Andrew Doyle (Wicklow, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The rationale behind inviting the witnesses in was to discuss potential difficulties caused by market volatility. We might have expanded a little on that to discuss owners, farm operators and long-term leasing. I may be as guilty of that as everyone else. Deputy Barry hit on the very relevant point of trying to eliminate conacre for everybody’s benefit because it becomes very difficult for people in the lending institutions to lend year on year. Prudence is needed.

The reason for inviting the witnesses was to hear at first hand and in a public forum in the Oireachtas whether the banks have a handle on the concerns that have been raised. We are reasonably satisfied that they have. The question of reach is probably an issue, if there are a significant number of farmers. The Health and Safety Authority told us that 58% of all farm fatalities were on dairy farms which account for 17% of all farms. That is a concern. Farmers may improve the herd size, roadways and land to produce more milk but be slower to improve safety features. It is important that everything is done together. That is why I raised that point.

It has been interesting from the committee’s point of view to hear about the different products and approaches from the banks. They are very similar in ways but they have to work with this industry which is worth €10 billion and has over 100,000 primary producers. If this was bio-pharma with a turnover of €10 billion it might have ten producers, ten multinationals. The farmers are more important from the point of view of dispersed rural economies. Every loan, every farmer, every contributor to the local co-op or meat processing plant is an important integral part of the community.

One lesson learned from the pig industry in New Zealand is that sometimes efficiency means consolidation but that has been the enemy of many farmers. I lived there in the early 1980s when farming was totally grass-based and dairy farms averaged probably 150 cows when there were 50 here. A few years ago a friend of mine was there and said the difference between a conversion to a 1,000 cow herd after the downturn, before the earthquakes, when construction rose again, was €1.5 million. What did it cost when one could not get a plumber or electrician? We have to be wary of consolidating in an open expansionary period but learn from the lessons of others. There is production and sales and the people who support the players. The primary producers must be supported in everybody’s interests. There are animal welfare issues and many others we could go into. We wanted to hear that the banks are standing shoulder to shoulder with farmers to protect family farms and give people a decent quality of life. We want to emphasis this and that is why the committee engaged in it.

We thank the witnesses for coming in and appreciate the fact that they came here together because they are competitors in one sector. I thank the members of the committee for their questions and observations. There is a certain wealth of expertise among the members too.