John Perry (Sligo-North Leitrim, Fine Gael)

I compliment Deputy Creed on bringing this important motion to the House. The motion focuses on the cutbacks being imposed by the Government on the agriculture sector. These cutbacks are short-sighted and they have provoked widespread opposition in rural Ireland, an opposition well dramatised by the presence this week of a few quality sheep from the Ox Mountains in Sligo outside the main entrance to the Department of Agriculture, Fisheries and Food.

Farmers were disproportionately targeted in the budget. Instead of giving them a new lease of life, the Minister has ensured that agriculture suffered some of the most significant cuts in the budget. As a result of these cutbacks, many farmers, in particular low income farmers in the west, will not be able to make a living from farming. The future of this crucial indigenous sector has been thrown into disarray by cutting out key incentives to attract young farmers.

The early retirement scheme has been scrapped. The purpose of this scheme was to support farmers who decide to cease their agricultural activity for the purpose of transferring holdings to younger farmers. With the suspension of the scheme farmers who wish to pass on the family farm and avail of this early retirement option are now inhibited from doing so. The decision to halt this scheme indefinitely places a serious question over the future of farming in this country.

The young farmers' installation aid scheme has also been scrapped. This scheme was introduced as an aid to young farmers to become established in farming. Now the €15,000 incentive to young farmers entering the sector is gone. This scheme is one of the few ways in which the Government can assist farmers without having to get clearance from the EU as it does not constitute a state aid.

The disadvantaged area scheme has been cut back. This scheme was designed to provide support for farmers in less favoured areas to compensate for additional costs and income foregone related to maintaining agricultural production in these areas. The scheme benefits a large number of farmers in the north west. It contributes in a practical way to the maintenance of the countryside, the protection of the rural environment and the maintenance of a viable rural society.

Disadvantage area payments are made to 1,155 farmers in Sligo and 1.058 in Leitrim. Under the suckler cow welfare scheme, there are 2,168 farmers in Sligo and 2,127 in Leitrim. These cuts follow on from the suspension of the farm improvement scheme.

With regard to the sheep sector, farmers are telling the Minister that he has gone back on his clear commitment to allocate the money, secured from the EU, for a sheep maintenance grant. Farmers' leaders want the Minister to confirm that the unused single payment funds will be delivered in full to the sheep sector. I support this demand by farmers. In this sector there are obvious problems of reducing flocks and pressure on the prices farmers get for their lamb and sheep leading to their falling incomes. Some producers are leaving the sector, which needs help now.

The cutbacks in the agriculture sector will result in a decline of 10% to 20% in farm incomes. These cutbacks will have a serious impact on the smaller farmers in the most disadvantaged areas of the north west. The livelihoods of thousands of farmers from the west have now been put in jeopardy by the Government. Taking this money out of the rural economy will have knock-on effects in the loss of on-farm and off-farm jobs with little or no possibility of those losing their jobs getting a job elsewhere. These cutbacks will drive existing part-time farmers out of business and drive those struggling to remain full time in the business into a marginal standard of living.

See this speech in context