Justification of the priorities chosen having regard to the Community strategic guidelines and the national strategy plan as well as the expected impact according to the ex-ante-evaluation

4. Justification of the priorities chosen having regard to the Community strategic guidelines and the national strategy plan as well as the expected impact according to the ex-ante-evaluation

4. 1 Justification of the priorities chosen, having regard to the Community strategic guidelines and the national strategy plan

Ireland’s priorities under the National Strategy Plan are fully consistent with those set at EU level. From the agri-food perspective, Ireland’s objective is to develop a competitive consumer-focused sector that will contribute to a vibrant rural economy, society and environment. In overall terms this will be achieved by encouraging the optimum level of efficiency, competitiveness and responsiveness to the demands of the market while respecting and enhancing the physical environment.

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  The baseline analysis indicates the contribution of agriculture to the environment. It is important to maximise that contribution and to compensate farmers for the public good aspects of their enterprises. It is hoped to build on the success of current relevant successful measures and to deliver results in the areas of climate change, water quality and biodiversity.
  
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  The European model of agriculture emphasises its multi-functional role and the important development being underpinned by sustainability. Ireland endorses the European view and considers that the actions foreseen under the environmental objective must underpin those allowed elsewhere in the rural development framework.
  
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  The measures under the environmental objective have proven their worth and are already co-funded by the EU. From the financial management and control viewpoint it makes sense to concentrate EU funding on them. There will also be a significant carry over of commitments under this axis/objective from the current round.
  
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  The Axis 2 funding is aimed at environmental enhancement, but it also has an economic dimension that is relevant to the other areas. It is important as a platform for actions in other areas such as competitiveness, diversification, agri-tourism etc.
  
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  The ‘environmental’ support for farmers will be concentrated under this programme whereas the other priorities will benefit from policies adopted outside of the specific EU rural development remit that will make an important contribution to the economic and social well-being of rural areas.
  
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  With over 62,000 participants in 2009, REPS has been the main platform for delivering agri-environment outcomes – and will continue to support such activities on a large cross-section of Irish farms. While this is closed to new applicants from 9^th July 2009, it will be supplemented by a targeted agri-environment options scheme that focuses on water quality, biodiversity and climate change.
  

For Axis 3 the objective is to provide sufficient economic activity in rural areas to offset declines in traditional economic sectors and improve recreational and village infrastructure to enhance quality of life for rural dwellers. These priorities were identified and quantified in the National Strategy Plan and the measures to deliver on them are specifically selected to complement rural social and structural deficits prioritised for wider government action in the NDP. The measures were also chosen to maximise value add impact on existing complementary programmes in the DCRGA such as Community Development Programmes, Small Farm Holders Initiative, Rural Social Scheme, CLÁR infrastructure programme and Department initiatives supporting the Gaeltacht and the Islands.

Under the Health Check agreement and the European Economic Recovery Plan (EERP) additional EU funding of €146m has been made available for investment under the Rural Development Programme in Ireland. Of the €146m allocation an amount of €119m will be sourced under the Health Check fund with the balance of €27m from the EERP. To meet the requirements of the new challenges of:

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  Climate Change adaptation and mitigation,
  
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  Renewable energies,
  
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  Water management,
  
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  Biodiversity,
  
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  Innovation relating to previous four measures,
  
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  Measures accompanying restructuring of the dairy sector and
  
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  Broadband internet infrastructure in rural areas
  

Ireland entered into consultation with approximately 80 designated consultees on how best to meet these new challenges in accordance with the objectives of the Health Check and the EERP. Having reviewed the various proposals received and consulted with the Rural Development Monitoring Committee it was agreed that the total modulation fund and half of the EERP fund should be allocated to an agri-environment measure, titled “Agri-Environment Options Scheme” (AEOS). This investment amounts to €132.9m being €119.5m (Health Check) plus €13.4m (EERP). The balance of the EERP fund of €13.4m is allocated to a broadband measure. Having considered the range of challenges Ireland has opted to prioritise biodiversity, water management, climate change and broadband. The table below sets out the level of priority and allocation of funding to meet these challenges.