Seymour Crawford (Cavan-Monaghan, Fine Gael)

I welcome the opportunity to say a few words on this very important motion. It is not right that agriculture is often seen as the poor relation in Irish industry when it continues to be one of the main sectors and a producer of real exports. The majority products exported by the agricultural industry are produced in Ireland with the import element being extremely small. These products include dairy, beef and what used to be a great many mushrooms.

It is important to get our marketing right at home and abroad. One cannot but mention the issue of the Carlow sugar beet factory. One must ask why such a high percentage of sugar used in Ireland is not produced by our own companies. Did we fall down in the marketing of our own produce thereby allowing an industry to collapse, a factory to close and a threat to hang over what remains of an important sector? One must ask what is happening with the marketing of milk. The co-operatives blame the import of milk from Northern Ireland, but they undercut each other rather than promote a brand or market. When one compares the price of milk sold in supermarkets or corner shops with the price of Tipperary water, Ballygowan water or even imported bottled water, it begs the question of where we are going in terms of marketing. In my earlier days, I spent time as a member of the meat board and had the opportunity to travel to Germany, France and other countries to promote Irish beef. In the unique scenario which obtained at that time, there were intervention, export refunds and other provisions and those who made genuine marketing efforts did not get the respect or response they deserved. We are now in a position where export refunds and intervention are gone. Never before was there so great a challenge to the Government, the industry and farmers to ensure the right product was available and properly marketed 52 weeks of the year.

Some talk glibly about all that has happened to Irish beef in the British market. What has happened has been the result of foot and mouth disease to a large degree and the fact that sizeable quantities of UK beef in Scotland, England, Wales and Northern Ireland have been destroyed in the over-30 months category. As beef from the United Kingdom will come back in here, we must use the opportunity to ensure proper marketing is carried out over the next number of months rather than years. If we do not raise our profile in the UK and European markets from being just another product to market Irish beef at the highest possible price, the increased production of UK beef will certainly cause us problems.

Viability is one of the most important issues in this debate. When one looks at the average farmer's income of €15,000 and compares it with what is available elsewhere, one does not have to wonder why so many are leaving farming. There has been a 22.5% fall in farm profits since 1995 as a result of the increased costs of motor fuel, veterinary expenses, fertilizer etc. Is any other group taking that sort of treatment? Irish agriculture has performed well to increase output and meet all the challenges with which the EU has presented it. However, the number involved is falling.

I tabled a question to the Minister recently about the number of cattle in the State and I was shocked at her reply. There were almost 8 million cattle in Ireland in 1998 but at the end of 2003 the number had fallen to under 7 million or by 12.5%. This happened before the single payment issue arose and one must be alarmed about what might happen. The food industry is important to the economy and the reduction in the number of cattle reflects a reduction in the raw material available to meat factories, which will have serious consequences in terms of the number of factories available and the distance cattle can be transported under regulation.

I refer to the nitrates directive, which the Minister inherited. She has my sympathy because a number of her predecessors have a great deal to answer for. Nothing has been done about this since 1997, despite the problems caused by BSE. The rainbow Government attempted to introduce a code of agricultural practice. The directive was introduced in 1992 and we must do something about the present unsatisfactory position. Those who glibly say that as a result of the change to single payments we have the freedom to farm and can do what we like are in cuckoo land.

For example, a small farmer in Cavan, whom the Minister of State, Deputy Brendan Smith, might know better than myself, brought in an independent consultant to examine how the nitrates directive would affect him and what he would have to do. He got the good news that although he has an intensive dairy unit, he will only have to cut back his enterprise by 10%, but he must close his pig unit. That is how the directive proposed by Mr. Brosnan will affect that farm.

I am anxious not to be critical because the Minister is only a wet week in the job. However, all politics is local and the directive will have major implications for the intensive pig, poultry and mushroom industries in my constituency. It is not easy under the directive to ask a neighbouring farmer to use his land to spread slurry and so on, nor is it easy for farmers in my constituency to travel to Meath or to the North as they did in the past. The directive's provisions must be addressed positively and constructively. As politicians, we have a major job to ensure laws are introduced that will allow people the freedom to farm so that they can generate a reasonable income. It was thought in the past that if land in poor areas could not be farmed, it could be turned over for forestry. However, this option is no longer open.

I refer to the issue of food labelling. If we are serious about ensuring domestic products are given a fair opportunity to be sold, we must follow up on the labelling issue. It is unfair that products imported from Brazil, or Thailand in the case of chickens, should be repackaged in Ireland and sold as Irish products. We must be careful about this because we are allowing our industry to be undermined and that cannot continue. The Minister stated that she is trying to find ways and means around this problem to ensure Irish products are labelled properly. A number of years ago the Taoiseach could not give a direct answer to a question I put to him about this problem.

I am a member of the agriculture committee and I travelled with Deputy Johnny Brady and others to Chicago where we saw farmers openly using steroids and hormones, even though they were supposed to be producing meat to world health standards. I do not suggest our farmers should be allowed to do this but they should be able to produce on an equal footing and, more importantly, I want to ensure the consumer is not eating something that is not traceable. This issue is about making sure the origins of a product, how it was treated and its quality are known.

I referred to the 60,000 farmers who are living on the edge with less than 20 livestock units. By regulation, they cannot obtain grant aid. I urge the Minister to ensure these farmers are grant aided, otherwise there will be an exodus of older farmers from the land. They should not be forced into retirement. The Government, if necessary, should seek agreement from Brussels to provide funding for these farmers. The bottom line is the Government will provide €1.4 million this year, which is 50% less than in 1997.

I tabled a parliamentary question last week about pollution control. The Minister stated that almost €39 million will be provided in this year's budget in this area, but more than €90 million was provided in 1997 for farmyard pollution and dairy hygiene measures. When one considers the massive increase in the cost of farm building since then, one realises how far we are behind.

Young farmers are important to the industry and should have a right to installation aid but there are technicalities involved. I emphasise the technicalities are minor, but they stop genuine qualified farmers from getting their aid. I urge the Minister to ensure they get the aid. Let the Minister give Bord Bia the proper funding to market its products and Teagasc the proper funding to enable it to provide the advice and research needed to farmers.

See this speech in context