Dáil debates

Tuesday, 24 May 2011

6:00 pm

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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I move:

"That Dáil Éireann:

notes the potential and importance of agriculture to the Irish economy and in particular to support the implementation of Food Harvest 2020 and recognises that:

— agriculture and the agri-food sector is Ireland's most important indigenous industry and will play a central part in job creation and our export led recovery;

— the agriculture industry in Ireland has an annual output of approximately €22 billion accounting for more than 6% of GDP;

— industry exports are currently almost €8 billion on an annual basis with food and drink exports going to more than 160 countries;

— a total of more than 139,000 people are employed in the production of agri-food and fisheries products, which is approximately 7.5% of national employment;

— this sector supports 128,000 family farms and 600 food and drinks firms;

— a number of countries in Europe, including Ireland, narrowly missed exceeding their milk quota this year while other countries in Europe were 30% under quota this year;

— a political solution must be found to allow the expansion of the dairy industry pre-2015; and

— Irish interests must be protected in discussions on the Common Agricultural Policy, CAP, post 2013 and in the Mercado Común del Sur, Mercosur, talks;

and calls on the Government to:

— negotiate a Europe wide quota rather than a national quota to allow for the orderly expansion of the dairy industry in Ireland between now and the ending of milk quotas in 2015;

— negotiate changes to the superlevy system so that the levy is only applied where the farmer, the co-op, the country and Europe has exceeded the quota;

— adopt a strong and unequivocal stance at the Mercosur talks to ensure the protection of the Irish beef industry;

— ensure the protection and continuation of a strong decoupled direct payments system in negotiations on the CAP post 2013;

— maintain the Agri-Environment Options Scheme as a major support for environmental farming;

— recognise the importance of the western counties to farming and provide greater support to small and medium sized farms;

— pursue the development of food labelling and traceability;

— ensure that State agencies actively support the further development of the indigenous agri-food sector; and

— enact the fair trade legislation as committed to in the Programme for Government banning unfair trading practices in the retail sector."

I wish to share time with Deputies Charlie McConalogue and Robert Troy with the agreement of the House.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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Is that agreed? Agreed.

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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The seriousness of the motion is clear. Agriculture is one of the most important industries and this is why this is one of the first motions we have brought forward under Private Members' time. It is important to hold a discussion on the importance of agriculture and the agriculture industry to the country and to the issues facing them. The motion before the House is the basis of the future of the industry. Many commentators have examined agricultural issues throughout the years. It remains one of the basic, fundamental industries throughout the country, especially in remote and peripheral regions. By and large, many of the policies we pursue in the Department are based on the Common Agricultural Policy and European policy. Following is an extract from Article 33 of the Treaty of the European Union dealing with the Common Agriculture Policy. The aim of the policy is:

(a) to increase agricultural productivity by promoting technical progress and by ensuring the rational development of agricultural production and the optimum utilisation of the factors of production, in particular labour;

(b) thus to ensure a fair standard of living for the agricultural community, in particular by increasing the individual earnings of persons engaged in agriculture;

(c) to stabilise markets;

(d) to assure the availability of supplies;

(e) to ensure that supplies reach consumers at reasonable prices.

This is the basis of the Common Agricultural Policy and the basis on which we have developed our agricultural industry since we joined the European Union and the common market in the early 1970s.

Let us consider the elements sector by sector. The basis for future policy in the dairy industry is the Food Harvest 2020 report. This is one of the best documents produced by any Government or Department in recent years. It outlines a blueprint for what is necessary for the agriculture industry to achieve viability and to ensure a future for agri-based industry. The dairy industry is at a crossroads. We face the abolition of quotas in 2015 and the expansion of the targets set out in the 2020 vision. Quotas were first introduced in 1984. During the past 25 years the dairy industry has worked and has tried to develop within this framework and within the constraints of the quotas. The dairy industry has rationalised at farm gate and at processor levels. However, it is now at a crossroads. In the period between now and 2015 serious issues will arise for dairy farmers in respect of staying within allocated milk quotas. This must be examined at a European level.

There must be a soft landing for the dairy industry. We barely escaped the super-levy regime for milk quotas on 31 March this year. Given the machinery in place in the dairy industry at the moment, especially at farm gate level, and the number of dairy cattle coming on stream serious issues will arise. Farmers are trying to adjust but it is remarkably difficult. Negotiations have taken place at Europe level. There should be a Europe-wide quota, not simply national, farmer or co-operative quotas. I realise the Department is examining this matter but I insist on the need to ensure capacity in the dairy industry now, in May 2011, and to ensure future capacity as well.

Let us consider the statistics. One in every ten gallons of milk consumed in the world is produced in Ireland. We have a significant product which goes throughout the globe and which is exported to all parts. The dairy industry and processors should be commended on this. A report written in 1990 recommended the need for only three processors in the country to ensure the dairy industry was properly serviced. I disagree with that fundamentally. Were there only three processors there would be a monopoly. We saw what this did to the beef industry in recent years when competition was taken out of the market and we did not ensure that the proper price was paid at the farm gate for those working the hardest to provide the industry.

