Tim Lombard (Fine Gael)
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I welcome our guests here this evening. It is important that we get the industry's perspective on the nitrates derogation and the potential impact on the economy. I acknowledge the witnesses' document and the ten-point plan has been very well made. It sets out good parameters where we as a farming community need to go and to see whether we can actually get to where we need to go regarding the issues.

I will start of with the industry's side of the argument. Figures the witnesses have given to the committee indicate that 4.1% was the reduction in volume last year. Mr. Mulvihill just mentioned the frightening figure that we are down 9% this year. I am right in saying that if this 9% was to follow through for the entire year, production would be down by roughly one billion litres of milk. With a knock-on implication of 40 cent a litre, we are looking at a situation where we could be looking at €500 million being taken directly out of the rural economy this year alone as a result of the reduction in the volume of milk.

From the processors' point of view, will Mr. Mulvihill or others give an indication on how that could have a huge impact on their industry and what can be done to make sure it is profitable going forward? We all know and make sure we are paid on A+B+C or AB+C. The C implication, the cost of manufacturing, could be a huge issue in the milk price going forward due to the lack of volume and the figures that have been given to the committee today. Will the witnesses indicate what they believe could be the outcome of this issue?