Andrew Doyle (Wicklow, Fine Gael)
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I wish to make an observation. This study highlights the value of the drystock sector to the Irish economy, particularly because of the nature of the sector where it is spread all over the country. We rightly claim to have some of the best grazing land in the world and the ability to produce grass. Between two thirds and three quarters of the land is involved in drystock production and between a quarter and a third of it is involved in dairy production. Approximately 15,000 dairy farmers are in the main profitable while between 32,000 and 110,000, not including the 15,000 who in 1995 become involved in drystock farming, are in the main not profitable. If there is to be a shift to dairy farming, the chances are it will be the most profitable of that cohort who will make the move.

We are left with a sector that is very important to the economy but cannot make a profit.

This is all about being self-sustaining. Regardless of the argument about whether farmers are happy not to be making money - I do not think they are - the next generation will certainly not be happy if they are not making money. This industry needs to be profitable in its own right. If it needs support, it needs support. A focused scheme may well help it. Such a scheme will not be of assistance if it does not contribute to increasing production inside the farm gate. That must be the target and the objective in anything we do. The study highlights the importance of the sector to the Irish economy. We need to focus on how to make that sector profitable in its own right. This is where we need to be careful. If all subsidies end up allowing someone else in the food chain to take another swipe at the margin, it is self-defeating. If we do not enable the farmer to increase his production and his efficiencies, while at the same time protecting or improving the margin he gets, we are destined to fail. The committee and other groups along the food chain are doing some other work in that regard. I do not mean any disrespect to Mr. Bryan when I say I would be interested in hearing the opinion of the economists on this aspect of the matter. Those are my observations.