Martin Heydon (Kildare South, Fine Gael) | Oireachtas source

Like Deputy Michael Creed, I note the lack of time available to Deputies to contribute to this debate. I reiterate his point regarding the need for greater co-ordination among farmers and a greater effort to work together. The public consultation process on the establishment of producer organisations is intended to increase farmer bargaining power and is key to the future of the sector. For too long farmers have tended to be their own worst enemies in how they operate. When there is a particular need to work collectively and perhaps hold back from the factories, that is the very time a couple of farmers will break, which undermines everybody else.

The future of the Kildare Chilling Company in Kildare town is an issue that is very pertinent to me as a Deputy for Kildare South. Serious consideration should be given by the farming organisations to buying that facility if, as is rumoured, it goes up for sale. The factory has a capacity to slaughter 120,00 head of cattle and 500,000 lambs per year. It is a very successful enterprise and, while not one of the big three, is a key player in the industry and a key employer in Kildare town. It has state-of-the art boning halls and refrigeration facilities. If the farming organisations really want a slice of the action, the opportunity for farmers to work collectively and the capacity to hold other factories to account, the possibility of taking over the Kildare town facility certainly is something to consider.

The relationship between dairy farmers and processors, which is based on a more co-operative model, was compared with what happens in the beef sector, where farmers seem constantly to be involved in strife. I am very uneasy, for instance, when I see farmers picketing McDonald's restaurants. To the best of my knowledge, every beef product that company sells throughout Europe comes from Ireland. The phrase about not biting the hand that feeds, if colleagues will pardon the pun, comes to mind. There are certainly times when it is appropriate to hold processors and retailers to account, but we must be mindful of where the pressures are and avoid shooting ourselves in the foot.

The motion refers to a fair standard of living for farmers, which is exactly what this Government is working towards. A particular highlight has been the successful negotiation of the Common Agricultural Policy during the Irish Presidency, where Pillar 1 funding of €8.5 billion was secured, together with rural development programme funding of €2.2 billion plus an additional €1.9 billion. Some €40 million has been allocated to the beef genomics scheme, allowing for a per head of cattle payment that is twice what was available to farmers under the previous Government. Increasing that payment to €200, as colleagues opposite are suggesting, would cost in the region of €60 million to €70 million. I look forward to seeing Fianna Fáil's pre-budget submission to discover exactly where the money will be taken from farmers to pay for that.

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