include: ■ ■ Use of bar coding on bovine animal passports – this removed the need to list tag numbers on applications as they can be read now from passports using a bar-code scanner instead (except under the Suckler Cow Premium Scheme where (1) a herdowner is applying on heifers and/or (2) a herd is restricted, in which case the cows must be listed; ■ Provision at all five census dates for the Extensification Premium scheme of CMMS-based Herd Profiles to farmers participating in the scheme so that they can monitor their stocking densities throughout the year and notify the Department of any discrepancies between the number of animals recorded on the CMMS database and the number in the herd at a particular census date; ■ Automatic processing of entitlement to Slaughter Premium from the CMMS database without the need for farmers to submit applications; ■ 46 Pre-printing of personal details (name, address and herdnumber, and in the case of Area Aid applications, land parcel identification numbers and areas) on application forms. The correct completion of area aid forms remains a critical task for farmers. To assist them, the Area Aid Unit issued pre-printed forms for the 2004 Scheme to farmers who lodged Area Aid applications in 2003. A help-sheet was included with each form offering step-by-step guidelines. In addition, updated maps were issued to those applicants who had mapping changes in the previous year; Removal of certain notification requirements where the necessary information can be taken from the CMMS database. The rates of payment for the various livestock premia schemes and the Arable Aid scheme were the same as those for 2003, the maximum agreed under Agenda 2000. Normally 60% advances are paid under the various bovine premia schemes, commencing at the earliest on 16 October. Ireland commenced payment of these 60% advances on 16 October together with full amounts due under the Ewe Premium Scheme and Dairy Premium Scheme. By 31 December 2004 a total of €469 million had been paid. Payments under the Arable Aid scheme commenced on 16 November and by the end of the year a total of €129 million had been paid. Payments under the Disadvantaged Areas Compensatory Allowances Scheme commenced on 17 September in accordance with the commitment in the Protocol on Direct Payments to Farmers and by 31 December 2004 a total of €232 million had been paid to 97% of applicants. Extensification Premium payments in respect of any particular year normally are made in June of the following year. Payments for 2003 commenced on 10 June 2004 and by the end of the month €153 million had been paid to an estimated 96% of eligible applicants. Stocking densities for 2003 were established from the CMMS and other databases. This relieved those farmers who normally opted for establishing stocking density by way of the census system from the burden of submitting details of the bovine animals that they had at five census dates throughout the year. Single Payment Scheme Work commenced on establishing provisional Single Payment entitlements for all farmers who received direct payments in the reference period 2000 to 2002. This is a large undertaking involving extracting information for a number of years from livestock premia payment, Arable Aid payment and land parcel databases. It also involved dealing with Force Majeure applications from farmers who feel that their production levels in the reference years were adversely affected by circumstances beyond their control, dealing with applications for allocations of entitlements from the national reserve from certain categories of farmers, ensuring that penalties applied to payments in the reference years are not carried forward to the Single Payment reference amount, and a number of other complexities. At 31 December 2004 over 130,000 farmers had been notified of their provisional entitlements, the bulk of applications for Force Majeure had been processed and arrangements had been made to enable farmers apply for allocations of entitlements from the National Reserve. Annual Report of the Minister for Agriculture and Food Department staff at National Ploughing Championships, September 2004. Preparations had also begun for the issue of summary statements of payment entitlements, maps, application forms, Terms and Conditions and Helpsheets to farmers in Spring 2005 to assist them in lodging applications for activation and use of entitlements by the closing date of 16 May 2005. Intervention Schemes There were no cereals or beef purchases in 2004. Purchasing activity on dairy products was high in 2003, but lessened in 2004. This, together with receipts from sales that took place during the year, reduced the claims submitted to the EAGGF from €70,900,000 in 2003 to €19,118,000 for 2004. Export Refunds Payments totalling €222.27 million were made in respect of export refunds during the year. Beef refunds amounted to €51.14 million compared to €72.26 million in 2003. Goal 5.0 This represents a 29% decrease on 2003 but it reflects the continuing good performance of Irish beef on the internal market and, consequently, less reliance on beef exports to third countries. On the other hand, payments for other exports (mainly dairy and processed products) increased by more than 10% in 2004. This continuing rise in payments reflects a strong performance in dairy and other refundable exports to third countries over recent years. Considerable progress was made during the year on the development of an electronic system to provide for the submission by traders of export declarations and claims for export refunds. The system went into live testing briefly at the end of 2004 and should be in full operation during 2005. It will improve efficiencies both for the trader and the Department, as well as for the Customs Service. Wine Licences A total of 3,484 wine import licences were issued in 2004. 47 FINANCIAL MANAGEMENT involved in the refund by the EU of expenditure incurred by the Department on EU measures. Expenditure The Department is obliged to ensure that implementation of all schemes complies with EU and national requirements on financial reporting, maintenance of accounting and transaction details and audit trails. It operates comprehensive financial management and control and accounting systems to ensure this. GOAL 5.0 The Department’s activities and schemes are funded either from the Vote, by the EU from the Guarantee Section of the European Agriculture Guarantee and Guidance Fund (EAGGF) or are co-financed by the Vote and the EU from either the Guarantee and Guidance (Structural Fund) sections of the EAGGF. The Department was responsible for Voted expenditure of €1,259 million in 2004. Some of this expenditure related to activities part financed by the European Union, which attracted receipts amounting to €440 million from the EU. In addition, the Department spent €1,399 million in administering EU fully funded CAP Guarantee schemes and Intervention purchases, bringing total expenditure to €2,724 million (see table below). It should be noted that in any given year, expenditure by the Department on EU measures and receipts from the EU cannot be compared directly because of time lags Expenditure on Irish Agriculture in 2004 Vote Expenditure Overall there was a 4% decrease of approximately €50 million, in total gross expenditure in 2004 compared with 2003. This reflects a number of factors including lower expenditure on Bovine TB and Brucellosis, Meat and Bone Meal Rendering, on farm investment grants and on the level of expenditure on financing of the CAP. A comparative outturn of Agriculture and Food, Vote 31 expenditure for year 2003 and 2004 is set out in the table opposite: €m Voted Expenditure Of which: Administration 254.35 Structural Measures (1) 37.28 Rural Development (1) 619.99 Animal Health, State Bodies 324.23 Market Intervention and Other. (2) 23.14 EAGGF Guarantee direct expenditure Of which: Premia/area Aid Market Supports Intervention Purchases (3) Total Expenditure €m 1,258.99 1,399.39 1,088.41 310.98 66.03 2,724.41 (1) Rural Development measures and certain Structural Development measures are co-financed by the EU and the Vote. These figures are total Vote expenditure on these measures in the calendar year, as payments are made from the Vote. The EU contribution to expenditure is subsequently recouped to the Vote as appropriations in aid, some of which is received in a subsequent calendar year. (2) This Vote expenditure relates to expenditure on IACS and to Intervention financial (interest) and operational costs. The latter costs are subsequently claimed back from the EU on the basis of standard amounts. (3) This is the amount paid by the Department on product purchased into Intervention in the year. The cost of Intervention purchases is recouped from the EU through depreciation of stock value during the year of purchase and at the time of sale of the product. 48 Annual Report of the Minister for Agriculture and Food Comparative Outturn of Vote Expenditure for Year 2003 and 2004 Expenditure Type Net expenditure Appropriations in Aid - EU Receipts Year 2003 €m Year 2004 €m 865.874 772.766 443.035 486.220 393.569 440.223 49.466 45.997 - Other Gross Expenditure 1,308.909 1,258.986 Note: Responsibility for Forestry transferred to the Department of Agriculture and Food from the Department of Communications, Marine and Natural Resources on 1 January 2004. For comparison purposes only, the 2003 figures include Forestry related expenditure. For a detailed breakdown of Vote expenditure see Appendix 5. EU EXPENDITURE Financing of European Agricultural Guarantee Fund (EAGGF) Expenditure The Guarantee Section of the European Guarantee and Guidance Fund (EAGGF) fully finances CAP expenditure such as direct payments to farmers and EU market supports. In addition, the Guarantee Fund provides the EU contribution towards co-financed CAP Rural Development measures, 2000-2006, and the EU contribution towards the financial and operational costs of Intervention purchases. Under EU rules, the Department initially pre-finances CAP Guarantee expenditure, pending recoupment from the EU some six weeks in arrears. Payments are made from a float established from borrowings that were novated by the Minister to the National Treasury Management Agency (NTMA) in 1999, which is supplemented by shortterm Exchequer Issues at peak payment periods. The Department submits a claim to the EU each month for recoupment of expenditure from the Guarantee Fund. The EU co-funding contribution towards the CAP Rural Development measures 2000-2006 varies from 50% to 75% of eligible expenditure, subject to overall financial ceilings. Expenditure on the CAP Rural Development measures is initially paid in full from the Vote and a claim for the EU contribution is included in the monthly claim on the Guarantee Fund. Purchases into intervention are initially financed by the Department from borrowings arranged by the NTMA as agent of the Minister. The Department maintains a separate Intervention Account for this purpose. Under EU rules, the capital cost of Intervention purchases is recovered by recouping a flat rate of depreciation at the time of purchase, at a rate set by the Commission, and Goal 5.0 by recovery of any losses at the point of sale, where stock is sold at less than the depreciated book value. Intervention financial and operational costs are recouped on the basis of standard amounts. Intervention financial and operational costs are financed initially from the Vote. Claims for recoupment of depreciation, financial and operational costs are included in the monthly claim to the EU Guarantee fund. Claims submitted to the EU in 2004 in respect of measures funded by the Guarantee Section of the EAGGF amounted to €1,788.1 million. The details are set out in the following table. A more detailed breakdown is set out in Appendix 6. Claims Submitted to Guarantee Section of the EAGGF in 2004 2003 €m 2004 €m Livestock Premia 974.2 906.9 Area Aid 130.4 132.6 Export Refunds 228.7 214.1 Dairy Measures 107.1 149.3 7.0 8.7 Rural Development Measures (1) 255.9 357.4 Public Intervention storage (2) 73.7 19.1 Other Indirect Measures (mainly PFD and SPS) 61.5 0.0 1838.5 1788.1 Direct Measures Other Direct Measures Indirect Measures Total (1) Amounts claimed from the EU on these co-financed measures (2) Amount claimed from the EU in respect of depreciation of stocks, financial and operational costs. 49 EAGGF Guidance Fund GOAL 5.0 The Guidance Section of the European Agricultural Guarantee and Guidance Fund (EAGGF) is one of the EU Structural Funds. The Structural Funds part finance the cost of agreed national development measures implemented over a period of a number of years, currently 2000-2006. The Department of Agriculture and Food is receiving Guidance funding in the period 2000-2006 towards part of the cost of certain measures being implemented under two separate Operational Programmes, viz. Sub Programmes on Agriculture and Rural Development approved for each of the two regions, the Border, Midlands and Western Region (BMW) and the Southern and Eastern Region (S+E). Expenditure on measures co-financed from the Guidance Fund is funded from the Vote with EU recoupment being subsequently claimed and credited to Appropriations-inAid. Claims for EU funding are submitted periodically in accord with a financing programme. Guidance Funding is also channeled through the Department of Agriculture and Food to the Department of Community, Rural and Gaeltacht Affairs for certain measures under the above Operational Programmes and in respect of the LEADER Community Initiative and to the Department of Environment and Local Government in respect of certain PEACE II initiatives. All Expenditure is subject to audit by the EU Commission and the European Court of Auditors. Ireland’s EAGGF Guidance Fund receipts in 2004 amounted to €61.930 million and included final EU payments totaling €28 million in respect of the OPARDF and LEADER II measures, 1994-99. FEOGA Guidance Receipts (€m) 2003-2004 2003 €m 2004 €m 1994-1999 Round Food Sub-Programme 10.270 0.000 OPARDF 0.000 25.630 LEADER 11 (Note a) 0.000 2.390 Total for 1994-1999 Round 10.270 28.020 NPD S&E/BMW Regional OP’s (Note b) 4.182 20.692 LEADER Plus (Note c) 2.124 11.280 2000-2006 Round Peace and Reconciliation Initiative (Note d) Total for 2000-2006 Round Total Guidance Receipts 1.938 6.306 33.910 16.576 61.930 Notes a. All €2.390 million a Department of Community Rural and Gaeltacht Affairs (DCRGA) Receipt b. Includes DCRGA receipts of €2.119 million in 2003 and €3.572 million in 2004 c. All DCRGA receipts d. All Department of Environment and Local Government receipts Details are set out in the following table: 50 Annual Report of the Minister for Agriculture and Food FINANCIAL CONTROLS Compliance with National and EU Financial Reporting Requirements The Department must ensure that implementation of all schemes complies with EU and national requirements on financial reporting, maintenance of accounting and transaction details and audit trails. It operates comprehensive financial management and control and accounting systems to achieve this objective. These include: ■ SAP computerised accounts system, introduced in 2001, to meet expanding national and EU financial management and control requirements; ■ an effective Internal Audit Unit which completed a substantial body of work in 2004; ■ an Audit Committee, consisting mainly of external members (five out of six); ■ audit examination by 5 independent external auditors (Comptroller & Auditor General; the Certifying Body; EU Commission; EU Court of Auditors, and OLAF, the independent Commission Anti-Fraud Office); ■ an Accreditation Review Group to ensure that the Department’s status as an accredited EU paying agency is retained and to ensure audit findings and recommendations are followed up; ■ implementation of a formal Risk Management Programme ensuring identification and management of the principal risks facing the organisation. ACCREDITATION FOR EU GUARANTEE – FINANCIAL ACCOUNTABILITY SYSTEMS The Department is the accredited paying agency in Ireland for all expenditure on CAP market supports and direct payments to producers, except for fisheries measures. The Department is one of the largest EU paying agencies. October 2002 -15 October 2003) totaled over €1.89 billion in respect of FEOGA direct payments to producers and market supports and CAP Rural Development measures. The 2003 Annual Account was audited and certified by the Certifying Body (Deloitte), and the audited and certified accounts were submitted to the Commission by the regulatory deadline of 10 February 2004 and included in the Commission’s financial clearance decision. The Department’s performance as paying agency continued to be monitored in 2004 by the Accreditation Review Group (ARG) established by the Minister and chaired by the Secretary General. The Department of Finance and the Office of the Revenue Commissioners are represented on the ARG. During 2004, the ARG ensured that the recommendations of the Certifying Body for the previous year were implemented and that all EU audit findings were given appropriate follow-up. AUDITS Internal Audit The Internal Audit Unit completed a substantial body of work and completed and issued 20 audit reports. All regulatory requirements on audit and control were completed in accordance with the prescribed timescales as set out in the EU Scrutiny and Structural Fund Regulations. The IT audit group, assisted by specialist external consultants, completed a comprehensive amount of audit coverage. The annual Audit Seminar held in conjunction with the Department’s Audit Committee took place in November and included audit representatives from a number of Member States. A comprehensive training programme was again put in place for the staff of the Unit. The Unit also presented training courses on audit and control to both Departmental staff and to representatives from some of the new Member States and also the new Candidate Countries. As a paying agency accredited in accordance with EU rules, the Department must adhere to stringent regulatory requirements to meet financing and accounting standards and must submit independently certified annual accounts of expenditure to the EU Commission. Failure to do so could result in withdrawal of accreditation. The Department is also the designated Coordinating Body responsible for the supply to the Commission of EU EAGGF financial information on its operations and those of the Department of Communications, Marine and Natural Resources. In 2004, the Department retained accreditation status as an EU paying agency for EAGGF Guarantee expenditure. The EAGGF account for the 2003 EAGGF year (16 Goal 5.0 Minister Coughlan with the chairperson of the Department’s Audit Committee, Mr. John Donnelly. 51 Audit Committee The Department’s Audit Committee was established in 1994. The Committee is chaired by Mr John Donnelly, Deputy Chairman of Hypo Real Estate Bank International. The other Committee members are Mr Michael Downes, CIE; Mr Eamon O’Connor, Revenue Commissioners; Mr Robert Carey, Department of Finance; Professor Niamh Brennan, University College Dublin and Mr Aidan O’Driscoll, Department of Agriculture and Food. GOAL 5.0 ■ ■ ■ DG SANCO audit on BSE monitoring programmes for years 2001 and 2002. European Court of Auditors The European Court of Auditors carried out the following audits: To advise on the operation of the internal audit function within the Department; Statement of Assurance audit – DAS 2003 (Audit of Guarantee expenditure) – 3 Audit missions held in 2004; ■ To monitor the application of Council Regulation (EEC) No. 4045/89, which deals with the scrutiny by Member States of transactions funded under various market support schemes funded by the EAGGF Guarantee Fund; Statement of Assurance audit – DAS 2003 – Audit of EAGGF Guidance expenditure, closure of the Food Sub Programme 1994-1999 (OP 94IR16006); ■ Statement of Assurance audit – DAS 2004 (Audit of Guarantee expenditure) – 2 visits (October & November) in 2004 and further visit in 2005; To advise on best practice for risk management. ■ Audit of application of Council Regulation 4045/89 concerning scrutiny by Member States of commercial records relating to the Guarantee Fund; ■ Audit in respect of Bovine Slaughter Premium; ■ Audit of application of Regulation 386/90 on Export Refunds export controls. The Committee presents an annual report to the Minister in accordance with its Charter. The Committee met four times in 2004 and received presentations on many aspects of the Department’s operations. It also held one of its meetings in the Wexford offices of the Department. The Chairman of the Audit Committee also meets regularly with the Minister and the Secretary General. In the Audit Committees Annual Report for 2003, issued in March 2004, the Chairman reported “ The role of the Audit Committee is to advise the Minister, the Secretary General and the officials of the Department on the effectiveness of the systems and controls operated within the Departments, in respect of the many schemes operated by the Department. I am satisfied that the Audit Committee discharges its obligations in respect of that role.“ The report continued that the Chairman was “satisfied that the Internal Audit Unit is well led and is appropriately resourced“. EU AUDIT PROGRAMME European Commission During 2004 there were four EU Commission audit visits covering; 52 Clearance of EAGGF Guarantee accounts – Milk & Milk Products (Audit of SMP into Casein); ■ The Audit Committee has three main roles: ■ ■ ■ Clearance of EAGGF Guarantee accounts – Rural Development Programmes (Compensatory allowance); ■ Clearance of EAGGF Guarantee accounts – Audit of Agricultural Expenditure – Export Refunds Scheme; Risk Management The overall objective of the Risk Management Programme (RMP), as set out in the Department’s Statement of Strategy, is to identify and assess the key risks (strategic, operational, financial, reputational) facing the Department in achieving its objectives and to outline measures at Departmental and Divisional level for addressing those risks. A Risk Management Team (RMT), consisting of representatives of the Administrative, Veterinary and Agricultural Inspectorate streams, reports to the Risk Management Committee (RMC), which is chaired by the Secretary General. The RMC consists of senior officials of the Department and has responsibility for overseeing the Risk Management programme. The RMC met on four occasions during 2004. The Department’s Management Advisory Committee also agreed a list of broader strategic risks, at a workshop held in May 2004, which will be reviewed on an ongoing basis. The risk reporting system (database) was rolled out throughout the Department in 2003. In the quarter ending 30 June 2004, following the transfer of Forestry functions to the Department, the Forest Service, including the Forestry Inspectorate, was integrated into the RMP. Annual Report of the Minister for Agriculture and Food The consultants engaged to facilitate implementation finalised their review of the programme’s progress in October 2003, and their recommendations were implemented by the Department during 2004, monitored by the RMC. Also in 2004, a proposal to help improve the efficiency of the RMP was agreed by the RMC. The proposed changes take account of the results of feedback received from users, and experience to date. It is expected that the revised system will be implemented in 2005. Management Information Framework (MIF) With the implementation of the SAP Accounts system in July 2001 (with enhanced functionality added in 2003), the Department was one of the first Departments to select and install a MIF compliant Financial Management System. There are now in excess of 1,000 staff across the Department with appropriate access to the SAP system. The biggest single benefit of the system is the fact that up to date financial information is available to all relevant staff on an ‘online’ basis. In addition to providing financial information, the SAP Accounts system is the basis for the generation of all payments made by the Department. To that end, in excess of one million payments are generated from the system annually. The system, which is capable of producing both cash and accrual-based information, is fully configured to provide electronic payments facility to all clients. The Department’s MIF implementation team continues to place major emphasis on the provision of Financial Management training. A comprehensive training programme was delivered to some 1,000 staff in 2004. Staff were provided with training in a range of financial disciplines including detailed Government financial procedures, basic accrual accounting and usage of the SAP accounts system. Further training will be delivered throughout 2005, aimed primarily at senior and middle management, covering the MIF environment and the effective use of financial and non financial information. Expenditure Review Initiative (ERI) The Expenditure Review Initiative (ERI) is overseen by the Expenditure Review Central Steering Committee (ERCSC) in the Department of Finance. The current three year expenditure review work plan was agreed by Government for the period May 2002 to April 2004. During 2004, two expenditure reviews were completed to evaluation stage by year end, while work was commenced on two other reviews. Goal 5.0 53 GOAL 6.0 Operational Capabilities Develop our human and physical resources, our operational capabilities and ensure the delivery of quality service to our customers, both internal and external STRATEGIC DEVELOPMENTS HUMAN RESOURCES Statement of Strategy 2003-2005 Partnership A draft Statement of Strategy to cover the period 2005-2007 was prepared in December 2004. This is the fifth Strategy Statement to be published. During the year the Local Partnership Committee structure continued with local committees for Galway, Roscommon and Limerick Local Offices continuing to develop partnership arrangements during 2004. These operated in addition to the existing regional partnership committees at the main decentralised offices, i.e. Cavan, Castlebar, Portlaoise and Johnstown Castle. The Statement of Strategy describes the environment, both internal and external, within which the Department operates and identifies the challenges ahead. It states our mission for the three years ahead, identifies the goals and strategies and describes the evaluation and monitoring process. One of the reporting mechanisms is the Annual Report, which gives a detailed account of the progress made on these goals and strategies during the year in question. The Strategy Statement is the framework document, which governs all Departmental operations as it forms the basis of all the Divisional Business Plans as well as all individual role profiles. The Strategy Statement developed from an initial indepth analysis of the work of the Department by the Management Committee and Heads of Divisions at specially convened workshops and evolved through discussions and consultation with staff at seminars, through the intranet and the Partnership Committee. In addition, the views of a wide range of Department customers and external stakeholders were sought through direct contact with over 200 bodies as well as through the interdepartmental Change Management Network. The Minister and Ministers of State were also involved in the consultation process. Sustaining Progress Commitments In 2004, the Civil Service Performance Verification Group (CSPVG) continued to review the extent of progress made by the Department on the modernisation agenda. Comprehensive Progress Reports were submitted through the Partnership Committee in April and September 2004 outlining the progress made on issues such as customer service, efficient use of resources, modernisation and flexibility and improved regulatory, HR and ICT management. Substantial progress was made in the required areas and a favourable decision was given by the CSPVG. A revised Action Plan setting out further commitments for 2005 and 2006 was forwarded for approval by this group in November 2004. 