Brendan Smith (Cavan-Monaghan, Fianna Fail)

Securing an official brucellosis-free status for Ireland will enable me to reduce some of the control elements of the eradication programme. This will bring consequential benefits for farmers, particularly with regard to trade. In addition, it will be possible to bring about a gradual reduction in the level of testing that will, over time, lead to reduced testing and lower costs for farmers.

However, we must take a cautious approach in view of the current disease situation north of the Border. Accordingly, I envisage a controlled reduction in the programme over a period of years, based on risk assessment, following the achievement of disease-free status for the country. My Department is engaged in consultations with the farm organisations and other stakeholders with a view to finalising the scaling down of the programme over the next few years. I believe that achieving official brucellosis-free status would be a landmark in the history of disease eradication in Ireland and I am grateful for the co-operation of all of the parties who have contributed to the success to date.

I was particularly pleased that I was in a position last week to announce interim arrangements to facilitate progress on the proposed industry-led herd health initiative. Among other things, this involves the establishment of a dedicated, industry-led, national co-ordinating body to be known as Animal Health Ireland and it delivers on another of the important commitments in the programme for Government. It is envisaged that this body will operate as a partnership between industry, service providers and Government. It will have two broad aims. The first is to determine and, on an industry-wide basis, obtain agreement on a range of animal health interventions capable of enhancing on-farm productivity and the competitiveness of the livestock industry in international markets. The second is to develop and co-ordinate the national infrastructure that will be needed to enable industry at all levels to take appropriate and effective action. I look forward to the co-operation of all the stakeholders with regard to that particular initiative.

My Department will spend €3.26 billion next year in support of a sector which, according to the most recent figures, accounts for almost 10% of the country's exports and over 8% of employment. In 2007, Irish agrifood and drink exports were worth an estimated €9.2 billion.

Budget 2009 has seen a modest reduction in expenditure and I have had to make difficult choices. Those I made are aimed at focusing available resources on the measures that will allow us to maintain and grow the productive capacity of the agrifood sector. The sector operates in a dynamic global environment. To emphasise the international influences on the sector, we need only reflect on the developments since the budget, including a very favourable outcome to the recent CAP health check and the opening discussions with regard to the post-2013 situation. I have no doubt about the need to maintain a strong agricultural production base in Europe and that will be my position and that of the Government throughout future negotiations.

The progress made in respect of animal health this decade is now resulting in genuine benefits for farmers. This is a tribute to the commitment of farmers to improving the health status of the Irish herd. It recognises the disruptive and costly nature of the eradication arrangements on farmers and on my Department in terms of compensation and the substantial additional costs incurred in testing and the other economic losses that arise from the premature removal of infected cattle.

Irish agriculture is facing challenges but is also being presented with opportunities. I am confident of the industry's capacity to meet those challenges and to exploit the opportunities and the sector can be assured of the Government's commitment and support and that we will ensure that it meets its full potential over the next few years.

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