Mr. Flor McCarthy:

I thank the Chairman for the opportunity to address the committee. I wish to take up one point raised by Deputy Barry, namely, the issue of fairness. As farmers see it, the cuts being made to the agricultural envelope are disproportionate. A cut of 8% versus 3% is simply unacceptable. The evidence shows that farmers have taken considerable cuts to all of their schemes in recent years and in the context of the overall amount of money given by the Exchequer to agriculture, we are back to 2000 levels or earlier. The president referred to a farmer earning €20,000. As a self-employed person he or she is paying 19% in taxes and charges, versus 10% for PAYE workers, because the farmer does not have an allowance. The farmer must also pay the extra carbon taxes and extra VAT, while his or her family suffers the same way as every other family in society through the reduction in services. This year the farmer's income will be down by between 20% and 30% and in some cases more - depending on the type of farming - because of bad weather and increased costs. I urge members to remember the word fairness as I speak. The Government is arguing that something must be cut and the Department is intending to go after the schemes again. Farmers, like everyone else, will have to find the extra money to pay the property tax and whatever else is introduced in the budget. There is a tipping point and it has been reached. Farmers have already taken cuts and the disproportionality of those cuts must be addressed at the Cabinet table.

We cannot push many of these people much further. Already many of them would be better off getting up on a Thursday morning and going down to pick up a cheque, but they want to produce and they are glad to be doing something. The Government and the committee must argue for that because there will be no savings. The expenditure will go on the dole or farm assist or something else.