Michael Creed (Cork North West, Fine Gael)

The economic downturn has been felt more harshly in the agricultural sector than in any other sector to date. The Teagasc farm income survey, which has attracted little attention in this House, showed that incomes in the agricultural sector across all product enterprises collapsed in 2008 by 13.7% on average. To take examples from particular sectors, the average income for family farms in the beef sector is €7,700. It is anticipated by Teagasc that the 2009 farm income survey will show a further collapse of the order of 20% on top of the existing fall of 13.7% in 2008. No other sector has suffered as much as the agricultural sector.

My point is about the agricultural budget in 2010. While I accept that no Department is exempt from the search for savings and efficiencies - I recognise that many possible savings have been identified in the Department of Agriculture, Fisheries and Food, particularly by the McCarthy report, and these should be pursued - the simple message I want to send out is that the Government should keep its hands off the farm gate schemes. There is absolutely no scope for further cutbacks in farm gate schemes in the agricultural budget in 2010. There simply is not room for manoeuvre.

A false economy that has been pursued by the Department of Agriculture, Fisheries and Food is the discontinuation of REPS 4. This is despite the commitment in the programme for Government to maintain participation in the scheme at 70,000. The net effect of that decision will be to force thousands of farmers onto farm assist which, unlike the REP scheme, is 100% funded by the Exchequer, while the REP scheme is co-funded by Europe to the tune of 45% or 55%. I implore the Government not to come looking for savings at farm gate level. However, there is certainly room for efficiencies in the overall budget of the Department, and the Minister could usefully pursue these.

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