Mr. Eddie Downey:

I thank members for their comments, all of which were positive. Many people talk about the west and small farmers, particularly sheep farmers, but we need to lose sight of and move beyond that issue at this stage. Quite simply, we want to have a balanced industry across the country. In order to have a viable sheep sector we need to have lowland and upland sheep. It is clear from all of the reforms and support mechanisms put in place that direct supports drive numbers and output. There is a concern, which was expressed by some members, about the effect this can have on the environment and associated issues, but if we can drive numbers and output, it will secure a supply of product to keep the factories in place and jobs secure. On top of this, while we develop and break into new markets, we can guarantee a continued supply over the full year. There is no point in getting into a market for a couple of months and then being out of it for the rest of the year; it is simply not viable to do so. That aspect is of critical importance to us.

On the environmental side, many have talked about commonages and our position on them. In terms of what we need to consider, we have to be clear on what has always been our position. We need individual plans for individual commonages. Once we have done this we have to revisit and examine the need for flexibility to allow active farmers to farm commonages in the correct way. This can be measured and done on a planned basis, but we need to have a plan to make sure it will happen.

GLAS presents a huge problem for us because we see the exclusion from it of low input grasslands. This will have a huge effect on farmers through the halving of the amount of land in respect of which they can submit applications. That has to be reversed. Put simply, if the Minister takes something out of the scheme, surely additional measures should be included to act as a counterbalance if there is overuse of a particular measure.

Another important issue raised was succession and the need to get young people involved in the industry. Members have read our pre-budget submission in which we raise the issue of the phased transfer of farms from one generation to another. We need to deal with that process in a stronger way. In addition, we must ensure the leasing incentives in place will continue to work. I will leave the question of farm assist to Mr. Kinsella who might be able to give more details and outline the current position on the scheme.

This is a low income sector which relies on a suite of schemes and payments. I refer to the sheep technology adoption programme, STAP and the farm assist scheme, but what is vital is a direct payment which we see as essential in the future.

A few members mentioned the facilities in Athenry. I want to make it absolutely clear that there is a need for a centre of excellence for the sheep sector. The facilities are available in Athenry, but that initiative has to be driven and we need to get real results from it.

I will leave the issue of tagging to the chairman, if he wishes to address it.

Senator Comiskey raised the issue of how vital it is to rural areas to have these schemes in place. The issue of exports to Northern Ireland continues to be a problem for us. We need to examine this, both on the cattle side and the sheep side. There must be give on this because we are excluded from direct sales to our nearest neighbour and our cattle have been discounted in those markets. That is not acceptable and we need to look at that area in more detail.

Restoring the disadvantaged areas payment would be a huge vote of confidence in this whole area. Allowing farmers to participate in two of the discussion group payments is essential. The value of these discussion groups and the knowledge that has transferred directly to farmers has been phenomenal. One of the key things to emerge from discussion groups is the value of paddock grazing and rotational grazing. To make that happen, it is essential that one has proper fencing and yet we have the targeted agriculture modernisation scheme, TAMS II, which excludes that. It is a no-brainer to me. Payments need to be made in that respect.

Schemes should be an incentive to improve, not just a payment for having sheep. Deputy Penrose stated very clearly the difference between a cat and a sheep. While that might be a stretch, we want people who want to farm these areas and learn the skills associated with farming difficult areas.

While overgrazing is a problem, a whole new set of quotas from Europe has been put in place. We have the environmental quota which restricts the number of animals that can be put in an area. The risk of overgrazing in commonage areas has been reduced because there will be individual plans for each of these areas with which farmers will have to comply. I do not see that as a risk. These can be used flexibly to manage it; to put extra sheep to get it under control and then put a correct management figure on it.

Deputy Penrose raised the issue of the Rungis market in France. What he saw happen there in the past has actually increased. The renationalisation of European markets is absolutely clear. We see what is happening in the UK with the little Red Tractor food standard symbol. I always say we want to be in the little trailer behind the red tractor, not in the skip. If they are bringing us along in a trailer, we are selling on an equal footing. If they put us in the skip, we are dumping in there. We are the largest exporter of beef to the UK and 90% of our agricultural produce goes there. We can damage markets just as quickly as we can protect and look after them. The French market now has a flag system that is making a difference. We were promised a free European market but it is going in the opposite direction.