Dáil debates

Wednesday, 25 March 2015

The Dairy Sector: Statements (Resumed)

 

6:05 pm

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael) | Oireachtas source

I sincerely thank, on my behalf and on behalf of the Minister, Deputy Simon Coveney, each and every one of the Members who contributed in this House three weeks ago and tonight. The importance of the dairy sector for Ireland is huge. For the country as a whole and for rural Ireland in particular, the opportunities are phenomenal.

Based on Deputies' contributions, there is a broad consensus evident that a significant opportunity is presenting for the country. There is an unambiguous wish to embrace it fully across the spectrum. This opportunity has phenomenal potential for every farmer, in particular dairy farmers. Various Deputies have touched on how it presents an opportunity for young farmers. For 30 years or more, people in Ireland were hampered by the dairy quota. Young farmers were trained but when they returned to family farms that did not have quotas they could not expand their businesses. After many difficult years for the economy, a new horizon has opened. It came about following the decision of the European Commission, at a time when Ireland held the Presidency, to abolish dairy quotas. The Minister for Agriculture, Food and the Marine, Deputy Coveney, headed up the argument and achieved agreement across the EU on abolishing the quotas. Hence, the opportunity for Ireland.

In recent years, we tried to find new ways of creating jobs. There was growth in the pharmaceutical sector and the IT sector has been mentioned, but the current opportunity for agriculture is considerable, be it at farm or co-operative level. Two weeks ago, we visited the new Glanbia plant that was being opened in Waterford. It is probably one of the best plants in the world. Once milk is unloaded there, the next human being to touch it does so when it is put on a forklift to be loaded onto a truck for export. This type of efficiency and modernisation is not only found in the Waterford plant, but also in the Dairygold, Kerry Group and other large plants around the country. This opens up significant opportunities to sell into many markets globally. In terms of China's market, we need to produce high quality infant formula.

The recent debate on water and its cost has been mentioned. If we are to expand the dairy industry, we need many things, one of which is clean and good quality water. This issue is of significant importance to everyone involved in the industry, not just farmers.

Several issues have been raised. The training of young farmers at agricultural colleges must be addressed. As the economy exits its difficulties, extra resources to train more young farmers will undoubtedly be made available. The issue of banks making credit available was mentioned. That the Commissioner, Mr. Phil Hogan, made extra money available at a cheap rate this week to allow farmers to expand their businesses was important. I hope this will not lead to extra costs and that the banks will fulfil their promises. When they are making money available to farmers, processors and so on, their interest rates should be kept low. We must be careful regarding many other important issues in terms of banking, for example, prudent lending. Deputy Barry hit the nail on the head when he stated that we could not overborrow. That was an important point.

There are other issues, but the one on which I would like to spend more time than I have is the actual idea behind this debate, namely, the proposal by Deputies Creed and Deasy to put a system in place so that we might have a new way of discussing milk quality, financial management and the other issues facing the dairy industry. Deputy Deering referred to problems in terms of liquid milk. Issues will arise as milk production and farming expand and develop. This is why I am delighted that the forum chaired by the Minister and proposed by Deputies Creed and Deasy will form part of the way forward.

I thank Deputies for their many excellent contributions. I listened to Deputy Connaughton's comments on the environment. He was 100% right. Forestry has a role to play. We have many other issues to discuss. We have an industry that is capable of making this country No. 1 in the world. In the years ahead, the dairy industry will expand significantly and we will have a quality product. If we keep standards high at all times, our industry will have a great future. The people involved must be complimented. I thank them for giving the House this opportunity to explain about a good industry instead of being negative about rural Ireland. Rural Ireland is doing well and is undoubtedly changing.

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