Charlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

At the outset I thank Deputies Cahill, Martin Kenny, Penrose, Mattie McGrath and Wallace for allowing me to skip the queue since I have to be in Navan for 7 p.m. or shortly after. I thank the Deputies very much for that. I hope they will not report me if I get there for that time. I thank the Minister of State and the Chairman for their contributions. I also acknowledge the tremendous work which all members of the committee put into developing this report. I acknowledge especially the role played by the staff, including Kieran Tuohy, who is a researcher and did a lot of work on the report. I know that Kieran has moved on and been replaced by Ivan Farmer. I thank Kieran and the clerk to the committee, Josie Briody, who works alongside Alan and Hubert.

I appreciate the time that was given by the many people who came in not only to do written reports, but also to present. Great commitment was shown and I acknowledge the leadership of the Chairman who very much took this issue on and drove it through and deserves very strong credit for that.

Both the Chairman, Deputy Deering, and the Minister of State, Deputy Doyle, outlined a number of the key recommendations, so I will not go into them as indepth as they did. However, I will touch on a few of the key points from a Fianna Fáil point of view. Working closely with Deputy Cahill and Senator Paul Daly, we felt this was an issue which merited very significant time and was a worthwhile pursuit because there is no doubt but that our grain industry is under tremendous pressure. The Minister of State, Deputy Doyle, in his contribution outlined how the area under winter cereal last year dropped by 14.5%. Some of this was weather-related but it is symptomatic of a trend whereby we see 2% to 3% of tillaged land being taken out of tillage each year. This is a very concerning issue when one considers that we have to import two thirds of our total grain needs. For a country with the agricultural potential of Ireland and where we pride ourselves on our tremendous agrifood exports and what we produce, it is very disappointing to see that, from the point of view of grain, two thirds of what we require must be imported. Of course, there is also the point that a significant amount of those imports comes from countries where genetically modified organisms, GMOs, are used. That presents issues as to how we bring our agrifood sector forward because I think consumers will increasingly look for produce that can be certified as entirely produced on this island with produce from the island. It is a concerning trend which we need to try to find ways to arrest because once a lot of ground moves out of tillage, to get that industry back up and running and back to that capacity may prove nigh impossible. Therefore, where possible, we need to try to take whatever measures we can to address this.

There has not been much mention yet of the issue of the Common Agricultural Policy, the ongoing review and the funding that will be in place from 2020 to 2027. This will be significant to all agrifood sectors but it will be particularly important to the tillage sector. We need to see the CAP supports done in a way that recognises that the tillage sector needs to be supported and the level of hectarage under tillage continues. This is challenging, and we see it particularly with the growth in the dairy sector, whereby profitability in the dairy sector has been higher in recent years than in other sectors. This is putting increasing pressure on the area of land under tillage. I am sure the Minister, Deputy Creed, and the Minister of State, Deputy Doyle, are well aware of this. We had the former Minister, Mr. Hogan, before the committee today. As for how Deputies Creed and Doyle approach and engage with Mr. Hogan and the Commission in the coming period, it is important to keep this issue at the forefront of their minds.

The report also touches on the need to examine properly the potential for energy crops, and I ask that the Department of Agriculture, Food and the Marine and the Minister and the Minister of State take on board from their end this recommendation, fully explore it and examine its potential. I know the sugar beet sector was covered in the tillage sector report of 2012. There is a commitment in the programme for Government that State supports be considered as appropriate in respect of proposals put forward. I know this is being examined and scoped at present by some interested parties. We should work to see where the potential and capacity is to reignite that and whether it stacks up.

Another key point, which runs across all our agricultural sectors, is the need to ensure a fair price for the product. When it comes down to brass tacks, the biggest problem with the tillage sector is that in recent years the price per tonne and the price that farmers get for their land has meant that incomes have been dropping and many are questioning how viable it is to continue in tillage. This is a very challenging issue to grapple with. Cereal prices operate in a world market and are very much exposed to what happens in other parts of the world at any one time in a given year. However, where we can, particularly at European level, improve the position of the primary producer, it is important we explore that further. There is no easy way to do so but it is something we must grapple with and try to improve. An example given in our report is the brewing industry. Regarding the prices paid to distillers and brewers, a one cent increase in the price of a pint would lead to a 20% increase in the price the farmer gets for his grain. Therefore, a very small increase in the price the end consumer pays would have a very significant impact on the primary producer and the farmer in this instance.

I also wish to touch on the issue of low-income loans. Deputy Cahill raised this during Question Time today and the importance of these loans to the farming sector, particularly the tillage sector. We see right across the country currently that farmers are under massive pressure because of how late this season has been. A survey that the Irish Grain Growers sent to me earlier today indicates that, according to those who responded to the survey, 50% of farmers have less than half of their crops sown at this stage. The respondents to their survey also indicated that 30% of farmers have reduced their areas of land under tillage. This is a reflection of the pressure they are under. A low-interest loan scheme needs to be opened up soon, and there is an allocation for it in the budget. However, it is important that it is expedited by the Government to try to relieve some of the financial pressure the tillage sector is under.

Our report also refers to the need to look at the price paid for fertiliser and the tariffs that are applied. I know the IFA has pushed this and raised it in Europe and with the Government. This could be addressed and could help address the costs that tillage farmers must deal with.

It is also important that the Government shows itself to be responsive to the pressures under which farmers find themselves. The Minister of State, Deputy Doyle, did refer to the fund which was introduced to try to assist some of those farmers who suffered from a very bad harvest in 2016. However, in that instance we must recognise that the Government was very slow to recognise the plight of those farmers and to come in and support them. It took a Private Members' motion on the floor of the Dáil to get movement on it. The Government must learn from this and work closely with the sector to recognise the pressures the tillage sector experiences. The Minister of State, Deputy Doyle, referred in his comments to the need for additional volatility tools, insurance schemes and funds within the CAP programme, I believe, to be able to respond to adverse weather conditions. That is important in the tillage sector, as it is in other sectors. It is certainly a suite of policy tools that we must focus on and further develop, given our experience in recent years.

At that, I will sign off. I again thank everyone who contributed to the report and my colleagues for their generosity in letting me commence the Opposition contribution.

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