Dáil debates

Wednesday, 16 June 2021

Common Agricultural Policy: Statements

 

3:52 pm

Photo of Peter FitzpatrickPeter Fitzpatrick (Louth, Independent) | Oireachtas source

I welcome the opportunity to take part in this important debate. The Louth and east Meath constituency that I represent has a strong rural and farming community. I have dealt with this community on many issues over the years. It is one of the most dedicated and hardest working sectors in the economy. In the north of the county, we have the Cooley Peninsula and Faughart regions, where there are farming families going back many generations. Further south and towards the middle of the county, we have many more farming communities that have dedicated their working lives to the land.

It is clear that farming faces many challenges. The prices farmers are getting for their produce are constantly under pressure, yet prices are not falling for the consumer. As we debate the CAP negotiations today, let us be clear - farming is the backbone of rural Ireland. In terms of numbers, the farming and food sector employs over 300,000 people throughout the country. In terms of exports, it contributed more than €13 billion in 2020. Put another way, the sector contributed more than €250 million in exports every single week of the year in 2020. This is a staggering figure. The employment figures show that, outside of the Dublin area, the farming and food sector provides almost 14% of total employment. That is more than one in ten people. When we look beyond direct employment, it is estimated that the output multiplier is 2.5 for the beef industry and 2.0 for the dairy and food processing sectors. This compares favourably with the rest of the economy, where foreign-owned firms have a multiplier of 1.2 while the rest of the economy has a multiplier of 1.4. It is clear that the farming and food industry is vital to the Irish economy, not only in terms of money, but also in terms of communities.

The Government must do more to stand up for the farming and food sector. I agree with the IFA's statement that the approach to CAP reform by the EU, along with the Government's climate action Bill, could shut down farming as we know it. That is not what we should be doing. Some farmers are being hit with substantial cuts under CAP. On top of this, we will see the Government's climate Bill resulting in considerable additional regulation and, as a result, significant cost increases in the farming sector. Ultimately, the end consumer will pay for these costs. I know from my dealings with the farming sector that it supports climate action. Farmers want to see carbon emissions reduced and a greener society, but how can they support this, which will involve significant capital expenditure, if they are going to receive less money? It simply does not add up.

The facts are there for all to see. Last year was the seventh year in a row that food prices declined. In the same period, the cost of producing top-quality, safe and sustainable Irish food produce increased. That is simply not sustainable. We are either going to support this sector or we are not. Words or vague commitments are not enough. Action and real support are needed. For example, there is a commitment by the Government to provide €1.5 billion from the carbon tax for agri-environment measures. Where is that commitment today? Is the money ring-fenced? When can the farming sector avail of this commitment?

I put on the record my full support for the farming and food sector. I acknowledge the great contribution that it makes to the economy. I also acknowledge the great farming communities of north Louth, mid-Louth and the south of the county. It is clear that these communities need the Government to support them during the CAP negotiations.

I call on the Minister to commit fully to the Government's pledge to provide €1.5 billion to help the farming sector through agri-environment measures. Will he confirm that this money will be made available to the farming sector?

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