Dáil debates
Wednesday, 4 May 2016
Agriculture: Statements
12:35 pm
Catherine Murphy (Kildare North, Social Democrats) | Oireachtas source
The focus of attention in the debate today will inevitably be on the current problems relating to income in the agriculture sector. Given the importance of the farming and food sectors we need to consider and anticipate future risks. We need to mitigate the difficulties rather than take positions that actually make matters worse for the sectors.
There will be several key issues in future. One relates to the sectoral plans in the area of climate change and how we are going to comply with our obligations while at the same time dealing with particular sectors. These include the built environment and transport sectors but the agricultural sector will probably be the most difficult sector for us to deal with.
It is not only about the farming sector. We need to think of the importance of the food sector to the country as well. The new Kerry Group facility is located in my constituency. It is only when I went to see what happens in that facility that I realised the extent of the sector. One of the criticisms levelled at the sector 30 or 40 years ago was that all of the added value materialised in other jurisdictions. That is where the real opportunity lies. We need to ensure we protect the reputation of what we produce. This is why we need to carefully consider the Transatlantic Trade and Investment Partnership, TTIP.
The agriculture and food sectors have always been and will continue to be vital components of the economic and social fabric of Ireland, yet the sectors face constant threats and uncertainty. This has always been the case. Obviously, they have changed dramatically over the decades. Indeed we can track significant changes in these sectors dating back to the 18th, 19th and 20th centuries.
Another important area is the possibility of Brexit. Brexit is something we should be concerned about in light of our trade with the United Kingdom. I was listening to a programme recently on Northern Ireland. It covered the relationship between Northern Ireland and Ireland in the context of food production in Northern Ireland. It was only when I heard some of the practical aspects of what might change that I realised there could be very real difficulties in the sector. Those involved in the agri-trade sector are justifiably concerned about the impact of a potential Brexit. The situation should be monitored carefully. We need to understand the relationships, especially those between Northern Ireland and Ireland in that regard.
Another looming crisis in the agriculture and food sector is TTIP. The process indicates a serious problem in terms of reducing quality and dumbing down standards. The agriculture sector is worth €24 billion to our economy and it plays a vital role in rural economies, many of which have no real relationship with farming except that the money generated is fed into the local economy. Today, Irish cattle and sheep farmers are protesting outside the European Commission buildings against the concessions being offered in the TTIP talks. Concerns have also been raised about the comprehensive economic and trade agreement between Canada and the EU. This contains many of the most concerning aspects of TTIP and the possible effects on agriculture and food quality. When people are asked about the type of produce from Ireland, in the main there are favourable reports of the standards. This is an area of which we have been very protective. For this reason it is difficult to understand why we would want to reduce these standards. We are probably one of the stand-out countries in respect of our produce.
A recent United States Department of Agriculture report confirmed that the US agriculture sector would benefit far more than its EU counterparts as a result of TTIP. The report makes clear that if tariff and trade quotas were removed, US agricultural exports to the EU would increase by $5.1 billion, compared to $700 million going in the other direction. The report further stated that overall EU agricultural exports would decrease by 0.25%. Let us consider where the major benefit lies. Certainly, it is not in the agriculture or food sectors. We should ask where the benefits are going and who is writing the rules of the trade agreements.
Such scenarios obviously raise legitimate concerns with regard to how the agriculture sector can remain competitive. They also raise serious concerns regarding food safety and quality. We are justifiably proud of the quality of the produce in Ireland. It is generally accepted that European standards are more ethical and sustainable and produce a higher quality product. If successful, TTIP could see European standards of food production and farm-to-fork standards lowered to match those of the lowest. I am referring to the USA. I have read of the prospect of pork animals being fed with steroids that are banned in most parts of the European Union and the rest of the world but not in the United States. Whose interests would such agreements serve? The confidence people have in food would be diminished.
No doubt there are serious concerns. I recall what was almost a party-like atmosphere when quotas were abolished. The change was to open up all manner of opportunities. However, what no one anticipated at the time was that in reality it opened up a new range of risks. These risks are manifesting themselves in lower prices and a different type of competition. We need to consider the trade agreements in this context. We need to examine the risks closely. The farming community is very much focusing on that at this stage.
Maybe they focused on that because they underestimated the risks from other things that have occurred. We need to make sure that what we produce is produced ethically and in a sustainable way. What is the value in shipping live cattle over long distances to markets which could find the product at closer proximity? Where does the idea of producing food sustainably fit in with that? What element of the talks include that point? It is one we will have to consider seriously. We will end up paying large sums of hard cash if we do not meet targets. That should be a consideration.
In the past few years, the Government has bought into TTIP and appears to be one of its cheerleaders. Why? I do not see how the benefits outweigh the disadvantages. There is nothing wrong with trade. We have a small open economy and we need to trade with other parts of the world but I am concerned about the context of those trade agreements and who is writing the rules. If the big players are writing the rules in their own interests, as can be seen from the dispute mechanism, we need to stop being cheerleaders for something that may well be a major disadvantage to us in the future.
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