54 Superannuation Unit A dedicated Superannuation Unit was established within Personnel Division to provide superannuation estimates, process applications for retirement and resignation, process applications for purchase of notional service and deal with pensions matters. Incremental Credit Due to changes in the payscales of Executive Officers and Clerical Officers, it was necessary to calculate incremental credit in respect of over 200 applications from staff of the Department. This detailed work was carried out efficiently and payments were made promptly to the staff concerned. Performance Management and Development System (PMDS) By mid 2004, the PMD system had been fully implemented in the Department. In addition, we introduced the Upward Feedback element of PMDS at the beginning of 2004 making this one of the first Departments to introduce this additional element to the system. There has been a concerted effort by senior management to ensure that the PMD system is used effectively and its implementation has been a consistent item on the Management Committee agenda as well as being continuously emphasised during the series of countrywide staff seminars, which dealt with issues of importance to the Department and staff. This Department also participated in the Sub-Committee of General Council which is progressing the fuller integration of PMDS with the wider HR processes such as increments, promotion, etc., as required under the Sustaining Progress Agreement. Substantial progress was made in the required areas and a favourable decision was given by the CSPVG. A revised Action Plan setting out further commitments for 2005 and 2006 was forwarded for approval by this group in November 2004. Annual Report of the Minister for Agriculture and Food Local Office Accommodation Over 100 staff in Galway city moved into new offices at Dockgate, Galway. Discussions continued during the year with OPW about the provision of new offices in Roscommon, Limerick, Navan and Leitrim. Energy Efficiency Minister Coughlan meeting Department Staff at the National Ploughing Championships, September 2004. Training and Development In 2004, PMDS training was completed with all grades. Training on the Upward Feedback element of PMDS was also completed with 2,200 staff. Under the European Computer Driving License (ECDL) programme, over 4,500 training days were provided. Over 1,400 staff undertook some 3,100 examinations, with a 94% success rate. The new Syllabus was introduced on 1 January 2004. Training was also delivered in other competencies, which included Induction, Microsoft Office Products, Effective Writing, Report Writing, Speech Writing, Smart Reading, Legislation, Retirement Planning, Scientific and Specialist Courses. The total cost of training for the Department, including specialist training undertaken by Divisions amounted to €5,206,316. The overall number of training days for 2004 was 16,016. Building Management Systems have been installed in recent years at Department Offices in Abbotstown, Agriculture House (Dublin HQ), Ballina, Cavan, Longford, Navan, Portlaoise, Sligo and Tralee. Building Management Systems are set up to avail of off peak/ low rate electricity where possible. In 2004 the Office of Public Works (OPW) extended the use of Building Management Systems to Department offices in Cork City, Galway, Kilkenny, Mullingar, and Tullamore. In 2005 OPW plan to extend the use of Building Management systems to all other Department offices, not already equipped with such systems, with a floor area greater than 1,000 square metres. New Laboratory Complex at Backweston and Longtown Farm, Co. Kildare Work progressed satisfactorily on the building for the new complex in Backweston which will house the Department’s Central Veterinary Research Laboratory, the Dublin Regional Veterinary Laboratory, the Central Meat Control Laboratory, the National Seed Testing Station, the Pesticides Control Laboratory and the Dairy Science Laboratory. The Complex is expected to be completed before the end of May 2005. The brief for Longtown Farm (to replace Abbotstown Farm) is still under development. ACCOMMODATION OTHER ORGANISATIONAL DEVELOPMENTS Decentralisation Electronic Funds Transfer (EFT) A Decentralisation Implementation Committee was set up in the Department to oversee all aspects of decentralisation of staff to Portlaoise (new Department headquarters), Macroom (new Laboratory Complex) and Fermoy (new Local Office). Ongoing liaison took place with the Office of Public Works (OPW) to provide a single headquarters building in Portlaoise for 850 people, laboratories in Macroom for 100 people and local office in Fermoy for 100 people. Temporary accommodation for 40 people was secured in Portlaoise. Goal 6.0 Farmers The promotion of this payment method continued during 2004 and by the end of the year over 50,000 farmers had their scheme payments from the Department transferred electronically into their bank accounts. This represents over one third of payments to farmers. Department Staff The proportion of staff being paid by EFT rose to 86% during 2004. 55 GOAL 6.0 New Laboratory Complex at Blackweston. Suppliers The Department now pays over 85% of its suppliers by EFT. ISO Projects Management The ISO (International Organisation for Standardisation) is a worldwide federation of national standards bodies. Obtaining accreditation to ISO 9001: 2000 Standard gives an independent verification of the quality of the Department’s services. The Department is committed to providing quality assurance of services and to enhance customer satisfaction. The Veterinary Medicines Section in Maynooth and the Beef Export Refunds Division in Wexford are both accredited to the ISO 9001:2000 Standard. The ISO Project Management Division is now working with Livestock Breeding Section who continue to progress toward accreditation and hope to be accredited to ISO 9001:2000 in 2005. The Department plans to introduce the ISO Quality System to a number of payment Divisions where practical and appropriate. Health and Safety 204 of the Department’s staff (mainly agricultural field staff) completed a one day Safe Pass course, and were subsequently issued with a safe pass card. This training arose from the Health & Safety Authority (HSA) Guidelines for the implementation of the Construction Regulations 2001. 56 48 staff underwent fire training while 25 staff were trained in manual handling. 44 of the Department’s line managers attended health and safety training courses. The training familiarised participants with employers and employees responsibilities under the Safety, Health & Welfare at Work Act, 1989 and the 1993 (General Application) Regulations, gave them an understanding of health and safety legislation in Ireland and the EU, explained the hazard identification, risk assessment and risk control process and outlined the requirements of a Department Safety Statement. 42 staff successfully completed a course in occupational first aid, and a further 14 members attended a one day refresher first aid course. These courses met the requirements of the 1993 Regulations and of the HSA Guidelines on refresher training. Change Management Fund This was the sixth year of the Fund’s operation and the Centre for Management and Organisational Development (CMOD) co-financed projects on the basis of: ■ Targeting one or more of the key initiatives of the SMI/Delivering Better Government programme of change, with priority being given to the on-going implementation of PMDS and development of the Management Information Framework (MIF) project; ■ Being supported by a clearly defined business case for the project; Annual Report of the Minister for Agriculture and Food ■ Covering a small number of transient posts, the funding for which was provided on a decreasing sliding scale basis; ■ Having one central co-ordinator in the Department to liaise with the CMF Working Group. The Department received €46,662 from the Fund towards the cost of continued implementation of Performance Management Training. DEVELOPING I.T. CAPACITY A new ICT (Information Communication Technology) Strategy was developed in March 2004, which supports the Department’s near-term business priorities and focuses on the use of Information Technology to facilitate strategic change. The new Strategy incorporates the Department’s eGovernment strategy. Some of the key information technology initiatives developed during 2004 are detailed below. Corporate Customer System The Department’s Corporate Customer System (CCS) provides a single comprehensive view of the Department’s customers and allows for easier maintenance of accurate customer information. All business roles and links that customers have with the Department are centrally recorded and associated with a single customer record. All customers, whether or not they have financial dealings with the Department, are recorded on the System. The CCS provides a number of benefits to the Department through clarification of customer identity and the association of all the customer’s various business roles (e.g. herdowner, general supplier etc.) and business identifiers (e.g. herd numbers, REPS numbers etc.) under one customer identifier. The Department now uses the Personal Public Service Number (PPSN), previously known as the RSI number, as the unique identifier for individual customers. This is in keeping with the Government’s REACH initiative and the general approach being followed by other Departments. The unique identifier to be used for companies/ traders/firms will be the firm’s VAT number and/or the Companies Registration Office (CRO) number. The system was rolled out countrywide in 2004. Authorised staff at any location in the Department can update identity details for their customers on to the CCS. Strict authorisation features provide a very high level of control over how the information is used, maintained and interfaced to the SAP Financial System. Goal 6.0 CCS provides the customer information to all of the Department’s newer systems such as Animal Health Computer System (AHCS), the Single Payment System (SPS), Animal Identification and Movement System (AIM) etc. The Forestry System, GPAS, was also successfully integrated with the Corporate Customer System and the SAP Financial system in 2004. Export Refunds Electronic SAD (eSAD) Project The Department embarked on an initiative with the Revenue Commissioners Customs Service and the Revenue Online Service (ROS) in mid-2003, to develop an electronic system to cater for the submission of Common Agricultural Policy (CAP) export declarations. The Project received support from the Information Society Commission. The system streamlines the existing paper Single Administrative Document (SAD) procedure and greatly benefits both the export trader and the two Government agencies involved. It provides traders with the facility to electronically complete and transmit the required Customs declarations. These declarations are then processed electronically and the trader receives the necessary responses electronically. On completion of all Customs formalities, in accordance with the EU regulations, the required information is then electronically validated and transmitted to the Department of Agriculture and Food, to allow the payment of the appropriate Export Refund to be processed. The system went live in July 2004 and the first electronic declarations were received from Traders in December 2004. SPS/iMAP The introduction of the Single Payment Scheme (SPS) represents a significant shift for the Department of Agriculture and Food. It changes radically the basis on which payments are made to farmers by decoupling payment and production while consolidating what was a range of payments into one single payment. The iMap system delivered in early 2002 has already given important functionality, but most notably it has also positioned the Department well strategically for the SPS. The existing iMap system can now be used as the basis for the SPS system with considerable re-use of existing component functionality. SPS comes with a range of new business processes to be supported by the Department. Since the project commencement the Department has made significant headway to date in the implementation of the SPS and the new business processes involved. SPS Phase 1 57 commenced in late 2003, which led to the issue of Provisional Entitlements to Farmers in September 2004. The IT functionality is in place to process Force Majeure, New Entrant/Inheritance and National Reserve applications and all correspondence with applicants both to and from the Department is stored electronically. Work began in late 2004 on Phase 2 of the SPS Project to enable the Department to meet its next significant undertaking of processing over 140,000 Single Payment Scheme applications from April 2005 and the subsequent issue of payments in December 2005. GOAL 6.0 Rural Environment Protection Scheme (REPS) During the year, facilities to support REPS 3 were implemented as well as other required upgrades and enhancements. Further substantial development work was carried out on the three On-Farm Investment Systems. IForIS The Forest Service embarked on a major IT project, IForIS, in 2004. IForIS is the Integrated Forest Information Computer System. It is a map based forest management tool which will incorporate three key areas for the Forest Service, a) Grant and Premium payments, b) Forest Planning and c) Forest Inventory. IForIS provides functionality to streamline the payment of forestry grants thereby improving the service to Forest Service customers. Payments to customers will therefore be processed more efficiently and in a manner consistent with the most up to date EU and national auditing standards. Recently introduced EU Regulations calling for cross checking with other area-based schemes, such as those administered by the Department of Agriculture and Food’s Area Aid Unit, were incorporated into the IForIS design. In terms of forest planning, IForIS provides a means of ensuring that new forests are established with due regard to environmental constraints and considerations at both national and local level. Data developed as part of the Forest Soils project forms an important element of the planning component of IForIS. Soils information relating to forest productivity guides forest planning in the direction of the most suitable soils for forestry development from both a commercial and silvicultural perspective. IForIS incorporates existing forest resource information and has functionality to capture information on new forests thereby updating current forestry data. The system consolidates forest inventory data into a single database allowing easy access to forestry data by all interested parties. IForIS is due to go live in September 2005. 58 eGovernment Initiatives The Department’s eGovernment programme has provided improved services to our external customers and agents. In communicating with customers by SMS and email, and the provision of information via self-service kiosks, the Department is also advancing the wider Information Society Agenda. The Department has provided direct electronic links with many of our agents (marts, meat plants, export lairages, private veterinary practices, tag vendors and those involved in the collection of bovine registration and movement data). The internal use of new technologies is widespread throughout the Department. As well as standard productivity tools such as email and electronic diaries, extensive use is being made of video conferencing to facilitate essential meetings involving staff at the Department’s various decentralised offices or those in Brussels. Livestock Inspectors are using SMS technologies on mobile devices to communicate with the Department’s CMMS databases directly from the field and resolve some anomalies on the spot. Inspectors carrying out livestock and Area Aid inspections can now record inspection reports directly to a central database, using WAP applications on their mobile phones. During the year the Department continued to work closely with the Information Society Policy Unit at the Department of the Taoiseach and other crossdepartmental agencies such as REACH. Security measures for the Department’s eGovernment services will continue to be maintained and upgraded over the coming year. In addition, the Department has transferred all internet services to provision via the Government VPN. The Department implemented phase 1 of the e-Cabinet system during 2004. Reachservices In keeping with the commitment to deploy services through the Public Services Broker (PSB), the Department has worked closely with REACH during the course of the year to ensure that we are fully prepared for the changing environment. The Department remains fully committed towards the PSB and, over the course of the year, has been engaged with the REACH agency in the many facets of this project. A large number of Department services were identified and information pertaining to these services as well as links to application forms were made available to the public through the Reachservices website. A service involving communication of Common Agricultural Annual Report of the Minister for Agriculture and Food Policy (CAP) Export declarations between the Revenue Commissioners and the Department was completed and utilises the broker infrastructure for message transfer. Furthermore, the underlying infrastructure has been put in place that will enable full connectivity between our own technical architecture and the PSB. Short Messaging Service (SMS) Registration and Authentication Department Livestock inspectors were also provided with the capacity to record inspection results for Ewe Premium, Good Farming Practice, Area Aid and Bovine schemes using WAP (Wireless Application Protocol) applications on their mobile phones. These facilities reduce the necessity for inspectors to go to their HQ to record the results on a PC and allow for better and faster management information. Work continued within the Department and with the REACH agency to facilitate the future transfer of the Department’s eServices registered customers to the Public Services Broker. Issues surrounding the evolution of the Public Services Identifier (PSI) and the development of an equivalent identifier for businesses have been at the forefront of these discussions. The Department has actively participated in the SAFE (Standard Authentication Framework Environment) project and is leading on the interdepartmental subgroup examining infrastructural issues. eServices and the Department’s website The homepage of the Department’s website www.agriculture.gov.ie now presents users with a button providing access to the eServices page. Registered clients will receive a PAC (Personal Access Code) and password for secure interaction with existing and future services. The Department has two main eServices available to clients at present: iMap - provides access to individual Area Aid application information, scanned images of Area Aid correspondence and colour mapping of land parcels. AIM - provides access to the Animal Identification and Movement system, which includes a calf birth Registration facility and a Herd Profile Enquiry utility. The latter allows a herdowner to view details of her/his animals in the herd on the Cattle Movement Monitoring System (CMMS) as well as movements into and out of the herd. The Department’s eServices initiative has also provided online access for our internal clients to the Animal Health Computer System (AHCS) and AIM. The Department’s website allows on-line access for customers to many application forms as well as allowing customers to register for SMS and email information updates. The website has improved accessibility, including a facility which allows users choose their preferred font size. Goal 6.0 In an extension of the Department’s Short Messaging Service (SMS), Livestock and Veterinary staff were provided with a facility to find the name and address of a herdowner and the number of bovines on a holding by sending the Herdnumber to the CMMS database by SMS. SMS was also utilised to enhance communication between officers. A new website on eZone, our Intranet portal, was developed to afford officers the ability to send text messages to specific officers or to many officers in a distribution list. Communications Initiatives In 2004, the Department canvassed the agri-community in order to build a database of clients who were interested in availing of mobile Government services. In conjunction with this move, the infrastructure was put in place to enable the development of a transactional mGovernment service using XML (Extensible Markup Language) technology. This infrastructure provides the backbone that will facilitate the ongoing rollout of mobile services to our clients. The Department has also implemented a system which allows officers to access their email through their mobile phone while away from the office. This system also allows access to calendar information and permits the scheduling/rescheduling of meetings. The number of Department locations at which public service Kiosks have been made available for customer usage was further increased in 2004. The Kiosks use touch screen technology to provide access to the Department’s website, other Government Agencies’ websites, as well as websites of the EU Institutions. At the end of the year Kiosks were available at 12 of the Department’s locations, namely Agriculture House – Dublin, the Local Offices in Cavan, Castlebar, Clonakilty, Ennis, Enniscorthy, Galway, Raphoe, Sligo, Tralee, Waterford and the Portlaoise office. The kiosks are fitted with swipe card readers, which will enhance the customer’s interaction with the Department in the event of a public services card being launched. 