Oireachtas Joint and Select Committees

Wednesday, 13 December 2023

Joint Oireachtas Committee on Agriculture, Food and the Marine

Recent Reclassification of Beef Indexes: Discussion

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail) | Oireachtas source

I thank the Cathaoirleach. I thank the witnesses for making themselves available on foot of the representations we all have had in regard to the issues and the difficulties that have arisen as a result of the amendments the witnesses are seeking to make or believe they have made. The were a party, obviously, to the initial design, maintenance and ongoing implementation of SCEP. I appreciate and understand their role in monitoring the scheme correlating information and statistics and measuring cost implications, value and profitability with an eye to worldwide transition to low carbon emission in produce. That is a role they have too. They say the measurement is only 10% but I would venture it may be more of a thinking behind their input. To get to the nub of this issue, the revision of stars after the scheme has begun in my opinion is highly unprofessional. I am being quite honest and blunt about that. It is okay to highlight changes and the alterations to a new or a further scheme that might follow this. That would be appropriate. However, changing terms and conditions of a contract is not best practice. I do not believe think it would be tolerated in many other aspects of business life in this country. Carbon economics is fine.

The old issue of food production, feed production and slurry management, genomics, which is an ongoing project and process, and the big issue relates to the merits of dairy beef. That has potential and may assist suckler farmers and the beef sector. It may address the live calf exports conundrum. It may assist, maintain and enhance our dairy produce and its worldwide reputation as well. The general move is to try and align production systems with environmental ambition and consumer sentiment. That is a new and ongoing chapter in how farm families are funded and assisted with the transition. The provision of an Ireland fund, a climate fund, and COP28 this week, all point to transition in this area. It will take investment by the Government and the EU to front-load a lot of the costs and the fall in profitability in the short term but it is an investment that is worth making because it will safeguard, maintain and further enhance our products worldwide both in the dairy sector and in the beef sector. I do not think that can be imposed in the way in which the system may seek to do at this juncture. Those who have signed up to this in the best of good faith and with the best of intentions in regard to other matters on their farms are making efforts in regard to carbon emissions and so forth. Many of us feel the role they have silently played on this before it became the live issue it is today, has not been honoured.

I appreciate and acknowledge what the witnesses are at. I can see the merit in what they are saying but, as Senator Paul Daly said, that is another day's work. That is another contract that has to be entered into by the State and by producers to get the alignment that we all want to see that protects and enhances our products into the future. That is going to cost money, whatever Government is in place. The provisions have been made through the future Ireland fund and the climate fund by virtue of the receipts we have had from corporate tax. That investment can be made but it is a new contract. This contract and this scheme does not deserve the cull that has taken place mid-stream.

The views of members of this committee from all parties and none are unanimous. It is that the Department and the Minister would be told in no uncertain terms. Commitments were made that are not being honoured. Commitments were made on ACRES. I refer to commitments that were made subsequently to banks and creditors. To be let down in such a way on an environmental scheme does not assist us all in our efforts to do this transition in a way in which we can come out of it better than we went into it. The great cost involved must be borne by the State as an investment and it should not be a burden on current producers who are not equipped with the tools to make the transition properly or effectively.

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