Michael D'Arcy (Wexford, Fine Gael)

The WTO talks offer made by Commissioner Mandelson represents the greatest threat to European and Irish agriculture since our accession to the EU. The offer to reduce import tariffs in the EU by 70% would undermine milk and cereal production at a time when these two sectors are finally offering a decent return for producers following difficult years.

However, livestock, particularly sheep and cattle, is the area most exposed by this offer. Such a drop in tariffs would open the floodgates to produce from all over the world, with the current supply-demand balance and price being altered to such an extent that the viability of livestock production would be fatally compromised.

The proposed tariff cuts would see sides of beef coming into the EU at €2.20 per kilogramme, well below the current EU market price of €2.90. According to this morning's edition of The Irish Farmers Journal, the IFA's highly respected chief economist, Mr. Con Lucey, has calculated that this could see beef imports rise to 2 million tonnes. The impact on the current Irish price would be a reduction of €1.38 cent per kilogramme. This is not sustainable. Such an offer would not be made by a lonely widow to George Clooney on a leap year day. It must be rejected.

Import tariffs may be regarded as trade distorting by pure economic theorists but the reality is that they barely compensate European producers for the high production costs imposed by the extremely high environmental, welfare and traceability standards of European food production. Nobody disagrees with these standards, which are to the benefit of consumers. We can proudly stand over the quality of our meat and milk. Consumers demand such high standards. European farmers do not use growth-promoting hormones, do not use BST to increase milk production and do not use genetically modified crops. They are required to invest in pollution control measures that are important for the environment but which are costly. The costs of these measures are not borne by competing producers elsewhere in the world.

Food security should be a high priority for Europe in these WTO talks. For the first time in 50 years, Europe has a food deficit. The rising worldwide demand for food has seen surpluses disappear and stocks fall dangerously low. I met with the ambassador of India a few weeks ago. He told me that every two months, the population of India increases by an amount equal to the population of Ireland. Every two months, India's population increases by 4.5 million people. The worldwide population increase is staggering.

Climate change, environmental damage and changing disease patterns mean that European producers and consumers are vulnerable to any unforeseen circumstances. Within the past three years, we have seen the vibrant sugar beet industry wiped out at the stroke of a bureaucratic pen in Brussels. Sugar on the supermarket shelf is no cheaper, Carlow and Mallow have lost their industrial hub and thousands of livelihoods have been diminished or lost.

Great Britain has long been out of step with the EU consensus and approach to food production. It has operated a cheap food policy since the glory days of the British empire. This approach has wrecked its agricultural economy and contributed to a penny-pinching attitude that has seen the family farm all but wiped out. BSE and foot and mouth disease are seen by many as the inevitable consequences of such an approach.

Commissioner Mandelson should not be allowed to adopt this attitude on behalf of European agriculture. Our Government should not hesitate to veto his offer on behalf of European food producers and consumers. We are embarking on a debate on the role of Europe in the EU reform treaty. Sometimes, being a good parent means being firm and saying "No, you cannot do that". As good Europeans, we must tell the Commission that it cannot undermine European food production. The only question that remains is whether we have the guts to do this or the political skills to build a blocking group within the Council of Ministers and Heads of State to reject this suicidal offer. The reputations of the Minister for Agriculture, Fisheries and Food and this Government are on the line. We cannot endorse the Mandelson position.

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