Dáil debates

Thursday, 26 April 2018

6:30 pm

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael) | Oireachtas source

There could be some unintended consequences for a sector that requires high payments to sustain a model which, let alone in the long term, is probably currently financially unsustainable in terms of its dependence on rented land. There is a real challenge in that regard. I am not sure if that is something the committee has specifically got its head around in respect of a model for the tillage industry in the context of a reformed CAP. I suspect nobody from Deputy Martin Kenny's neck of the woods would thank him much for salvaging the tillage men who might retain a payment of in excess of or sometimes multiples of the proposed cap. I do not think that reflects the income they make from their enterprise. There is the rub. We need to be careful of unintended consequences in what we do. Tillage is a very interesting sector to expose it and to see how a movement in one direction can have catastrophic consequences for others. Therefore, we need to be careful.

The point has been made about the country's dependence on imported grains for animal feed and protein, in particular. If my recollection of figures is correct, we are only about 5% self-sufficient in protein crops. That is an extraordinary exposure. The European Union as a whole is equally dependent on imported proteins. I saw somewhere recently that we imported the equivalent of the size of the Iberian Peninsula in terms of the ground required to grow the volume imported. That is a huge deficit that the European Commission now acknowledges. In fairness to the Commissioner who was before the committee earlier, it has committed to bringing forward a protein plan for the European Union. I hope it will offer some support to the tillage sector here.

We have lamented the demise of the sugar industry, rightly so. It happened in a context that was extremely regrettable, but that is water under the bridge. In fact, we are not hidebound by the constraints introduced when the industry was closed down. The Government has always indicated - the programme for Government specifically references it - that it is open to a business case that might see an opportunity to re-establish a sugar industry here. It would receive the supports any prospective business would. I acknowledge its role in terms of animal feed and as a break crop for the tillage sector.

The EU protein plan which I think is anticipated by 2019 could form a very interesting part of a new architecture for the tillage sector and in addressing our and the European Union's deficit in production. We are really significant in that space. I take Deputy Willie Penrose's point about our exposure to imported grains, GM crops, etc. On specific immediate issues of interest to the tillage sector, there is the three crop rule. The adverse weather in recent weeks has affected crops that would and should have been sold to meet the greening obligations under the CAP. The Commissioner has been very proactive in indicating that they will not apply for the current tillage year, which is welcome.

It is true to say one of the shining lights on the horizon for the tillage industry is the expansion of the drinks industry. Although for many years - since the foundation of the State - we trundled along with three or four distilleries, we are now heading towards having over 20 distilleries and close to 100 micro-breweries. All of this requires a supply chain of locally grown grains. A point has also been made about the level of interest in provenance. That is one of the great things about the success of the agrifood and drinks industries. Globally, there is interest in the story of our food production. It can be brought down to a more local and parochial level in the context of the point made about being able to grow more food locally and shorten supply chains. We have indigenous drinks on which we should not turn our back. We can produce food in an environmentally sustainable manner in which others are interested and that also has a story behind it. The drinks industry has a great story to tell. We were where the Scottish whisky industry is today. We were the world leader 100 years ago. For many reasons into which I will not go, we tumbled from that position, but the industry is now growing at quite a considerable pace. Irish whiskey is the fastest growing brown spirit consumed in the world and we are now almost struggling to keep up with the global demand. The industry is on a really exciting expansion curve. The grain industry is a critical part of it.

I was in Deputy Willie Penrose's constituency with my party colleague last summer. I had a very interesting experience with an organic grain farmer. If one keeps doing the same thing year in, year out and expects a different result, it is not a sure-fire recipe for success but rather the opposite. However, here is someone who switched from conventional grain growing to organic and made a real success story of it. I am sure he will not mind me mentioning his name.

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