Luke Flanagan (Roscommon-South Leitrim, Independent)

I thank the Acting Chairman for her comments when she spoke on these proposals. As many other Deputies said, there is a lot in them and it will take time to digest them. On a first reading it seems a farmer's life is becoming fairly complicated in comparison to what it used to be. There is some confusion among farmers as to what has happened since we joined the EEC as it was then. If the Minister will excuse me using this analogy, it seems to be a case of "Simon Says". In the 1970s, farmers were told to take out ditches and use as much land as possible and now they will be fined for doing the same thing but the proposal is for them to go back in that direction. It is a little baffling at times as to what is EU policy and whether there will be a new policy in ten years time to take the ditches out again.

I refer to the IFA and the ICMSA responses to the proposals which show they have serious concerns that farm incomes could be hit by up to 50%. So far as I can understand it the aim of the EU is to guarantee food security but if this is its aim then it would want to consider increasing the funding. I refer to the cuts in the suckler premium scheme and the AOS scheme over the past few years which show there are many challenges for farmers. Even if the Minister does the best job possible, the challenges will remain.

On the positive side, we live in a very fertile country and some of these proposals could be beneficial. I refer in particular to capping. Many people would not agree with this proposal and some farm organisations do not seem to agree but in my view it is ludicrous that some big farmers and people who are not even farmers are availing of hundreds of thousands of euro in subsidies per year. If there is a limited global figure it would make far more sense to direct more of this money towards small farmers. I note that under this mechanism the funds may be saved to remain in the member state concerned and may be transferred into a rural development envelope for use in innovation and investment by farmers. This makes a lot of sense and where possible it is preferable to exporting the raw ingredient. For instance, France does not export its grapes and subsequently buy the champagne or fine wine produced from them in another country. France achieves maximum value from what is an excellent product. We have excellent raw material here and much more could be done to make added-value products.

I refer to the potential for rural development projects. The proposal includes start-up grants of up to €70,000 and business start-up aid of €15,000 per small farm. This has to be a good thing. It is hoped it can be used in such a way to mean that local produce will be on sale in the streets of every small town in the country. Farmers have only one route to market and the multiples make massive profits with very little margin for the farmer. An investment in young farmers and small farmers could mean they could process their produce on site which would add significant value and profit. A farmer could develop processing on site, adding value, sell locally and keep much of the profit other companies would get. This would not alone boost local farm income, but also increase the attractiveness of areas for tourists and would return some of the originality that has been stripped from Irish towns to them.

When we joined the EEC, my mother used to ask me what had happened to farmers, because she saw them buying potatoes, cabbages and all the things they could grow themselves. There are downsides to these proposals and when I look at them in more detail, I will be able to explain my thoughts on them. What sticks out as a positive is that there is increased potential for young people to get involved in farming and for small farmers to be part of a thriving industry. There is no reason that should not be the case in my town. The majority of our fruit and vegetables are brought in from outside the area and while we produce a significant amount of meat, much of our meat is brought in from outside areas. There is more to be said on these proposals and when I have looked further into them, I will give my opinion.

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