Mr. Gabriel Gilmartin:

I thank the Chairman and committee members for the invitation to the ICSA to make a pre-budget submission in what has been a very difficult year for farming, in both financial and weather terms. We have prepared a document entitled, Ireland - Agriculture, a key part of our economic recovery, which sets out the steps we believe the Government must take to support Irish farming as it seeks to develop under the targets set out in Food Harvest 2020. Amid the doom and gloom, the farming sector in Ireland is still very much alive, with agrifood exports, according to Bord Bia, worth €8.8 billion in 2011. The key point is that the majority of the money earned from agrifood exports is spent in the local economy. As such, it is vital that the sector is nurtured and encouraged in order that it can continue to be a key player in Ireland's recovery.

As such, it is vital the sector is nurtured and encouraged so that it can continue to be a key player in Ireland's recovery.

It must be pointed out that in recent years the Department of Agriculture, Food and the Marine has gone much further than most other Government Departments in making savings in its overall voted expenditure, details of which are supplied. It will be extremely difficult for the Department to achieve any further reductions in expenditure without seriously compromising efforts to achieve the vision set out in Food Harvest 2020. This, in turn, will have implications for the wider economy. We are, however, realistic. We recognise that it is not possible for the Government to provide a financial stimulus to the industry in the upcoming budget. Given that this is the case, I call on it to do no harm and to refrain from making any further cuts to the Department's budget. In this context, particular priority must be given to the various farm support schemes which have for many years formed a crucial part of family farm income. The ICSA is of the strong opinion that no further reductions should be made to the funding relating to these schemes.

The suckler cow welfare scheme is a vital support for many farmers and must continue to be funded for 2013 and 2014 or at least until a meaningful rural development programme is agreed in the context of the new CAP. This scheme has made a huge contribution to the industry and is proving to be great value for money. It encourages proper weaning and is good for animal welfare. The latter is directly beneficial to our exports. The data that is being generated through the scheme is incredibly useful and is rapidly transforming beef breeding in Ireland. However, the funding for it has been cut in half. We insist that this funding must be continued at least until the new CAP regime comes into place. At the ICSA's annual general conference last December, I was delighted to hear the Minister for Agriculture, Food and the Marine affirm his commitment to the suckler herd. We call on him to ensure that this commitment will extend to the protection of the suckler cow welfare scheme in the forthcoming budget. The scheme typically costs approximately €30 million per annum but its support to the high-quality beef sector is immeasurable.

The position in respect of the disadvantaged areas scheme and REPS is similar. These schemes are of huge importance and I must emphasise the fact that the most marginal farmers are hugely dependent on them. While we normally hear that those who are earning the most in society should generally contribute the most in order to reduce the deficit, in this instance the opposite has happened and the most vulnerable farmers have been targeted for the severest cuts. The disadvantaged areas scheme has already taken a cut of more than 25% in recent budgets. In addition, 62,000 farmers are gradually leaving REPS. The latter will be closed down completely in 2014. Farmers who have been most dependent on REPS and the disadvantaged areas scheme and who have the smallest single farm payments have been particularly badly hit. There is evidence of this in every county but it is particularly obvious in the west.

We are of the view that it is now vital that a fund of €10 million be established in order to provide installation aid for young trained farmers. Bearing in mind the ageing population of the farming sector, these young farmers must be encouraged and supported if we are to be sure of the continued success of Irish agriculture. The Government must realise that an investment in this area would provide an excellent return for money and that it would also go a long way towards creating the environment in which Ireland can realise the potential identified in the Food Harvest 2020 report.

Provision must also be made in respect of maximising the number of farmers who will enter the agri-environment options scheme, AEOS, in 2013 when they have left REPS. We have also outlined a number of steps which would improve the outcome of the TAMS programme and we call on the Government to make no further cuts to the farm assist scheme, which has been of crucial importance to a large number of farming families during the recession. While it is not technically a budget issue as it is funded through CAP, I want to highlight the position in respect of the grassland sheep scheme. I consider it important that this scheme remain in place beyond the programme's stated end date of 2012. The scheme must be retained for 2013.

We urge the Government not to lose sight of the fact that farming is an export-oriented industry and that it drives activity in a significant part of our economy. It must be nurtured rather than hindered. I repeat the call I made earlier, namely, that the Government should do no harm in the budget for 2013 and should avoid imposing any further cuts on farming.

I will conclude on that point and hand over to Mr. Punch, who is going to discuss taxation issues, etc.