Dáil debates

Wednesday, 27 March 2019

4:50 pm

Photo of Andrew DoyleAndrew Doyle (Wicklow, Fine Gael) | Oireachtas source

I welcome the chance to contribute to the debate. As a beef farmer and Minister of State with responsibility for this area, I am keenly aware that beef farmers are going through a difficult time. A sustained period of low prices, following on from additional costs last year arising from the unprecedented weather events, has presented challenges for the sector. The prospect of a hard Brexit also presents a significant challenge, giving rise to continuing uncertainty. Given the scale of the challenges, I hope the debate will be constructive. It is very easy to criticise low prices and call on the Minister to condemn beef factories, but where will that get us?

As public representatives, we need to work collectively to consider how we can strategically support the beef sector to secure the future of beef farmers and their families. While the Government cannot determine commodity prices, it can support farmers through a range of schemes. These supports are critically important, especially for beef farmers. Ireland has established a major scheme for suckler cow farmers in its rural development programme. The beef data and genomics programme will provide beef farmers with some €300 million in funding in the current rural development programme period. It is aimed at improving the environmental sustainability of the national suckler cow herd by increasing its genetic merit and efficiency and reducing input costs on beef farms. In addition, the Minister, Deputy Creed, recently launched the beef environmental efficiency pilot scheme, a targeted support of €20 million for suckler cow farmers which is specifically aimed at further improving the economic and environmental efficiency of beef production. Beef farmers are beneficiaries of the €23 million in additional funding provided this year for the areas of natural constraint scheme, in addition to the delivery of the programme for Government commitment to provide €25 million. A legal framework and funding have been provided for the establishment of producer organisations. We are committed to the promotion of these groups across the sector.

The Minister is firmly committed to ensuring suckler cow farmers will continue to receive strong support under the next CAP. Critically, Ireland has called for the protection of the CAP budget and the Minister has engaged extensively with other member states to seek support for this position. The Taoiseach has indicated that Ireland is prepared to increase its net contribution to the EU budget but only if core policies, including the CAP, are protected. The motion calls on the Government to support low income farmers under the CAP. The current CAP is directing €100 million in payments from farmers on higher payments to farmers on lower payments and has introduced a cap on payments for the first time.

On Brexit, the Minister and his officials have been working hard for quite some time to sensitise other member states and the European Commission to the potentially very severe impacts of a no-deal Brexit on the Irish agrifood and fisheries sectors. The work undertaken has included a detailed analysis of the possible impact of the proposed UK tariff schedule in the event that there is a no-deal Brexit. It is clear that the imposition of such a regime would have serious implications for the beef sector in Ireland. With this in mind, the Minister held further bilateral discussions with Commissioner Hogan on the issue on the margins of the Council of Ministers in Brussels just last week. The Minister stressed the need to be ready to deploy a range of measures to mitigate the potential impacts on farmers and processors, including through traditional market supports and the exceptional aid provisions under the CAP's Common Market organisation regulation, as well as increased flexibility under state aid regulations. Commissioner Hogan has indicated that the European Union is ready to support Ireland and contact on these issues will continue as the situation evolves. The terms and conditions of any aid package will be announced in due course in the event that a disorderly Brexit occurs. We continue to hope this outcome can be avoided.

The value of Irish agrifood exports increased by 73% between 2009 and 2018, from €7.8 billion to €13.6 billion. This growth was driven by the strong reputation of Irish product in meeting the highest standards of food safety and animal welfare, quality and nutrition. Live exports are part of this dynamic and provide a critically important alternative market for farmers. In 2018 the volume of live exports increased by some 30%. The provision of lairage capacity at Cherbourg, an issue raised in the motion, is, of course, a commercial matter. However, the Minister has spoken to his French counterpart about the matter on a number of occasions and officials have also been in touch. Recently, the French authorities have approved an increase in lairage capacity in Cherbourg for approximately 400 bovines.

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