Mary Coughlan (Donegal South West, Fianna Fail)

These improvements are based on continuing positive trading conditions in EU markets with beef consumption exceeding production, good demand for sheepmeat and steady demand on international markets for milk commodities. Direct payments by my Department to the farming sector in 2004 amounted to more than €1.6 billion, 75% of aggregate farm income.

The House has debated the proposals put forward by the European Commission on sugar production. I have already indicated they are unacceptable. We have forwarded a submission to the Commission pointing out that its proposals would have a devastating effect on farms and industrial enterprises in the sector. While accepting the necessity to reform the existing regime, there are principles from which we cannot remove ourselves. An import system from third countries must be put in place to ensure predictable and regular import quantities. Price reduction must be significantly less than what is proposed and be implemented gradually. The impact of the quota reductions must mainly fall on overproducing member states. The transfer of quotas among member states is unacceptable. We must await the decision of the WTO panel. However, I intend to support this as best as possible. I will discuss the issue on malting barley at a later date.

I have demonstrated that the motion put down by the Fine Gael Party is wildly inaccurate. It fails miserably to recognise the recent advances made by the agrifood sector and the role the Government has played in those advances. Despite these enormous advances, the agrifood sector has further considerable potential for development and this ministerial team will support it all the way.

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