James Bannon (Longford-Westmeath, Fine Gael)
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I thank the Ceann Comhairle for affording me the opportunity to speak on this important issue.

While I do not support the full introduction of genetically modified crops for animal feedstuffs or GM foods, I am concerned at the delay within the European Union for approval of feed crops with a GM component which ranges from two and a half years to ten years, as opposed to the US average of 15 months, and which threatens the viability of animal production in Ireland as the sector relies heavily on imported grain. The delay and obstruction of grain and protein supplies are having a detrimental effect on the entire livestock sector in Ireland. Wheat that could be purchased by pig farmers in August 2006 for €130 per tonne now costs a whopping €260 per tonne. Each €10 increase in feed prices increases the cost of production of a kilogramme of pig meat by 4 cent.

The problem is that meat from all over the world, including beef from Brazil, where the foot and mouth contamination poses a serious risk to our farming industry, that is fed genetically modified maize is allowed into Europe. The competitively priced maize, however, is not allowed into EU countries giving non-European imported meat a competitive edge. This double standard is a disgrace, especially as substantial transformation leads to Irish people being conned into thinking they are buying Irish products. According to the Central Statistics Office, 1.3 million kilogrammes of pigmeat were imported into Ireland from outside the European Union last year. Recent reports indicate that 30% of pig producers will exit the sector in the next year. Supply and demand will lead to an inevitable rise in pigmeat prices, similar to that seen in Britain in 1998. Irish meat must secure a stronger footing in the retailers to ensure the national herd can be maintained.

Neither the Minister of State nor the European Union can allow this inequitable situation to continue. There is an urgent need for country of origin labelling and approved animal feed to be allowed into Europe. Serious food price inflation is inevitable here and across Europe if the Government does not take a stand and tackle the inequity in the meat industry. Already an increase in Irish pork prices of 30% is necessary if pig farmers are to stay in business.

On 27 September the Minister of State abstained in a crucial vote at the EU Council of Ministers meeting in Brussels but he was actively in favour of the EU proposal in June and had the full support of the IFA. This U-turn has damaged Ireland's credibility in Brussels and assurances given by the Minister of State in June now count for nothing. Irish pig production which is worth over €400 million to the economy and directly employs 7,000 people now faces a wipe-out, with producers losing at least €15 on every pig sold. Our poultry industry will be handed over to Brazil and Thailand, while winter beef finishers face crippling feeding costs and will be forced to leave their sheds empty. Winter milk product will also be hit hard.

The Government is guilty of hypocrisy and double standards in failing to support an EU proposal to accept scientifically approved maize and corn gluten for circulation in the European Union with no consideration for the damage it is doing to Ireland's livestock industry, especially pigmeat and poultry producers.

The IFA has proposed that the Government should immediately press the European Commission to approve maize, gluten and soya bean imports from the United States. The Minister of State has indicated his concern for the survival of the pig industry and acknowledged that the extremely high feed costs facing Irish producers are a major contributor to their losses. A direct cash injection to Bord Bia by the Department of Agriculture, Fisheries and Food to mount an extensive promotion campaign to lift demand for and consumption of Irish pigmeat is now essential, together with an assurance that the money will only be used to support brands and processors using 100% Irish pigmeat. The IFA has proposed a series of measures to facilitate and encourage the use of pig manure on REPS and tillage farms. The interpretation of the nitrates regulations by the Department is placing an unnecessary cost burden on pig producers, while at the same time favouring imported chemical fertilisers. New round-up ready varieties of grain and soya bean are being developed and planted in all major animal feed exporting countries. Without official approval for such crops, our farmers face a serious and uncompetitive situation with the odds stacked against them. I would welcome a favourable reply from the Minister of State.

John Browne (Wexford, Fianna Fail)
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I thank Deputy Bannon for raising this issue. I presume it has a lot to do with the fact that pig producers will be in Dublin tomorrow.

Jimmy Devins (Sligo-North Leitrim, Fianna Fail)
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Timing is everything.

