Mary Coughlan (Donegal South West, Fianna Fail)

I do not accept that the reform of the Common Agricultural Policy has had a negative impact on the industry. On the contrary, I believe that there are and will be major benefits for producers and consumers arising out of the ongoing implementation of the reformed CAP and the wide range of measures envisaged under the national development plan.

As part of the 2003 reforms of the common agricultural policy, the introduction of the full decoupling of direct payments under the single payment scheme ensures that farmers now have the freedom to farm and that the CAP will be geared towards the demands of the market and consumers. The single payment scheme is linked to food safety, animal welfare and environmental standards. Irish farmers will receive single farm payments of €1.3 billion in 2007, while consumers will be guaranteed a supply of safe food, produced to high animal welfare and environmental standards, at reasonable cost.

Producers and consumers will also benefit from the wide range of measures provided for under the national development plan, which includes the rural development programme which was approved by the Commission in July. Total funding of €8.7 billion is provided for the agri-food sector over the period 2007 to 2013. The objectives are to improve competitiveness at farm level, promote environmental protection, develop the food processing industry and fund research and development.

My main concern in respect of the 2003 Common Agricultural Policy reform is to ensure a period of stability to allow farmers to implement the changes necessitated by decoupling and to adapt to the market needs in a stable policy environment. The 2003 CAP reform is still being implemented and further major policy change should not be contemplated at this stage.

It is in this context that the ongoing WTO negotiations represent a significant challenge. The outcome of the negotiations will determine the levels of protection and support that the EU may provide for the duration of the next agreement.

My objective in the ongoing negotiations to complete the round is to ensure that the terms of the agreement can be accommodated within the framework of the reformed Common Agricultural Policy. This represents the limit of the European Commission's negotiating mandate in these negotiations and I will continue to insist that this mandate is respected. I have consistently outlined my position in the clearest possible terms at the Council of Agriculture Ministers. I will continue to work closely with like-minded Ministers in other member states to seek support for my position. I am determined that any WTO agreement must be balanced and must not be concluded at the expense of EU and Irish agriculture.

For the future, the question of food security may indeed be an issue. It is worth noting, however, that the EU is by far the largest player on the world market and while imports of certain commodities into the Community may have increased, Ireland will remain a significant net exporter.

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