Let us consider the beef industry. The Food Harvest 2020 report stated the need to expand the industry. There is also a need to ensure ready-made markets. For too long during the past 15 years, especially since the BSE crisis in 1996, there have been significant fluctuations year on year in the price farmers received for beef and in the value they have received. I recall the difficulties last year whereby our nearest neighbour received between €150 and €200 per head of cattle. We must examine the whole industry and ensure a vibrant industry. The difficulty in many peripheral regions is that the beef industry, especially the suckler industry, has replaced the dairy industry. We must ensure the industry is examined in a serious way, that targets are met, that value for money is attained and that the price given to the farmer at the farm gate is realistic and acceptable.

I have met several hill sheep farmer groups, organisations and individuals in recent weeks. Although there is buoyancy in the market at the moment they raised serious concerns. Many people in remote and peripheral regions have said to us that they will be the last generation of people farming in these regions. This an indictment not only of national policy but of European policy as well. People who have worked on the hills and provided an income for their families for generations have stated clearly and absolutely that because of the difficulties experienced they will be the last generation of people to farm these regions. We must examine this in a serious way.

We have seen the development of forestry in recent years and the income it has provided, through various premiums, for people who planted between 20 and 24 years ago. Now, for the first time, they are receiving a return and a price on the products they sell from thinning and so forth. We must continue to encourage this.

We acknowledge the Food Harvest 2020 report. We must acknowledge as well the great part agriculture will play to ensure an export-led economy and to ensure exports continue. It is vital that while we seek to increase the production on better lands in the country we must not ignore disadvantaged areas, including western counties and traditional areas where farming was difficult.

We have seen the dairy industry move from west to east. The co-operative society started 100 years ago in the western counties but because of development it has moved to the east. We must be mindful that any policy introduced by this Government or the European Union allows for the maintenance of the western counties. During the debate on the Finance (No. 2) Bill it was stated that when these regions are depopulated they enjoy greater tourism but there is already a vibrant economic sector in place there and we must make sure the policies we pursue will allow farming to continue in these communities.

Our future lies at the European level, with the MERCOSUR talks and Europe-wide milk quotas, but Europe did not always get agricultural policy right. There have been difficulties with its stance on the beet industry and Greencore, and the policy it pursued a few short years ago on rationalisation of that industry led to a shortage of sugar within the EU. The policy that was pursued was not correct. We must ensure that the policies accepted by the Government and Oireachtas are for the betterment of Irish agriculture and that we fight tooth and nail for it.

Any farmer in any agricultural product, be it grain, dairy, beef or sheep, will say that there is too much red tape and bureaucracy in the industry. When the inspectors arrive for cross-farm or other inspections, there is a sense that the farmer is a criminal who must then prove he has everything in order. The vast majority of Irish farmers have complied with all regulations. Farmers believe they are the custodians of the land for the next generation and have always farmed it with the environment and maintenance of the countryside in mind.

The duplication of regulations, however, gives rise to a sense that we introduce directives and then gold-plate them, instead of making them simpler. Some of the systems with the Department have proved beneficial to farmers and simple to work with but other sectors have caused huge difficulty for small to medium-sized farmers and larger farmers. Over the years, there was an overzealous aspect to inspections, with no leniency for minor infractions. There must be a common sense approach from the Department staff when they arrive on the farm and see the farmers are making genuine efforts to comply with the various regulations.

Last week, the leading farming organisation was raided under competition legislation because it was trying to protect prices for producers. Fair trade legislation is long overdue. We have seen the power of the multiples to drive their profits at all costs, with hello money, particularly when negotiating contracts with vegetable growers. Those multiples have never detailed their profits in Ireland because they have driven the amounts they pay the primary producer into the ground. It behoves all of us to ensure the fair trade legislation that has been promised for so long will be brought before the House as soon as possible. For too long this has been discussed while the farming community has been waiting for a time when multiples do not enjoy such power to drive prices down.

We are one of the largest exporters of sheep meat in the world, and 89% of beef and one in ten gallons of world milk supply are produced here. The establishment of Bord Bia and the Irish Dairy Board have been hugely successful ventures by the Government in recent years to get our produce on to the market. Kerrygold was an earlier initiative that proved hugely beneficial, and is still proving that today. There is no doubt that we produce the best quality agricultural produce in every sector. We should be proud to say that, and it was acknowledged last week. We must unashamedly say that our farmers comply with the strictest of regulations while implementing best practice in food production. We have the best product available and every ambassador for this country should signal that. We must ensure the best possible routes to market are available.

Systems have been developed over the years by the Irish Dairy Board but there is duplication because some milk processors are getting to market. There will be huge expansion of our agriculture industry in the next ten to 15 years but we must streamline and look at the way we have marketed our produce. We should incentivise this at national and European level to ensure we can sell the product.

We are basing this motion on the Harvest 2020 document produced by the former Minister for Agriculture, Fisheries and Food, Deputy Brendan Smith. It is an excellent document and there is huge scope for growth in the agricultural sector. We have an outstanding product and must reduce red tape across the sector. We must fight at European level for the quota system and at the MERCOSUR talks to protect the beef industry. We must make certain farmers who live and work in peripheral regions are not the last generation of farmers in those areas, that they have a future because if we do not provide a future for those people, we will turn it into a wilderness.

We must ensure there are no monopolies. We saw what happened with the monopoly in the beef industry in the last 20 years and the consequences it had for beef farmers. We must ensure the fair trade legislation is introduced. What I consider to be the nonsense of the Competition Authority in terms of farming organisations should not be before us and we should ensure the organisations have the right to negotiate on behalf of farmers and the Bill should be introduced as soon as possible. I commend the motion to the House.

