Oireachtas Joint and Select Committees

Tuesday, 18 June 2013

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Agriculture Sector: Discussion

4:50 pm

Photo of David CullinaneDavid Cullinane (Sinn Fein) | Oireachtas source

I apologise to the visitors as we probably tried to cram too much into one day and, unfortunately, we are victims of that. As the Vice Chairman said, we have the presentations and they will be factored into our report. I do not know if the visitors heard the session with the Kilkenny county manager. The whole area of agriculture and Food Harvest 2020 was raised. The visitors have reinforced much of what was said earlier. Everybody agrees that the targets for Food Harvest 2020 are ambitious but realistic and deliverable. If they are to be achieved, we must ensure the infrastructure is in place. If we are to expand milk production - obviously we have opportunities with the abolition of milk quotas - we must ensure the infrastructure is in place to process milk. We have had a positive announcement from Glanbia on the Belview site. That is hugely important for the south east, midlands and the south west in terms of taking the increased milk.

The infrastructure at that level is only part of the jigsaw. Certainly the farmers in the region want their concerns addressed. For example, if they need to expand their herd or their on-farm infrastructure, they will need access to credit and, perhaps, employment supports if they are taking people on.

In their opinion, a range of supports will need to be put in place to aid them in capitalising on opportunities. Our guests mentioned access to credit, but perhaps they will briefly discuss some of these points.

Mr. Joe Crockett, the Kilkenny county manager, referred to the opportunity for the south east to become a leader in food, for example, production, technology, ingredients, etc. What more can be done to support that work? He also mentioned the challenges that could be overcome. For example, if we increase herd size, we increase effluent, which creates problems in terms of compliance with the water framework directive. The nitrates directive is still hanging over us. How important are these challenges in terms of ensuring compliance with the water framework directive on the one hand while continuing the nitrates directive derogation on the other?

The sugar beet industry idea is laudable and I would support it as it would create substantial jobs in the region. There is no point in looking back on the decisions that have been made. We must look forward and determine where to go from here. Serious challenges must be overcome, but the starting point is to ask whether we are serious about going with this idea. We must decide whether we can be competitive and get growers and other players to buy into it. They are the key ingredient, if everyone will pardon the pun. If a decision is made at Government level to the effect that the idea is viable, everything else will flow from it and we will overcome the challenges.

Price competitiveness for beet growers was also mentioned. It is key that the industry be economically viable if farmers are to get a return on their produce. These issues must be examined. Mr. Kelly's group has conducted a feasibility study. If Government agencies make a decision to pursue this opportunity, particularly the bio-refinery element, it will happen. If a positive decision is not made, it will not happen. A Government decision is critical.

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