Dáil debates

Thursday, 17 April 2008

World Trade Organisation Negotiations: Motion

 

2:00 pm

Photo of Seymour CrawfordSeymour Crawford (Cavan-Monaghan, Fine Gael)

I thank Deputies Kenny and Creed for introducing this important motion. It is one of the most serious motions to come before the House for some time. Not only our agricultural industry, but our economy in general is at a crossroads. In recent times, there has been a 10% drop in food exports to the United Kingdom. That drop will continue, partly because of the exchange rates and partly because of our high cost of production compared to that in the United Kingdom and other EU states. The National Competitiveness Council has pointed out that Ireland's energy prices have moved from some of the lowest in the EU to the second highest in 2007. Between 2001 and 2007, Irish industrial electricity prices increased by almost 70% compared to an EU-15 average of 36%. Meanwhile, the cost of waste disposal in Ireland is five times higher than in the United Kingdom.

Even before the effects of any WTO agreement are felt, agriculture and the agribusiness sector are struggling. In my constituency, for example, Grove Turkeys in Monaghan has shed two thirds of its workforce and Clones Poultry has closed. Many pig farmers have been forced out of business. Beef output at meat factories and in terms of live exports has dropped significantly as has output in the sheep industry. Butter and skimmed milk prices are seriously under pressure. In September 2007, butter was worth €4,100 per tonne but has fallen back to €2,600 per tonne. Skimmed milk powder was worth €3,600 per tonne in September 2007 but will now fetch only €2,100. The recently granted 2% increase in EU quota will undoubtedly facilitate the Commission's objective of maintaining a lower food price structure. This is without taking account of the increased prices of oil, fertiliser and so on. All these developments are having serious implications for Irish farmers even before factoring in the outcome of the WTO talks. This is an indication of how the Government has failed agri-industry.

The Minister for Agriculture, Fisheries and Food, Deputy Coughlan, has failed to avail of this opportunity to brief the Dáil on what discussions she or the Government have had to rein in the Commissioner for Trade, Mr. Mandelson. Meanwhile, the Minister of State at the Department of Enterprise, Trade and Employment, Deputy McGuinness, tried to blame the Opposition for the Government's recent failures. This is the Deputy who, before he became Minister of State, acted as though he was in Opposition. I advise him to check the Official Report for a reminder of Fianna Fáil's activities against the then Minister, Mr. Ivan Yates, when we were in the middle of a BSE crisis. He would soon learn what negative politics is all about.

This motion seeks to support the Government by affording it an opportunity to assure us that it will use its veto if necessary and work to rein in Mr. Mandelson who seems to believe that he must still follow the old British cheap food policy. Our desire to escape that policy was the main reason, from an agricultural point of view, that we joined the EU in 1973. The Ministers for Agriculture, Fisheries and Food, Enterprise, Trade and Employment and Foreign Affairs and, above all, the Taoiseach must all show leadership on this issue. They must agree at this stage that no deal is better than a bad deal. Given the general economic difficulties we currently face, it is vital that we do not lose 50,000 jobs in agriculture and 50,000 jobs in related industry, as forecast by the Irish Farmers Association. Most other farm related organisations state clearly that the Mandelson proposals are a disaster. The Minister, Deputy Coughlan, has failed either to support or deny this analysis, so we must take it as fact.

My party leader, Deputy Kenny, has clearly played his role within the European People's Party. While I appreciate that the Government parties have no such alliance in Europe, the Government has access to the ministerial Councils and to a Government-appointed Commissioner, the former Minister for Finance, Mr. Charlie McCreevy. The Government must use every angle to ensure Mr. Mandelson is reined in. We must make use, for instance, of our so-called close relationship with the President of the United States. The Government must protect Ireland's long-term national interest, which includes our agricultural sector and the objective of food security for Europe.

It has been stated that in previous negotiations where intervention and export refunds were either removed or wound down, this was done solely in the interests of Third World countries. However, the recent protests in Haiti and Egypt show that this change in EU policy did not have the desired effect. Nobody should be fooled into thinking the current WTO proposals have been made for that reason. They are being negotiated solely on behalf of big business in the US, Brazil, Argentina, New Zealand and Australia. The Government must get off its backside and show real initiative and care for the people and nation it represents. The Minister said earlier that this is limited to the Commission's negotiation proposals. I would like her to say whether she agrees with Mr. Mandelson's proposals. If she does, we are facing nothing short of a disaster.

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