Tom Hayes (Tipperary South, Fine Gael)

The issue I wish to raise is almost identical to that raised by Deputy Connaughton. It is ironic that he comes from the west and I come from Munster from the heart of what is probably the best dairying, farming and agricultural county in the country. Over the past number of months I have seen at first hand the anger and frustration of the dairy farmers and the dairy industry in particular. Some weeks ago I stood outside Tipperary Co-Op where hundreds of farmers protested at the decision by the board of the co-op to reduce milk prices. The anger I saw there was the same as the anger I saw when the medical cards were being taken from the old age pensioners and they protested outside in Kildare Street. These farmers were losing their income and were unable to pay their bills to the banks. They had borrowed heavily to invest in their farms and to comply with regulations and to improve their farms so that their sons and their families could earn a living. I saw that anger at first hand. The anger was directed at the Government, at the management of the co-op and at the banks who do not care and have no interest in the future of these farming families.

When the subject of agriculture and keeping people on the land on viable holdings is being discussed, we need answers from the banks. Right across this country many bank managers are putting pressure on farmers to repay loans and are refusing to honour cheques. The reason this is happening is that milk prices have reduced so drastically. A price of 20 cent a litre and in some cases down to 19 cent a litre is what is being paid to farmers. It is not viable to continue milk production at that price. No serious effort is being made by the Government and the Minister for Agriculture, Fisheries and Food to make a case to Brussels in order to protect those people. We saw on television the anger of farmers from all over Europe. We were represented at that protest by the IFA and probably the ICMSA and others. The reality is that our farmers could not afford to travel to Brussels to make their protest because they are not able to pay their bills.

The farmers want the Minister to put a package together, which is what happened in the 1980s when farmers were in extreme difficulty as is the case today. Nobody is giving leadership. The Government needs to take a lead and put a package together to include the banks and the European Union. It must be seen what can be made available to subsidise storage for the products being produced by the farmers. This is where the problem lies.

I hope for a response from the Minister of State. Right across the country, whether in Clare, Tipperary, Galway, Longford or any other county, most of those counties depend on agriculture. If that industry dies on its feet, we will be very sorry. I am hoping for a very good response from the Minister of State.

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