Pat Deering (Carlow-Kilkenny, Fine Gael)

As in previous recessions, agriculture has come to the forefront in attempts to kick-start the economy. It has been the good news story for the economy in past several years. Agricultural incomes have increased by 31% in the past 18 months, albeit from a low base while dairy exports have increased by 47% in the past six months. Cereal production outlooks are also promising for the coming year. Agriculture will, accordingly, play a key role in kick-starting the economy.

It is important that what is already there is protected. In good and bad times, the agricultural industry, and farmers in particular, will not be afraid to spend. As Deputy Doyle said earlier, next week at the national ploughing championship we will see a renewed enthusiasm in the agricultural sector for spending money on machinery for example.

There are many opportunities, particularly in the dairy sector. Dairy farmers are already looking forward to a rapid increase in production over the next several years. They have shown a resolve to get over the current difficulties with quotas and the superlevy will be an issue. At the same time, they will meet the Food Harvest 2020 targets set for them. As we approach 2015, it is important flexibility be shown towards the milk quota to ensure dairy farmers who may be in difficulty have a soft landing.

Another area for opportunity is the sugar beet industry. It is ironic that Deputy Moynihan's colleagues sounded the death knell of that industry. Coming from what is regarded as the spiritual home of the sugar industry, Carlow, I see renewed opportunities in it. In the next few weeks feasibility studies will be published which will show the sugar industry, in conjunction with the bio-fuel industry, will have a viable future. We learned from the leaked reports of the CAP reforms that there may be no sugar quotas after 2016. This will remove all obstacles and allow the sugar industry to be revived in this country, providing jobs and opportunities for farmers to better practise crop rotation.

As we approach the CAP negotiations, I compliment the Minister for Agriculture, Fisheries and Food, Deputy Coveney, for his enthusiasm and recognising that young farmers will play a key role in agriculture's future. While there is a low proportion of young farmers, in the past year it has become sexy to get involved in agriculture again. More young people want to get back into agriculture as shown through increased applications for agricultural college. It is important young farmers play an important part in agriculture and more places are made available to them in agricultural colleges to allow them develop the required skills in this field.

I wish the Minister every success in the negotiations. We are fortunate that as the negotiations move towards the important stage, it is likely this country will have the Presidency of the European Commission in the first six months of 2013. That is important for future outlook and results.

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