John Browne (Wexford, Fianna Fail)
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Many from my own county will be coming also. I hope to meet them for a chat.

Bernard Durkan (Kildare North, Fine Gael)
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It had better be a good reply.

John Browne (Wexford, Fianna Fail)
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I reassure Deputies that the viability of animal production in Ireland does not rest solely on the speed with which the European Food Safety Authority, EFSA, assesses applications from biotechnology companies to place on the EU market feed materials derived from genetically modified crops. We are fortunate to have so much animal feed coming from our green fields. Over 80% of ruminant livestock feed intake comes from grass based inputs. Compound feeds make up the remainder of ruminant feed, as well as all of the nutritional diets for pig and poultry.

Because Ireland has a deficit in protein feed ingredients we must import about 80,000 tonnes of maize by-products and 500,000 tonnes of soya. This is less than 5% of the total feed intake by farmed animals in Ireland. The majority of these imported protein ingredients come from authorised GM crops grown in the United States and South America which have been subjected to the stringent assessment process required by EU legislation. The EFSA is a central player in that authorisation process. Prior to 2007, the authorisation process and the EFSA's role in that process had little negative impact on the availability of animal feed, as there were adequate supplies available from non-GM or authorised GM crops. It was only in the last 12 months and in the light of increased global demand for feed and biofuel, allied to poor weather conditions, that the lack of synchronisation between the GM authorisation process in the European Union and the United States became a factor in feed supply.

I am confident that the recent relaxation of the setaside rules by the EU Council of Ministers which was fully supported by my colleague, the Minister, Deputy Coughlan, should lead to improved market conditions for cereal growers. I hope we will have more favourable weather conditions for cereal growing in 2008.

There is no doubt that the lack of synchronisation in the GM authorisation processes used in the United States and the European Union has presented problems for feed importers in Ireland. Notwithstanding this, we all accept that the rules governing the marketing and use of GM crops for animal feed within the Community are set down in EU legislation that has been adopted jointly by the European Parliament and the Council of Ministers. This legislation which is binding on all member states dictates that only GM events subjected to the necessary health and environmental safety assessment by the EFSA and authorised under the relevant legislation can be placed on the market within the European Union. This legislation was introduced in response to the concerns expressed by EU consumers about the safety of GM produce. The new legislation which is considered to be among the most stringent in the world governs the assessment and approval procedures for GM crops, food and feed. It also ensures the highest possible standards are in place to protect the citizens of the Community from a food safety and environmental safety aspect.

In addition to this legislation, the Community also established the EFSA. This authority, an independent science based body made up of specialists from a range of relevant disciplines, provides EU citizens with independent assessment, advice and communication of any risk associated with GM produce or food safety matter.

The speed with which the European Union authorises GM products will be an issue because US agriculture sees new GM crops being cultivated each year. It is obvious that delays caused by the necessary assessment process carried out by the EFSA can contribute significantly to this lack of synchronisation which, in turn, is a contributory factor to the difficulties in securing feed supplies at reasonably economic prices. It should be acknowledged, however, that some of the delays accredited to the EFSA are as a result of the absence and subsequent procurement of data from the applicant for which the applicant can only be held responsible. A tighter timeframe between the two authorisation processes would significantly reduce the possibility of unauthorised GM events admixing in consignments, particularly maize by-products, being exported to Europe and would also allow European pig producers to source whole GM maize as a substitute for costly wheat.

The Minister has welcomed recent statements from the EFSA indicating it recognises that a problem has arisen and that it is engaging with the US authorities to identify ways of minimising the time lag between both processes, as the Deputy has sought. The Minister fully supports any development that will lead to a more effective, efficient and speedier EU GM authorisation process and will do what she can to push that synchronisation process along at EU level. We will also seek ways in which there will be less reliance on imported feed. In this regard it should be noted that the current high cereal prices will have the effect of encouraging increased local production both here and throughout the rest of the European Union generally.