Joe O'Reilly (Cavan-Monaghan, Fine Gael) | Oireachtas source

I join in welcoming the Latvian delegation. I was interested to read in the briefing material provided by the Department of Foreign Affairs and Trade that Ireland did not recognise the incorporation of Latvia, Lithuania or Estonia into the USSR. This is acknowledged in Latvia and fosters our bonds of friendship. There is an historical friendship between our two countries and a sense that we are both small nations with common interests and that we should work together. Smaller states should support each other and there is that sense between the two states. The fact that so many Latvian nationals live here also makes for a connection between the two.

As Deputy Timmy Dooley said, the CAP is a vital national interest; it is important to the survival of the people. In European terms, there is a need for food security; it is important that enough quality food is created to feed an ever increasing world population. There is a rationale for the Common Agricultural Policy at a macro level. We have an increasing global population that needs to eat and wants quality food. As such, the CAP must support and encourage the production of that food. It is also important, with respect to Mr. Dombrovskis's latter comments on smaller farms, that while we support and encourage our smaller farmers, that we also support a level of production to meet future requirements. We must balance support for our very small farmers, which is admirable and right, giving them the capacity to develop and supporting a level of production that will meet targets to feed the population.

As far as possible, countries should have domestic discretion on how they can spend the money when they receive their envelopes, allowing them to adjust their spend to meet the requirements of the agricultural sector and economic objectives in general. We hope to receive support from Latvia on the Common Agricultural Policy and maintaining the amount of money allocated to it in order that it is not reduced within the multi-annual financial framework. We should at least be able to reach agreement on this but having Latvia's absolute support is important. We could then discuss its distribution, but, first, we must secure the amount allocated. After that, we can strike a balance in the distribution between supporting production to the degree that we can feed our people and encouraging small units and farmers. That is the objective.

The Chairman referred to our similar high rates of unemployment. The rate is 13% in Latvia, while ours is somewhat higher. We have a joint interest in addressing the unemployment problem. I ask for Latvia's support during our Presidency for our initiatives to tackle unemployment. The Tánaiste told us last week that we would place the unemployment problem and solutions to it, particularly youth unemployment, centre stage. We seek the active support of Latvia on that issue for all of sakes. There is no issue more important because unemployment affects the dignity of persons who are unemployed and their quality of life in a massive way.

It also has enormous economic effects. The cost of supporting unemployed persons is just one part of the problem. Those who are not earning adequate money cannot spend and there is a lack of productivity and genius in the economy. It is, therefore, a crucial issue for all of these reasons and I stress that it will be central to our Presidency. I would like to have an absolute assurance that it is a central issue for Latvia also. Actual initiatives need to be taken to deal with unemployment, specifically youth unemployment which has been mentioned by the Chairman.

As Latvia has been in an IMF programme, it has experience of the situation Ireland is in. The question of the separation of banking debt and sovereign debt, in the interests of the alleviation of the hardship of the people, is an important one in this country. It is important for us that the international agreement achieved on 29 June becomes part of concrete reality. We would like to receive the support of Latvia in that regard. We have a community of interest because Latvia has a similar agenda. It is interesting that there was also a property bubble there. It seemed to build in a similar way. If I understand the situation correctly, prices went out of control in the construction sector. We all have to try to take steps to prevent this happening in the future. We need to construct our economies on a more production oriented basis and focus on real jobs in areas such as agriculture, tourism and trade.

It is great that the delegates are here and they are very welcome. My fundamental objective is to welcome them like everyone present would like to do.