Dara Calleary (Mayo, Fianna Fail)

I welcome the chance to speak in support of the Government amendment and particularly in support of my colleague, the Minister for Agriculture, Fisheries and Food, Deputy Brendan Smith.

It is important to remember that in the current very difficult economic situation there will be a spend in 2009 of €3.2 billion in agriculture, a reduction of 2.5% on that of 2008. This small reduction, in comparison to those made in other Departments, is necessary in light of the situation. The Minister has admitted these cuts. It is important to remember some facts in respect of the broad issue. The CAP health check, skillfully negotiated by the Minister and his team of officials in the midst of a very difficult negotiating environment in the post Lisbon treaty atmosphere, represents a solid outcome for Irish agriculture and will deliver an extra €175 million over the next five years.

Although milk quotas will be abolished in 2015, the arrangements secured by the Minister will ease the changes that will ensue from this radical departure for Irish agriculture. There is a cumulative increase of 9% in the quota to 2014, equivalent to an additional 500 million litres compared to 2007. Based on existing milk prices, which are increasingly under pressure, these production rights will amount to approximately €100 million. I especially welcome that the Minister, in his speech to the ICMSA last week, in the context of the increased money for modulation, committed to engage with all the farm organisations with regard to the axis he secured to unused funds in the single farm payment ceilings. Those funds will amount to €70 million over the next four years. Additional money is to be directed specifically at farm incomes and at sectors under pressure.

I know the Minister is aware of the pressures on the sheep sector and I hope he will place those farmers first in the queue. From the commitments he made in Limoges, I know that he intends to do so. Although the early retirement and installation aid schemes are temporarily suspended, I welcome the commitment made by the Minister to review that position as soon as current constraints permit.

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