Jerry Cowley (Mayo, Independent)

I am grateful to the Ceann Comhairle for the opportunity to raise this important matter. The EU Trade Commissioner, Mr. Peter Mandelson, has said the EU cannot avoid action on agriculture to a loss of potential development gain. He also said that if we want the US to reform its domestic subsidy regime and the Brazilians to cut industrial tariffs and to open services we have to move on agricultural tariffs. What he is proposing has created horror in Irish agricultural circles. It is estimated by the IFA that Mr. Peter Mandelson's cuts would cost Irish farmers €800 million annually and would have the potential to wreak havoc on the two big farming enterprises. Low price imports could force beef prices down to €2.07 per kg or 74 cent per pound and milk prices down to 95 cent per gallon.

The latest proposals include cuts of up to 60% in the tariffs on some farm products. In the case of beef steaks, the proposed 50% cut in tariffs will mean they can be imported into the EU 52% cheaper than the current market price. That has major implications for food security and safety within the EU. This is in the context that the Common Agricultural Policy was reformed in 1992 and subsidies were decoupled in 2003. The successive reductions in customs duties showed that the equivalents of our reductions are being absorbed not by the poorest countries but by the major exporting countries such as Australia, New Zealand, Argentina, Brazil and so on. This is the double dealing of the large countries that hide behind other poorer countries in order to advance their own positions. In other words, this is being done in the name of the poorest countries but it is far from that. This is unacceptable.

There was anger today when more than 10,000 farmers marched right up to the door of the Dáil. People were very angry outside the EU office in Molesworth Street at what is happening. They were determined it would not happen and demanded that the Minister for Agriculture and Food, Deputy Coughlan, and the Taoiseach should intervene to sort out the problem.

The Irish farmer is the most compliant in the world. He has gone to great lengths to ensure maximum traceability. Recently there have been two foot and mouth scares, yet we are considering importing beef from an area where foot and mouth is endemic, without any proper monitoring. Quality does not come cheap but it is there. Food safety is there but what we are talking about is the other side of the coin — disease. Irish farmers have first world costs but get Third World prices. The position will get worse. How can a farmer be viable given all the regulations concerning traceability and food safety, which he has gone to great lengths to ensure, will be undermined? How can he turn a penny when his costs are so high? The Irish consumer is getting a good deal. Food costs represent only 8% of the total with the farmer hardly getting one third even though he is the producer. The big rancher in South America will gain in this. The beef barons who own the vast majority of the land will benefit. The small family farmer in Ireland will suffer. This is the antithesis of everything we hope for in farming.

Irish farmers are abhorred by Peter Mandelson. He is a failure who was sacked twice and some say it is time he was sacked again. He has exceeded his authority and is selling out the Irish farmer. Irish agriculture will be sacrificed on the altar of getting a better deal for industry. However, the farmers will not lie down in this matter. They are prepared to fight back and do whatever is necessary, otherwise they face total annihilation. The concession Mr. Mandelson is offering to the US, which would amount to cuts of up to 60% in EU tariffs on food imports, is unacceptable. It will make farming here unviable.

Undermining European food security is ill conceived and unworkable. Mr. Mandelson appears determined to go all the way and exceed his authority. He is a dangerous man, wandering around Europe doing very dangerous things that are totally undermining our economy.

The Minister must have heard how angry the farmers were during their protest today. I hope she can give them the news that she and the Taoiseach will get involved and make a difference to stop this madman Mandelson.

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