59 Animal Health Computer System (AHCS) GOAL 6.0 By the end of 2004 the Animal Health Computer System (AHCS) had been rolled out to a total of 20 District Veterinary Offices, the Sligo Regional Veterinary Laboratory, the Brucellosis Laboratory in Cork and the Department’s Headquarters in Dublin and Maynooth. The system was developed to meet the Department’s current and future needs in relation to its many and varied animal health and welfare programmes. It replaced the standalone cattle disease testing system, while at the same time provides a greater range of functionality by taking advantage of the latest information and communication technologies. The new system is a modern, fully networked facility, which allows staff to access information in respect of all herds and animals throughout the country. The AHCS is an internet-based system, developed on the java J2EE platform, utilizing three-tier architecture with an Oracle database at root. The AHCS is fully integrated with the Corporate Customer System (CCS). It also integrates with the Department’s SAP financial system to generate payments to farmers and veterinary practitioners. The system also augments and shares data with other computer systems developed by the Department in recent years particularly those relating to cattle traceability such as the Cattle Movement Monitoring System (CMMS), the Animal Identification and Movement system (AIM) and the Bovine Tagging and Registration system (BTR) to give a fully comprehensive picture of an animal’s history from birth to death thus providing further assurance regarding the safety and quality of Irish produce. A major feature of the AHCS is that Private Veterinary Practitioners, who carry out testing under the disease eradication schemes, are able to access the system across the Internet. This gives them access to tests that are scheduled to them and allows them to input data online and to upload and download data, thus facilitating the direct electronic capture of test data. As a result the Department is able to process disease test results more speedily and efficiently, thereby enhancing its ability to manage testing programmes more effectively. Internet facilities were provided in April 2004 that enable Herd Keepers to view their bovine herd profiles and animal movement details through the eServices facility on the Department’s website (www.agriculture.gov.ie). Herd Keepers can also register the birth of their bovine animals online through eServices since November 2004 and further Internet facilities were also provided to tag vendors for the processing of sheep and pig tag orders from Farmers (bovine tag orders have been processed on the AIM system since November 2003). SAP based Accounts System The Department operates a SAP R/3 System, which provides the functionality to issue payments, fully account for all income and expenditure and provides functionality for purchasing and asset tracking throughout the Department. It is a high quality, secure system whose modules are fully integrated and are operating smoothly. The system successfully produced valuable management information throughout 2004 and fully satisfied the Department’s significant National and EU accounting and reporting requirements. It also provides functionality to support the purchase, storage, sale and inventory control of intervention products. The SAP R/3 System has also contributed to the Department’s retention of accredited Paying Agency status. PROVIDING QUALITY CUSTOMER SERVICE Customer Service Action Plan The Department’s Customer Service Action Plan (CSAP) 2001-2004 sets out clearly how the Department is giving practical effect, in its dealings with customers, to the revised Principles of Quality Customer Service. Animal Identification and Movement (AIM) System Development of further modules of the AIM system continued. The system will be fully integrated with the Department’s client and animal health systems and over time, will replace and improve a number of existing major Departmental systems including CMMS, NSIS and NPITS Staff in Department’s Head Office, Agriculture House. 60 Annual Report of the Minister for Agriculture and Food The Plan incorporates the three new Principles of Quality Customer Service – Equality and Diversity, Official Languages Equality and the Internal Customer. Particular emphasis has been placed in 2004 on the implementation of the Internal Customer principle, as the provision of an excellent customer service hinges on the support of and consultation with all internal customers. During 2004, work was advanced on preparing a new CSAP, to cover the 2005-2007 period, and the Department’s first ever Customer Charter. Protocol on Direct Payments to Farmers The “Protocol on Direct Payments to Farmers“ was agreed with the farming organisations in July 2000 under the Programme for Prosperity and Fairness. It set out specific delivery targets for direct income payments to farmers. A Protocol Review and Monitoring Committee was established under the agreement to monitor progress. This committee, comprising of representatives of the Social Partner Farm Organisations and the Department, continued to meet regularly under the chairmanship of Dr Jim O’Grady. There is a large measure of consensus on service delivery issues and to date the Department has met most of its Protocol targets. (A schedule setting out the actual performance achieved by the Department in meeting those targets for 2004 is attached at Appendix 2). The Agriculture Appeals Office The Agriculture Appeals Office provides an appeals service to farmers who are dissatisfied with decisions of the Department of Agriculture and Food regarding their entitlements under certain schemes. The operation of the Office is governed by the Agriculture Appeals Act 2001 and the Agriculture Appeals Regulations 2002. The mission of the Office is to provide an independent, accessible, fair and timely appeals service for Department of Agriculture and Food scheme applicants, and to deliver that service in a courteous and efficient manner. In 2004 the Agriculture Appeals Office: ■ Published its second Annual Report, in English agus as Gaeilge, available on the Office’s own website, www.agriappeals.gov.ie; ■ Was involved in a major new area of work, the Single Payment Appeals Committee, which was established to make recommendations to the Department regarding appeals against decisions on Single Payment entitlements; Goal 6.0 ■ By way of Regulation, added the ‘Landslide Damage Relief Scheme for the Pullathomas Area of County Mayo’ to the Schedule of Schemes that can be examined by the Office. In 2004, the Office received 1,116 appeals, 793 of which were closed at the year-end. A summary of the outcomes of the cases closed is set out below: Summary % Appeals Allowed, Partially Allowed or Revised by the Department 35 Appeals Withdrawn, Not Valid or Out of Time 13 Appeals Disallowed 52 FREEDOM OF INFORMATION The Freedom of Information (FOI) Act 1997 came into effect in April 1998. The Act is intended to enable members of the public to gain access, to the greatest extent possible, consistent with the public interest and the right to privacy, to information in the possession of public bodies. The Act also enables members of the public to have personal information about themselves corrected if it is factually incorrect and in certain circumstances to be given reasons for decisions affecting them. Accordingly, the FOI Act provides for a right of access to records held by public bodies, for necessary exceptions to that right of access and for assistance to be given to members of the public to enable them to exercise that right. It also provides for the independent review by the Office of the Information Commissioner of FOI decisions by public bodies. In 2004, a total of 271 FOI requests were received covering all aspects of the Department’s operations. Of these, 74% were requests for personal information, with the remainder covering requests from a variety of sources, including the media, Oireachtas members and business/interest groups. A total of 40 of these have proceeded to internal review, with 19 being appealed to the Office of the Information Commissioner. Since the commencement of the FOI Act until 31 December 2004, a total of 2,277 FOI requests have been received in the Department, of which 269 have proceeded to internal review and 124 have been appealed to the Office of the Information Commissioner. OFFICE OF THE OMBUDSMAN The Office of the Ombudsman received a total of 83 complaints relating to the Department in 2004 compared to 136 in 2003. The Department met the statutory deadlines for reply to the Ombudsman in all cases. 61 COMPLAINTS PROCEDURE A formalised complaints procedure was introduced in the Department in July 1998. The facility to have complaints independently investigated has been publicised through direct communication with both individual customers and representative organisations. An explanatory leaflet on the procedure is available at all public offices and has been distributed and explained at farmer meetings and at major agricultural events. GOAL 6.0 Complaints are investigated by a dedicated Quality Service Unit in the Department and are settled in accordance with the Ombudsman’s guidelines using the principles of good practice in public administration. In 2004, the majority of complaints came from individual persons involved in farming and related to the topics detailed below: Complaint Category 2004 Delay in payments 8 Delay in responses to queries 4 Lack of courtesy 1 Other 5 Total 18 Staff from Johnstown Castle receiving Input Certificate of Achievement from Minister of State John Browne, T.D. Internal Customer Panel Progress on the implementation of the first Internal Customer Panel report is ongoing. During the course of 2004, two progress reports were posted on the Department’s intranet. Customer satisfaction levels with the speed and level of implementation will be reviewed in 2005. Staff Suggestion Scheme STAFF SEMINARS The Department has operated an active suggestion scheme, INPUT, since 1995. Suggestions to the scheme can be made under a number of headings such as: A number of staff seminars were held around the country for all staff in the period September to December 2004. Each seminar consisted of an opening address, given by either the Secretary General or a MAC member of the Department, which provided information on a broad range of relevant topics including strategic planning, agricultural policy, decentralisation, the Single Payment Scheme and the challenges facing the Department for the future. This was followed by two presentations on developments of specific interest to staff, with the focus this year being on the introduction of upward feedback as part of the Performance Management Development System (PMDS) and the use of structured interviews for internal promotion competitions. ■ improving service to the public; ■ reducing costs; ■ increasing safety; ■ eliminating waste. In 2004, awards under the scheme were presented to 22 members of staff. In addition, awards were also made to staff who had submitted projects in connection with 3QC, the EU Quality Conference which is held every two years. The two projects were awarded €500 each. These were entitled: ■ ‘The Enhancement of Food Safety Surveillance in the Republic of Ireland’, and ■ ‘Herdfinder’ – an interactive web based Geographical Information System. Further seminars will be arranged in 2005 for the remainder of staff who did not attend the seminars held in 2004. The awards were presented by Minister of State with responsibility for Customer Service, Mr John Browne, T.D. 62 Annual Report of the Minister for Agriculture and Food Goal 6.0 63 Abbreviations 64 AHCS Animal Health Computer System AIM Animal Identification Movement System APM Action Programme for the Millennium BTR Bovine Tagging and Registration C&AG Comptroller and Auditor General CAP Common Agricultural Policy CCS Corporate Customer System CMMS Cattle Movement Monitoring System CMOD Centre for Management and Organisational Development CODEX Codex Alimentarius Commission COM Common Organisation of the Market CVRL Central Veterinary Research Laboratory DVO District Veterinary Office EAGGF European Agricultural Guidance and Guarantee Fund EFT Electronic Funds Transfer EPA Environmental Protection Agency EPPO European and Mediterranean Plant Protection Organisation ESRI Economic Social Research Institute EU European Union FAO Food and Agriculture Organisation FEOGA Fonds Européen d’Orientation et Garantie Agricole FOI Freedom of Information FSAI Food Safety Authority of Ireland FVO Food and Veterinary Office HR Human Resources ICBF Irish Cattle Breeding Federation ISO International Organisation for Standardisation IT Information Technology Annual Report of the Minister for Agriculture and Food LPIS Land Parcel Identification System MAC Management Advisory Committee (of the Department of Agriculture and Food) NDP National Development Plan NGP National Genotype Programme NMP Nutrient Management Plan NSAI National Standards Authority of Ireland NSMC North/South Ministerial Council NTMA National Treasury Management Agency OECD Organisation for Economic Co-operation and Development OIE Organisation Internationale des Epizooties OPARDF Operational Programme for Agriculture, Rural Development and Forestry OPW Office of Public Works PFD Purchase for Destruction PMDS Performance Management and Development System PPF Programme for Prosperity and Fairness PQ Parliamentary Question REPS Rural Environment Protection Scheme SAD Single Administrative Document SAP Software Applications and Products in Data Processing SPS Single Payment Scheme SI Statutory Instrument SMI Strategic Management Initiative SMS Short Messaging Service TB Tuberculosis VLS Veterinary Laboratory Service WFP World Food Programme WTO World Trade Organisation Abbreviations 65 Appendices APPENDIX 1.0 Performance Indicators GOAL 6.1 – AGRI-FOOD DEVELOPMENT AND TRADE Develop an internationally competitive agri-food sector and support and facilitate trade in agriculture and food products Strategy Performance Indicators Progress 6.1.1 Undertake policy and economic analysis to identify policy options and the most favourable support framework for agriculture, food, rural economy and the natural environment in Ireland (Cross Ref to 3.3) Quality and Number of policy reviews prepared Annual Review and Outlook published in May 2004. Fact Sheet updated regularly and available on website. Compendium up-dated in November 2004 and available on website. 6.1.2 Review the measures in the Agri-Food 2010 Plan of Action Review to be completed by end 2003. The 2010 Committee work was updated by the Agri-Vision 2015 Committee. Economics & Planning Division acted as Secretariat and had the report produced by year-end. Examine Competitiveness Reports and take appropriate action A new report on productivity by Carol Newman and Alan Matthews and a report by Fiona Thorne were finalised in 2004. Share of domestic and export markets Food and drinks exports increased by almost 3% to €7.1 billion. 6.1.3 Develop, consult on and implement appropriate national policies that promote and underpin competitiveness, efficiency and development of the agri-food sector and the rural economy 6.1.4 Promote market orientation, productivity and innovation in agriculture and food Food Division supported Bord Bia activities to develop routes to markets. GVA of agriculture and the food industry The agri-food sector accounted for 8.4% of total merchandise exports in 2004. The estimated GVA of the sector was €11.3 billion in 2004 approximately 9% of GDP at factor cost (CSO). Average farm income Average full-time farm income €29,000 and part-time €6,584 (Teagasc, NFS 2003). Examine Competitiveness Reports and take appropriate action A new report on productivity by Carol Newman and Alan Matthews was finalised during 2004. Funding of Research Projects 20 Irish partners in R&D Projects achieved funding of €2.807 million in the Food Quality and Safety Theme area. Progress on relevant NDP industry indicators as reported to the NDP Monitoring Committees 2004 witnessed satisfactory progress – particularly in the case of on-farm investment, installation aid and forestry. Reports sent to Monitoring Committees on awards and expenditure by Department and Development Agencies. 6.1.5 Support the agri-food industry in its efforts to retain and expand export markets by: a) 68 ensuring that it maintains and enhances its competitive position on world markets Trade volumes to EU and other third country The value of agri-food exports in 2004 was markets and the level of penetration of high almost €7.1 billion (CSO Trade Statistics). values retail markets The EU-15 accounted for 77% of the total trade and was worth approximately €5.5 billion in 2004, an increase of 3.2% from 2003. The UK is the largest market accounting for almost 48% of agri-food exports in 2004. The 10 New Member States and Non-EU countries accounted for approximately 23% of agri-food exports. Annual Report of the Minister for Agriculture and Food Strategy Performance Indicators Progress b) implementation of systems of testing, licensing and certification of product Ratio of EU sales to total sales c) implementation of systems of inspection, registration, licensing and certification in relation to live animals 90% of Beef exports for 2004 were to the EU, compared with 83% in 2003. Irish beef exports were valued at €1.4billion in 2004, which represents an increase of 8% on 2003. d) active liaison with our embassies and An Bord Bia to support and develop sales of Irish food products, and Growth in value added products The value of agri-food exports for 2004 exceeded €7 billion. Secure third country markets open to Irish Processors No markets closed. e) in the context of changing international Growth in volume of prepared consumer trading conditions, actions to resolve foods trading difficulties, and ensure appropriate EU export support f) promote and cultivate a culture of innovation and research in the agrifood industry with an emphasis on value added products 6.1.6 Operate and promote services to ensure high quality standards in food products The value of prepared consumer foods exports is estimated to have increased by 9% to €1.59billion, with exports to Ireland’s largest market for prepared foods, the UK up by 12.6% to nearly €600 million. Maintain appropriate EU export support Special rate of Beef Export Refund still in place for exports of beef to Egypt. Appropriate action taken to open, maintain and secure markets The Algerian market for fresh/chilled beef re-opened in October, 2004 with the prospect of frozen product being allowed in the near future. Veterinary Certification agreed with the Iranian authorities with political agreement outstanding. Number of research projects funded under Irish and EU research Programmes Ongoing payments to 28 RSF projects approved in 2001 and 2002 and to the US/Ireland Co-operation Programme. Implementation of Breeding Programmes During 2004 the Irish Cattle Breeding Federation took a number of further major steps forward in the operation and establishment of a national cattle-breeding infrastructure. These developments will continue to draw together the various sources of breeding data and process the information in one central database. This database will improve the accuracy and scope of the data that can be used in genetic evaluations. Annual results in respect of the Pedigree Sheep Breed Improvement Programme were issued according to the agreed deadlines. Implementation of product quality standards 6.1.7 Encourage and support, in conjunction Number of quality assurance schemes, with other agencies and through partnership products covered and level of participation arrangements between producers, processors and retailers, quality assurance schemes that give additional guarantees to the consumer at home and abroad and allow greater penetration of high value markets Appendix 1.0 5,000 inspections carried out on Fruit & Vegetables, which revealed high level of quality standard compliance. Generic guidelines for quality assurance schemes to EN45011 standard by NSAI at an advanced stage. 69 APPENDIX 1.0 Strategy 70 Performance Indicators Progress The extent of the presence of Irish products on high value EU markets 90% of Beef exports for 2004 were to the EU, compared with 83% in 2003.The UK market accounted for almost 54% (or 264,000 tonnes) of Irish beef exports in 2004 an increase of 4% on 2003. Beef exports to other EU markets were up 7.4% on 2003 to 174,000 tonnes. Change in the supply pattern of Irish beef to meet market demands Supply pattern has changed to reflect market requirements. The fact that payment of the Deseasonalisation Premium has not arisen is evidence of this. 6.1.8 Operate and support services to ensure basic inputs to the agri-food sector are of the highest quality, including crop variety testing, seed certification and testing and animal breeding Comply with target delivery times relating to animal breeding, testing/certification/ approval of seed variety, feed, fertiliser, biocide and pesticides and other support services set out in Customer Service Action Plan 2001-2004 All crop variety testing, seed certification and testing, inspection of feed and feed premises and fertiliser, biocides pesticides and animal breeding control targets met. 6.1.9 Support Teagasc, An Bord Bia, Bord Glas, the National Stud, and the National Milk Agency in the discharge of their statutory functions and ensure effective implementation of their work programmes Annual reports and accounts submitted to Government within required timeframe Annual reports were submitted within the required timeframe. Publication and implementation of Statements of Strategy of Non-Commercial State Sponsored Bodies Statements of Strategy were published and implementation commenced for NonCommercial State Sponsored Bodies. Production of annual business plans Annual business plans were produced. Compliance with Code of Practice for the Governance of State Bodies Code complied with. Annual Report of the Minister for Agriculture and Food GOAL 6.2 – FOOD SAFETY, ANIMAL HEALTH AND WELFARE, PLANT HEALTH Ensure the highest standards of food safety and consumer protection, animal health and welfare and plant health Strategy Performance Indicators Progress 6.2.1 Maintain and develop the most effective food safety monitoring, inspection and control programmes at primary, producer and processing levels to ensure effective implementation of appropriate legislation across all the Department’s areas of operation including zoonoses, veterinary medicines, feedstuffs, plant protection products and other agricultural inputs Number and results of inspections, and actions taken 40 Food Hazard notifications were issued by the Dairy Inspectorate during the year. Number of tests carried out, level of noncompliance A full round of inspections was completed under the Animal Health Inspection for Dairy Cows by 31st December 2004. Levels of residues/contaminants, and actions taken 1,674 samples were taken for salmonella testing in the eggs and poultry sector in 2004 of which 95% were found to be negative. Number of surveillance programmes 3,620 feedingstuffs samples were tested in 2004 for the presence of processed animal proteins. The sampling programme also monitored levels of other undesirable substances in feedingstuffs and assessed compliance with statutory requirements on nutrient composition. 349 minor infringements were detected and warning letters issued. Two serious infringements were detected and the consignments impounded. 399 samples of fertilisers were taken in 2004. From these samples 1,048 nutrients were analysed, of which 87 were non compliant. Warning letters issued in all cases. 2,622 seed lots of certified seed were sampled in post control tests, in 2004. Of these, 30 samples (1.14%) failed to meet the statutory standards. Warning letters issued in each of these cases. Some 1,379 samples of food of plant and animal origin analysed for their pesticide residue content. Each sample was analysed for up to 118 different compounds (pesticides and their metabolites). In addition meat and milk samples were analysed for the contaminant PCB. Some 33 breaches of Maximum Residue Levels (MRLs) were reported resulting in the destruction of consignments of grapes of Indian origin and lettuce of Irish origin. Some 275 inspections of wholesale and retail outlets for plant protection and biocidal products were conducted during the year during which some 136 minor infringements were detected (minor labelling issues). Appendix 1.0 71 Strategy Performance Indicators Progress 11 inspections at farm level were conducted following suspected illegal use of plant protection products. Formal warnings were issued following 8 of the inspections. APPENDIX 1.0 142 Animal Remedy Merchants Licences, 70 Animal Remedy Wholesale licences and 35 licences to manufacture Medicated Feeding Stuff issued following inspection by the veterinary inspectorate. Under the National Residue Plan, in excess of 40,000 samples were taken and tested for a range of banned substances, residues of veterinary medicines and environmental. During 2004, arising from enforcement work, 6 persons/ companies were convicted of offences with fines of almost €15,000 imposed, 1 person sentenced to a term of imprisonment (suspended) and I person received the Probation Act. Progress as indicated in quarterly and annual reports to FSAI All of the quarterly reports for 2004 were returned to the FSAI in categories of work included under the service contract. These are for; Meat Hygiene, Milk and Milk Products, Eggs and Egg Products, Pesticide Control Service, Laboratories from these areas, Border Inspection Posts and National Residue Monitoring Programme. Reports by FSAI and FVO The audits on the Department by the FVO during 2004 did not involve areas of work that come within the FSAI service contract. However, the FVO carried out a mission on the disposal of unfit food and animal by – products. A member of the FSAI’s Audit and Compliance Division observed this mission. The FVO also carried out a fact-finding mission in November, which included interviews with officials from the Department. The FSAI carried out the following audits: Revised Specified Risk Material (SRM) Audit Programme (this was continuous throughout 2004); Audit on Tractability and Recall incorporating beef and poultry labelling (January – February 2004); Audit to determine the current status of the agreed corrective actions arising from the following FVO missions: meat products, meat preparations, minced meat and casings DG (SANCO)/133/3/2001 (24-26th February 2004); eggs and egg products DG (SANCO)/18577/2002 (24th-28th May 2004); residues in live animals and animal products (15th-19th November 2004) and Audit of Compliance with the requirements of the FSAI/DAF Service Contract (This was commenced in September 2004 and will continue through 2005). 