Andrew Doyle (Wicklow, Fine Gael) | Oireachtas source

I remember, years ago, after listening to the New Zealand advisers, a man took up a leaf of grass and asked me what it was. When I told him it was a leaf of grass, he replied that it was not; it was a total diet for a cow that was going to produce milk. I then said that was a different way. It was a man in Ardfinnan and I believe the witnesses know who I am talking about. While the point is that it is difficult, nevertheless I believe this has been really interesting.

Before I wind up this meeting, I note we are lining up the banks to appear before the joint committee next Tuesday because there is no doubt about their intricate involvement, being part of it and having skin in the game. The level of expertise is a huge issue, as the ability to evaluate a farm business plan, particularly from somebody who does not have a strong asset base other than a single farm payment cheque, is a skill that must be honed and developed and this has been a problem.

To summarise, this is an area in which I am fascinated anyway but there are immediate, ongoing, mid-term and long-term issues. The immediate issue is about intervention prices. The European Union intervention price is practically useless, because it is the world market price and does not bear any resemblance to the actual cost of production. The joint committee has made this point previously. As for the superlevy and the soft landing, I am not sure what can be achieved but the solution to it will be political. There also is the immediate issue of bank flexibility.

In respect of ongoing issues, there is the idea of the insurance policy, forward buying and selling, as well as the tax code from the perspective of sheltering money. While the Minister for Finance has stated the five-year averaging introduced in the last budget may address this in part, it possibly is not enough. There also is the issue of access to markets. In addition, there obviously is the issue of banks, credit and the way in which young farmers can be recognised. Within the tax code at least, there have been some developments in share farming partnerships that facilitate a person who has land but has nobody to farm it or who has decided not to farm it. Consequently, there may be ways in which this could overcome the capital expenditure issue. There could be a ten-year plan in which 10% could be reduced from one's equity in it over the period of the ten-year plan.

In the long term, the major issue is knowledge transfer, which is about training enough farmers. As Mr. Michael Murphy stated, I am a product of the farm apprenticeship board and have the marks to prove it. While it certainly was a learning curve, it definitely benefits those who wish to get into management. The new course to which he referred is a brilliant course that needs to be developed. In general, education has been a key component in trying to manage and develop the economy and society. The joint committee cannot emphasise education enough because for rural-based economic communities to thrive, at their core must be well trained farmers.

These farmers generally, albeit not necessarily, will be young and will be supported by the advisory service, the financial services and obviously, by the political system. The joint committee will finish its hearings on this subject with the banks next week and I hope it then will come up with a short report. It should be laid before both Houses of the Oireachtas and the relevant information, recommendations and whatever should be sent to the various interest groups and stakeholders. Hopefully, we also will be able to forward this to all the witnesses who have appeared before the joint committee for their observations, as although the report will have been concluded at that point, that still would be worthwhile.

This meeting has been valuable regardless of the fact that few members are present. Everything is recorded and Ronan McCabe, the policy officer who is assisting us, certainly will help members in drafting what we hope will be something constructive on the entire issue. It is fascinating to hear that the real challenge will be doubling the output by 2025 and trebling it by 2035 and this undoubtedly is attainable. I refer to one point that has not been mentioned although it was mentioned in other contexts. The earlier comment made by representatives of Bord Bia on the sustainable dairy assurance scheme was that this is environment-proofed. The perspective of the people who eventually will go out and sell the product is that in a system like this, Ireland's product actually is good for the global environment. This is because in other countries, it takes perhaps three or four times the acreage or hectarage of land to produce the same amount of milk as do farmers here. I let everyone else speak first and then they cannot come back at me.

I thank all the witnesses for their attendance and for their presentations.