Dáil debates

Tuesday, 2 December 2008

8:00 pm

Photo of Johnny BradyJohnny Brady (Meath West, Fianna Fail)

Before I start, I should like to withdraw something I said to Deputy Bannon. I told him to shut up and it is not my style to use that language. I want to tell Deputy Bannon that I am very sorry. These have been interesting times for the agricultural sector. The sector, like other areas, felt the chill wind of the global economic downturn. There was some good news with the recent CAP health check, which concluded in Brussels a few weeks ago. This represents a very good outcome for the Irish agricultural sector and will deliver €175 million over the next five years. Milk quotas will be abolished in seven years' time. A 2% quota increase in 2008, a 3% increase in 2009 and a 1% increase in each of the years from 2010-13 will cumulatively amount to an increase of 9% by 2014. This is equivalent to an additional 500 million litres as compared to 2007. Based on existing milk price values, these production rights amount to about €100 million. I should like to compliment my friend and great colleague, the Minister, Deputy Brendan Smith, on his negotiating skills in that particular deal.

Agriculture has always had a major role to play in our world, and it will continue to do so. It has a major part to play in issues such as food security, energy security and climate change. There are still more challenges to come, but we can meet them if we work together. Ireland has always had a dynamic agricultural sector, with deep-rooted attachment to the land. We need to maintain this link with the land and ensure we are in a position to take advantage of any upturn in the economy. We are living in unprecedentedly difficult economic times. There is financial turmoil across the globe and we are facing the most severe economic depression since the period of the Wall Street crash.

The current economic situation is extremely difficult and with massive tax shortfalls it is necessary to make significant reductions in public spending. Very difficult choices had to be made within each Department. As regards the disadvantaged area payments, it should be noted that more than 65,000 out of the 102,000 recipients will experience no reduction in their payments. Participants with average sized holdings of 31 hectares will not be affected by the decision. However, again I know the Minister wants to look at the situation as soon as possible and reinstate it.

For the sucker welfare scheme, the commitment in the Towards 2016 partnership agreement, to provide €250 million in funding, is being honoured in full. Regarding early retirement and installation aid, these schemes have been temporarily suspended for new entrants. However, this situation will be reviewed, and I know the schemes are very important for the young and the elderly. The Minister is keeping the situation under review, and hopefully the schemes will be reinstated. We can all recall 1995, when the Proinsias De Rossa-led Democratic Left Party in government abolished the early retirement scheme and we came back into power and reinstated it. A number of significant tax reliefs, worth €65 million annually, were extended in the budget, some of which will be of particular benefit to young farmers, notably, the young trained farmer stamp duty relief worth €53 million.

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