Michael Fitzmaurice questions funding for TB, loans and carbon tax
Michael Fitzmaurice pressed the minister and officials on where additional funding for TB testing will come from and queried apparent reductions across loan schemes and carbon-tax allocations. He challenged figures including a 25% fall in an SCBI loan line, cuts in Policy and Strategy driven by R&D reductions, and carryover effects on agri-environmental payments.
The speaker asked where the money for increased TB testing will come from. The minister said there is not enough money at present to do everything desired, noting last year’s allocation was just short of £74 million and that he is preparing a strong business case and liaising across government to seek extra finance.
Questions focused on a 25% reduction in the SCBI loan scheme and a 3.8% difference in the Policy and Strategy subhead. Officials explained the 3.8% change is mainly due to a reduction in research and development, while the growth and stability loan scheme has been popular and fully drawn down by lending institutions; the minister said he hopes to top up the scheme through the current NDP review.
The minister set out that the Department was allocated £143 million from carbon tax in 2025, with £140 million used to fund acres and £3 million allocated for Green Agricultural Pilots and the Anaerobic Digestion Scheme. Deputies queried what fraction of overall carbon-tax revenue this represents and sought clarification on recent percentage changes in the line items.
The discussion noted a 30.6% movement in agri-environmental schemes, with officials saying the 2024 payment total is inflated by carryover from 2023. Officials also reminded the committee that unspent current expenditure is surrendered back to the Exchequer at year-end and that capital carryover is subject to a 10% maximum.
Throughout the exchange the minister repeatedly flagged budget constraints and the NDP revision as the vehicle for seeking additional funds, while stressing the potential long-term savings of upfront investment for farmers and the sector. Deputies pressed for clarity on which subheads are reduced and how shortfalls will be addressed in-year or through revisions to the plan.
TB testing funding squeeze
The speaker asked where the money for increased TB testing will come from. The minister said there is not enough money at present to do everything desired, noting last year’s allocation was just short of £74 million and that he is preparing a strong business case and liaising across government to seek extra finance.
SCBI loan scheme and Policy and Strategy reductions
Questions focused on a 25% reduction in the SCBI loan scheme and a 3.8% difference in the Policy and Strategy subhead. Officials explained the 3.8% change is mainly due to a reduction in research and development, while the growth and stability loan scheme has been popular and fully drawn down by lending institutions; the minister said he hopes to top up the scheme through the current NDP review.
Carbon tax allocations explained
The minister set out that the Department was allocated £143 million from carbon tax in 2025, with £140 million used to fund acres and £3 million allocated for Green Agricultural Pilots and the Anaerobic Digestion Scheme. Deputies queried what fraction of overall carbon-tax revenue this represents and sought clarification on recent percentage changes in the line items.
Agri-environmental payments and carryover effects
The discussion noted a 30.6% movement in agri-environmental schemes, with officials saying the 2024 payment total is inflated by carryover from 2023. Officials also reminded the committee that unspent current expenditure is surrendered back to the Exchequer at year-end and that capital carryover is subject to a 10% maximum.
NDP review and budget pressures
Throughout the exchange the minister repeatedly flagged budget constraints and the NDP revision as the vehicle for seeking additional funds, while stressing the potential long-term savings of upfront investment for farmers and the sector. Deputies pressed for clarity on which subheads are reduced and how shortfalls will be addressed in-year or through revisions to the plan.
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Transcript
I quick fire, because Gordon probably will handle a lot of these. TB testing is going to be going up. Where is the money going to come from? What's going to suffer? So, Deputy Fitzmaurice, I don't have the money there at present to do everything I would like to do in terms of TB, as what was allocated in last year's budget for doing this, there was just short of £74 million allocated. So, you know, ultimately, I'm putting together a very strong business case. Are you going to get that from deeper, or are you going to take it out to the department itself? I'm liaising with colleagues across government, because I'm making a very strong business case here that investment of extra finances now will save us money, will save farmers money in the long run, and will protect a very important industry. But if I have to find it for my own budget, obviously it will be a very significant amount to have to find. But either way, I can't afford not to act. Right. I see SCBI. Am I right in saying that loans for farmers will be down 25%? No. What subhead are you under now, Deputy? I am. I wrote them all down. I think it was near the end. That's under C, Policy and Strategy. Yeah. Can you explain that one to me? In relation to the 3.8% reduction, that's the difference in Maine is due to reduction in the research and development sector. The growth and stability loan scheme has been really popular, has been supported by farmers, and the banking institutions have made it clear. That is part of the NDP, and it's part of my discussions with Minister for Public Expenditure on the current revision of the NDP at present. Yeah, but is the figures down on it? No. So in subheading C, Policy and Strategy, there is a 3.8% difference between the 24 supplementary estimate and the 25, but that's mainly due to a reduction in the research and development sector. Right. We've seen the growth and stability loan scheme being very popular and fully drawn down by some of the lending institutions, and I would hope to be able to put more money into that if I get more in the revised NDP. What am I looking at on C10, page 4, SCBI loan scheme, minus 25%. What's that? Yeah, so no, it's down on, yeah, under C10, it is down 25% from... What's that? ..24 to 25%, but that's where my ask is as part of the NDP review. But is there less money? Is it down 25%? It's fully subscribed through the institution, so it is down in terms of over the period of the whole scheme, so I want to get more money to top it up. So it's down 25%. Yeah, so the claims amounts to the received and the data consideration... Okay, it's down 25%, that's grand. I'm just trying to get through it. Carbon tax, can you explain that one? It's 2.1% down. Sorry, say again? Carbon tax, it was down 22.1%. What number? Right, B13 on Programme 3. Yeah. Page 3, B13. So on B13, part of the 143 million carbon tax funding provided to DAFM in 2025, 140 was used to fund acres and 3 million was allocated for the Green Agricultural Pilots and Anaerobic Digestion Scheme. The Department has been allocated 143 million out of carbon tax for this year and, as I said, 3 million of that goes to the Anaerobic Digestion... So the Department only gets a fraction of the overall carbon tax? 143 million... Yeah, out of about 700 or 800 million? It's a significant proportion. I think it's up in 20%, is it? It was 6.23 last year before the rise. So it actually represents the 143 million in 2025, and of the 260 million in acres allocation, that's a 30 million increase, Deputy? Agri-schemes, am I right in saying, and explain this regarding, say, you weren't able to give out the money in 2023 and 2024. Had you to give that money back to the Exchequer, and there's extra money this year because more people are getting paid that we're owed it. What's the story with that? Explain the agri-environmental schemes, the 30.6%. Yeah, so where we're at here is the continuation of acres. There's additional funding required, and it should be noted that in 2024, the payment total is inflated, as it includes a significant amount of carryover from 2023, as you've outlined. Yeah, but do you have to give back that? What I'm asking at the end of the year, do you have to give it back, and why have you to look for more money? That money is owed to you. You should be only able to carry it over. Is that right? Yeah, I'll let Gordon come in on that one in terms of last year's... So, Deputy, yes. It's not like... Yeah, go on, Gordon. Very briefly, in relation to current expenditure, if it's not spent by the end of the year, it's surrendered back to the exchequer. You can carry over a maximum of 10% of capital. $190 million, is it? Not current. You're not current. All right. Over to Deputy...