Brendan Smith (Cavan-Monaghan, Fianna Fail)

I move amendment No. 1:

To delete all words after "Dáil Éireann" and substitute the following:

notes that:

total expenditure in 2009 by the Department of Agriculture, Fisheries and Food, including EU funding, in support of the agriculture, fisheries, food and forestry sectors, will be €3.26 billion, in recognition of the role the sector has to play and the enormous contribution it makes to the Irish economy;

record funding of €355 million is being provided for REPS in 2009, including a 17% increase in REPS 4 payments;

the suckler cow scheme represents a new stream of income which will deliver €33 million to Irish farmers this year, €44 million in early 2009 and €173 million over the remaining three years of the scheme and that the full commitment entered into in partnership to provide funding of €250 million over five years is being honoured in full;

€220 million will be paid in disadvantaged area scheme payments in 2009, bringing to €2.3 billion the amount paid under this scheme to Irish farmers this decade; and

the CAP Health Check represents an excellent outcome for Irish farmers that:

will deliver €170 million for Irish farmers over the next five years, including €100 million in additional milk production;

ensures that the key market management mechanisms, which are very important to Ireland, have been left completely unchanged, including intervention schemes for butter and skimmed milk powder;

secures access to previously unused EU funds that will provide over €70 million over four years in additional money that will go directly into the pockets of Irish farmers; and

ensures that Irish farmers will not lose one cent as a result of the increase in modulation, which will see €120 million transferred to the rural development programme over four years, and that the single farm payments of over 50,000 Irish farmers will not be affected;

commends:

the Government's achievement in securing an increase of the age limit for testing for BSE to 48 months, which will deliver a multi-million euro saving for Irish farmers; and

the Minister's decision to apply for brucellosis-free status for Ireland as a recognition of the tremendous efforts made to reduce [and eliminate] the incidence of the disease in recent years;

acknowledges:

the contribution that the Irish agrifood and drink sector makes to the Irish economy, accounting for 9.7% of exports, worth an estimated €9.2 billion, and 8.2% of total employment and that generated an operating surplus in 2007 of €2.6 billion; and

the Government's continuing commitment to, support for and development of this most important indigenous sector.

It is now almost two months since the budget. There have been some very significant developments since then and more are on the horizon that will have an impact on Irish agriculture. These developments present both challenges and, more important, opportunities for Irish farmers and the agrifood sector. The sector operates in a dynamic, ever-evolving environment that requires flexibility and an ability to adapt to change.

Significantly, the Council of Agriculture Ministers recently concluded negotiations on the CAP health check, which represents a very successful outcome for Irish farmers. Only last Friday, I was in Brussels for a wide-ranging discussion on the future of the CAP after 2013 and I emphasised my strongly held view that there will be a continuing need for an active and appropriately resourced European agricultural policy to achieve the European Union's policy objectives for the agriculture and food sector and to help our farmers and processors to adapt to the new and emerging challenges.

The circumstances that applied at the time of the budget demanded that the Government address the sharp deterioration in the public finances and we have chosen a direction that is not based on soft options, quick fixes or political expediency. The choices we make will determine whether we can maintain, to the greatest possible extent, the economic progress we have achieved in the last decade.

There were times in the post-budget debate when some people seem to have forgotten the basic fiscal fundamentals. The economic outlook is such that we have less money to meet growing public expenditure demands. We cannot borrow our way out of trouble or return to the days of punitive tax rates that stifled economic growth and resulted in high unemployment. Our day-to-day expenditure next year will exceed revenue by €4.7 billion, equating to over €1,000 for every man, woman and child. We cannot and will not return to the days of the budgetary management we experienced in the 1980s. Given the resources available to me, I had to make choices and identify priorities for 2009.

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