Simon Coveney (Cork South Central, Fine Gael)

He is obviously very concise. I hope that the Minister will not waste my time.

This is my first opportunity formally to wish the new Minister for Agriculture and Food well in her brief. It is a tough job and she faces several challenges, some of which I would like to outline. Most relate to battles she will need to fight in Europe on behalf of Irish farmers.

The first concerns sugar beet, which is absolutely crucial to Irish agriculture, though perhaps not in the part of the country where the Minister lives. However, in the midlands, south and south east, sugar beet represents a crop of great significance to arable farmers in particular. It is part of rotation and a very valuable cash crop that does not rely on extra payments coming from Europe to subsidise it. It has taken a significant blow in the past few weeks through Greencore's decision to close one of two factories in Ireland. In case Deputy Ferris is in any doubt, Fine Gael has expressed frustration and disagreement on that time and again. Sugar reform is leading to the uncertainty and many of the bad news decisions regarding sugar.

Ireland must ensure many things in the European context. They can be broken into three different categories, the first concerning price. If one is a realist, one must accept that there will be sugar reform in Europe and some price reduction. It is the job and responsibility of the Minister to set a realistic target for what she can achieve to minimise that price reduction. That is how her success in this area will be measured, not how it is announced or the PR but the facts and figures regarding the extent to which she can minimise it. The price reduction must be in single figures.

On the quota reduction, we now have a harder sell thanks to Greencore. The strongest argument that Ireland could make in the European Parliament regarding minimising our quota cut was that we had two factories. Owing to economies of scale, if we reduced our quota, it would have been very hard to justify keeping two factories open. Thanks to a pre-emptive closure decision by Greencore regarding Carlow, that card has now been plucked from our negotiating deck. We must now make the straight case that Ireland deserves only a very small quota cut in the context of overall European reductions.

People have not focused much on what is perhaps the Minister's most difficult challenge. She must ensure that what several countries are pushing for in Europe does not happen, namely, that the sugar quota should be capable of transfer from one European country to another. In France, they see themselves as having a competitive advantage for growing sugar, being able to deliver a higher sugar content and higher yields because of climatic conditions, though we have some small areas on the south-east coast that can match them. Other countries ensured that the milk quota was not transferred between countries, though that would have suited Ireland since we have a competitive advantage. In the same way, we must ensure that the sugar quota is not transferred across the borders of European countries. Ultimately, whatever quota we receive at the end of the negotiations must stay on Irish farms for Irish farmers to grow.

Regarding the practical consequences of the closure in Carlow, there are many farmers who simply do not know what is going to happen in the coming year. It is the Minister's responsibility to provide clarity on issues such as how we are going to transport beet next year. The Minister may say that it was a commercial decision for Greencore, and that is probably true. However, farmers need leadership on this issue. Many farmers who have set aside land to plant sugar beet for the coming season simply do not know where they stand. For example, they do not know who owns the quota. Has there been a decision yet? Is it the farmers and, if so, are they entitled to compensation if it is taken away from them and moved south from the midlands? Is it the company or the Minister on behalf of the State?

We need clarity on those issues soon since in the next few weeks farmers must make decisions on what crops they put into fields. We also need clarity from Greencore on the future of Mallow. There have been announcements regarding job losses there. I understand that it is a matter of streamlining to make the plant there more efficient. I believe that 14 job losses are to be announced. We must reassure farmers that it is not the first step in a potential closure of the Mallow factory. Farmers must know how the new sugar system is to work with one factory and how they will fit into that structure as growers. The Minister must ensure that she, Greencore and farmers' organisations provide that information for farmers since at the moment they simply do not know.

The nitrates directive is another challenge for the Minister. People will know that the latest Government action plan has been rejected by the European Commission. There is an ongoing negotiation process to find an action plan that is both acceptable to the Commission and workable for farmers. In particular, the most efficient and intensive dairy farms in the country must be able to survive under it. The Minister must focus on issues such as closure periods, storage capacity and stocking rates, playing hard ball with the European Commission to ensure that we get through.

Live cattle exports have been mentioned. It is a matter of striking a balance between the humane treatment of cattle, which we must all support, and ensuring that Ireland, which relies more than any other country in Europe on such exports, can continue transporting cattle across this Continent, something that is absolutely crucial.

I have raised this matter time and again over the past two years. The Government must consider the opportunities that energy crops can provide for agriculture in the shape of biodiesel and biofuels. Ethanol can be used as a replacement for petrol and wood biomass as a replacement for peat over a period of time.

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