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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I am pleased to have the opportunity to speak on this important issue. I commend the Minister for Agriculture, Fisheries and Food and the Government on their support for this motion. I represent a rural constituency and anyone who represents such a constituency will understand the importance of the agricultural sector for the economy as a whole and not just for rural Ireland. The agrifood and fisheries sectors represent the largest indigenous industry which collectively employs 150,000 people with an annual output of more than €24 billion. This represents 60% of the manufacturing exports by indigenous firms. With a total of €7 billion in exports, the sector accounts for more than half the manufacturing exports by Irish owned firms and serves in excess of 160 export destinations. While there may be difficulties, as in every industry, the future is one of real opportunity. Fianna Fáil, when in government, produced Food Harvest 2020 as a roadmap strategy for agriculture up to the year 2020. There is no doubt this is an ambitious plan but one which can be implemented.

I refer to the main points of Food Harvest 2020 as planned by the former Minister for Agriculture, Fisheries and Food, Deputy Brendan Smith. I welcome the Government's commitment in the programme for Government to the implementation of the plan. Food Harvest 2020 proposes an increase in milk production by 50%, an increase in the value of beef output by 20% and potential for a 20% increase in output in the sheep sector. It proposes that horticulture currently worth €370 million be enhanced in value by a reduction in imports, that organic production should continue to be supported by the Department of Agriculture, Fisheries and Food, and that pigmeat production could be increased by 50% in value if worldwide pork consumption continues to grow and cost issues are addressed. Ireland is only 80% self-sufficient in cereals so there is room for expansion in this regard.

If Food Harvest 2020 is to be achieved, the Department needs to look at how best to encourage more people into this sector. Typically, one is born into farming but since the suspension of the farm retirement scheme and the installation aid scheme, the same incentives are not present for fathers to pass over to sons and daughters. I encourage the new Minister for Finance to consider taxation measures to encourage the transfer of farms from one generation to the next, whether that be from father to child or from uncle to nephew or even older generation neighbour to a new, younger generation of farmer. This needs to happen to ensure a new generation is willing to embrace change and make the necessary investments in their business to ensure viable family farms.

Given the current trends in milk production in this country, I do not believe there will be any difficulty in us achieving the targets set down in Food Harvest 2020, which is a 2.75 billion litres increase and which will enhance the primary output value of the sector by almost €700 million, with further benefits in the form of increased dairy product values, export earnings and employment. We must be careful, however, not to exceed our current milk quota prior to the phasing out of same by 2015, as this would have serious consequences.

The current situation in Europe is farcical. A number of countries are well below their quota while others, like Ireland, are almost at their quota and those who exceed their quota, as was the case with Denmark, the Netherlands, Cyprus in 2009 to 2010, are subject to superlevy fines of €19 million. Given the quota system is to be phased out by 2015, the Minister should negotiate a European-wide quota which would allow for an orderly expansion of our dairy sector.

It is also important to ensure dairy farmers receive a fair price for their milk. Most milk in Ireland is now traded through supermarkets, thus creating a highly concentrated market and giving the power to the supermarkets. I encourage the Minister to deal with this situation to ensure dairy farmers consistently receive a fair price for their milk.

The Government needs to exercise extreme caution with regard to the Mercosur talks. Fianna Fáil's position is that it makes no environmental sense for the EU to allow its production to be displaced by less sustainable systems such as those operating in South America. The beef quota sought by Mercosur countries would certainly target the market for high value fresh and frozen beef. It would undermine Ireland's beef industry and it is not acceptable. Not only would a deal contradict the EU policy on climate change, it would also go against targets set under Food Harvest 2020. In April 2011 the Russian authorities took a decision to ban Brazilian beef from 27 plants following a two week inspection. This once again puts a question mark over production standards in Brazil. According to John Bryan of the IFA, these damning findings confirm the evidence of the lack of standards in Brazil as found in the IFA and Irish Farmers' Journal missions in 2006 and 2007. There must be a full reappraisal of the EU policy on meat imports and the controls in operation in third countries. The EU sell-out of agriculture in Mercosur must be stopped now.

Fianna Fáil has always been consistent and resolute in advocating the absolute necessity of a strong and fully funded Common Agricultural Policy and it will continue to do so. The Common Agricultural Policy will provide the main policy framework for development of the primary agriculture and agrifood industries in Ireland and in the EU to 2020 and beyond, hence its great importance. As an economic driver, its importance and continued financial support cannot and must not be under-estimated. Last year alone, the single farm payment was worth €1.23 billion to Irish farmers. While formal negotiations on CAP reform have yet to begin, the Government's priority must be to defend the direct payments to Irish farmers which protect their incomes, to continue decoupling payments, to ensure adequate measures are in place to support the market in times of crisis, to maintain a strong rural development programme with an increased focus on active farmers, to support competitiveness and sustainability, and to reward farmers for the public goods they produce. A future Common Agricultural Policy must include a direct payment system which provides a fair share of funding and support to ensure the viability of Irish farming.

I refer to the buying power of large supermarket chains and the need for governments to ensure farmers and food producers get a fair price for their products. I encourage the Government to fast-track its commitment in the programme for Government to bring forward the fair trade Bill. While in power, Fianna Fáil was committed to implementing a code of practice for doing business with the grocery sector. Legislation is needed to ensure any codes of practice in governing the relationship between the retailers and suppliers is mandatory.

