James Bannon (Longford-Westmeath, Fine Gael) | Oireachtas source

I agree with the two previous speakers in expressing my great disappointment that there is not a single Opposition Deputy in the House for this important debate. There are no representatives of Fianna Fáil, Sinn Féin or the Independents. It shows what they think of rural areas and the people who live there. The Opposition often cries wolf about rural services being taken away, yet they will not attend the House to support the agricultural industry, which is the backbone of rural Ireland.

The agricultural sector has the capacity to lead the economic recovery now that it is being given proper supports. This Government will invest well over €12 billion in agriculture over the next few years, which is a record figure in the history of the State. It is hugely important for the industry.

I am pleased to contribute to today's statements on the dairy sector. As a farmer myself, I know all too well the importance of agriculture, and in particular the diary sector, to farming families across our country. The biggest news story in the diary sector in recent months is the abolition of milk quotas. The abolition of quotas is perhaps one of the most significant developments for Irish agriculture since our entry into the EEC in 1973. At present, Ireland has over 18,000 dairy farms which produce around 5.4 billion litres of milk annually. This, in turn, generates a farm-gate value of more than €1.8 billion and an export value of €3 billion each year. Ireland ranks among the world's top ten dairy exporting nations. The fact that the sector employs 34,000 people shows how vital dairy farming is, not only to Irish agriculture but also to the economy as a whole. When agriculture is going well, the economy is thriving.

In anticipation of the abolition of milk quotas in a few days' trine, there has been significant engagement and activity by farmers, industry and policy makers to position Ireland to take full advantage of the increased production opportunities. As a result of such detailed preparation, Irish farmers will be well prepared for the abolition of quotas and well placed to take advantage of the huge opportunities it presents. The ending of quotas will create a much more level playing field, thus making it easier for sheep or cattle farming families to enter the dairy sector if they so wish. That same point was raised almost ten years ago by the Irish Cattle and Sheep Farmers' Association when it called for a loosening of milk quotas.

I commend the Minister for his forward planning on the matter. The State has rightly invested significantly in the dairy sector in order to support the expected expansion. This type of detailed preparation is evident when we see that €60 million has been invested over the past number of years through capital investment grants and, in addition, 7,000 dairy farmers have participated in knowledge transfer programmes.

The Government's food strategy, Harvest 2020, is another clear example of forward planning. Harvest 2020 has an ambitious target to grow dairy output by 50% in the five years after the ending of quotas next week. Emerging markets will be key to this and the recent Government trade mission to China was intended to significantly grow our potential market for dairy products in that country. There is a rapidly expanding market of over 1.3 billion people in China and they are increasingly seeking high quality food and drink imports. Irish farmers can capitalise on this and dairy farmers are currently preparing themselves to ensure that they do so successfully.

A number of key issues must be tackled if dairy farmers are to realise the full potential presented by the abolition of milk quotas. We must consider what actions we need to take in order to develop tax-based risk management measures. We also need to ensure the development of a robust wholesale price reporting mechanism to underpin price hedging options. Incentives must also be provided to increase participation in milk recording.

I would like to mention the approval of the phased repayment of the superlevy fine. This recent announcement was a huge boost to farmers and will certainly ease financial concerns, particularly in my own constituency of Longford-Westmeath.

Paying the full superlevy has in the past been a huge financial burden for farmers and for co-operatives. This year in particular farmers are preparing for the abolition of milk quotas so the surplus is even more of an issue. Farmers are keeping calves or buying more calves in an attempt to use up the milk but despite these measures, there is still a significant surplus.

These proposals will allow farmers a level of flexibility in making their payments. There is an option to pay the levy in instalments and the Minister is examining the practicalities of how this will work. The Department of Agriculture, Food and the Marine will still be required to pay the superlevy fine in full to the European Commission by the usual deadline of 31 November 2015 and farmers will repay a minimum of one third this year, the same in 2016 and the remainder in 2017.

The dairy sector in Ireland is about to go through a major period of growth. There is huge potential for Irish farmers. Now is the time for dairy farmers throughout the country to start planning for the future. Cash flow is always an issue and I am delighted that Commissioner Phil Hogan brought in easing measures yesterday regarding availability of finances for the farming sector. It is also important at this juncture that the milk quota surplus is addressed.

I commend the Minister and the Commissioner for all their work on the dairy sector. My good friend, the Minister of State, Deputy Tom Hayes is a farmer himself and knows the ins and outs of farming like the back of his hand. I compliment him on the good work he is doing as Minister of State with responsibility for forestry and thank him for his help and assistance to me in my constituency work.

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