Seán Sherlock (Cork East, Labour)

It was reported yesterday that the Government is to spend €40 million next year on carbon credits. Until such time as the year on year spending on credits is reduced, I will take anything said on the Government benches about this issue with a pinch of salt.

As a newly elected Deputy, I find this an extraordinary week. On two of the most important issues pertaining to Ireland, young people and climate change, we have been offered opportunities to speak at length but no legislation or other concrete proposals have been brought forward. I thought I was elected to address these and other issues through legislation but I see this week that is not the case. Considering these issues as only worthy of a talking shop adds to the cynicism for politics outside these Houses.

I wish to speak specifically about the correlation between climate change and energy production and the demand for food. There is a danger that the technological advances in agriculture that have dramatically increased crop yields in the past 50 years could be eroded due to the real and present danger of climate change. Given that solar radiation, temperature and precipitation are the main drivers of crop growth, agriculture is still highly dependent on the climate. Energy production is also a function of crop growth. It is therefore obvious that any significant change in climate on a global scale will impact on local agriculture and thereby affect the world's food and energy supplies.

It is important for this house to discuss the correlation between climate change and energy security in the context of food production. According to an article in The Guardian newspaper, record world prices for most staple foods have led to 18% food price inflation in China, 13% in Indonesia and Pakistan and 10% or more in Latin America, Russia and India. Wheat has doubled in price, the cost of maize is nearly 50% higher than a year ago and rice is 20% more expensive. Next week, the FAO is expected to state that global food reserves are at their lowest in 25 years and that prices will remain high for years. The article in The Guardian also stated:

Boycotts have become commonplace. Argentinians shunned tomatoes during the recent presidential election campaign when they became more expensive than meat. Italians organised a one-day boycott of pasta in protest at rising prices. German left-wing politicians have called for an increase in welfare benefits so that people can cope with price rises.

There is a simple explanation for why this is happening now. Increases in food prices stem from an increase in oil prices. Record oil prices are forcing a flight out of food production in favour of energy production. US farmers are leaving cereals to grow biofuel crops. Coupled with this change, extreme weather conditions and growing demand from countries such as India and China are causing a serious spike in grain and rice demand. It is estimated that the competition for grain between the world's 800 million motorists and its 2 billion poorest people, who are simply trying to survive, is emerging as the epic battle of our times.

The Government cannot produce a motion on climate change and energy production without factoring in food production and its effect on energy security. Climate change has already begun to have serious effects on food supply. Therefore, policymakers in this country will need to adjust their thinking. We can achieve self-sufficiency in the area of grain production but this must be done in a way that meets security of energy and food supply. If the United States is seeking to reduce petrol demand by 20% before 2017, we must wake up and take note in this country.

We now have a scenario where oil price increases create a demand for food for energy production. Climate change and inclement weather patterns are forcing a spike in food prices and biofuels from grain production are experiencing unprecedented demand. This has serious permutations for third world farmers. Oxfam has already warned that the EU policy of substituting 10% of all car fuel with biofuels threatens to displace poor farmers in Third World countries. Changes in climate are causing a catastrophe which is forcing the price of food upwards. One optimistic economic analysis predicts that markets will automatically readjust to food shortages as higher grain prices make it profitable once more to grow crops for people rather than cars.

If we are to be serious about this issue in Ireland, we must harness existing resources such as wind and tidal power and subscribe to a philosophy of ensuring food security. We must encourage greater food production domestically to offset growing demand. A growing body of opinion asserts that we can become self-sufficient in grain production. We must examine the possibilities for both food and energy production in the future. We must become part of the scientific analysis that seeks new crop varieties that can adapt to changing climactic conditions. We have to encourage a slowdown in population growth globally. However, I do not subscribe to the Malthusian analysis that population growth will outstrip agricultural growth because regulation and rational human behaviour can keep this scenario from arising.

We have to wake up to the fact that if the price of oil rises further it will make fertilisers and transport more expensive, while also making biofuel crop cultivation more profitable. In the past year alone, the cost of food in this country has risen by 4.4%. The era of cheap food is over. The price of milk and flour has increased by 16 and 17% respectively. If we are to get the equation right, we must strike a balance between ensuring energy supply while also ensuring food supply. The flight to biofuels must not come at the expense of food production. While I do not expect much from this Government, future Governments will have to regulate human behaviour and the demand for energy will have to be curbed.

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