72 Annual Report of the Minister for Agriculture and Food Strategy Performance Indicators Progress 6.2.2 Participate in and influence the development of new food safety, animal health and welfare and plant health legislation at international (Codex Alimentarius and OIE) and EU level and in consultation as appropriate with FSAI, FSPB, FVO, EPPO, IPPC and other national and international agencies and progress, on an all-Ireland basis, the development of a strategy on animal and plant health and maintain effective controls at Border Inspection Posts Response to external audit/inspections Responses to both the FVO and the FSAI to these audits were returned within the timeframe given. Meetings attended, reports produced, etc Officials from the North and South continued co-operation on a number of issues including the development of a strategy on animal and plant health. Membership of FSAI Committee on Novel Foods, EPA Committee on GMO’s and All Ireland Steering Committee on Invasive Alien Species. Liaise with State Lab on Nitrate Monitoring. Developments in EU food safety legislation There was a major development in the legislation of food safety issues during 2004 with the publication of what is known as the Hygiene Package. The aim of this legislation is to improve the consistency and effectiveness of controls across the EU and consequently to raise standards of food safety and consumer protection and to facilitate the functioning of the internal market. Further controls were introduced on the import and transit of fresh meat and animal by-products. Legislation on animal health conditions and veterinary certification was also updated. A number of protective measures were introduced during the year to contain the spread of avian influenza. Control measures were also put in place where there were specific food safety concerns, such as contaminants in food, food additives etc. Because of the accession of the ten new member states into the EU in 2004, legislation was amended to assist the movement of food products while maintaining the appropriate food safety controls. Appendix 1.0 Progress in development of an all-Ireland animal health strategy Meetings of the various NSMC policy working groups continued to be held throughout the year and there have been valuable exchanges of data on issues of mutual interest, particularly in relation to cross-border issues. An all-island animal health and welfare strategy is the ultimate objective and this was advanced in 2004. Volume of product rejected resulting from inadequate documentation and food safety concerns The number of consignments of animal products undergoing checks at Border Inspection Posts during 2004 totalled 1158 (compared to 951 for 2003), comprising 488 (food of animal origin) 229 (food of fish origin) and 441 (animal by-products). One consignment of milk products was rejected in this period (12 during 2003). 73 Strategy Performance Indicators Progress In co-operation with the Port and Customs authorities checks are carried out on personal baggage at airports and ports. During 2004 a total of 1,269 confiscations for destruction were made (4,101 during 2003) comprising a total of 4,775kgs of animal products (13,147kgs in 2003). APPENDIX 1.0 In addition 28 non-compliant small commercial consignments comprising a total of 17,929kgs were discovered at airports/ ports where there are no BIP facilities. These were seized for destruction on account of non-compliance with import regulations. (During 2003 a total of 32 consignments weighing 26,700kgs were discovered and destroyed). 6.2.3 Promote and enhance the concept of producer and processor responsibility for the safety and quality of food produced with all stakeholders Number and type of joint actions undertaken with NI counterpart During 2004, the Minister met with Ian Pearson MP, Minister for Agriculture and Rural Development. The Secretary General met with the Permanent Secretary of DARD twice. There were a number of meetings on animal health, plant health and the Single Payment Scheme. Number of reports submitted and decisions implemented There were no reports published during 2004. Number of additional ‘own-checks’/HACCP systems in place 94 approved self monitoring plans in the bovine, ovine, porcine, poultry, and milk sectors in operation during 2004. The Department participates in achieving this goal by encouraging the concept of producer/processor responsibility for quality and safety of food and participation on the board of Bord Bia. Level of client participation in relevant assurance schemes The deadline for application of participants to apply for approval under the National Beef Assurance Scheme was extended to 31 December 2005. Compliance level with regard to regulations 6.2.4 Maintain existing systems of animal/ product identification, labelling and traceback systems and develop new systems to improve the level of information available to consumers about the origins of food on sale in this country including the introduction of a distinct label for Irish food 74 Effective operation of existing systems During 2004 the CMMS database was further enhanced and developed to ensure and improve the accuracy and integrity of data. New systems introduced Two new facilities, an online Herd Profile Enquiry system and an internet facility to register calf births, were provided under the Animal Identification Movement (AIM) and most elements of the tagging module of this system were completed and put into production. Annual Report of the Minister for Agriculture and Food Strategy Performance Indicators Progress The Department, in conjunction with Teagasc, conducted a pilot project of training in Offaly and Clare to assist farmers with fulfilling their obligations in relation to animal identification and registration and database notification requirements. Implement appropriate recommendations of the Food Labelling Group The service contract between the Department and the FSAI was amended to include food labelling. The enforcement of all food labelling legislation is now centralised with the FSAI. New legislation on the labelling of poultry meat was introduced at the beginning of 2004. There were discussions between this Department and the Department of Health and Children on the issue of labelling the origin of meat in the service sector. Development of the ‘Food Ireland’ concept Bord Bia carried out a comprehensive programme of activities in 2004 to promote Irish food and drink under “Ireland the Food Island“ banner. Bord Bia organised Marketplace Ireland 2004 which was very successful in providing international food and drink buyers with targeted opportunities to meet Irish suppliers of new and innovative products. Food products carrying distinct food labels Membership of the Féile Bia scheme which encourages the sourcing and labelling of quality products in the foodservice sector increased in 2004 and there are now some 1,350 outlets participating. NSAI made significant progress with the drawing up of a national standard for quality assured schemes. EU approval was secured for the inclusion of origin and a symbol on the Bord Bia logo for quality assured products. 6.2.5 Promote farm bio-security in the context of disease eradication and implement policies in relation to surveillance and monitoring of other animal diseases such as AD, PRRS, Johne’s Disease and EBL Uptake by farmers of recommended biosafety measures 6.2.6 Support and promote research into food safety Number/scale of projects under the Food Institutional Research Measure Satisfactory. 17 Projects awarded under food safety theme. Joint initiatives with other agencies, e.g. FSAI, FSPB The Department was represented on a number of committees and working groups in the FSAI. These include: Appendix 1.0 Reduced levels of disease During 2004 the Department pursued discussions on possible approaches to tackling Johne’s disease with key interested parties such as Teagasc, Veterinary Ireland, ICBF, the cattle breeding societies, farmer representative bodies, the dairy co-ops and others. Arising from this, the Department drew together the various outputs and identified both short and longer-term imperatives. 75 Strategy Performance Indicators Progress Scientific Committee The Scientific Committee; The Additives, Contaminants and Residues Scientific Subcommittee; The BSE Sub committee and the Microbiological Subcommittee Working Groups Code of Practice, Incidents and Alerts; GMO Guidance Note; Imported Food Controls; Interagency Contaminants Group and the Meat/Beef Labelling working group. APPENDIX 1.0 Surveys Bacteriological safety of eggs produced under Bord Bia Egg Quality Assurance Scheme; Bacteriological safety of cheese made from pasteurised milk. Reports Salt and Health: Review of the Scientific Evidence and Recommendations for Public Policy in Ireland. There were meetings held on many specific aspects relating to food safety. The Department collaborated with the Food Safety Promotion Board (FSPB) and the National Council for Curriculum on the development of a module in the post primary school curriculum on food labelling. This initiative was launched jointly between the Department and the FSPB at the Ploughing Championships in September 2004. There were also two meetings of a high level steering group with representatives of senior management of DAF and FSAI. 6.2.7 Implement and review systems for preventing and dealing with outbreaks of Class A diseases including contingency planning, training, awareness programmes and import controls Maintenance of EU/OIE status Policy operated in relation to swill including licensing system for disposal of International swill. Results of monitoring/surveillance Regular monitoring of the proper disposal of international swill is carried out by Department staff as well as random checks to ensure that swill is not being fed on pig farms. Level of preparedness New harmonised EU pets import control system implemented July 2004. Review of Contingency Plan Manual-Field Simulation 76 Review completed in 2003. Annual Report of the Minister for Agriculture and Food Strategy Performance Indicators Progress 6.2.8 Implement the TSE monitoring and control/eradication programmes with the aim of eliminating BSE and Scrapie from the national herd and address the issues of animal by-products and fallen animals Incidence of BSE in the cattle herd The incidence of BSE declined by almost 31% in 2004. 126 cases were identified and one further herd was depopulated on a precautionary basis after testing positive to a rapid BSE screening test but where it was not possible to obtain definitive confirmation. This compares to 182 cases in 2003. This decline took place against a background of more than 700,000 BSE tests as part of the Department’s active surveillance programme. Incidence of Scrapie in the sheep flock 29 new flocks were identified with the disease in 2004 (37 in 2003). New initiatives adopted A National Genotype Programme for Scrapie established in May 2004. Implementation of control/eradication programmes Depopulation/surveillance measures in place as outlined above. Successful operation of the Fallen Animal Scheme In 2004, a total of 216,260 animals were collected. Payments in 2004 totalled €20.3 million-€8.1 million for collection services and €12.2 million for rendering and destruction services. Achievement of an acceptable means of dealing with meat and bone meal A number of storage plants, intermediate plants and processing plants were approved under the Animal By-Products legislation in 2004. 6.2.9 Intensify the Brucellosis control/ eradication programme in order to make significant progress towards eradication Incidence of Brucellosis in cattle herd The number of Brucellosis reactors fell by 26% on 2003. Implementation of control/eradication programmes 97% of the 124,500 cattle herds tested in 2004. 6.2.10 Improve the TB control/eradication programme including surveillance, inspection and research with the aim of reducing further the incidence leading to eventual eradication Incidence of TB in the cattle herd The number of TB reactors fell by approximately 17% on 2003. Implementation of control/eradication programmes 97% of the 124,500 cattle herds tested in 2004. Progress on wildlife and research aspects The Four Area Study was completed and the report revealed that the removal of badgers resulted in a very significant decline in the incidence of TB in the removal areas both by comparison with the reference areas and between the pre-study and the study period, particularly in the final two years of the latter. 6.2.11 Promote and secure compliance with animal welfare regulations, for production, transport and slaughter Implementation of annual monitoring programmes and resulting actions taken In 2004 the Farm Animal Welfare Advisory Council (FAWAC) introduced an Early Warning/Intervention System for Animal Welfare Cases involving the Department of Agriculture and Food, Irish Farmers Association and the Irish Society for the Prevention of Cruelty of Animals. The objective of this system is to provide a framework within which problems can be spotted before they become critical or overwhelming. Appendix 1.0 77 Strategy Performance Indicators Progress Leaflets entitled “Dealing with Horns of Cattle – Best Practice“ and Posters entitled “Horned Cattle Welfare Guidelines“ were produced in 2004. These contained advice to farmers and others involved in the trade as to what is acceptable from an animal welfare point of view in terms of horns on cattle when they are presented for sale or export. Inspections took place in respect of the welfare of calves, pigs and laying hens and reports were completed in compliance with EU requirements. APPENDIX 1.0 National Transport Register maintained. Under new regulations which came into effect on 1 October 2003 all national hauliers and transporters of live animals for distances of over 50 kilometres must be registered. In total 111 national hauliers and transporters have registered with the Department. Council Regulation (EC) No. 1 of 2005 on the protection of animals during transport and related operations and amending Directives 64/432/EEC and 93/119/EC and Regulation (EC) No 1255/97 was formally adopted on the 22nd December 2004 The new Regulation will restrict the transport of young and pregnant animals, upgrade vehicle standards with better ventilation and watering facilities for the animals, introduce satellite tracing of lorries, compulsory training for drivers and clearly identify who is responsible for what throughout the animals’ journey. Travelling time limits and space allowances for animals on tracks will remain unchanged. Cattle, sheep and goats can be tracked for up to 29 hours under current rules, whilst pigs and horses can be tracked for up to 24 hours. 6.2.12 Provide efficient veterinary, dairy science and pesticide laboratory services for surveillance, diagnosis, research and control purposes Annual Report of Farm Animal Welfare Advisory Council The Farm Animal Welfare Advisory Council will present the Biennial Report to the Minister for 2003/2004 during 2005. Performance on relevant Customer Service Action Plan targets All dairy products were tested within time frame. 5,498 samples of milk and milk products were analysed in accordance with the requirements of Dir 92/46/EEC. Diagnostic services in support of the major eradication schemes and research on diseases was provided by the Veterinary Laboratory Service (VLS). 78 Annual Report of the Minister for Agriculture and Food Strategy Performance Indicators Progress The period taken by the Pesticide Control Service for processing applications for registration of plant protection products was maintained at 2003 levels, while additional systems were put in place for the regulation of biocidal products and the monitoring programme for pesticides residues in food was further expanded. Number of laboratories achieving accreditation ISO 17025 Accreditation maintained in Dairy Science Laboratory Dublin. The Pesticide Control Laboratory has been accredited since December 2000 and has successfully maintained its accreditation status. 6.2.13 Operate an efficient and effective Results obtained and actions taken plant health service including implementation of the annual inspection plan Appendix 1.0 See page 37 of main report. 79 GOAL 6.3 – INTERNATIONAL FRAMEWORK Achieve the optimum framework for the agri-food sector, rural economy and the natural environment at EU and at the wider international level and enhance North/South cooperation Performance Indicators Progress 6.3.1 Negotiate appropriate EU policies that underpin and promote the development of the agri-food sector the rural economy and natural environment and help facilitate the integration of applicant countries joining the EU Outcome of mid term reviews of Agenda 2000. Political agreement on reform of the CAP was reached at Council on 26 June 2003. Legal texts were adopted at Council on 29 September 2003. The agreement represented a successful outcome for Ireland. Outcome of other EU negotiations on market and structural policies Successful outcome to negotiations on legislative proposals presented by the Commission in a number of areas, including the Mediterranean Package and food safety. APPENDIX 1.0 Strategy Participation in discussions on proposals for reform of the sugar regime, rural development policy and financing the CAP. Discussions and decisions on legislative proposals and options presented by the Commission in a number of areas, including reform of feed hygiene, official food and feed controls. Number of cooperation projects engaged in. The Department hosted visits by Ministers and officials from applicant countries and provided guidance, advice and training; several visits to those countries were undertaken at Ministerial and official levels. 6.3.2 Actively defend the interest of the agri-food sector in the current round of multi-lateral trade negotiations under the WTO Outcome for Irish agri-food sector in the WTO negotiations Agreement was reached in Geneva in July 2004 on a framework for the new round. The framework agreement was a satisfactory outcome for Ireland. Participation in further negotiations towards specific commitment levels in Geneva at the WTO Agriculture Committee meeting in Special Session. Ireland’s particular interests are reflected in the EU’s negotiating mandate. 6.3.3 Undertake policy and economic analysis to identify policy options and the most favourable EU and international support framework for agriculture, food, rural economy and natural environment in Ireland (Cross ref to 1.1) Number and quality of policy papers prepared relating to the CAP, WTO and other international issues The proposals for the next EU financial perspective, rural development policy, financing the CAP and outline proposals for reform of the sugar sector were the subject of intensive continuous evaluation and analysis in the context of determining Ireland’s position in Working Group, SCA and the Council of Ministers. An Irish policy paper on WTO/CAP Reform and better communication of the EU position was the basis for the Agriculture Ministers’ debate at the Informal Council meeting in Killarney in May 2004. 80 Annual Report of the Minister for Agriculture and Food Strategy Performance Indicators Progress 6.3.4 Plan and organise an efficient and effective Irish Presidency of the EU Council in 2004 (Cross ref to 6.15) Advance planning and preparation activities A successful Presidency in policy and organisational terms was undertaken. Number of meetings chaired 105 meetings were chaired, including 7 Councils. Number of successful outcomes reached Final agreement was secured on 20 legislative proposals and political agreement reached on 3 other proposals. Number of actions on behalf of the EU in international fora 6.3.5 Actively participate in OECD, CODEX, OIE and other international fora in pursuit of national policy objectives Outcome of negotiations on issues of significance to Ireland The Department acts as the Codex Contact Point for Ireland, co-ordinates Irish involvement in Codex Alimentarius and the Irish Codex Advisory Committee (ICAC) with representatives of relevant Government Departments. The Department and London Counsellor service the International Coffee and Cocoa Councils. Ireland is a member. 4 Meetings of CoAg, APM and JWP attended. 6.3.6 Maintain effective relationships with the EU institutions and other Member States through direct bilateral contact with EU institutions and with other Member States and applicant countries and through our diplomatic officers abroad Outcome of midterm reviews of Agenda 2000, and other policy negotiations and WTO 6.3.7 Participate in Ireland’s development aid effort through our involvement with FAO and WFP and other fora; in particular membership of the WFP executive board, follow up to the World Food Summit and operation of APO/JPO scheme, in close cooperation with Ireland Aid and NGOs Financial contributions to FAO and WFP A comprehensive programme of contacts and consultations contributed effectively to a successful Irish Presidency and to satisfactory outcomes on negotiations on CAP and WTO issues. Arrangements were made for the assignment of a Department representative to Poland for the first time. €1.3 million to FAO (including extra budgetary funds) €5.83 million to WFP (including €1 million for tsunami relief). Participation in WFP executive board meetings in 2003 Input to FAO/WFP and other development fora meetings, reports As EU President, Ireland chaired Brussels and Rome meetings from January-June 2004. Ireland collaborated closely with the Dutch Presidency in the latter half of 2004 in achieving the successful agreement of the Voluntary Guidelines. Acted as EARD-InfoSys Contact Point. ARD Information disseminated regularly. Attended 5 EU meetings on ARD Policy. Implementation of APO/JPO scheme Funding of €480,000 supported the implementation of the Young Professionals Scheme. A further two APO and two JPOs were recruited They will take up their posts in early 2005. Appendix 1.0 81 Strategy Performance Indicators Progress 6.3.8 Actively promote North South Cooperation in the context of the NSMC and implement the agreed work programme in agriculture and otherwise promote north/south cooperation in these sectors Number of North/South (Agriculture Section) Meetings There were no formal meetings of the North/South (Agriculture Section) because of the suspension of the Assembly in October 2002. However meetings were held between officials of this Department and the Department of Agriculture & Rural Development, Northern Ireland covering mutual areas of interest. Number and type of joint actions undertaken with NI counterpart Number of reports submitted and decisions implemented APPENDIX 1.0 Bilateral meetings were held with DARDNI officials in the areas of Crop Variety Testing, Plant Health; Horticulture; Animal Feedingstuffs and GM coexistence. 82 Meeting were also held with the SEUPB and InterTrade Ireland in relation to mushrooms and potatoes. Annual Report of the Minister for Agriculture and Food GOAL 6.4 – RURAL ECONOMY AND ENVIRONMENT Promote the development of the rural economy and of environmentally friendly and sustainable systems of agriculture and food production Strategy Performance Indicators Progress 6.4.1 Promote the maintenance of the maximum number of farm households and ensure that those households can aspire to attractive and sustainable livelihoods Number of farm households 135,300 farm households in 2003 (CSO). Farm household income €29,692 average annual farm household disposable income 1999/2000 (CSO) (see also 6.1.3). 6.4.2 Develop and implement policies, schemes and services that Schemes implemented Rural Environment Protection Scheme (REPS) including REPS 3 which was launched in June 2004, On-Farm Investments Schemes, Installation Aid Scheme and both Schemes of Early Retirement continued to be implemented. Level of expenditure Direct payments to farmers total some €1.6 billion in 2004. Number of participants in Schemes 42,697 participants in REPS at end of 2004. a) help sustain the rural economy b) facilitate structural change, and c) promote the use of communications technology in the farming community 7,906 participants in both Early Retirement Schemes at the end of 2004. 6,595 participants in On-Farm Investment Schemes at the end of 2004. 