Dáil debates

Thursday, 15 September 2011

Reform of the Common Agricultural Policy: Motion (Resumed)

 

12:00 pm

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)

Were any other sector about to undergo the changes and challenges faced by agriculture with the reform of the Common Agricultural Policy we would have queues of Members to speak on it. I could not help but notice the rush of urban-based Deputies to the Shelbourne Hotel in July when there was food on offer. I thank the IFA for that. Those of us from rural constituencies get to pay it back this time of the year when we get summoned to IFA meetings. I encourage those urban Deputies who rushed to the Shelbourne Hotel to go to the ploughing championships next week to find out where the food comes from but also to take an interest in the sector because any industry that is contributing what agriculture is to the economy deserves to be taken more seriously, in particular in view of the future challenges that lie ahead.

Everyone has recognised Harvest 2020 as a fantastic document. I pay tribute to the former Minister, Deputy Brendan Smith, for the work he and his officials did in that regard. In the past two years, albeit that we are coming from a difficult base, there is a sense of self-belief in agriculture that could well be adopted by other sectors which could look at agriculture and learn what they need to do in the economy currently. The sense of belief and growth in incomes is now coming under a cloud. The proposals that were leaked in August are giving rise to serious concern. We need a more open debate on the Government's engagement in the talks. Deputy Andrew Doyle referred to the work carried out by the previous Joint Committee on Agriculture, Fisheries and Food. A significant amount of work has been done to get us to this point. What we need now is active engagement from the Minister not just at committee level but within the main Chamber in the coming months as proposals are tabled. That is important given the size of the industry.

In reference to the proposals that emerged in August the IFA estimated that there could be a cost of €1.25 billion to Irish GDP. There could be potential income cuts of up to 50% as payments are redistributed across the country by 2019.

One can consider that the incomes of many who may lose payments are already below the average industrial wage and even when incomes are higher, it is a very challenging scenario.

The Minister outlined his priorities in the negotiations last night but I did not get any sense that the potential redistribution for incomes within the country was necessarily on his radar or causing particular concern. Is the Government conscious of the redistribution of income within the country? There may be national discretion on the issue but we must give a sense to people of the potential of the August proposals. The European Commission played the trick of leaking this in August when it believed everybody was away but we should consider the potential of those proposals for distribution of income within this country, particularly away from the BMW region. It is a serious matter and the Government should keep it under watch.

Deputy Keaveney spoke earlier about the disadvantaged area payment. I implore the Minister to ensure that the payment is not affected by any cuts that may come into the Department in the coming budget. It took a big hit in 2008 and it is the difference for many people, particularly farmers on the west coast, in keeping people on a farm as opposed to them walking away. I hope that within the Department there is an appreciation of the importance of that payment.

Greening proposals were outlined in pillar I, with 30% of that funding allocated, and they give me some cause for concern. Everybody supports the sustainability of the industry but no sector has done more for greening or the environment than the Irish farming sector. We can consider the amount of land gone into special areas of conservation and specific designation for various animals. There have been costs and sacrifices made by farmers to this end. The proposals and potential red tape arising from them must be managed carefully. Retention of pasture and crop rotation have been evident in the work of farmers for some time and if we are to put further demands, quotas and restrictions on farmers and the use of land, how can we put Food Harvest 2020 up as a document whose aims can be achieved?

We must align our ambitions and aims as outlined in Food Harvest 2020 with the negotiation strategy for CAP reform, as one is utterly dependent on the other. Unless we do this we may as well rip up the Food Harvest 2020 document now and not even talk about it. The Minister might have a chance to outline the Government's ideas on the greening proposals, how much red tape is involved and whether parts of the country could be designated under the proposals.

One of the issues we should welcome is the funding promised for research and innovation, with €4.5 billion targeted for agriculture research. We should be especially excited about this in Ireland, as we have seen many innovative food products come from this island. Many are household names across Europe and provide employment through manufacturing as well as income for farmers. We must also devise a strategy to target other funding in the research and development portfolio. We should use the influence of Commissioner Geoghegan-Quinn to ensure that agriculture and agriculture research gets a share of that cake. We should not just focus our efforts on the CAP reforms as we can reinvent food and farm incomes by using such money.

I have noted the proposals under rural development and we must use the occasion of this review to consider that topic. We have created an industry in rural development in this country since 1991 and we must ask if the massive number of companies around the country are still fit for purpose. Do we still need all of them? We saw the debacle last week involving Meitheal Forbartha na Gaeltachta Teoranta and we must consider how much money is being diverted to these companies that could go to projects on the ground. Some Deputies have referred to rural enterprise and people looking for funding who avail of Leader but we must try to focus that programme on enterprise and job creation. This review may afford us the chance to have an honest look at that area.

Payments to young farmers are absolutely crucial. One of the mistakes made by the last Government was the cancellation of installation aid. Young people are returning to farming but we must give them financial supports, as we do with back to work or enterprise payments when a business is being set up. We must try to amalgamate that kind of thinking with farm supports for younger people. It is important to sustain the industry and we also have a serious problem with farm safety. Until we reduce the age profile of the people running our farms, that problem will remain for much time.

There has been much comment that this debate is coming too early and the Government should not publish a strategy. Last night, the Minister outlined some general proposals for areas on which he would focus; he was far too general and we must get a sense from the Government that it is taking the issue seriously. I have no doubt that individual people are taking it seriously. Commitments on issues such as negotiations on the next EU budget framework and delivering a well-resourced CAP to support sustainable food production in the EU are the stuff of motherhood and apple pie. We all want it but how will it be achieved and what is the negotiation strategy? We are not asking the Government to show its deck of cards but how is the issue being pursued? How are we looking to retain Ireland's funding for direct payments and rural development? Everybody would sign up to that idea and although the Government does not need to show us its deck of cards, it must give a sense that there is a plan within the Department for managing the process. When these proposals are published in October, the Department should be in a position to give us an idea on its response. The genuine fear in many farming families arising from these proposals should be dealt with immediately.

I wish the Minister and the Department well but it is important, given the importance of agriculture to the general economy, that the Government ups its game in the negotiations and particularly involvement of the Oireachtas in those discussions.

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