The dairy farmers' share of the retail price of liquid milk has fallen from 42% in 1996 to 26% in 2009. This shows clearly the exploitation of milk producers by large supermarkets. The fair trade Bill will also ban a number of unfair trading practices in the retail sector, such as so-called hello money which suppliers must pay to secure a place for their goods on supermarket shelves. I encourage the new Government to ensure this Bill is fast-tracked and I ask the Minister to consider bringing it before the House before the summer recess.

A recent Teagasc survey found that the average farm income increased by 48% in 2010. This brings the average income for the farming sector to €18,000. While this is welcome news, it simply represents a recovery in the sector and brings incomes back in line with those recorded in 2008. I encourage the Department and the Minister to do all in their power to seek further improvements in family farm incomes.

Photo of Charlie McConalogueCharlie McConalogue (Donegal North East, Fianna Fail)
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I commend my party Front Bench colleague, Deputy Michael Moynihan, on bringing forward this motion. It is appropriate that Fianna Fáil has tabled its second Private Members' motion on the subject of agriculture which is so important to our economy and to the fabric and culture of our country. It also will be a key player in our economic recovery over the coming years. When the rest of the economy has been shrinking, agriculture has led the resurgence in recent years. The improved output, recovering incomes and generation of exports in the sector have been key drivers in sustaining our pressurised economy at a challenging time. Ireland's agri-food industry is the largest Irish-owned productive sector in our economy. It accounts for more than 60% of exports from Irish-owned manufacturing. Agriculture is deeply rooted in our economy, particularly in rural Ireland, which is where 38% of all households are located. One in four rural households are farm households. It is estimated that approximately 250,000 people are employed in agriculture, the agri-food industry and related service industries. This represents 20% of the workforce outside the Dublin area.

The motion before the House seeks to give priority to sustaining and developing Ireland's agriculture sector and thereby ensuring that the maximum possible number of farmers and families can make a sustainable living from the industry. Farm incomes fell by 40% between 2007 and 2009. The average farm income was €20,000 in 2007 but decreased to €12,000 within two years. In 2010, there was a significant recovery and national farm incomes were estimated to have increased by 33% on the previous year. Farming remains a low-income sector, however. The average farm income is estimated to be €16,500, or 50% of the 2010 average industrial wage. Although the outlook for producer prices remains positive in 2010, input costs are rising rapidly. Increases in feed, fertiliser and energy costs are undermining the profitability of farming.

Everyone in the farming sector is indebted to the research work conducted by Teagasc over recent years. It has done some particularly good work to monitor farm incomes. It has examined how the farming sector and farm families have fared by comparison with other sectors of the economy. The 2009 Teagasc farm income survey compared the incomes of farm families and those of private and public sector workers. In 2009, the average public sector income was just over €49,000 and the average industrial income was over €40,000. In the same year, the average farm family income across all farms was just under €12,000 and the average income of the 30% of farmers who are full-time farmers was just over €24,000. That is an indication of the difficulties experienced by farm families in recent years.

Some 20 or 30 years ago, farming could sustain, educate and provide a reasonable quality of living to families, compared to the general standard of living in the country at the time. In more recent times farm families have been under serious pressure. The number of farmers availing of the farm assist scheme, which was established in 1999, was consistently just under 8,000 from 2005 until 2008. It is estimated that it will have increased to just under 11,000 this year. The increase in that figure over the past year or two came at a time when farm incomes were recovering. It reflects what has been happening in the wider economy. The incidence of off-farm employment among farmers or their spouses had increased in the past decade but has mirrored other job loss trends in the country since 2008. The percentage of farmers and spouses with off-farm income and employment decreased from 41% in 2007 to 35% in 2009. Similarly, the percentage of farmers with a spouse with an off-farm job decreased from 58% in 2007 to 53% in 2009.

I will comment on the development of farming over the 15 years since the benchmark year of 1995. There has been a gradual decrease in the value of farming and farm incomes since that year. The average farm income in 2009, which was a particularly difficult year for farming due to the poor weather, was 48% of the average farm income in 1995. Ireland's total farm income was almost €2.5 billion in 1995, but that figure had fallen to just over €1.5 billion in 2009. In real terms, it equated to a decrease of 48% by 2009, although increased incomes meant the figure in question had improved to 64% by 2010. Last year's improvement, which was a reflection of the weather in 2010, was welcome at a time when the rest of the economy was finding things difficult.

I have spoken about where farming has come from. It has been a very demoralising time for those who have stuck with farming over the years. Farming is diminishing as a viable professional option for young families. However, there has been some cause for hope in recent years. I refer to the advent of renewable energy and renewable energy crops. The increase in the amount of land in the US and elsewhere being used to grow renewable energy crops and the worldwide improvement in prices, is an example. In the past year or so, some South American price levels were similar to those in Ireland. At one stage, the price of a kilogram of South American beef was close to what the Irish level would be, which was a big change. Historically, European beef prices have tended to be higher. Beef is a particularly big aspect of the diet of Argentinian people. I understand they consume half a pound of beef each day, on average. The equivalent figure for Irish people is a fraction of that. The Argentinian Government had to impose an export tax on Argentinian beef for a while to try to keep prices down in the domestic economy.

