Dáil debates

Wednesday, 10 October 2018

Financial Resolutions 2019 - Financial Resolution No. 4: General (Resumed)

 

6:45 pm

Photo of Pat DeeringPat Deering (Carlow-Kilkenny, Fine Gael) | Oireachtas source

I am delighted to have the opportunity to say a few words today on the budget that was announced yesterday. First, it is not that often that we get the opportunity to speak on a budget that has been balanced for the first time in almost ten years. Reference was made earlier on to the fact that we have had a balanced budget and to sum it up, one could say that we have a prudent budget. It is very steady and very responsible and as I said, for the first time in a long time we will not have the boom to bust cycle and we will avoid the situation we have had in the past. Twice in my lifetime I can remember this country being brought to the brink of economic disaster - in 1977, when Fianna Fáil promised the sun, moon and stars and almost destroyed the country and ten years ago when total incompetence brought us to the brink of economic disaster. For the first time in a generation, it could be said that there is light at the end of the tunnel and there is economic stability.

I wish to concentrate on the agricultural and rural sectors, but agriculture in particular. The agricultural sector does not often get much attention in this Chamber and it is important to again highlight some of the issues the Minister for Agriculture, Food and the Marine explained a few minutes ago. An extra €57 million has been allocated for the agriculture budget in the coming year in view of the fact it has been a difficult year for the farming sector. This allocation is important as weather events have ensured it will be an expensive year for the whole agricultural and farming sector. Extra and more expensive foodstuff and fodder has had to be sourced and that has been difficult for farmers.

We must look at the bigger picture for this year and the last number of years. The two big issues facing Irish agriculture in the coming years will be Brexit and the climate change agenda. These are two issues that need to be seriously concentrated on over the next period of time. In advance of the budget there was much talk about a subsidy for suckler cows and there is no doubt that the suckler and beef sector in general has been going through a difficult time. To a certain extent, there have been many missed opportunities to address the whole beef sector and where it is currently. Providing a subsidy for suckler cows alone will not sort out the problems. We need more markets for our beef products. We need to ask ourselves what we will do with the products we have at the end. We need the meat industry to step up to the plate and take responsibility for where the product will go. We also need the supermarkets to step up to the plate and take responsibility. There are many unfair practices that need to be addressed and we need to tackle these in a strong way as we move forward so that we can have a fair and transparent market for our products.

I welcome the new beef environment efficiency pilot scheme that was announced by the Minister yesterday. As someone who was very much in favour of the previous beef data and genomics scheme I believe the two schemes together will bring important advantages to the beef sector as we move forward. It is about a more efficient animal being available to the market going forward. As the Minister for Agriculture, Food and the Marine, Deputy Creed, said a few minutes ago, for the first time we will have real data available on the weight of cows and weanlings going forward. Some €20 million has been made available for this scheme with €40 per head for calves. Some 500 animals can be applied for under the scheme. Bearing in mind the climate change agenda about which we are talking, it is important that efficiency is stressed as we move forward. We have to have a more efficient beef sector in the future.

I thought the previous beef data and genomic scheme was very good but it got off to a bad start and lessons must be learned from how that was delivered in the past in the context of consulting organisations. As we move forward with the new scheme, which will be useful, it is important that all stakeholders are involved in whatever discussions take place in advance of it being rolled out so that we can have a straightforward process and that we avoid the hassle we had in the past.

I also welcome the extra funding put into the areas of natural constraint, ANC, bringing its funding back up to €250 million, which it was prior to the economic disaster which Fianna Fáil left us with ten years ago. It is ironic that its Deputies have all left the Chamber.

As I said, one of the biggest challenges facing the agricultural sector is Brexit and the uncertainty around that. The industry must be aware of that and it is important extra funding is put in place. I welcome the €27 million of capital in Brexit-related supports that will be available. Bord Bia has a huge part to play as we move forward and it is important it has a €46.5 million war chest available to plan and develop extra markets in the future.

It is also important to welcome the taxation measures introduced yesterday. The extension to the stock relief up to 2021 and the stamp duty extensions, which are all beneficial to the agricultural sector, are to be welcomed. The averaging of income to include all farm income also makes it more beneficial for the agricultural sector.

There was one area with which I was disappointed. There is much income volatility, particularly in the dairy sector. We will see income fluctuating substantially in every sector and it is important we allow for that. A good proposal was put on the table by the Irish Co-Operative Organisation Society, ICOS, in the last number of weeks, which was very worthy. It proposed to put a rainy day fund in place for the bad years whereby the sector would set aside a certain amount of funding to a rainy day fund in the good years for the bad years. It has a lot of merit in the same way as the rainy day fund being introduced at national level. It could also be beneficial at a sectoral level and I encourage the Minister to have a look at this in the finance Bill or as we move forward to next year.

The other sector I said I would comment on is the rural affairs sector. I welcome the Minister for Rural and Community Development, Deputy Ring, to the House for this debate. This whole budget has been very welcome. It is important to point out that an extra €53 million has been allocated to this area. The money allocated to this area has been very well spent over the last period of time. I refer to some of the schemes the Minister has introduced in the past number of years since he came into office as it is important to remind everybody about these schemes. The town and village renewal scheme has been crucial.

Last week €0.75 million came to County Carlow. In total, over €2.5 million has been allocated from town and village renewal scheme money to County Carlow, one of the smallest counties in the country. It has benefitted every town and village, including Myshall, Tinriland, Tullow, Clonmore and Ardattin. It has benefitted small villages right around the country over the last period of time. It has also given the communities an opportunity to come together to plan, strategise and put structures in place so they can be sustainable into the future. It is a very welcome fund. It is great to see there will be more funding available for that in the coming year.

It is great to see the CLÁR funding. It is another fund that was abandoned a number of years ago by Fianna Fáil as it left the sinking ship. It has been reinvigorated again. It is a scheme that helped in rural areas, whether in the local community centre or through safety measures in schools. It has a huge knock-on effect right around the country. The local improvement schemes are very efficient schemes. The rural sector is important. We hear time and again about the demise of rural Ireland and that it is on its knees. That is far from the truth. Many very good things are happening in rural Ireland. If it were not for these schemes, we would not see communities coming together to make sure they have a sustainable environment and sustainable community going forward.

I compliment and welcome the budget. From an agricultural perspective there was an acknowledgment that the beef sector had a very difficult year. Some of the schemes that have been introduced will be very beneficial as we move forward. There needs to be liaison and consultation with different organisations to make sure that whatever scheme is rolled out will be streamlined and user-friendly. From a rural perspective, I compliment the Minister on getting an extra €53 million into the schemes. They are great schemes that will be of huge benefit to rural Ireland going forward.

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