Charlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

I thank the Minister and his officials for attending this meeting, the purpose of which is to discuss key issues in advance of the budget. I will start with one of the Minister's final points, which is the need for additional supports for the beef sector and, in particular, the suckler cow sector. We have discussed this issue on many occasions in the Dáil and I have pointed out that it must be prioritised. The Minister will know from the National Ploughing Championships that it is being prioritised by farming organisations as well. Indeed, the Irish Farmers Association, IFA, has produced a report and research on the suckler cow sector and the benefit of any additional support that would go to it.

It is not sufficient for the Minister to say that it is simply a matter for the next CAP. The beef sector is under massive pressure at present and many farmers are considering their future in the suckler sector. They are looking to the Minister and the Government for an indication, at a minimum, of movement towards the introduction of a payment of €200 per suckler cow and progress on that in this budget. We must get to the stage where that is in place. We can discuss the format and how it is introduced, but the Minister has an opportunity in the budget to do something to indicate to the beef and suckler cow sector that he understands its very precarious situation. That requires movement from the Minister on additional funding for the suckler cow sector. I hope we will see something in that regard next week. The Minister's stance so far has been that he would not consider it. The furthest he has gone, and that is only belatedly, is to say it is something he would consider as part of the next CAP. That simply does not wash and is insufficient. Farmers need to see something happening in this budget.

Another key issue for priority - the Minister addressed it earlier - is the imminent fodder crisis, particularly the need for short-term support in the form of a low-interest loan scheme to assist farmers with the pressure many are under after the drought in the summer in respect of merchant debt and short-term credit. Again, the farming organisations have been clear in seeking assistance from the Government in that regard, specifically seeking a loan scheme under the auspices of the Strategic Banking Corporation of Ireland, SBCI, to assist farmers with the credit pressure they are under. That must be addressed in the budget. Unfortunately, the Minister's lack of delivery regarding the Brexit loan scheme is simply unacceptable. It is almost a year since the funding was allocated for that, but the scheme is still not in place. As winter approaches, it will be important to have an allocation for a hardship scheme for farmers who might find themselves in a difficult position. We hope that will not come to pass but it is important that provision is made for it.

Another key issue, and I seek feedback from the Minister on this as it is not the first budget in which it has been presented to him, is the farm management deposit scheme. Given the volatility of the sector, it is an additional income volatility tool to provide additional assistance and capacity to farmers to be able to manage their income, plan ahead and be in a position to buffer against pressures such as those we have seen this year.

In addition, I wish to raise the issue of harness racing, which the committee has discussed on a few occasions. Perhaps the Minister will comment on it. The committee has been in correspondence with the Minister regarding seed capital to support that. Will an allocation be made in the budget?

It is important to refer to the current price of beef with the Minister today and the difficulties being experienced by farmers in that regard. The beef forum is coming up this week. The forum last met in February but it has failed the beef sector so far. The price of beef in the UK has been increasing in recent weeks while pressure is being exerted by the factories on the beef price here. In the context of the upcoming budget and with the beef forum due to meet this week, the Minister must address the unacceptable situation whereby prices are being squeezed. In particular, I urge the Minister to ensure that at the beef forum this week he makes it crystal clear to the factories that a fair price must be given to farmers, especially given the additional pressures they have experienced because of the weather this year, with many having to sell additional stock. That must not be used by the factories to cut margins further and leave farmers in an even more difficult situation.

I know we are discussing the budget today but if a hard Brexit comes to pass next March, that will be an earthquake-like shock to the agriculture sector. It is absolutely critical that the Minister makes provision in this year's budget for that possibility so that the Department is in a position to assist the sector and to mitigate against the challenges that a hard Brexit presents. I hope the Minister will give us some clarification today and an update on the supports that will be made available and the provisions that will be made in this year's budget in the context of Brexit.