I have set out the background to the motion we have proposed. We are keen to ensure agriculture is prioritised over the term of this Government. The Fianna Fáil Governments of recent years were committed to agriculture. Historically, my party has tried to ensure farming has been promoted and protected. It has been keen to sustain as many farm families and jobs as possible in the countryside. I accept that Fianna Fáil is not unique in that. The promotion of agriculture has been a mainstay of what we have stood for over the years. I suggest that our national economic policy should reflect that in the years to come.

This Private Members' motion calls on the Government to prioritise a number of things during its term of office. We are asking the Government to "negotiate a Europe wide [milk] quota rather than a national quota to allow for the orderly expansion of the dairy industry in Ireland between now and the ending of milk quotas in 2015". We want the Government to "negotiate changes to the superlevy system so that the levy is only applied where the farmer, the co-op, the country and Europe has exceeded the quota". During the 2003 CAP reform process, it was decided that milk quotas would be phased out from 1 April 2015. As part of the CAP health check, the Commission proposed to increase quotas by 1% per annum from 2009 onwards. Given that Ireland came in slightly under its quota for the 2010-11 milk quota year, and in view of the increased production of the Irish dairy industry, it is only fair and rational that we push for the introduction of a European wide quota system to replace the national quota system currently in place. This would allow for the orderly expansion of the dairy industry in preparation for what will happen in 2015. Many European countries are significantly under quota whereas Irish farmers have the capacity to increase production. It does not make sense to wait until 2015 to allow our farmers to do so when spare capacity is available elsewhere in Europe.

I call on the Minister to ensure the interests of Irish agriculture, specifically the beef sector, are protected at the Mercosur negotiations. These talks pose a major threat to much of the work done in recent years to protect the beef sector from imports of South American beef which is not produced to the same standard as Irish beef. It is critical, therefore, that the Minister ensures our interests are protected at the talks. He should not be afraid to use the veto, although I hope that will not be necessary.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I move amendment No. 1:

To delete all words after "Dáil Éireann" and substitute the following:

"notes the potential and importance of the agriculture, fisheries and food industry to the Irish economy and in particular to support the implementation of Food Harvest 2020 and recognises that:

— agriculture and the agri-food sector is Ireland's most important indigenous industry and will play a central part in job creation and our export led recovery;

— the agriculture industry in Ireland has an annual output of approximately €22 billion accounting for more than 6% of GDP;

— industry exports are currently almost €8 billion on an annual basis with food and drink exports going to more than 160 countries;

— a total of more than 139,000 people are employed in the production of agri-food and fisheries products, which is approximately 7.5% of national employment;

— this sector supports 128,000 family farms and 600 food and drinks firms;

— a number of countries in Europe, including Ireland, narrowly missed exceeding their milk quota this year while other countries in Europe were 30% under quota this year;

— a political solution must be found to allow the expansion of the dairy industry pre-2015;

— Irish interests must be protected in discussions on the Common Agricultural Policy (CAP) post-2013 and in the Mercado Común del Sur (Mercosur) talks; and

— a comprehensive expenditure review is currently under way in the Department of Agriculture, Fisheries and Food; and

calls on the Government to:

— negotiate at an EU level to allow for the orderly expansion of the dairy industry in Ireland between now and the ending of milk quotas in 2015;

— adopt a strong and unequivocal stance at the Mercosur talks to ensure the protection of the Irish beef industry;

— ensure the protection and continuation of a strong decoupled direct payments system in negotiations on the CAP post-2013;

— maintain the Agri-Environment Options Scheme as a major support for environmental farming;

— recognise the importance of western counties and disadvantaged areas to farming and rural life and the need for continued support for small and medium-sized farms;

— pursue the development of food labelling and traceability;

— ensure that State agencies actively support the further development of the indigenous agri-food sector; and

— enact the fair trade legislation as committed to in the Programme for Government banning unfair trading practices in the retail sector."

I will share time with Deputies Mulherin, Naughten and Heydon.

I thank Deputy Moynihan and the Fianna Fáil Party for tabling the motion. It is a welcome departure that an Opposition party has worded a motion in a manner that seeks to secure agreement rather than score political points. I have responded with an amendment that recognises this development. While we seek minor changes for accuracy purposes - I have spoken to Deputy Moynihan about the issues in question - the amendment is based on the motion. It proposes four changes to make the motion more complete and sensible in terms of what we are trying to achieve from a political perspective, particularly with regard to the European Union.

I welcome this opportunity to outline the good news story the food sector can become in the next five years. Despite the extraordinary budgetary pressures faced by the Government which will force us to steer through difficult measures in the Estimates and budgetary processes, the agri-food, agriculture and fisheries sectors can expand in an exciting manner in the coming years.

Deputy Troy spoke about the need to incentivise the transfer of land and farm businesses from father to son and father to daughter. The best means of doing this is to offer young farmers an exciting future. This is the reason the number of young people applying to agricultural college has increased by 80% in the past three years - 28% in past year alone. At a time when young people see their options narrowing in other areas of the economy, their options in agriculture are growing in an exciting manner.

The Food Harvest 2020 document drawn up by the previous Government was one of the best things it did. My job is to use the report as a blueprint for the development of the food industry as a whole rather than its constituent parts. The aggriculture and fisheries sectors must move forward together to build capacity to service new markets, primarily abroad, and develop capacity at a primary production level on farms to be able to increase output and take advantage of and exploit the opportunities which are undoubtedly available to Ireland as a food producing island. This is the image we are trying to develop.

