Oireachtas Joint and Select Committees

Tuesday, 2 October 2018

Joint Oireachtas Committee on Agriculture, Food and the Marine

Priorities for Budget 2019: Minister for Agriculture, Food and the Marine

3:30 pm

Photo of Martin KennyMartin Kenny (Sligo-Leitrim, Sinn Fein) | Oireachtas source

I thank the Minister and his officials for their attendance today. I attended a meeting last night in Ballinasloe on the issue of the suckler herd and I estimate there were between 400 and 500 farmers present. They were all feeling huge pressure because of the impact of the beef sector on the suckler cow sector. They are in a real crisis.

As I pointed out last night, it is four years since farmers protested outside supermarkets and meat factories around the country because of the pressure they were under. While the beef forum was set up in response, it has not worked. It has been a failure because farmers are still in the same position. Farmers are demanding that the Government ensures that they get fair play with regard to price. A package also needs to be put in place to support the suckler cow sector if it is to have a future. The Government must show that it is prepared to invest in the sector and that it understands the plight of suckler farmers who are mainly along the western seaboard and in the Border region. A full 80% of the stock in that part of the world are suckler cows and farmers really need to get a lift. I look forward to the Minister's comments in that regard. I know that there has been talk of farmers being given €200 per suckler cow and while it may fall somewhere short of that, we need to see some provision being made in the budget.

I will refer now to Brexit and its potential impact. We spoke earlier about the impact Brexit will have on small food producers. In the context of Food Wise 2025, I believe there is too much emphasis on volume and not enough on value. Mr. Joe Burke from Bord Bia made a presentation last night and pointed out that the price we are getting for our beef is pretty much average on a global scale. That is an issue that we must face. We need to consider value, find ways to get a higher price and ensure that the higher price is returned to the farmer.

In the context of the budget, the issue of young farmers has been talked about for quite some time in terms of what we can do to deliver for that small sector of farmers who want to get into the industry but feel that they are locked out because they cannot get any entitlements or a break. Will there be something for them in the budget?

Last year, additional moneys were provided for ANCs, which was welcome. Will additional money, which is needed, be provided this year? The Minister is smiling but the farming sector is under the most pressure. This land is the least productive but, at the same time, it produces a major benefit for the farmers who work it. Many of them feel they are being squeezed out.

According to the Minister's opening contribution, approximately 19,000 farmers participate in the sheep welfare scheme. There is pressure to go down the route of using the new digital tags. Is there a possibility of increasing the payment to cover this? There should be an increase of €5 per ewe, which would at least give the sector additional help in this regard.

We were told an attempt would be made to provide access to more cheap loans. The problem goes beyond loans at this stage for many farmers. They feel that even if they secured a loan, they would not have the capacity to pay it back. This is why the ANC, sheep welfare and suckler cow schemes are vital in putting money into the hands of farmers who need it.

The State aid rules on support from the Government could be a significant problem for us, particularly with regard to Brexit. If there is a hard Brexit, many food companies that export mainly to Britain will be left in a serious position. Their only hope of survival without shedding jobs, which is something we do not want them to do, is for the State to assist them but if it does so, it will be in breach of State aid rules. Have negotiations taken place with the European Commission to ensure we can get a by-ball in this regard? We need one if we are going to try to sustain the industry.

The Minister mentioned the seafood industry. The committee will write to the Minister about the delays faced in aquaculture with regard to getting salmon farm licences. It is strangling the sector. It is not really an issue of investment but of the Department stepping up to the mark and recognising it is an industry that has potential and delivering for it.

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