Dáil debates

Wednesday, 22 November 2017

Finance Bill 2017: Report Stage (Resumed)

 

9:30 pm

Photo of Michael FitzmauriceMichael Fitzmaurice (Roscommon-Galway, Independent) | Oireachtas source

The first day I came into the House there was a discussion on equalisation of the rebate for farmers and the self-employed, and it was announced that they would get €1,600 back over a three-year period. It was disappointing to note in the budget that the figure for this year is approximately €250. A commitment was given for a three-year process, which has not happened.

On the farming sector and price volatility, as Deputies McGrath and McConalogue pointed out, milk prices were on the floor and farmers were losing money. Luckily, this year, milk prices are good. There has been a drive from the Department to encourage many people to return to the milk sector.

Many people are currently very heavily invested and there is a danger that in two or three years, with the amount of money that has been borrowed and if milk prices get bad again, we will see the banks from which people have borrowed money closing in once more. History has a habit of repeating.

Something must be put in place. I agree with doing a report but with everything I have heard tonight, it seems we are doing a report on this, that and the other. Actions speak louder than words. We need something where a farmer can park part of a good year to give some breathing space. There is ferocious price volatility now. In the beef sector, we have been told that with the likes of the Mercosur deal, if it comes about the way people are saying it will, there will be a reduction in beef prices of between 8% and 16%, which will blow the beef sector in this country. That is before we even talk about Brexit. The way prices are flying over a five-year period, if we do not allow an opportunity to benefit from a good year, more farmers will be lost. People may not like to hear it but with the likes of factories, one in seven people is involved in the agricultural sector, either directly or indirectly. If we do not ensure it is protected, we will be running down a very dangerous road. We will not be "rural-proofing" the system and this will lead to land abandonment, fewer exports and more unemployed people.

Whatever about having a report, we must ensure that we can face down crises and leave people on a solid footing. Currently, it is like they are on a wave as they are up and then down. Price volatility is a major problem in the agricultural sector. The comments about Europe earlier were correct. We need to bring in some sort of minimum price as some stores in Ireland and other places are deciding to sell products below cost, leaving farmers basically rudderless; they can do nothing about it and it is driving people from the sector. If there is plenty of product at hand, people do not worry. We are in danger, particularly with small farms, which are affected more by this. They cannot weather the storm as they do not have the resources to do so. If we do not do something about this, we will have fewer farmers. When we joined what is now the European Union, we had 300,000 farmers, but we are now down to 120,000. We know we have a problem with age but it is not encouraging youngsters to come in when we have price volatility like we do. Nobody can survive with it.

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