1,987 participants in Installation Aid Scheme at the end of 2004. Policy initiatives undertaken EU Commission approval obtained to significantly improve the benefits available under REPS. Revised Farm Waste Management and Dairy Hygiene Schemes were implemented at the beginning of 2004 in line with the commitments contained in the 2003 Sustaining Progress Agreement. Expenditure reviews of the Installation Aid Scheme and the Farm Waste Management Scheme were forwarded to the External Evaluators in 2004. 6.4.3 In conjunction with Teagasc, adapt the farmer training programmes to the general developments in the rural economy Appendix 1.0 Promote electronic communication channels where possible Development of electronic communications was ongoing during the year. The eCabinet facility implemented fully by end of year. Development of Teagasc Programmes There is on-going review and development of existing vocational and third level training programmes. During 2004 a pilot course, leading to the Certificate in Agricultural Skills was developed for early school leavers and for people with learning disabilities. This course is run jointly by Kildalton College and Mooncoin Vocational School Co Kilkenny. A new course leading to an Advanced Certificate in Agriculture – Drystock Management – commenced in Gurteen Agricultural college in 2004. 83 Strategy Performance Indicators Progress Numbers of farmers/rural families participating in training/education programmes 599 participants in 3rd level courses. 3,343 participants in Vocational courses. 905 participants in 100 hours and 80 hours courses incl. e-learning. APPENDIX 1.0 8,358 participants in Adult Farming training. 6.4.4 Through the Teagasc Rural Viability Service, implement a Rural Opportunities Programme for Farm Families Number of farm families participating in Teagasc Opportunities Programme By the end of 2004, 11,167 farm families had completed stage 1 of the programme and 6,300 families had completed stage 2 of the programme. 6.4.5 Implementation of Advisory Group Report on Women In Agriculture in association with other Departments Number of recommendations implemented Progress report completed and recommendations implemented as far as practicable. 6.4.6 Contribute to the implementation of the revised National Anti Poverty Strategy in co-operation with the other participants in the Strategy to ensure that the initiatives to combat poverty in rural areas are comprehensive, sustained and successful. Performance against poverty targets for farm and non-farm rural households The Department supports farm income through direct payments which total €1.6 billion in 2004. 6.4.7 Implement the good farming practice standards Level of compliance with good farming practice. High level of compliance with Good Farming Practice. EPA water quality reports See 6.4.14. Progress on delivery of the agricultural commitments agreed by Government A research programme being undertaken continued in 2004 to focus on establishing reliable inventories of greenhouse gas emissions from agriculture and to identify potential actions that could be applied to reduce emissions of methane and nitrous oxide. 6.4.8 Support the delivery of commitments in the agricultural sector related to the Climate Change Strategy, the Gothenburg Protocol and other relevant policies FAPRI-Ireland has projected that greenhouse gas emissions from agriculture, arising from reforms agreed as part of the Luxembourg Agreement in June 2003, will decrease by 2012 to a level 16% below that recorded in 1990. This projected reduction in emissions from agriculture would exceed the targets set down for the sector in the National Climate Change Strategy. 6.4.9 Effective liaison with Teagasc and other institutions to encourage and develop research which will help to underpin sustainable agriculture production practices and protect our rural environment 84 Share of research expenditure targeted at sustainable agriculture In 2004, a wide variety of projects were funded by the Department of Agriculture and Food under the Conservation of Genetic Resources for Food & Agriculture fund. Number of research programmes on sustainable agriculture Membership of Teagasc Education Forum. 6.4.10 Ensure the promotion of sustainable farming practices through Number of participants on REPS courses 4,687 participants in Teagasc REPS training courses in 2004. a) Number of participants in Teagasc courses for farm entrants 4,137 participants in Teagasc young entrant training programmes in 2004. Information and training programmes Annual Report of the Minister for Agriculture and Food Strategy Performance Indicators Progress b) Number of new and revised specifications and standards 11 Number of consultations with field staff, planners etc on-going issues Approximately 10 per week. 6.4.11 Implement measures specifically supporting environmentally friendly farming including: Review of REPS Scheme in 2003 Achieved Number of farmers grant aided for waste management and capacity 5,034 farmers at the end of 2004. 0.557m3 approx. at the end of 2004. a) Farm waste management b) Rural Environment Protection Scheme (REPS) Number of participants in REPS and land areas involved 42,697 participants. 1,502,026 ha. Number of REPS participants availing of organic support measures and land areas involved 518 participants 17,500 Ha Number of organic farmers and processors grant aided 20 Regularly updating designs and standards (including environmental landscape and storage) for all grant aided structures c) Organic farmers supported through REPS d) Commonage Framework Plans e) Scheme of grant aid for the development of the Organic Sector Increase in waste storage capacity Outturn at the end of 2004 – 0.557m3 approx. f) Promotion of Farm Safety EPA water quality reports See 6.4.14 Reports on Farm Safety The Department contributed positively to the work of the Farm Safety Partnership Advisory Committee and nominated a Department representative to it. This committee reports to the Board of the Health and Safety Authority. The HSA publishes a report annually. It is envisaged that the Department will make contributions to this committee again in 2005. 6.4.12 Implement provisions of the Organic Action Plan Number of actions implemented 8 Target land area converted to organic production by 2006 Under review. 6.4.13 Enhance the contribution of horticulture to the economy Increase in horticultural production Horticultural production remained stable in 2004. Support for Horticulture Scheme of Investment Aid in the Commercial Horticulture Sector under the NDP. €3.12 million was paid under this scheme in 2004. Scheme of Grant Aid to Producer Organisation under the Common Organisation of the Market for Fruit and Vegetables. €5.59 million was paid under this scheme in 2004. Ongoing promotion of mushroom consumption. The budget includes 50% EU funding and 50% national funding. Appendix 1.0 Number of Quality Assurances schemes in operation There were seven Quality Assurance Schemes operated by An Bord Bia and one pilot scheme in operation in 2004. Number of participants in Quality Assurance Schemes There were 614 participants in Quality Assurance Schemes operated by An Bord Bia at the end of 2004. 85 Performance Indicators Progress 6.4.14 Maintain effective cooperation with the Department of Environment and Local Government and other relevant Departments and agencies in dealing with agri- environmental matters, including EU environmental legislation and the development of existing emergency planning arrangements EPA water quality Reports The EPA’s “Quality of Drinking Water“ report for 2003 shows an overall compliance rate of 96.1% in relation to 53 parameters. However, private group water schemes achieved a compliance rate of just 74.9% in relation to faecal coliforms. APPENDIX 1.0 Strategy The Phosphorus Regulations National Implementation Report, 2003 presents an overview of existing river and lake water quality in each local authority area. The report shows that 62% of river monitoring stations and 64% of lakes, for which information is available, are compliant with the regulations. NMPs on non REPs farms 2,500 NMPs. Increase in waste storage capacity Outturn at the end of 2004-0.557m3 approx. Improvements in water quality The EPA’s “Quality of Drinking Water“ report for 2003 reported a slight increase in water quality in 2003 as compared with 2002, including an increase in compliance with faecal coliform standards. Level of use of nitrogen and phosphorous Both nitrogen and phosphorus use decreased in 2003/04 to 362,525 tonnes and 42,661 tonnes respectively. Participation on interdepartmental committees Participation in inter-departmental committee established to implement the National Biodiversity Plan. Consultation with Departments and environmental agencies Participation in the National Platform for Biodiversity Research. There was ongoing liaison with the Department of the Environment and the EPA concerning matters of mutual interest arising from the implementation of Regulation 1774/2002 in Ireland and the implications for the application of waste legislation. A working group has been established between the Department of Agriculture and Food and Environment Infrastructure and Services Division, Department of the Environment, Heritage and Local Government to facilitate that Department in meeting targets on diversion of biodegradable waste set out in the Landfill Directive. 6.4.15 Develop measures to ensure the survival and appropriate use of plant and animal genetic resources for food and agriculture 86 Regular updates of emergency planning arrangements to be completed Regular updates completed. Department actively participated in office of Emergency Planning activities. The timely production of the national report on animal genetic resources National Plant and Animal Genetic Resource Grant Scheme operated effectively and efficiently. Annual Report of the Minister for Agriculture and Food GOAL 6.5 – SCHEME DELIVERY AND FINANCIAL MANAGEMENT Operate all our schemes and programmes in an efficient and effective manner, and ensure the highest standards of corporate and financial management and accountability in all our activities Strategy Performance Indicators Progress 6.5.1 Ensure the highest possible level of service in the delivery of CAP and national support schemes, including premia and grant schemes and measures under the National Development Plan in accordance with the principles and targets set out in the Customer Service Action Plan Performance on established deadlines, procedures and protocols including the Protocol on Direct Payments to Farmers and the targets in the Customer Service Action Plan See Appendix 2. Percentage of applicants approved and paid See Appendix 2. 6.5.2 Improve information flows and awareness of Department activities and scheme requirements by continuing to liaise with client groups and state agencies and maintaining strong communications between operational and policy areas of the Department and to examine in consultation with the farming organisations, issues relating to simplifying, where possible, application and processing procedures Number of publications and public meetings The Department with the Food Safety Authority published booklets for the trade and the public on juices and jams. Policy briefing for management Regular briefings provided. Regular updates of the Department’s website to ensure that the most up-to-date information on schemes is available at all times Website updated regularly. Level of customer satisfaction with application and processing procedures 5 Focus Group meetings held in relation to revision of Customer Service Action Plan. 6.5.3 Operate to the highest standards of financial management, both centrally and at scheme level, and ensure full compliance with EU and national financial requirements (financial reporting, maintenance of accounting and transaction details, audit requirements, irregularity reporting and recovery etc), including those relating to accreditation as a FEOGA paying agency and to EU Structural Funds Audit reports by Internal Audit Unit, C&AG, FEOGA certifying body, European Commission and the EU Court of Auditors. Prompt follow up on EU audit findings. No major or intermediate findings by the Certifying Body. 6.5.4 Operate the most effective physical and other controls, using risk management techniques, to ensure full compliance with related EU and national requirements and prevent and detect irregularities and fraud 20 Internal Audit Reports issued during the year. Accreditation status as FEOGA paying agency Department’s EU Accreditation status retained. PAC and Audit Committee reports Audit Committee’s Annual Report issued in March 2004. Number and scale of disallowances by European Commission Since 1994 to date, Ireland has the third lowest level of disallowance in the EU. Audit reports by Internal Audit Unit, C&AG, FEOGA certifying body, European Commission and the EU Court of Auditors. Satisfactory progress. No significant adverse findings. Accreditation status as FEOGA paying agency See 6.5.3 above. PAC and Audit Committee reports See 6.5.3 above. Number and scale of irregularities and frauds See 6.5.3 above. 6.5.5 Further enhance the efficiency and effectiveness of accounting and payment procedures through the development of the Department’s accounts system and wider use of electronic payments Implementation of phase 2 of SAP accounts system Achieved. Percentage of clients and staff paid electronically 33% of farmers, 85% of suppliers and 86% of staff being paid electronically by the end of 2004. 6.5.6 Identify the key risks facing the Department, and ensure optimum controls are in place and risk ownership clearly defined, through the implementation of a comprehensive enterprise risk management programme Publication of risk management policy in early 2003. Achieved. Implementation of risk management programme throughout DAF by end 2003 A Revised Risk Management Programme was agreed in 2004 and will be implemented during 2005. Quarterly reports to (internal) Risk Management Committee and (external) Audit Committee. Quarterly reports provided for both Risk Management and Audit Committees. Appendix 1.0 87 APPENDIX 1.0 Strategy Performance Indicators Progress 6.5.7 Build upon the investment in our accounts system by further developing our financial information systems as part of the implementation of a comprehensive Management Information Framework Costs centre based financial reports to be produced in 2003 In excess of 1,000 staff access the system on an ongoing basis. Outcome of DAF’s participation in pilot project on integration of financial management and business planning The Department commenced the first phase of its MIF training in 2004 with detailed training delivery on the Financial Framework, Accrual Accounting and SAP. This training will continue in 2005. 6.5.8 Conduct a full programme of EU scrutiny audit, Structural Funds Audit and internal audit, including IT audit, in accordance with best practice and as agreed in multi-annual and annual plans Quarterly and annual reports on audit performance to MAC and Audit Committee Quarterly and Annual Reports submitted to MAC and Audit Committee. Number of audit reports completed and, of major recommendations implemented 20 internal audit reports completed and all of the 2003/04 EU scrutiny programme completed. 6.5.9 Undertake regular evaluations of key spending areas through the expenditure review programme and the mid-term evaluation of the NDP and CAP rural development plan measures Number of expenditure reviews and evaluations completed Systematic follow-up process in place to ensure that all major internal audit findings are, or will be, implemented. During 2004, external evaluators were appointed to assess the quality of seven programme expenditure reviews being undertaken under the Expenditure Review Initiative (ERI), i.e. Beef Classification, Purchase for Destruction Scheme, Installation Aid Scheme, Potato Sector, Overseas Development Assistance, Early Retirement Scheme and Farm Waste Management Scheme. Of these, three reviews were finalised and made available on the Department of Agriculture and Food website: Purchase for Destruction Scheme, Potato Sector and Overseas Development Aid (ODA). The other four reviews are expected to be published in 2005. Work was commenced on two further reviews under the ERI. The Department also initiated a review in one other operational area. 6.5.10 Examine, in conjunction with the EU Commission, in the context of the midterm review of the CAP Rural Development Plan, the possibility of extending the disadvantaged areas classification to the whole BMW Region Reports presented to MAC and to CAP rural development and regional monitoring committees No reports presented in 2004 (reports were presented in 2003). Progress in relation to mid-term review of CAP Rural Development Plan EU Commission approval obtained to significantly improve the benefits available under REPS in line with commitments contained in the Sustaining Progress Agreement. Revised Farm Waste Management and Dairy Hygiene Schemes were implemented at the beginning of 2004 in line with the commitments contained in the 2003 Sustaining Progress Agreement. % of country classified as Disadvantaged % of BMW areas classified as Disadvantaged 88 The EU Commission remained reluctant to increase disadvantaged areas. The classification of such areas is a main issue under the new Rural Development proposal for the 2007 to 2013 period. This proposal is still under discussion. Annual Report of the Minister for Agriculture and Food GOAL 6.6 – OPERATIONAL CAPABILITIES Develop our human and physical resources, our operational capabilities and ensure the delivery of quality service to our customers, both internal and external Strategy Performance Indicators Progress 6.6.1 Implement the Human Resources Strategy and the Department’s Training Programme Ongoing satisfactory implementation of the HR Programmes contained in the HR Strategy 90% of Role Profiles completed within defined time frame. Implementation programme for HR Strategy to be drawn up and issues to be dealt with prioritised The implementation programme has been produced and progress made in implementing the specific actions identified. Number of training days and action taken on feed back 16,016 training days. HR practices implemented Monitoring and implementation continued during 2004. 6.6.2 Continue to monitor and implement human resource regulations and schemes In accordance with regulations 100% Partnership structure in place and extended if possible. In line with quality standards defined in our Customer Service Action Plan 6.6.3 Install and implement a computerised Human Resource Management System to facilitate the implementation of strategic HR policies System installed and fully operational by May 2003 Achieved in 2003. 6.6.4 Review current HR strategies in the light of the results from the Employee Survey Results and analysis of survey disseminated Completed in 2003. 6.6.5 Achieve gender equality for all staff Female participation targets achieved by 2005. Key areas of concern/interest selected and specific strategies developed to deal with issues Progress continues to be made in meeting the Department’s goal to have equality as an uncontested principle in all aspects of the work of the Department; Grade AP VI/RO AI 31% 18% 13% Target Representation by 2005 33% 20% 10% Current female Representation 6.6.6 Implement Customer Service Action Plan 2001-2004 Meet targets set in Customer Service Action Plan Action Points implemented 6.6.7 Examine policy and operational areas of Department and report on possible improvements in structure (staffing and processes) MSD surveys, projects or other reviews undertaken ■ Satisfactory progress on implementation of 2003 Report on review of Local Offices ■ Reviews completed on Schemes and Services of 6 Divisions and 2 further reviews commenced ■ Report on management framework for new structure of Department’s laboratories completed. Appendix 1.0 See Appendix 2 for service delivery achievements. 89 Strategy Performance Indicators Progress Progress on standardisation, improvement and, where appropriate, certification to international standards accreditation models of work systems, processes and procedures Veterinary Medicines Section in Maynooth and Beef Export Refunds Division in Wexford are accredited to the quality standard ISO 9001:2000. Livestock Breeding Section continue to progress towards achieving Accreditation to ISO 9001:2000 Standard. APPENDIX 1.0 It is planned to extend the system to a number of Divisions where appropriate. 6.6.8 Deal efficiently with requests for information under FOI Act and Ombudsman’s queries Meet statutory deadlines on FOI and Ombudsman’s queries Statutory deadlines met. 6.6.9 Further develop internal and external communications to improve awareness of activities and schemes carried out by the Department Number and range of publications/press releases/press briefings 25 Publications; 198 Press Releases. Regular updates of Department’s website Website updated regularly. 6.6.10 Further develop the Legal Services Division with a view to providing a dedicated legal advisory service to all divisions in the Department and in cooperation with other State legal agencies, to manage more effectively the prosecution and defence of litigation involving the Department Timely provision of accurate opinions and legal advice to the divisions in the Department A significant number of legal opinions, general advices, draft and engrossed agreements, documents and letters were provided in 2004 by the Legal Services Division to line divisions. Timely and effective completion of all litigation involving the Department More detailed involvement in litigation by the preparation and provision of detailed case papers to the CSSO in litigation involving the Department. Attendance at many consultations and court hearings. The introduction of required primary and secondary legislation in a timely fashion Over 50 Statutory Instruments were prepared by the Legal Services Division and many other contributions made to line divisions. Ongoing assistance was given to the introduction of 4 primary pieces of legislation. Surveys from divisions having received advice to identify areas requiring specific legal services Ongoing discussion with line divisions regarding the type and level of legal assistance required for best results. Minimal downtime Downtime within 1% limit and 1-day recovery achieved. Procedures in place for timely restoration of service in the event of interruption. No successful hacking attempts in 2004 as a result of security and maintenance measures in place. IT Security policy in place Achieved. Protections in place to minimise to exposure to viruses, and procedures for regular/ constant update of these protection methods Achieved. Appropriate procedures in place to carry out efficient clean up and recovery tasks where viruses penetrate our infrastructure Achieved. Maintain appropriate monitoring of our security Achieved. IT and Internet usage policy in place Achieved. IT Disaster Recovery plans in place and tested Achieved. Appropriate physical security of IT facilities in place Achieved. 6.6.11 Provide a high quality stable IT Infrastructure to support the Department’s operations. 90 Annual Report of the Minister for Agriculture and Food Strategy Performance Indicators Progress 6.6.12 Deliver the strategic systems identified in the IT strategy including improvements to existing systems that support our core business Meet the protocol and EU/National deadlines All Headage & Area Aid Payment deadlines met. CCS rolled out countrywide in 2004. 2 further modules of AIM delivered in April and November 2004. Under SPS, provisional entitlements to farmers issued in September 2004. NGP Laboratory module rolled out in June 2004. AHCS rolled out to 19 offices in 2004. Intervention System EFA reporting delivered in September 2004. Two maintenance releases of Express (Export Refunds) in 2004. 6.6.13 Participate with business users in developing future service delivery models Service delivery models produced and reviewed eGovernment Strategy and facilities in place. 6.6.14 Progress the transition of the Department’s operations towards eGovernment Department’s strategy updated and reviewed Continued QA and monitoring through eGovernment Assistant Secretary Group and the IT Steering committee. eGovernment opportunities identified and prioritised by eGovernment Steering Group Opportunities identified and implemented thus far include the facilities provided to herd keepers to enable them to register the births of bovine animals and to view their herd profiles online, as well as various initiatives utilising mobile technologies that increased internal productivity. This is an ongoing process. Implement secure environment for systems with external Internet access Achieved. Appropriate supports identified Requirements of Department staff analysed and appropriate support delivered. Technologies to provide such supports selected Supported use of Wireless Technology and mobile computing for users during Presidency. Implementation planned and executed Achieved. Technologies tested to ensure smooth running during Presidency Achieved. 6.6.16 Improve internal administration (policy formulation) through expanded use of the internet Internet access available to all staff by 2003 Achieved. 