As has been noted, the agri-food sector is already a major industry, employing between 140,000 and 150,000 people on farms, in processing plants and areas such as marketing. In many ways, when Ireland lost its way in the past decade, agriculture and the agri-food sectors were taken for granted by the political system. They were not viewed as exciting in the way information technology or pharmaceuticals were and were not at the heart of the so-called smart economy, about which we heard so much. It is only when an economy collapses and one sets out to rebuild it following the traumatic collapse of many industries and a dramatic increase in unemployment that people start to realise that a country must focus on its core industries and what it does best. What Ireland does best is produce food better than anywhere else in the world.

We need to invest in the agri-food sector to expand the industry. Food Harvest 2020 is about developing an infrastructure that has been built up over generations during which farm families developed skill sets and farming systems. While they were often restricted, for instance, by quota systems in the dairy sector, they will have an opportunity to expand in a dramatic fashion. Food Harvest 2020 sets targets of increasing dairy production by 50% in volume terms. This will require counties such as Cork, Wexford, Waterford and Tipperary to double production over a five year period after 2015. Further targets include increasing the value of output from the beef, pigmeat and sheepmeat sectors by 25%, 50% and 20%, respectively, while seafood output is to increase in value from €700 million to €1 billion per annum. In total, the objective is to increase the volume of food production by more than one third and add value to the tune of 40%.

While these targets are ambitious, they are also realistic because they were set by the industry in its entirety. The group which drew up Food Harvest 2020 consisted of representatives from all the relevant sectors. The document is not an aspiration for farmers or companies such as Glanbia and Greencore but the culmination of an effort by the industry to work together and agree achievable targets. Markets are available to be serviced which would allow us to meet these targets. We must ensure, therefore, that we have the core resources to be able to increase output. This is, by and large, a matter of increasing exports. Last year the food sector was responsible for exports valued at €7.9 billion. By 2020, this figure must increase to more than €12 billion. We can create more than 7,000 jobs in this effort directly in the food sector and many more spin off jobs servicing the industry.

The agri-food sector has an exciting story that is emerging at a time of budgetary contraction. Next year we will spend less on agriculture and I have hard decisions to make on where to find savings. The Department is in the middle of a thorough expenditure review and I will have to make difficult decisions in prioritising the limited resources we have to spend. I will do so in a manner that will help us to achieve the targets set out in Food Harvest 2020, while protecting farmers who cannot exploit the benefits of the expansion programme owing to the limitations of their land or farms. As Deputy Moynihan stated, we need to ensure people in the west and other disadvantaged areas will continue to farm the land. This is the twin-track approach the Government must and will take. We will expand farming in a really ambitious way to build output and value, as well as finding markets in the EU and outside it. At the same time, we will prioritise the resources available to us as farm supports for those farms that need income support simply to remain viable entities. That is a challenge for us. This is not just an economic exercise; it is also a social one. It is about keeping rural economies and communities intact. I am conscious of the fact that I come from a fertile part of Cork. I am constantly reminded every week, and rightly so, by farm organisations as well as my own party members and Opposition party members, that there is a different type of Ireland that also needs to be looked after in agricultural terms. We will try to do both.

The recent AOS scheme we put in place was controversial and involved a shrinking budget. There was no budget for it, yet we put it together. As regards who will have an automatic entitlement to access the money, we have prioritised people in maturer and disadvantaged areas. After that they will be prioritised on the basis of farm size, with the smaller ones getting in first. We will continue to try to do that.

I wish to discuss some of the challenges we face in Food Harvest 2020 sector by sector. In many ways, the milk sector involves perhaps the most exciting expansion programme, but also the most challenging one. Unlike the other sectors, our output is being limited until 2015, after which we can have a dramatic expansion programme. In a ten-year programme, which is effectively what Food Harvest 2020 is about, we must achieve the dairy expansion in the second five years, unless we can get some political result concerning the issues raised in the motion - with which I agree - that would try to change what was agreed earlier.

I do not want to get into who was responsible for it, but in the last milk check it was agreed across the EU that there would be limited flexibility around expanding domestic milk quotas. As a result we have a super levy system which is preventing Ireland from expanding milk production volumes.

In the past 12 months, two other countries - Denmark and the Netherlands - have had a significant super levy applied to them. I have met the Danish and Dutch ministers to discuss this matter, as we need to put together a coalition of countries that want to expand milk production volumes. In addition, we need to persuade big countries, predominantly France and Germany, that are resistant to the kind of change we want to see between now and 2015, that it makes sense from a European perspective to allow countries that want to expand their industries to do so. That demand can be met by taking unused quota from countries that have no interest in using it in order to facilitate that transition. While we are trying to do that, we are not succeeding at the moment. I have met the Commissioner on this issue as well as discussing it briefly with the French minister, although I primarily discussed Mercosur with him. I will talk about the latter point in a minute. Last week, I spent quite a bit of time with the Danish minister who will hold the EU Presidency in six months' time. Next week, I will be in Hungary to attend an informal Council session during which we will organise a number of side meetings with a view to putting together a coalition of countries with a common interest in expanding milk quota pre-2015. We will thus try to put a strategy together that will be successful politically, although we should not take this for granted.

