Overview:
The Estimate submitted by the Department of Agriculture and Food complied with the Government's pre-Budget target, which required the Department to identify savings of €79m below its ELS figure. The Committee accepted that additional pressures of some €92m should be provided for. The Committee identified measures which would generate offsetting reductions of €78m in gross expenditure and which would, therefore, result in an allocation some €14m above the approved pre-Budget limit. An increase in Appropriations-in-Aid receipts of €10m is also proposed by increasing the disease eradication levies – for which secondary legislation will be required.

Additional comments:
Research, testing, etc. - Expenditure on Research and Development and related “technical” activities (testing, advice, education, training, etc.) is currently spread over a number of subheads. By bringing together responsibility for all resources devoted to such activities (to the greatest extent possible) under a single body/subhead (Teagasc), it should be possible to achieve efficiencies in the allocation of resources, while also improving transparency in relation to the funding of such activities. The Committee considers that this proposal should facilitate a reduction of €7.2m. in the aggregate budget provision sought for these activities in 2003 (€128m). Legislative changes may be required in respect of this proposal.

Promotion of exports - The Committee also considers that there is unnecessary duplication of resources in the promotion and marketing of Irish exports. Bord Bia is responsible for Irish food, drink and livestock exports while Enterprise Ireland is responsible for indigenous exports generally (excluding food, drink and livestock). The Committee proposes that savings be achieved in the short term by closer cooperation between these bodies and Bord Glas. However, in the longer term, the Committee recommends that the functions of these bodies be integrated under a single agency, to achieve greater efficiencies in the promotion of Irish produce.

REPS - The proposals in relation to the REPS scheme could result in a loss of receipts of approximately €30m in 2003, as this programme is co-funded by the EU. However, the take-up to date of this scheme has been much slower than expected, with expenditure in 2002 now projected at €175m compared with a budget provision of €234m. On the other hand, the additional expenditure on BSE measures conceded by the Committee will yield additional EU receipts of €21m, which together with the €10m in increased levies would balance out the €30m loss.

Finally, the Committee emphasises the need for further action to reduce the level of Exchequer subsidisation of BSE measures and would question the long term effectiveness of continued Exchequer support of the TB testing initiatives (Appendix III refers).