James Bannon (Longford-Westmeath, Fine Gael)

I thank the Ceann Comhairle for affording me the opportunity to speak on this important issue.

While I do not support the full introduction of genetically modified crops for animal feedstuffs or GM foods, I am concerned at the delay within the European Union for approval of feed crops with a GM component which ranges from two and a half years to ten years, as opposed to the US average of 15 months, and which threatens the viability of animal production in Ireland as the sector relies heavily on imported grain. The delay and obstruction of grain and protein supplies are having a detrimental effect on the entire livestock sector in Ireland. Wheat that could be purchased by pig farmers in August 2006 for €130 per tonne now costs a whopping €260 per tonne. Each €10 increase in feed prices increases the cost of production of a kilogramme of pig meat by 4 cent.

The problem is that meat from all over the world, including beef from Brazil, where the foot and mouth contamination poses a serious risk to our farming industry, that is fed genetically modified maize is allowed into Europe. The competitively priced maize, however, is not allowed into EU countries giving non-European imported meat a competitive edge. This double standard is a disgrace, especially as substantial transformation leads to Irish people being conned into thinking they are buying Irish products. According to the Central Statistics Office, 1.3 million kilogrammes of pigmeat were imported into Ireland from outside the European Union last year. Recent reports indicate that 30% of pig producers will exit the sector in the next year. Supply and demand will lead to an inevitable rise in pigmeat prices, similar to that seen in Britain in 1998. Irish meat must secure a stronger footing in the retailers to ensure the national herd can be maintained.

Neither the Minister of State nor the European Union can allow this inequitable situation to continue. There is an urgent need for country of origin labelling and approved animal feed to be allowed into Europe. Serious food price inflation is inevitable here and across Europe if the Government does not take a stand and tackle the inequity in the meat industry. Already an increase in Irish pork prices of 30% is necessary if pig farmers are to stay in business.

On 27 September the Minister of State abstained in a crucial vote at the EU Council of Ministers meeting in Brussels but he was actively in favour of the EU proposal in June and had the full support of the IFA. This U-turn has damaged Ireland's credibility in Brussels and assurances given by the Minister of State in June now count for nothing. Irish pig production which is worth over €400 million to the economy and directly employs 7,000 people now faces a wipe-out, with producers losing at least €15 on every pig sold. Our poultry industry will be handed over to Brazil and Thailand, while winter beef finishers face crippling feeding costs and will be forced to leave their sheds empty. Winter milk product will also be hit hard.

The Government is guilty of hypocrisy and double standards in failing to support an EU proposal to accept scientifically approved maize and corn gluten for circulation in the European Union with no consideration for the damage it is doing to Ireland's livestock industry, especially pigmeat and poultry producers.

The IFA has proposed that the Government should immediately press the European Commission to approve maize, gluten and soya bean imports from the United States. The Minister of State has indicated his concern for the survival of the pig industry and acknowledged that the extremely high feed costs facing Irish producers are a major contributor to their losses. A direct cash injection to Bord Bia by the Department of Agriculture, Fisheries and Food to mount an extensive promotion campaign to lift demand for and consumption of Irish pigmeat is now essential, together with an assurance that the money will only be used to support brands and processors using 100% Irish pigmeat. The IFA has proposed a series of measures to facilitate and encourage the use of pig manure on REPS and tillage farms. The interpretation of the nitrates regulations by the Department is placing an unnecessary cost burden on pig producers, while at the same time favouring imported chemical fertilisers. New round-up ready varieties of grain and soya bean are being developed and planted in all major animal feed exporting countries. Without official approval for such crops, our farmers face a serious and uncompetitive situation with the odds stacked against them. I would welcome a favourable reply from the Minister of State.

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