If young farmers from Cork to Donegal are planning to exceed their dairy quota dramatically this year, and if they are assuming the problem that will be created from a super levy viewpoint will simply be solved by me as Minister or by somebody else not producing their milk quota, they are very much mistaken. I caution such people therefore not to risk putting themselves out of business by having a super levy fine applied to them next year. We will try to resolve this issue politically and we are putting a huge effort into doing so, but it has not yet been resolved. We are at the early stages of building momentum towards a resolution in this respect, so people should be cautious and stay within quota until we can indicate otherwise. I cannot overemphasise that enough because I do not want to see ambitious young farmers, who are expanding dairy production for all the right reasons, have a significant fine applied to them next year that could put them out of business.

I welcome some of the positive developments that are happening in the dairy sector, including discussion groups. We are putting significant resources into supporting thousands of dairy farmers to share expertise and information. The reports and measurements we are getting back from that are exciting. I would encourage more young farmers therefore to get involved in dairy discussion groups. We will discuss the possibility of doing something similar for the beef sector also, which I think would be welcome.

A lot of work is being undertaken to seek new markets for Irish dairy products. Some of the exciting markets are in infant formula. We export 16% of the world's total infant formula exports and potential new markets are opening up. I will be meeting the Chinese minister for agriculture this week with a view to expanding the food sector trade between both countries. As Deputies will know, Ireland has no access to the Chinese market for beef at the moment.

Deputy Moynihan is correct that the most significant threat to the Irish beef industry at present is Mercosur. We are lucky that any offer on Mercosur in terms of a beef quota being allowed into the EU is being delayed primarily for political reasons, including the Argentinian elections. The French presidential elections next year may also have an impact, such as the lack of an offer on the table or no political deal being done. Since assuming office, I have spent much of my time warning people about the potential consequences of Mercosur, as well as calling for a study of the economic impact on the EU of such a deal. Quite a lot of detail of that economic assessment has been leaked and it is not good.

We will continue to caution strongly against the wrong type of Mercosur deal, without opposing outright the concept of trade deals between the EU and other parts of the world. A Mercosur deal cannot happen if agricultural products, such as beef in particular, are being sacrificed to get cars and financial services into South American markets. I have already made that clear.

I will finish by referring briefly to opportunities in the fishing sector. Each year about 1 million tonnes of fish are caught off the west coast, which is a commodity industry worth €1 billion. Some 88% of those fish are caught by foreign trawlers. We need to start landing an awful lot more of that catch. It is very expensive to transport it by truck from Ireland to Vigo or La Rochelle, or to take it away in a trawler's hold. We have a significant potential to develop a fish processing sector that can add value to fish caught by foreign trawlers as well as by Irish trawlers and employ thousands of people. We are working diligently to develop this sector and I will be in Killybegs to discuss it next week.

There is also an opportunity in terms of the aquaculture industry, namely, to increase the volume of fish output significantly due to the restrictions placed by the quota system for wild fish. We will be exploring this possibility. We have an exciting opportunity to expand the agrifood industry, employ many people in rural parts of Ireland who do not have many alternatives and create significant wealth that would reinforce Ireland's reputation as the best food producer in the world.

Photo of Michelle MulherinMichelle Mulherin (Mayo, Fine Gael)
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I am glad to support the Minister's amendment to the motion. I also welcome the recognition on all sides of the House of the importance of western counties and disadvantaged areas to farming and rural life and of the need for continued support for small and medium-sized farms. The amendment is not just words. In terms of the AOS scheme, the Minister has demonstrated his understanding of the importance of such payments to marginalised and disadvantaged farmers. This is welcome and I am glad it has been recognised that not all farming is the same.

I share the Minister's excitement concerning Food Harvest 2010. In the west, 68% of our communities live in rural Ireland. If there are to be any improvements to farming and food production, rural Ireland and the west will have a great role to play. The Food Harvest 2020 document creates possibilities for economic and social growth, which are important. Any improvement in farming is an improvement in the social conditions of the people living in rural Ireland. During the height of the construction boom in 2007, one in four men in the west were employed in the construction sector. This was a significantly higher rate than was seen anywhere else. The west is facing unique challenges but we have considerable potential for development. This document is a blueprint in that regard. The collapse of the construction industry meant the loss of supplementary off-farm income for part-time farmers, who were and continue to be badly hit. There is no alternative employment without leaving the farm.

The document deals with the exciting potential for growth in agriculture. Our renewable energy sector is another such area. The two do not exist in parallel universes. A part of our target for renewables includes bio-energy and biomass. Energy crops, whether they are used for electricity production or bio-fuels, require land. To what extent is there an interface between the two strategies, the Minister and his colleague, the Minister for Communications, Energy and Natural Resources, Deputy Rabbitte? This is a land use matter. Given the trend for high-priced lamb, beef and milk, this seems to be the way we ought to go. We have the best grasslands in the world and a climate that allows our grass to grow for longer periods than is the case in many other areas. To what extent will we not be growing energy crops on arable land?

The fishing industry has great potential. The current complaint is that although fishing is occurring along the entire west coast, processing mainly takes place in Killybegs. Other groups have an appetite, including a group about which I wrote to the Minister, namely, Iascairí Chois Chósta Iorrais Teoranta. This group believes there is favouritism and that its fishermen are not getting the support enjoyed by fishermen in Killybegs for improving standards upon their vessels and, in particular, achieving the Marine Stewardship Council standard. It is going nowhere fast with Bord Iascaigh Mhara. Will the Minister investigate this matter? I also forwarded him the fishermen's request to meet him to discuss the location of the outfall pipe of the Bellanaboy Shell gas terminal and the agreement they arrived at with Shell. They want to avoid future complications.