6.6.17 Provide a high quality service to the Minister and Ministers of State including appropriate briefing, advice, material for PQ answers and speeches Number of PQs, speeches, and briefings prepared 1,494 PQs replied to and all speech/briefing requests met. 6.6.15 Provide appropriate technologies and support for the Departments activities during the EU Presidency (Cross ref to 3.4) Appendix 1.0 Facilities will require continuous upgrade. Ongoing maintenance and upgrading of the environment will continue over the coming years. 91 Strategy Performance Indicators Progress 6.6.18 Enhance the development of strategic planning within Divisions and the Department Business Plans in place for 2003, 2004, 2005 Business Planning process, including PMDS, in place in all 64 Divisions. Analysis of Business Plans Analysis of Business Planning process undertaken and feedback given to HODs. Meetings of SMI Co-ordination Group Meetings held as required. PMDS undertaken See Business Plans above. Staff training 282 employees completed their PMDS training in 2004 and training on the Upward Feedback element of PMDS was also completed with 2,200 staff. APPENDIX 1.0 Division meetings 6.6.19 Maintain existing consultation mechanisms and establish, where required, new mechanisms to ensure informed, effective policy formulation and decision making in relation to cross Departmental issues Meetings held 6.6.20 Implementation and monitoring of Programme for Government and the commitments that might be entered into by the Government and the Social Partners in “Sustaining Progress“ Delivery of commitments The Department was represented on approximately ninety interdepartmental committees/bodies during 2004. Flow of information Implementation of Cross Departmental policy See Appendix 3 also. Satisfactory reports from CSPVG on delivery of commitments under the modernisation agenda of SP. Positive feedback from Taoiseach’s Department with regard to implementation of commitments in PfG. 4 Progress Reports submitted in 2004 on the implementation of the commitments in the Agricultural Chapter of Sustaining Progress. Completion of Mid Term Review of Agriculture Chapter, key mechanisms of which were 2 bilateral meetings with the farming pillar. 92 Annual Report of the Minister for Agriculture and Food Appendix 1.0 93 APPENDIX 2.0 Customer Service Action Plan PAYMENT OR DECISION TARGETS IMPORTANT NOTE: TARGET DELIVERY TIMES ARE SUBJECT TO ALL DOCUMENTATION AND OTHER REQUIREMENTS BEING CORRECT AT TIME OF APPLICATION. Schemes of Direct Payments to Farmers Service Target Delivery Time 2004 Performance Suckler Cow Premium Advance payments of 60% will commence on 16 October of the year of application as provided for in EU rules. Payment of 60% advances commenced on 16 October and some €140 million had been paid to 96% of all applicants by 31 December 2004. Where the retention period is completed by 16 October all eligible advance payments will be made by 1 December. In other eligible cases such advance payments will be made within 30 days of the end of the retention period. Balancing payments under the 2003 scheme commenced on 23 March 2004. Payments in all eligible cases were completed by 30 June 2003 in accordance with EU Rules. Balancing payment will be made in March/ April of the following year in respect of clear cases. Payment in all other cases subsequently found eligible will be made by 30 June in line with EU rules. Special Beef Premium Advance payments of 60% will commence on 16 October of the year of application as provided for in EU rules. Where retention period is completed by 16 October all eligible advance payments will be made by 1 December. In other eligible cases such advance payments will be made within 30 days of the end of the retention period. Payment of 60% advances commenced on 16 October and in excess of €108 million has been paid in respect of 97% of January to October applications. Balancing payments under the 2004 scheme will commence in April 2005. Payments in all eligible cases will be completed by 30 June 2005 in line with the EU deadline for payments. Balancing payments will commence in the following year when the quota usage for the year of application is determined. Payment in all eligible cases will be made by 30 June in line with EU rules. In the event of a likely quota over-run consideration will be given to the issue of a second advance payment. 94 Ewe Premium Payment of Ewe Premium including Rural World Premium will commence on 16 October of the year of application as provided in the EU Rules. Payments of full premium commenced on 16 October 2004 and almost €101 million has been paid to 97% of applicants. New Slaughter Premium (including National Envelope) Advance payments of 60% will commence on 16 October of the year in which eligibility is established, as provided for in EU rules. Balancing payment will commence in the following year when the quota usage for the year of application is determined. Payment in all eligible cases will be made by 30th June in line with EU rules. Payment of 60% advances commenced on 16 October and in excess of €85 million issued in respect of eligible animals slaughtered/exported in the period January to November 2004. Annual Report of the Minister for Agriculture and Food Service Target Delivery Time 2004 Performance National Envelope advances of almost €5.2 million. has also issued. Balancing payments under the 2004 scheme will commence in April 2005 when the Quota usage for 2004 is established. All eligible cases were paid their entitlement by 30 June 2005 as per EU Rules. Deseasonalisation Slaughter Premium (when triggered) Payment will be made within 60 days of application. No Scheme in 2004. Extensification Premium Scheme All payments will be made in June of the year following the year for which eligibility is established. Payments under the 2003 scheme commenced on 10 June 2004 and by 30 June 2004 all applicants found eligible had been paid over €153 million. Dairy Premium Full payment will commence on 16th October of the year of applications as provided for in EU rules. Payment of 100% commenced on 16 October and in excess of €60.5 million has been paid to 97% of all applicants. Arable Aid Payment in eligible cases will be made in the first payment run which will commence on 16 November. In cases where there are still outstanding problems with the application, payment will, as provided for in EU rules, be made by 31 January provided that the applicant has responded to any queries from the Area Aid Unit and that the response is sufficient to clear all outstanding difficulties. On 16 November 2004, over €121 million was paid to 97% of all applicants. By the year’s end €128 million had been paid to 98% of all applicants. Disadvantaged Area Compensatory Allowances Agreement was reached with the farming organisations that payments in all eligible cases would commence on 21st September of the year of application with a view to having all payments made by 1st December. Payments under the Disadvantaged Areas Compensatory Allowances Scheme commenced on 17 September 2004 and over €232 million was paid to 97% of applicants by 31 December 2004. Early Retirement Scheme # Processing of valid application to scheduling for payment stage: 99% within target Rural Environment Protection Scheme ■ Application for admission to scheme # Appendix 2.0 ■ Applications not selected for prepayment inspection within 10 weeks* ■ Application selected for pre-payment inspection within 12 weeks* ■ Issue of payment following approval within 6 weeks* ■ Payments monthly thereafter for duration of pension period. Processing of valid application to scheduling for payment: ■ Applications not selected for prepayment inspection within 12 weeks* 88% ■ Applications selected for pre-payment inspection within 14 weeks* 74% ■ Issuing of payment following approval within 1 month 100% 95 Service ■ Application for annual payment ø APPENDIX 2.0 Farm Waste Management Scheme # Dairy Hygiene Scheme # Alternative Enterprise Scheme # Installation Aid # Target Delivery Time 2004 Performance ■ Processing of valid application to scheduling for payment within 10 weeks* 77% ■ Issue of payment following approval within 1 month 100% ■ Issue of approval following receipt of valid application within 3 months* 99% ■ Approval for payment following receipt of notice of completion of works and valid supporting documents within 3 months* ■ Issue of payment following approval for payment within 6 weeks* ■ Issue of approval following receipt of valid application within 3 months* ■ Approval for payment following receipt of notice of completion of works and valid supporting documents within 3 months* ■ Issue of payment following approval for payment within 6 weeks* ■ Issue of approval following receipt of valid application within 3 months* ■ Approval for payment following receipt of notice of completion of works and valid supporting documents within 3 months* ■ Issue of payment following approval for payment within 6 weeks* Processing of valid application to scheduling for payment stage: ■ Applications not selected for pre-payment inspection within 10 weeks* ■ Applications selected for pre-payment inspection within 12 weeks* ■ Issue of payment following approval within 6 weeks* 100% 100% 100% # In the case of schemes the applicant will be notified when his/her application has been approved for payment and of the amount due. ø All REPS participants receive advance payments. In the case of annual payments, payments will not be delayed pending inspections. Where an inspection takes place after the annual payment has been made, in the event of a penalty arising the penalty will be recovered from the following year’s annual payment. Where the inspection takes place in the final year any money to be recovered will be deducted from payments due to the participant under other schemes. * To apply from commencement of new schemes 96 Annual Report of the Minister for Agriculture and Food Disease Eradication Schemes/Disease Control Service Target Delivery Time 2004 Performances Compensation – Bovine TB and Brucellosis eradication schemes TB and Brucellosis compensation will be paid within 2-4 weeks of the date of receipt of the required documentation. Reactor Grant, Valuation compensation payments made in 2004 indicates that 84% of payments were made within 4 weeks of receipt of all the required documentation and 96% were made within 8 weeks. Income Supplement, Depopulation and Hardship Grant payments made in 2004 indicates that almost 78% were paid within 4 weeks of receipt of the required documentation and over 93% were made within 8 weeks. BSE Depopulation Payment will be made within 4 weeks of receipt of necessary documentation. Herd Payments – 100% Cohort & Progeny Payments – 90.62% Intervention Schemes Scheme Target for Payment 2004 Performance Purchase of butter into intervention 45 days 97% Purchase of SMP into intervention 120 days 98% Purchase of barley into intervention 30 days No purchases in 2004 Purchase of beef into intervention 45 days No purchases in 2004 Target Delivery Time 2004 Performance 2 months 100% Export refunds for processed products 60 days 90% Export refunds for dairy products 60 days 85% Export refunds for pigmeat and cereals 60 days 88% 5 days 100% Export Refunds Scheme Export refunds for beef Issue of import/export licences Appendix 2.0 97 APPENDIX 3.0 Programme for Government Commitments Progress is outlined below in relation to the commitments contained under the Programme for Government 2002-2007. The relevant strategies (in the NEW Statement of Strategy 2005-2007) that align this Department’s priorities with those of the Government are also specified. All commitments contained in the Programme have been met or are ongoing commitments that are being met. No. Commitment Relevant Strategies Status & Progress to Date 1 We will maintain the Government and diplomatic offensive to improve world access and the opening of markets. 1.6 COMMITMENT IS BEING MET: We are continuing with the top-level campaign to improve and expand world market access. In relation to beef, the initiative to regain international access has been very successful. All restrictions on trade with Russia have been removed. The Egyptian and Algerian markets have been opened to Irish Beef and efforts are continuing in relation to the Gulf States. 2 We will broaden the scope of agricultural education, anticipating that in some cases, farming may be combined with other occupations 3.5 COMMITMENTS ARE BEING MET: 1.8 And 3.1 Teagasc has operated distance-learning programmes on a pilot basis during the past year and a pilot e-learning programme is now being undertaken. A number of Vocational Certificate in Agriculture students are being taught part of their programme through e-learning. Improved IT has facilitated the provision of 3rd level courses to the Agricultural colleges. We will ensure that courses are delivered in a flexible manner suited to potential participants involving increased use of approaches such as night courses and distance learning. In 2005 it is planned to extend the range of courses delivered to include food training and horticulture. And We will seek to develop the agricultural colleges as wider rural development resources. 3 4 98 ACHIEVED: Teagasc and private colleges are used extensively by the Teagasc Advisory and Research Services, other outside agencies and local community groups. We will provide through Teagasc a dedicated service which will help part-time and transitional farmers use their capabilities and time to better advantage and efficiency and, where necessary, to diversify their income through appropriate training through an Opportunities Programme. 3.5 We will implement the recommendations of the Advisory Group on the role of Women in Agriculture. 3.8 ACHIEVED: The ‘Planning Post Fischler’ Programme (formerly the Opportunities Programme) focuses on assisting farmers adjust their farm and family situation post-decoupling. Teagasc is now running night and weekend courses to facilitate the work patterns of part-time farmers. Teagasc is also running the three year Vocational Certificate in Agriculture programme at times suitable for part-time farmers in 11 counties. Over 10,000 adult farmers participate in Teagasc adult farmer training programmes each year with the majority of courses held at night. COMMITMENT IS BEING MET: Significant progress has been made. The recommendations have been fully considered and have been implemented insofar as possible. Annual Report of the Minister for Agriculture and Food No. Commitment Relevant Strategies Status & Progress to Date 5 We will work to protect the fundamental principles of the CAP in the EU enlargement negotiations. As necessary, we will also support measures such as adequate EU finances, in order to ensure the smooth integration of the agriculture of the application countries of Central and Eastern Europe joining the European Union, while preparing to take advantage of new market opportunities. 1.1 COMMITMENT IS BEING MET: The accession of 10 new Member States took place on I May 2004 and negotiations on the ‘agriculture chapter’ were concluded with Bulgaria and Romania in June 2004 without any adjustment to the fundamental principles of the CAP. The European Council in October 2002 decided on the budget allocations for the CAP for the EU 25 (market supports and direct payments) to the period 2013. The Department is satisfied with the funding provided for the period to 2006 and from 2007 to 2013, the period of the next Financial Perspective, although careful management of the budget will be required in this period to ensure that expenditure remains within the ceilings set. Agreement was reached in June 2003 on the Midterm Review of the CAP and in August 2004 on the framework for a new WTO agreement, both of which will ensure that the benefits of the Agenda 2000 Agreement to Irish agriculture and rural communities will be safeguarded. The Department will monitor closely, and participate in, the negotiations on the next Financial Perspective and the new WTO agreement to ensure that the interests of Irish agriculture are represented and protected. 6 We will continue to promote the highest standards of food safety and foster a culture of innovation, quality and excellence in the food industry. 2.1-2.9 inclusive 1.4-1.8 inclusive COMMITMENT IS BEING MET: To ensure that food at all stages in the food chain is produced to the highest possible standards of safety, an extensive monitoring, surveillance and inspection programme is in place. We established a Food Labelling Group to address consumer concerns on labelling and origin of foodstuffs and are ensuring, as far as possible, that it’s recommendations have been implemented. A strategic report for development of the Dairy Industry has been published. A series of actions has begun, aimed at advancing the implementation of the Prospectus recommendations. We have placed increased emphasis on the necessity for a more competitive agri-food sector. In this regard, a number of reports were commissioned: A further €17 million was approved in September 2004 for 36 food research projects under the Food Institutional Research Programme bringing cumulative NDP approvals to €55 million. Bord Glas was merged with Bord Bia on 1 July 2004 to further consolidate market developments initiatives. Appendix 3.0 99 No. Commitment 7 We will continue to pursue actions through the EU to 2.2 ensure that the same high standards apply to imported foods as to domestic products. COMMITMENT IS BEING MET: We will seek to improve the level of information available to consumers about the origins of the food on sale in this country through initiatives such as the introduction of a distinct green label for Irish food. COMMITMENT IS BEING MET: 2.3 Status & Progress to Date Current EU requirements on food imports are that such imports must reach standards equivalent to those in the EU. Vigilance is maintained to ensure that this position is maintained where amendments to regulations are proposed The National Beef Assurance Scheme, operated by the Department, aims to further guarantee the safety of beef and beef products through the implementation of an effective animal identification and tracing system. APPENDIX 3.0 8 Relevant Strategies The continued growth in the membership of quality assured schemes is being promoted by Bord Bia. Considerable progress has been made in implementing the recommendations of the Food Labelling Group. In relation to the two central recommendations of the Group the position is that enforcement of the food labeling legislation has been centralised in the FSAI and new regulations on origin have been introduced for poultry meat. Many of the other recommendations have been fully implemented or are in the process of being implemented. 9 We will encourage the food industry to build long-term relationships in premium export markets with a strong emphasis on growth in value-added products and We will encourage the Irish beef industry, in particular, to make the development of sustainable EU markets its over-riding priority with the twin objectives of gaining greater stability and closing the gap between Irish and European prices. The key to making this happen is the building of an integrated supply chain through partnership arrangements between producers, processors and retailers, underpinned by the National Beef Assurance Scheme and industry quality schemes in product promotions 1.4 COMMITMENT IS BEING MET: 1.6 An Bord Bia is spearheading a drive to achieve increased penetration of the higher value-added EU markets on a longer term basis. The value of Irish agri- food and drinks exports to the EU has grown in recent years and amounted to €5,500 million or 77% of the total exports in 2004 while exports to third countries amounted to €1,596 million or 23% of the total. Throughout the 1990s, the beef industry exported approximately 50% of its products into nonEU markets. In 2003, this share dropped to just 17% (in volume) while the share to the high priced EU markets has increased proportionately. 1.7 Irish cattle prices continue to be strong and the gap between Irish producer prices and those in the EU are narrowing. The prepared consumer foods sector has shown remarkable growth with total sales increasing from €0.949 billion to €2.63 billion between 1993 and 2002. Exports alone are estimated to have increased by 9% in 2004 to reach €1.59 billion, of which the UK accounted for nearly €600 million. 10 100 We will promote the preservation of the environment through good farming practice supported by grants and special tax incentives to assist on-farm investment and careful waste management. We will seek to ensure that supports are available to all farmers. 3.6 ACHIEVED: The new broad based Farm Nutrient Management Scheme came into force in January 2004. The success of the scheme to date is shown by the fact that applications under the Farm Nutrient Scheme have increased in the first six months of 2004 by 96% compared to the same period in 2003. In the case of the Dairy Hygiene Scheme, the increase is 240%. Annual Report of the Minister for Agriculture and Food No. Commitment Relevant Strategies Status & Progress to Date Since its introduction in 2001, expenditure on the Farm Nutrient Management Scheme has amounted to €43.473 million (end-September 2004). Expenditure on the Dairy Hygiene Scheme over the same period totalled €6.44 million. The accelerated rate of capital allowances for investment in necessary pollution control facilities has been renewed for a further three years until 31 December 2006 11 12 13 We will foster a clean and attractive countryside with a high quality of life that can be enjoyed and appreciated by all. As part of this policy we will seek to make the REPS scheme more attractive. 3.6 ACHIEVED: 3.5 A revised REPS was introduced on 1 June 2004 and provides for increased rates of payment as agreed in Sustaining Progress. Under this enhanced Scheme, farmers will receive a average increase of 28% in payments. A provision of €260 million has been made in the 2004 Estimates, compared with €190 million in 2003. The Department of Agriculture and Food will promote increased take-up of the revised Scheme. We will enhance cooperation with the Northern Ireland authorities on keeping the island of Ireland disease-free. 1.9 COMMITMENT IS BEING MET: We will enhance the contribution of horticulture, by supporting the production of product in an environmentally friendly manner and marketed to uniformly high standards. 1.4 COMMITMENT IS BEING MET: 3.6 The amalgamation of Bord Glas with Bord Bia on 1 July will create synergies and new opportunities for promoting horticulture. Regular meetings continue to be held at Ministerial and official levels to progress alignment of policies and protection arrangements and to build on the valuable experience gained during the Foot and Mouth crisis of 2001 The Quality Programme has been extended to all sectors, both food and non food. This Quality Programme has become the industry standard. The implementation of the recommendations of the Mushroom Task Force (published May 2004) will put the mushroom industry on a more competitive footing Ensuring that there is full traceability from ‘farm to fork’ for potatoes, the Potato Growers and Potato Packers Act 1984 has been amended (May 2004) 14 15 We will further develop the organic sector through an increase at production level and the development of a single national label to take advantage both of ‘clean green’ image of Irish agriculture and the added appeal of organic food. 3.6 We will set the quality of service, including the efficient and timely delivery of payments, as an integral part of all operational priorities. 4.1 COMMITMENT IS BEING MET. The Organic Action Plan was produced in April 2002 and to date the key recommendations have being implemented. COMMITMENT IS BEING MET: Our record in relation to the timely delivery of direct payments is comparable to the best in other EU Member States. Following a consultative process on all aspects of the Department’s interaction with its customers, a new Customer Service Action Plan (2005-07) as well as a Customer Charter have been published. Appendix 3.0 101 APPENDIX 3.0 No. Commitment Relevant Strategies Status & Progress to Date 16 We will give urgent consideration to the potential for tax incentives for long-term leasing of land as a means of increasing the supply of land available to young farmers. 3.1 ACHIEVED: ■ €7,618.43 to €10,000 for leases of 7 years or more; and from ■ €5,079 to €7,500 for leases of five to seven years. These amendments will help improve land mobility, facilitating better long-term planning and land utilisation by farmers who may be required to scaleup production at a reasonable cost, especially in the context of decoupled support payments. 17 18 19 102 The 2004 Finance Act extended the rental income tax exemption for land leased-out on a long-term basis. The age limit for farmers eligible for the relief was reduced from 55 years to 40 years and the income exemption rates were also increased from: We will agree a series of proposals with farming organisations designed to tackle red tape and argue strongly for their adoption at EU level. 4.1 COMMITMENT IS BEING MET: We will examine, in conjunction with the EU Commission, the possibility of extending the disadvantaged areas classification to the whole BMW Region. 