Mary Coughlan (Donegal South West, Fianna Fail)

I also raised the question of the lifting of the Chinese ban on beef products in my official discussions with both the Minister for Agriculture and the Minister for the Administration of Quality, Supervision, Inspection and Quarantine. During these discussions I emphasised that the control and supervision of food safety is afforded the very highest priority in Ireland and that the Government is committed to the preservation of our status as a supplier of the highest quality products to international buyers.

I also addressed seminars in Beijing and Shanghai organised by my Department and Bord Bia, which were aimed at promoting Irish food and drinks in the Chinese market, providing assurance on the safety controls related to food production and details on the country's export capability. The seminars also provided an opportunity for the Department, Bord Bia and industry representatives to directly engage with the ministry and regulatory officials, Chinese importers and traders. Many important contacts were established with Chinese trading companies during the visit.

China is a huge market with enormous potential, which could be hugely beneficial to Ireland in the food and drinks sector. I have no doubt the industry, together with the assistance of State agencies, will take full advantage of the opportunities provided in Beijing and Shanghai to develop lasting trade relationships with the Chinese industry.

There is little doubt that the Irish food industry has made rapid strides in recent years in response to the policies and the multifaceted assistance which this Government has provided. While these significant changes have been taking place, a further and fundamental change has taken place in the overall policy framework. I refer to the agreement reached in 2003 on the mid-term review of Agenda 2000, known as the Luxembourg Agreement. In the aftermath of the agreement, the overwhelming opinion among individual farmers, as expressed at information seminars held by the Department, was in favour of full decoupling. After an extensive public consultation process and studies carried out by FAPRI-Ireland, it was decided to fully decouple all direct payments from production from 1 January 2005.

Farmers are now free to focus on the market and the demands of the final consumer. A further advantage of full decoupling will be a significant reduction in the level of bureaucracy, both for farmers and for my Department. While some reduction in production is expected under full decoupling, research indicates that the resulting increase in prices and reduced input costs will lead to an increase in farm incomes. Under the new regime, the food industry will be provided with better opportunities to source quality raw material. Better market orientation of primary production will assist food processors in developing and supplying quality markets. Full decoupling is also expected to have a positive impact on the environment by leading to a substantial reduction in the contribution made by agriculture to greenhouse gas emissions.

Top priority is being given in my Department to preparing for the changeover to the single payment scheme. Approximately 133,000 farmers have already been sent provisional certification of entitlements.

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