1.1 COMMITMENT IS BEING MET: 3.1 Possible extension or reclassification of Ireland’s Disadvantaged Areas was raised informally with the Commission in 2003 and early 2004. In mid-2004 the Commission published a Draft Regulation on Rural Development. Negotiations on this Draft will continue into 2005. The case for reclassifying all of Monaghan as More Severely Handicapped has been prepared and submitted to the Minister of Finance for approval, following which it will be sent to the EU Commission. We will work to increase forestry planting levels to 20,00 hectares per annum 3.7 COMMITMENT IS BEING MET: While much progress has been achieved in this area with the greater use of IT, the introduction of decoupling and the Single Payments system will greatly facilitate the simplification of application and processing procedures We are spending €101 million (capital) on forestry in 2004, representing an increase of over €20 million on the capital outturn for 2003 provision. Planting levels are expected to be in the region of 10-12,000 ha in 2004 We have secured a very positive outcome for forestry in relation to the Single Payment Entitlement. Farmers who have planted or will plant part of their holdings will continue to be allowed to obtain their full payment under the Single Payment Scheme. The Bacon Report on Ireland’s Forest Development Strategy was presented to the Minister on 23 September. This report, assessed in the light of the provisions of the new Rural Development Regulation (currently being negotiated), will inform future forest strategy. Annual Report of the Minister for Agriculture and Food Appendix 3.0 103 APPENDIX 4.0 National Development Plan 2000-2006 - Agriculture and Food EXPENDITURE 2000 – 2004 AND IN 2004 1. Programme Sub-Programme/Measure/Sub-Measure Expenditure 2004 €m Exp. to end 2004 €m Guarantee Funded Rural Development Programme REPS 166.019 866.719 Compensatory Allowances 237.745 953.943 72.681 410.181 Forestry 100.790 534.702 Total CAP Rural Development Plan (Agriculture) 577.235 2,758.947 Early Retirement Programme Sub-Programme/Measure/Sub-Measure Border, Midland & Western Region €m Exp. €m 2004 2. Productive Sector Operational Programme Employment and Human Resources Development Operational Programme 4. Exp. €m 2004 Exp. to end 2004 R & D (Agriculture) (1) - Teagasc Research 1.346 6.899 7.066 33.358 - Research Stimulus Fund 0.026 0.403 0.617 1.910 1.372 7.302 7.683 35.268 5.249 24.261 7.891 36.756 International Equine Institute - - 0.310 1.136 Total Training (Agriculture) 5.249 24.261 8.201 37.892 11.191 32.100 16.259 50.655 Installation Aid for Young Farmers 1.984 5.591 4.506 12.991 Farm Waste Management 8.188 23.171 8.467 23.622 Improvement of Dairy Hygiene Standards 0.962 2.634 1.989 4.967 - - - - 0.057 0.268 - - Agriculture (1) Teagasc Training Border, Midland Sub-Programme on Agriculture and Rural Development and Western Regional Operational Programme Measure 1: General Structural Improvement and Improvement of Animal Welfare Standards (Pigs Only) Animal Carcase Disposal 104 Exp. to end 2004 Sub-Programme on Research, Technological Development & Innovation Total R&D (Agriculture) 3. Southern & Eastern Region €m Annual Report of the Minister for Agriculture and Food 5. Southern & Eastern Development of Grain Storage Facilities On Farm Regional Operational Improvement of Cattle Breeding Infrastructures Programme Improvement of Equine Breeding Infrastructure - 0.436 - 1.986 - - 0.706 3.038 - - 0.591 4.051 Measure 2: Alternative Enterprises 1.272 4.266 2.931 9.630 Development of the Horticulture Sector 0.710 2.232 2.397 5.895 - 0.298 - 0.609 Development of the Organic Sector 0.130 0.456 0.037 0.627 Improvement in Equine Quality 0.122 0.597 0.153 1.376 Housing/Handling Facilities for Alternative Enterprises 0.310 0.683 0.344 1.123 Measure 4: Services for Agricultural Development 5.508 26.480 4.506 21.644 Teagasc Advisory Services 5.508 26.480 4.506 21.644 Measure: Local Enterprise Development 4.092 24.154 3.578 20.067 - 1.385 - 0.736 Woodland Improvement 3.101 13.648 2.017 6.858 Forestry Development 0.440 4.728 0.761 7.341 Forestry Roads 0.551 4.393 0.800 5.132 22.063 87.00 27.274 101.996 28.684 118.563 43.158 175.156 Development of the Potato Sector Harvesting Total Agriculture & Food (Regional OPs) Totals 2-5 All Structural Measures (Agriculture & Food) Total Structural and Guarantee Measures for Agriculture/Food Expenditure 2004 €m Expenditure to end 2004 €m 649.077 3,052.666 (1) Overall allocations are indicative only. Appendix 4.0 105 APPENDIX 5.0 Vote 31: Expenditure on Agriculture and Food for 2004 Administration 254.350m A1 Salaries Wages and Allowances A2 Travel and Subsistence 200.986m A3 Incidental Expenses A4 Postal and Telecommunications A5 Office Machinery A6 Office Premises Expenses 5.707m A7 Consultancy Services 6.535m A8 Supplementary Measures to protect the Financial Interests of the EU 0.416m A9 Laboratory Equipment 0.437m A10 EU Presidency 1.119m A11 Information Society 0.227m 13.155m 6.135m 7.512m 12.121m Other Services Education Research & Advisory Services B Research and Testing J Teagasc Grant-in-Aid for General Expenses 125.920m 20.328m 105.592m Livestock Improvement & Eradication of Disease 140.090m C Bovine Tuberculosis and Brucellosis Eradication 53.136m C General Disease Control and Eradication 76.863m C National Beef Assurance Scheme 9.203m B Cattle Breeding Authority 0.888m Development Aid 20.056m K Bord Bia for general Expenses Footnote (a) 19.531m M Assistance for Non-thoroughbred Horse Industry 0.525m Pension Payment etc. 2.219m M Pension payments etc. (Pay)/Dairy Disposal Co Ltd 0.139m M Rationalisation Dub/Cork District Milk boards (PAY) 1.445m M Life Annuities and Premiums (EU Directive No. 72/160) 0.635m Schemes Operated in Implementation of EU Guarantee Regulations Financing of the Common Agricultural Policy, Market Intervention etc. D Market Intervention Losses by Deficiency, Accident, etc D IACS – LPIS F Rural Environment Protection Scheme G Early Retirement I Forestry 101.946m E Compensatory Allowances 237.745m M Rural Development Technical Assistance 17.534m 2.108m 3.502m 207.614m 72.681m 0.001m Schemes Operated in Implementation of EU Structural Regulations and National Development Plan 106 643.131m D 37.277m G Installation Aid – NDP Scheme 6.480m H On Farm Investment – Pre NDP 0.457m H NDP Agricultural Development 26.739m H Grants for Marketing and Processing 3.601m Annual Report of the Minister for Agriculture and Food Miscellaneous 35.943m C Control of Horses C Temporary Veterinary Inspectors D School Milk Scheme 1.076m G Installation aid (old scheme) 0.548m L Food Aid Convention 4.830m M International Co-operation 3.005m M General Legal Expenses 3.765m M Miscellaneous services 0.546m Total Gross Expenditure Appropriations in Aid Administration A in A’s 01 Recoupment of Salaries 02 Forfeited deposits and securities under EC intervention, export refunds etc. arrangements 03 Refunds from fees for veterinary inspections services at poultry plants and meat inspection fees 04 Receipts from veterinary inspection fees for live exports 05 Receipts from fees for dairy premises inspection services Other Services 1.746m 20.427m 1,258.986m -486.220m -23.237m 0 -1.026m -15.800m -1.297m -5.114m -22.760m 06 Receipts from sale of vaccines, livestock, farm produce etc -0.892m 07 Receipts from seed testing fees, certification fees, Licensing fees, pesticides registration etc. -2.063m 08 Receipts from licences and from sale and leasing of livestock etc. -0.038m 09 Receipts from farmer contributions towards the cost of eradicating Bovine Disease (Subhead C) 010 Land Commission receipts (Subhead A3) -2.500m 011 Other Receipts -0.371m EU Services -16.896m -440.223m 012 Market Intervention expenses and financing costs for other FEOGA (Guarantee) section measures (Subhead D) 013 Receipts for Intervention Stock Losses 014 National Development Plan – Guarantee Receipts (Subhead E, F, G, I) 015 BSE Receipts (Subhead C) 016 Veterinary Fund (Subhead C) 017 Other Guarantee Receipts 018 Operation Programme for Agriculture Rural Development and Forestry (OPARDF) 1994-1999 -25.630m 019 NDP – Structural Receipts -17.120m Net Expenditure -11.727m 0m -357.400m -19.311m -8.163m -0.872m 772.766m Footnote (a) During 2004, the functions of An Bord Glas were transferred to An Bord Bia, and An Bord Glas was dissolved. Appendix 5.0 107 APPENDIX 6.0 FEOGA/EAGGF Guarantee Expenditure 2004 Detailed Breakdown of Claims Submitted to the EAGGF in the Calendar Year 2004 €, 000 (net) Arable Crops Export Refunds Production Aids Intervention Costs (Cereals) Dehydrated Fodder Arable Crops -Area Aid Total Sugar Export Refunds Reimbursement for Storage Refunds for Sugar used in Chemical Industry Total Fruit and Vegetables Export Refunds Promotion Measures Withdrawal Compensation Aid for Flax Production and Flax Seed Aid for Grass Seed Production Aid for Hops Producer Organisations Total 108 40 49 0 292 132,640 133,021 8,374 0 1,630 10,004 0 0 0 0 12 0 5,595 5,607 Dairy Products Export Refunds (including Food Aid) Aid for Skim Milk Powder for Animal Feed Aid for Liquid Skim Milk for Animal Feed Aid for Casein Dairy Premium Additional Payments to Milk Producers Intervention Costs (Skim Milk Powder and Butter) Private Storage Measures to Reduce Butter Fat Surplus Milk Co Responsibility Levy Milk Super Levy Reimbursement of Super Levy Aid for Supply of School Milk Market Development Measures Improvement of Milk Quality Compensatory Aid Total 100,362 2,036 0 95,534 41,589 18,677 19,118 2,442 2,055 -9,543 0 0 878 0 7 68 273,223 Beef and Veal Beef Export Refunds Live Animal Export Refunds Private Storage Intervention Costs Suckler Cow Premium Special Premium Deseasonalisation Premium Extensification Premium Promotion Measures Slaughter Premium Scheme BSE Compensation Measures Quality Beef Marketing/Promotion Control and Monitoring Measures Total 49,849 1,965 0 -5 198,390 262,751 2 162,612 25 133,528 40,993 0 0 850,110 Annual Report of the Minister for Agriculture and Food Sheepmeat Ewe Premium Private Storage Total 108,608 0 108,608 Pigmeat Export Refunds Private Storage Total 313 152 465 Poultry and Eggs Export Refunds Egg Promotion measures Total Processed Products Export Refunds Total Other Measures Plant Promotion Bee Keeping Programme Total CAP Rural Development* - Accompanying Measures (Rural Environment Protection Scheme and Early Retirement and Forestry) - Compensatory allowances (Headage) Total All Sectors Recoveries Agri- Monetary Measures Clearance of Accounts by EU Total Grand Total 23 1 24 53,243 53,243 0 25 25 357,399 357,399 -3,563 7 -37 -3,593 1,788,136 * CAP Rural Development measures are part financed by the EU. The figure is the amount claimed from the EU in the year. Area-based payments (formerly compensatory allowances/headage) in less favoured areas are co-financed by EAGGF Guarantee and the Exchequer since 2000. Previously they were co-financed by EAGGF Guidance. (Structural Funds). Appendix 6.0 109 APPENDIX 7.0 Prompt Payments of Accounts Act 1997 and European Communities (Late Payment in Commercial Transactions) Regulations 2002 It is the policy of the Department of Agriculture and Food to fully comply with the terms of the Prompt Payment of Accounts Act 1997 and with the terms of the Regulations on combating late payment in commercial transactions, (European Communities-Late Payment in Commercial Transactions -Regulations 2002). The Act and the 2002 regulations have been brought to the attention of all staff, procedures are in place to meet their requirements and there is ongoing monitoring to ensure compliance with the their provisions. In 2004 a total of 535 invoices valued in excess of €317.44*, incurred late payment penalties. The value of all invoices that were paid late amounted to €3,018,114.21. This represents 2.19% of €137,779,504.98, total payments falling within the terms of the Regulations. The total interest paid during 2004 resulting from late payments amounted to €13,971.25. * Threshold as prescribed in the guidelines to Public Bodies by the Department of Enterprise, Trade and Employment 110 Annual Report of the Minister for Agriculture and Food APPENDIX 8.0 Orders and Regulations The following Orders and Regulations were made during 2004 Title S.I. No. Description European Communities (Ethyl Alcohol) Regulations 2004 30 The principal effects of these Regulations are to provide for penalties for breaches of certain provisions of the European Regulations on ethyl alcohol and confer powers of entry on authorised officers. Diseases of Animals Act 1966 (Classical Swine Fever) (Restriction on Imports from France) (Amendment) Order 2004 37 This Order amends control measures relating to certain products from France due to the outbreak of classical swine fever in that country. European Communities (Labelling and Marketing Standards for Poultrymeat) Regulations 2004 42 These Regulations require compliance with European Union legislation on the marketing standards for poultrymeat. These standards concern such matters as labelling, water content, quality grading, free range production etc. The Regulations also create penalties for non-compliance and provide for the authorisation of officers to conduct inspections. European Communities (Beef Carcase Classification) Regulations 2004. 45 These Regulations provide for dressing, classification, weighing and labelling of carcases of adult bovine animals slaughtered at export approved premises. These Regulations also concern the use of mechanical classification and also price reporting by plants. European Communities (Avian Influenza) (Control on Imports of Avian Products from Thailand) Regulations 2004 48 This Order gives effect to Commission Decision No.2004/84/EC of 23 January 2004 concerning certain protective measures with regard to avian products imported from Thailand. European Communities (Labelling and Marketing Standards for Poultrymeat) (Amendment) Regulations 2004 50 These amended Regulations require further standards for Labelling in compliance with European Union legislation on the marketing standards for poultrymeat. These standards concern such matters as class, price per weight unit, condition and registered number of slaughterhouse or cutting plant. The Regulations also create penalties for non-compliance and provide for the authorisation of officers to conduct inspections. European Communities (Fees for Health Inspections and Controls of Fresh Meat) Regulations 2004. 74 This Statutory Instrument updates the provisions for the payment of fees due to the Department of Agriculture and Food for meat inspections in accordance with a revised accounting system introduced in August 2003. This S.I. provides for a billing period of a calendar month. It also sets a due date for payments of 30 days to bring it into line with the provisions for charging interest for outstanding debts, in the European Communities (Late Payment in Commercial Transactions) Regulations 2002, S.I. No. 388 of 2002. These Regulations should be read in conjunction with the Council Regulations. It is no longer necessary to provide for a Certificate of Indebtedness as an invoice is now issued in all cases. European Communities (Organic Farming) Regulations 2004. 112 These Regulations give full effect to Council Regulation (EEC) No. 2092/91 as amended and specify more stringent rules for the production of livestock and livestock products in Ireland in accordance with Article 12. They also give the Department of Agriculture and Food powers to prosecute contraventions of Council Regulation (EEC) No. 2092/91 as amended. European Communities (Introduction of Organisms Harmful to Plants or Plant Products) (Prohibition) (Amendment) Regulations 2004. 117 These regulations give effect to council Directive 2003/116/EC, as amended, on protection measures against the introduction of organisms harmful to plants and plant products and to prevent the spread of harmful organisms. European Communities (Pesticide Residues) (Foodstuffs of Animal Origin) (Amendment) Regulations 2004. 118 These Regulations amend existing Regulations on the fixing of maximum residue levels for pesticides in and on foodstuffs of animal origin. European Communities (Pesticide Residues) (Cereals) (Amendment) Regulations 2004. 119 These Regulations amend existing Regulations on the fixing of maximum residue levels for pesticides in and on cereals. Appendix 8.0 111 APPENDIX 8.0 Title S.I. No. Description European Communities (Pesticide Residues) (Fruit and Vegetables) (Amendment) Regulations 2004. 120 These Regulations amend existing regulations on the fixing of maximum levels for pesticide residues in and on fruit and vegetables. European Communities (Minimum Conditions for Examining of Vegetable Species) Regulations 2004. 121 These Regulations give effect to Council Directive 2003/91/EC setting out the minimum conditions for examining certain varieties of vegetable species. European Communities (Characteristics and Minimum Conditions for Examining Agriculture Plant Species) Regulations 2004. 122 These Regulations give effect to Council Directive 2003/90/EC setting out the minimum conditions for examining certain varieties of agriculture plant species. European Communities (Pesticide Residues) (Products of Plant Origin including Fruit and Vegetables) (Amendment) Regulations 2004 134 These Regulations amend existing regulations on the maximum residue levels for pesticide residues in and on products of plant origin, including fruit and vegetables. European Communities (Monitoring of Zoonoses) Regulations 2004. 154 The purpose of these Regulations is to implement Directive 2003/99/EC on the monitoring of zoonoses and zoonotic agents. The Regulations also provide for the authorisation of officers to investigate food-borne outbreaks of illness and for the approval of laboratories to conduct tests. European Communities (Feedingstuffs) (Methods of Sampling and Analysis) (Amendment) Regulations 2004. 185 These Regulations amend the European Communities (Feedingstuffs) (Methods of Sampling and Analysis) Regulations 1999 to 2000, so as to give effect to Commission Directive 2002/70/EC of 26 July 2002 and Commission Directive 2003/126/EC of the 23 December 2003 which establishes Community methods of analysis for the determination of levels of dioxins and dioxinlike PCBs in feedingstuffs and methods of analysis for the determination of constituents of animal origin in feedingstuffs respectively. The Regulations should be read in conjunction with the Commission Directives. (Please refer to Explanatory Note attached to Regulation for list of EU Directives and corresponding methods prescribed for.) 112 European Communities (Protection of Animals at Time of Slaughter) (Amendment) Regulations, 2004. 192 The purpose of these Regulations is to change from 24 hours to 12 hours the length of period after which animals kept in a slaughter-house are required to be provided with suitable food. European Communities (Authorisation, Placing on the Market, Use and Control of Plant Protection Products) (Amendment) Regulations 2004. 197 These Regulations give effect to Commission Directive 2003/119/EC of 5 December 2003. These Regulations, which amend Council Directive 91/414/EEC concerning the placing of plant protection products on the market provide for the inclusion of the active substances Mesosulfuron, Propoxycarbazone and Zoxamide to Annex I to Council Directive 91/414/EEC. European Communities (Assembly Centres) (Amendment) Regulations, 2004. 200 The effect of this Order is to provide for revised conditions for the approval of Assembly Centres for the purpose of intra-Community trade. Marketing of Non-EEC Fertilisers Regulations (Amendment) Regulations 2004. 205 These Regulations provide for the list of Authorised Biological agents for use with Type Designated Fertilisers Containing Certain Forms of Nitrogen European Communities (Milk Quota) (Amendment) Regulations 2004. 208 These Regulations further amend the European Communities (Milk Quota) Regulations 2000, by modifying some of the definitions and some of the provisions relating to milk quota transfers, Milk Production Partnerships, dormancy, temporary transfers, milk purchaser obligations and producer records. An Bord Bia (Amendment) Act, 2004 (Commencement) Order, 2004. 220 This Order appoints 1st July 2004 as the date on which specified sections of the An Bord Bia (Amendment) Act 2004 (No.14 of 2004) come into operation, to provide for the transfer of the functions of An Bord Glas to An Bord Bia, and to amend the Registration of Potato Growers and Potato Packers Act 1984 to require that both the grower’s and packer’s registration number be displayed on pre-packaged potatoes offered for sale and empower the Minister to update the register. Annual Report of the Minister for Agriculture and Food Title S.I. No. Description An Bord Bia (Amendment) Act, 2004 (Transfer Day) Order, 2004. 221 This Order appoints 1st July 2004 as the date on which Part 2 of the An Bord Bia (Amendment) Act 2004 (No. 14 of 2004) comes into operation. As from 1st July 2004, An Bord Glas will stand dissolved and its staff, property and liabilities will transfer to An Bord Bia. European Communities (Introduction of Organisms Harmful to Plants or Plant Products) (Prohibition) (Amendment) (No. 2) Regulations 2004. 224 These regulations give effect to Commission Directive 2004/31/EC, Commission Directive 2004/32/EC and Commission Directive 2004/70/EC of 28 April 2004 as amended, on protection measures against the introduction of organisms harmful to plants and plant products and to prevent the spread of harmful organisms. European Communities (Pesticide Residues) (Products of Plant Origin including Fruit and Vegetables) (Amendment) (No. 2) Regulations 2004. 231 These Regulations amend existing regulations on the maximum residue levels for pesticide residues in and on products of plant origin, including fruit and vegetables. European Communities (Pesticide Residues) (Foodstuffs of Animal Origin) (Amendment) (No. 2) Regulations 2004. 239 These Regulations amend existing Regulations on the fixing of maximum residue levels for pesticides in and on foodstuffs of animal origin. European Communities (Pesticide Residues) (Cereals) (Amendment) (No. 2) Regulations 2004. 240 These Regulations amend existing Regulations on the fixing of maximum residue levels for pesticides in and on cereals. European Communities (Recognition of Qualifications in Veterinary Medicine) Regulations 2004 265 These Regulations extend the circumstances which the Veterinary Council of Ireland is obliged to take account of when examining applications for recognition from persons with a relevant Third Country qualification where such qualification has already been recognised in another Member State. The Regulations also amend the mutual recognition arrangements to take account of the accessions form 1 May 2004. European Communities (Avian Influenza) (Control on Imports of Avian Products from the United States of America) Regulations 2004. 266 This Order gives effect to Commission Decision 2004/363/EC concerning certain protective measures with regard to live birds or avian products imported from the United States of America. European Communities (Control on imports of animal products for personal consumption) Regulations 2004. 267 These Regulations provide for enforcements for the operation of Commission Regulation (EC) No. 745/2004 prohibiting, on the grounds of protection of animal and public health, the importation from third countries in the personal baggage of passengers of meat and meat products and milk and milk products that are destined for own consumption. European Communities (Avian Influenza) (Control on Imports of Avian Products from Canada) Regulations 2004. 268 This Order gives effect to Commission Decision 2004/364/EC concerning certain protective measures with regard to live birds or avian products imported from Canada. European Communities (Registration of Importers of Animal Products) Regulations 2004. 269 These Regulations provide that for import of animal products the importer and importing agent must be registered. European Communities (Marketing Standards for Olive Oil) Regulations 2004. 397 The purpose of these Regulations is to give legal effect to Commission Regulation (EC) No. 1019/2002 of 13 June 2002 as amended by Commission Regulation (EC) No. 1176/2003 of 1 July 2003, which prescribe, within the European Union, standards for the marketing of olive oil. European Communities (Equine Stud-Book and Competition) Regulations 2004. 399 These Regulations, which give legal effect to Directives 90/427/EEC and 90/428/EEC and Decisions 93/623/EEC and 2000/68/EEC (copies of which may be obtained from the Government Publications Sale Office, Molesworth Street, Dublin 2), set out the criteria which a body must meet if it is to maintain an officially recognised stud-book, provide for the non-discriminatory treatment of competition horses and provide for the issuing of identity documents for and control of movement of non-registered horses. Appendix 8.0 113 APPENDIX 8.0 Title 114 S.I. No. Description Food-and-Mouth Disease Order 1956 (Amendment) Order 2004. 412 This Order augments the powers of the Minister for Agriculture and Food to control the movement of animal based products and to restrict the operations of premises engaged in the processing of such products in the event of an outbreak of Foot and Mouth Disease. European Communities (Pet Passport) Regulations 2004. 423 These regulations give further effect to Regulation No. 998/2003 of the European Parliament and of the Council of 26 May 2003 which provides the rules for the movement of pet cats, dogs and ferrets between Member States and from certain third countries, with particular emphasis on the control of rabies. European Communities (Feedingstuffs) (Genetically Modified Feed) Regulations 2004. 424 These Regulations give effect to the provisions of Regulation (EC) No 1829/2003 and Regulation (EC) No 1830/2003 of the European Parliament and of the Council of the 22 September 2003. European Communities (Avian Influenza) (Control on Imports of Avian Products and Live Birds from certain Asian countries) Regulations 2004. 432 This Order gives effect to Commission Decision 2004/122/EC of 6 February 2004 concerning certain protective measures with regard to avian products and live birds imported from certain Asian countries. Diseases of Animals (Inspection Fees) Order, 2004. 439 This Order provides for the capping of veterinary inspection fees payable on exports of live pigs. European Communities (Authorisation, Placing on the Market, Use and Control of Plant Protection Products) (Amendment) (No.2) Regulations 2004 498 These Regulations give effect to Commission Directive 2004/30/EC of 10 March 2004.These Regulations, which amend Council Directive 91/414/EEC concerning the placing of plant protection products on the market provide for the inclusion of the active substances Benzoic Acid, Flazasulfuron and Pyraclostrobin to Annex 1 to Council Directive 91/414/EEC. European Communities (Trade in Bovine Breeding Animals, their Semen, Ova and Embyros) Regulations 2004 499 These Regulations implement into national law, insofar as bovine breeding animals are concerned, the provisions of Council Directive 2003/43/EC amending Directive 88/407/EEC laying down the animal health requirements applicable to intra-community trade in and imports of semen of domestic animals of the bovine species. Diseases of Animals Act (Importation of Sheep) Order, 2004. 503 This Statutory Instrument revokes the Diseases of Animals Act 1966 (Foot and Mouth Disease) (Importation of Sheep) Order, 2001 (S.I. No. 364 of 2001), makes it an offence to import, have, slaughter, sell or supply a sheep imported in contravention of an import licence or a General Authorisation issued by the Minister, and requires the owner, operator or person in charge of a slaughter plant at which imported sheep are to be slaughtered to give 24 hours prior notification of the importation to the Veterinary Inspector in charge at that slaughterhouse. International Carriage of Perishable Foodstuffs Act 1987 (Specified Person) Order 2004. 504 This Order confers the function of issuing approval in respect of “type equipment“ manufactured in Ireland for the purposes of carriage of perishable foodstuffs on the NSAI (National Standards Authority of Ireland). Agriculture Appeals Act 2001 (Amendment of Schedule) Regulations 2004 507 This Order amends the schedule to the Agriculture Appeals Act, 2001 to include the “Landslide Damage Relief Scheme for the Pullathomas Area of County Mayo“ in the Schedule of Schemes that can be examined by the Agriculture Appeals Office. Diseases of Animals Act 1966 (Control on Animal and Poultry Vaccines) (Amendment) Order 2004 508 This Order provides for the removal of certain diseases from Part 1 of the Second Schedule of the Diseases of Animals Act 1966 (Control on Animal and Poultry Vaccines) Order 2002 (SI 528 of 2002) European Communities (Avian Influenza) (Control on Imports of Avian Products from South Africa) Regulations 2004. 509 This Order gives effect to Commission Decision No. 2004/594/EC of 10 August 2004 concerning certain protective measures with regard to avian products imported from South Africa. European Communities (Seed of Fodder Plants) (Amendment) Regulations 2004. 527 These Regulations give effect to Commission Directive 2004/55/EC amending Council Directive 66/401/EEC on the marketing of fodder plant seed. Annual Report of the Minister for Agriculture and Food Title S.I. No. Description European Communities (Removal of Bovine Vertebral Column) Regulations 2004. 528 The purpose of these Regulations is to make it an offence to remove vertebral column in butcher’s premises without authorisation to do so. European Communities (Avian Influenza) (Control on imports of Avian Products and Live Birds from Certain Asian Countries) (Amendment) Regulations 2004. 536 This Order amends S.I No 432 of 2004 and gives effect to Commission Decision 2004/606 of 20 August 2004 concerning certain protective measures with regard to avian products and live birds imported from several Asian countries. European Communities (Control on Imports of Animal Products from China) (Amendment) Regulations 2004. 537 This Order amends S.I No 141 of 2002 and gives effect to Commission Decision 2004/621 of 26 August concerning certain protective measures with regard to the products of animal origin imported from China. European Communities (Avian Influenza) (Control on Imports of Avian Products from South Africa) (Amendment) Regulations 2004. 538 This Order amends S.I No 509 of 2004 and gives effect to Commission Decision 2004/614 of 24 August 2004 concerning certain protective measures with regard to highly pathogenic avian influenza in the Republic of South Africa. International Carriage of Perishable Foodstuffs Act 1987 International Carriage of Perishable Foodstuffs (Consolidation) Regulations 1993. 545 This Order confers the function of “qualified authority“ in respect of examining and testing transport equipment in Ireland for the purposes of the carriage of perishable foodstuffs on Cambridge Refrigeration Technology (CRT) and designates the premises in the schedule where such testing will be carried out. International Carriage of Perishable Foodstuffs Act 1987 (Section 7 (2)) International Carriage of Perishable Foodstuffs (Consolidation) Regulations 1993. 546 This Order confers the function of “certifying authority“ in Ireland for the purposes of the carriage of perishable foodstuffs on the NSAI (National Standards Authority of Ireland). Animal Remedies Consultative Committee (Prescribed Organisations) (Amendment) Regulations 2004. 571 These Regulations update the list of organisations from which nominations of candidates for appointment to the Animal Remedies Consultative Committee are invited. European Communities (Authorisation, Placing on the Market, Use and Control of Biocidal Products) (Amendment) Regulations 2004. 572 These Regulations amend existing Regulations on the fixing of fees in relation to biociodal products. European Communities (Pesticide Residues) (Cereals) (Amendment) (No. 3) Regulations 2004. 576 These Regulations amend existing Regulations on the fixing of maximum residue levels for pesticides in and on cereals. European Communities (Pesticide Residues) (Foodstuffs of Animal Origin) (Amendment) (No. 3) Regulations 2004. 577 These Regulations amend existing Regulations on the fixing of maximum residue levels for pesticides in and on foodstuffs of animal origin. European Communities (Phytosanitary Measures) Regulations 2004 578 These Regulations amend existing Regulations on provisional emergency phytosanitary measures to prevent the introduction into and the spread within the Community of Phytophthora ramorum Werres, De Cock & Man in’t Veld sp. nov. (Sudden Oak Death) European Communities (Pesticide Residues) (Products of Plant Origin including Fruit and Vegetables) (Amendment) (No. 3) Regulations 2004. 579 These Regulations amend existing regulations on the maximum residue levels for pesticide residues in and on products of plant origin, including fruit and vegetables. European Communities (Authorisation, Placing On The Market, Use And Control Of Plant Protection Products) (Amendment) (No. 3) Regulations 2004. 580 These Regulations give effect to Commission Directive 2003/70/EC of 17 July 2003, Commission Directive 2003/79/EC of 13 August 2003, Commission Directive 2003/81/EC of 5 September 2003 Commission Directive 2003/82/EC of 11 September 2003, Commission Directive 2003/84/EC of 25 September 2003, Commission Directive 2004/63/EC of 26 April 2004 and Commission Directive 2004/64/EC of 26 April 2004. Appendix 8.0 115 Title S.I. No. Description APPENDIX 8.0 These Regulations, which amend Council Directive 91/414/EEC concerning the placing of plant protection products on the market, consolidate Annex I of that Directive and provide for the inclusion of the active substances: Mecoprop, Mecoprop-P, Propiconazole, Molinate, Thiram, Ziram, Coniothyrium minitans, Flurtamone, Flufenacet, Iodosulfuron, Dimethenamid-p, Picoxystrobin, Fosthiazate and Silithiofam to Annex I to Council Directive 91/414/EEC, and for the inclusion of Annexes IV and V to Directive 91/414/EEC. 116 European Communities (Authorisation, Placing on the Market, Use and Control of Plant Protection Products) (Amendment) (No. 4) Regulations 2004. 581 These Regulations give effect to Commission Directive 2004/60/EC of 23 April 2004, Commission Directive 2004/62/EC of 26 April 2004 and Commission Directive 2004/71/EC of 28 April 2004. European Communities (Authorisation, Placing on the Market, Use and Control of Plant Protection Products) (Amendment) (No. 5) Regulations 2004. 650 These Regulations give effect to Commission Directive 2004/65/EC of 26 April 2004 amending Directive 2003/68/EC as regards time limits. European Communities (Authorisation, Placing on the Market, Use and Control of Plant Protection Products) (Amendment) (No. 6) Regulations 2004. 651 These Regulations give effect to Commission Directive 2004/66/EC of 26 April 2004 amending Directive 2003/68/EC. European Communities (Registration of Importers of Animal Products) (Amendment) Regulations 2004. 661 This Order amends S.I No 269 of 2004, which provides that for the import of animal products the importer and importing agent must be registered. Control of Bulls for Breeding (Permits) (Amendment) Regulations 2004. 662 These Regulations are made under the Control of Bulls for Breeding Act, 1985 to provide for the continuation of the system of granting permits to persons to keep unregistered bulls for breeding purposes and to extend permits already issued under previous Regulations until 31 October 2006. National Stud (Amendment) Act 2000 (Vesting) Order 2004 668 This Order vests the land contained in the Schedule in the Irish National Stud Company Ltd. with effect from 1 October 2004. European Communities (Identification and Registration of Bovine Animals) Regulations 2004. 687 These Regulations amend the procedures for the completion of calf birth registrations in electronic format. Diseases of Animals Act 1966 (Bluetongue) (Restriction on Imports from Spain) Order 2004. 690 This Order gives effect to Commission Decision No.2004/697/EC of 14 October 2004, concerning restrictions on the importation of live animals, semen and the ova or embryos of species susceptible to bluetongue, from specified regions in Spain, due to the outbreak of bluetongue in that country. European Communities (Avian Influenza) (Control on imports of Avian Products from Italy) Regulations 2004. 691 This Order gives effect to Commission Decision 2004/666/EC of 29 September 2004 concerning certain protective measures with regard to avian products imported from Italy. European Communities (Marketing of Fruit Plant Propagating Material and Fruit Plants Intended for Fruit Production) (Amendment) Regulations 2004. 706 These Regulations relate to additional fruit genera and species which were not included in Annex II to Council Directive 92/34/EEC. These Regulations, which amend Council Directive 91/414/EEC concerning the placing of plant protection products on the market provide for the inclusion of the active substances Quinoxyfen, Mepanipyrim and Pseudomonas chlororaphis to Annex I to Council Directive 91/414/EEC. Annual Report of the Minister for Agriculture and Food Title S.I. No. Description European Communities (Authorisation, Placing on the Market, Use and Control of Plant Protection Products) (Amendment) (No. 7) Regulations 2004 710 These Regulations give effect to Commission Directive 2003/112/EC of 1 December 2003; Commission Directive 2003/119/EC of 5 December 2003; Commission Directive 2004/20/EC of 2 March 2004; Commission Directive 2004/30/EC of 10 March 2004; Commission Directive 2004/58/EC of 23 April 2004; Commission Directive 2004/60/EC of 23 April 2004; Commission Directive 2004/62/EC of 26 April 2004; Commission Directive 2004/63/EC of 26 April 2004; Commission Directive 2004/64/EC of 26 April 2004; Commission Directive 2004/71/EC of 28 April 2004 and Commission Directive 2004/99/EC of 1 October 2004. These Directives, which amend Council Directive 91/414/EEC concerning the placing of plant protection products on the market, provide for the inclusion of the active substances Mesosulfuron, Propoxycarbazone, Zoxamide, Benzoic Acid, Flazasulfuron, Pyraclostrobin, Quinoxyfen, Mepanipyrim, Pseudomonas chlororaphis, Chlorpropham, Paraquat, Alpha-cypermethrin, Benalaxyl, Bromoxynil, Desmedipham, Ioxynil, Phenmedipham, Acetamiprid and Thiacloprid to Annex I to Council Directive 91/414/EEC. Commission Directive 2004/63/EC, Commission Directive 2004/64/EC of 26 April 2004, Commission Directive 2004/65/EC of 26 April 2004 and Commission Decision 2003/565/EC of 25 July 2003 refer to time limits. This Regulation also gives effect to Council Directive 2004/66/EC of 26 April 2004 regarding new accession countries. European Communities (Protein Feedingstuffs) Regulations 2004. 711 These Regulations give effect to the provisions of Council Directive 82/471/ EEC of 30 June 1982 (as amended) which lays down marketing controls to be applied on bioproteins in feedingstuffs. National Beef Assurance Scheme Act, 2000 (Approval) Order, 2004 723 The effect of this Order is to extend the period for participants to apply for approval under the National Beef Assurance Scheme. European Communities (Seed of Fodder Plants) (Amendment) (No. 2) Regulations 2004. 754 These Regulations give effect to Commission Directive 2004/55/EC amending Council Directive 66/401/EEC on the marketing of fodder plant seed. European Communities (Trade in the Production, Processing, Distribution and Introduction of Products of Animal Origin for Human Consumption) Regulations 2004. 820 These Regulations implement Council Directive 2002/99 of 16 December 2002 laying down the animal health rules governing the production, processing and distribution of products of animal origin for human consumption. They also provide for the appointment of authorised officers to implement the Regulations and for prosecution of offences. Control of Animal Remedies and their Residues (Amendment) Regulations 2004. 827 These Regulations give effect to Directive 2003/74 of the European Parliament and of the Council by restricting further the availability and administration of animal remedies containing oestradiol 17ß and its esther-like derivatives. Such animal remedies may only be administered by a registered veterinary surgeon for the three specific purposes specified at Section 2(d) of these Regulations. Bovine Diseases (Levies) Regulations, 2004. 838 These Regulations, which come into effect on 1 January 2005 prescribe new rates of disease levies on milk for processing and on bovine animals slaughtered or exported live. European Communities (Fresh Meat) (Amendment) Regulations 2004. 874 The purpose of these Regulations is to give effect to Regulation (EC) No. 178/2002 of the European Parliament and of the Council on food safety. European Communities (Meat Products and Other Products of Animal Origin) (Amendment) Regulations 2004. 875 The purpose of these Regulations is to give effect to Regulation (EC) No. 178/2002 of the European Parliament and of the Council on food safety. European Communities (Minced Meat and Meat Preparations) (Amendment) Regulations 2004. 876 The purpose of these Regulations is to give effect to Regulation (EC) No. 178/2002 of the European Parliament and of the Council on food safety. Appendix 8.0 117 Title S.I. No. Description 893 These Regulations implement Council Directive 2002/99 of 16 December 2002 laying down the animal health rules governing the importation of products of animal origin from third countries for human consumption. They also provide for the appointment of authorised officers to implement the Regulations and for prosecution of offences. European Communities (Control of Organisms Harmful to Plants and Plant Products) Regulations 2004. 894 These Regulations prescribe import, export and movement controls on plants and plant products to comply with European Community measures to prevent the introduction or spread of plant diseases and pests. European Communities (Avian Influenza) (Control on imports of Avian Products and Live Birds from Certain Asian Countries) (Amendment) Regulations 2005. 913 This Order amends S.I No 432 of 2004 and gives effect to Commission Decision 2004/851 of 14 December 2004 concerning certain protective measures with regard to avian products and live birds imported from several Asian countries. APPENDIX 8.0 European Communities (Introduction of Products of Animal Origin from Third Countries for Human Consumption) Regulations 2004 118 Annual Report of the Minister for Agriculture and Food Appendix 8.0 119 APPENDIX 9.0 The Land Acts in 2004 Activities under the Land Acts were as follows: 120 ■ The Land Bill 2004 was introduced to the Oireachtas and it is hoped that it will be enacted into law by summer 2005. ■ Arrangements were finalised for the disposal of some 136 hectares of land originally acquired by the former Land Commission. ■ Documentation required for the registration of title to former Land Commission land was prepared in respect of 179 individuals. ■ Some 16,800 consents were issued in respect of the subdivision/leasing of agricultural holdings. ■ Consent issued in 429 cases for the purchase of land by non-qualified persons i.e. mainly non-EU resident individuals and companies. ■ Completion of 3 Vesting Orders in respect of commonage division and re-arrangement. ■ Completion of 9 Partition Orders. Annual Report of the Minister for Agriculture and Food APPENDIX 10.0 State Bodies Under the Aegis of the Department in 2004 Teagasc, Agriculture and Food Development Authority Oak Park, Carlow 059 9170200 : www.teagasc.ie Teagasc provides integrated research, advisory and training services for the agricultural and food industry and for rural communities. It was established in September 1988, under the Agricultural (Research, Advisory and Training) Act, 1988. Research is carried out at eight dedicated centres. Advisory services are provided from 95 regional and local centres. Training is provided from 8 colleges, 45 local training centres and research centres. It is governed by an eleven member authority. The chair and five ordinary members are appointed by the Minister for Agriculture and Food; remaining members are appointed by the Minister following nominations from designated organisations. Bord Bia Clanwilliam Court, Lower Mount Street, Dublin 2 01 6685155 : www.bordbia.ie Bord Bia, the Irish Food Board, has responsibility for the market development and promotion of Irish food and horticulture including amenity horticulture at home and abroad and champions the success of the Irish food and horticultural sectors through delivery of effective and innovative market development, promotion and information services to secure new business for clients. In July 2004, following the enactment of the An Bord Bia (Amendment) Act, 2004 which merged Bord Glas with Bord Bia, the Board assumed responsibility for the marketing and promotion of horticulture, including amenity horticulture. It operates quality assurance schemes for beef, pork and bacon, horticultural and egg products. Its trade brand Ireland the Food Island is used to support the marketing activities of all sectors and products. Bord Bia has a network of international offices, providing a full range of customer support services, in Amsterdam, Chicago, Frankfurt, London, Madrid, Milan, Moscow and Paris. The Irish National Stud Tully, Kildare, Co Kildare 045 521251, 521301, 521377 : www.irish-national-stud.ie The Irish National Stud Company Limited was established in 1946 under the National Stud Act, 1945. Its primary object is the management of a stud farm for thoroughbred horses, and in particular to provide the services of first-class stallions at reasonable prices. It is involved in educational programmes for breeders and students of stud farm management. The Stud and it’s world famous Gardens, which are open to the public, are among the 20 top tourist attractions in Ireland. The Minister for Agriculture and Food, after consultation with the Minister for Finance, appoints the chairperson and six board members. The Minister for Finance holds all the issued share capital. To date the State has purchased shares in the Company to the value of almost €12.7 million. The funds have largely been channelled into the purchase of top quality stallions. The acquisition of these stallions has underpinned the success of the Stud. National Milk Agency IPC House, Shelbourne Road, Dublin 4 01 6603396 : www.nationalmilkagency.ie The National Milk Agency was established in 1994 under the Milk (Regulation of Supply) Act, 1994. The Agency is responsible for the regulation of the supply of milk for liquid consumption throughout the State. It is funded by means of a statutory levy on milk used for liquid consumption. The Agency has a number of statutory responsibilities under the Milk (Regulation of Supply) legislation: the regulation of the milk supply for liquid consumption throughout the state; the registration of producers and processors; the registration of milk supply contracts, and of course the collection of the levy. The staff of the Agency includes a small inspectorate which has the function of ensuring that the data furnished in registered contracts is accurate and correct. The Agency produces an Annual Report which includes the Accounts of the Agency and also commissions studies on various aspects of the drinking milk sector from time to time. The chairman of the Agency is appointed by the Minister for Agriculture and Food. The five members of the Agency representing producers are directly elected by registered producers while the other members – processors (4), distributors (1), retailers (1) and consumers (2) – are appointed by the Minister following nominations from designated organisations. Appendix 10.0 121 COFORD (National Council for Forest Research and Development) Arena House, Arena Road, Sandyford, Dublin 18 01-2130725 : www.coford.ie COFORD is a non-statutory agency under the aegis of the Department. COFORD’s remit is to fund and co-ordinate research and development projects with the aim of developing the forestry industry through technical innovation and good silvicultural practice. APPENDIX 10.0 COFORD’s overall objectives are: 122 ■ To establish and strengthen links between research competence and industrial needs ■ To determine forest research needs to maintain international competitiveness, provide sustainable employment, encourage innovation and enhance environmental harmony ■ To evaluate research progress and transfer technology to ensure maximum benefit. Coillte Teoranta Newtownmountkennedy, Co. Wicklow 01-2011111 : www.coillte.ie Coillte Teoranta is a private limited company, which operates in forestry and related activities on a commercial basis. The company is co-owned by the Minister for Finance and the Minister for Agriculture and Food. The company was established under the Forestry Act, 1988 which sets out its objectives and duties. Principal Objectives: ■ To carry on the business of forestry and related activities on a commercial basis and in accordance with efficient silvicultural practices, ■ To establish and carry on woodland industries, ■ To participate with others in forestry and related activities consistent with its objects, designed to enhance the effectiveness and profitable operation of the company, and ■ To utilise and manage the resources available to it in a manner consistent with the above objects. Annual Report of the Minister for Agriculture and Food Notes Notes 123 Notes Notes 124 Annual Report of the Minister for Agriculture and Food We are constantly seeking to improve the information we provide to our customers and you can help us with this. We would like to hear your views on the presentation, layout and content of this Report. You can do this by writing to: Corporate Affairs Division (Annual Report), Block 6 East, Department of Agriculture and Food, Agriculture House, Kildare Street, Dublin 2, Ireland. Or by e-mail to: [email protected] Thank you © Government of Ireland 2005 The assistance of An Bord Bia and Coillte in relation to cover images is acknowledged. Price €10 This Annual Report is available on the Department's website: http://www.agriculture.gov.ie Department of Agriculture and Food Head Office, Agriculture House, Kildare Street, Dublin 2 Telephone: 01 6072000; Lo-Call: 1890 200 510 Annual Report 2004 of the Minister for Agriculture and Food Annual Report of the Minister for Agriculture and Food 2004 w w w. a g r i c u l t u r e . g o v. i e
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