As we look to agriculture as a way forward it seems ridiculous that we are going to close agricultural colleges, Mountbellew in particular. It is a disaster. For young farmers, a year in an agricultural college is well spent and equips them to deal with modern farming. The closure of the colleges is a retrograde step and I ask that Mountbellew not be closed.

Photo of Martin HeydonMartin Heydon (Kildare South, Fine Gael)
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When we discuss recovery, we should start with indigenous aspects of our economy where we have a level of knowledge and expertise. We do not need to reinvent the wheel but to get back to basics. When one considers the quality of our land and suitability of our climate while concentrating on what we are good at, agriculture is an obvious sector with which to start. However, to do so we must ensure that the primary producer - the farmer - is able to make a viable income from the land.

As someone who has a mixed farming enterprise in south County Kildare, I am all too aware of the challenge it is for a beef and grain producer to make ends meet. While we face into CAP reform negotiations and uncertainty as to the future of payments and supports beyond 2013, we must always remain mindful that all any farmer desires is to be able to get to a point where he or she can make a living from his or her produce. No farmer wants to be fighting over payments and paperwork. No farmer wants be in a position where he or she needs to avail of the farm assist income support scheme because his or her income is insufficient to survive on. However, until we reach a point where the producer receives an appropriate portion of the final price of the produce we must continue with a strongly funded price support scheme post 2013 in Europe.

In discussing the future of agriculture, one aspect of the sector that should be revisited is that of sugar production. It was one of the initial industries set up by the first Government in the 1920s. It survived through generations, including the economic crisis of the 1930s and the oil crisis of the 1970s, but it did not survive the Celtic tiger. The production of sugar beet had a large spin-off, not just for farmers and growers, but for the hundreds of factory workers employed, the hauliers, machinery trade dealers and manufacturers, consumers and the wider community. The benefit of sugar beet as an important break crop to the soil is also of significance.

The added value aspect of bioethanol production at a time of soaring oil costs only adds weight to the argument that Ireland should look to return to producing sugar beet. I urge the Minister to support any move by private industry and farmers in Ireland to return to producing sugar beet if it is proved feasible to do so by the studies being undertaken.

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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In the limited time available, I wish to raise three issues. This is an exciting time in agriculture but we need to exploit some of the bottlenecks. I welcome the tabling of this Fianna Fáil motion and the all-party agreement on the principal issues. However, it is important that we focus on matters such as research and development, marketing and promotion and labelling laws. We are spending approximately 5% of our total research and development budget on the single largest indigenous sector of our economy. It is important that we refocus investment on the agrifood sectors.

The agriculture and food industries need to be constantly developing the next best food product if we are to compete effectively. It is not good enough to rely on Baileys Irish Cream liqueur, which was first produced nearly 40 years ago. Not only must we focus on investment in consumer products such as functional foods and cheese. In tandem, we must support programmes and initiatives that improve the breeding and quality standards of Irish beef and sheep production.

It is important that we refocus our marketing and promotion of food products. We have a unique selling proposition in terms of our grass-fed product. Research after research, particularly in the USA, has shown that consumers want to eat meat products that come from grass-fed sources and prefer such meats over other food products. Research has highlighted that grass-fed beef and other meat products have significant health benefits due to the presence not only of omega-3 oils but also of minerals, vitamins and conjugated linoleic acid, CLA, which reduces the risk of cancer, obesity, diabetes and a number of immune disorders. We should focus on that attribute of our beef products as well as our lamb and dairy products, which are also mostly grass-fed. Yet, on the Bord Bia website and in the marketing campaigns, this aspect is not prominent in the promotion of our food products. We need to focus on what we are good at. We have a product on which only a few other countries in the world can compete with us, and we must focus on it.

The final point I raise is that of food labelling. We have introduced country-of-origin food labelling in recent years, but there is not much point in introducing legislation unless we enforce it. I have one question for the House: where is the home of the Whopper? Burger King promotes its premium certified Angus beef products, and I do not dispute it in this regard, but there is no country of origin displayed in the restaurants or on its website, which is contrary to the existing legislation. I do not see why a multinational franchise can be allowed to get away with a breach of the legislation when other small retailers and producers must comply with the laws on displaying the country of origin of beef. I do not accept that no environmental health officer has spotted this. It is clearly not a priority at the moment, and this must be changed.

It is important that any benefits accrued in the marketplace are passed back to farmers. There is major potential to obtain premium prices for our products, but it is also important that Irish farmers directly benefit from this. We must take power away from the supermarkets, especially the multinational supermarkets, and protect our indigenous farmers and industry. We must ensure Ireland becomes the food island, not only for Europe but for the whole world.

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
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Before I call on Deputy Michael Colreavy, I point out that the amendment to the Minister's amendment submitted by Sinn Féin has been ruled out of order by the Ceann Comhairle on the grounds of insufficient notice. Although the Deputy cannot move the amendment, he may speak on the substance of the amendment and deal with the subject matter.

Photo of Michael ColreavyMichael Colreavy (Sligo-North Leitrim, Sinn Fein)
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It is unfortunate that a good idea has been rendered redundant by a technicality, because there was good reasoning behind the submission of the amendment. At the end of my speech I was going to talk about the amendment we had tabled.

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
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You are welcome to do that.

Photo of Michael ColreavyMichael Colreavy (Sligo-North Leitrim, Sinn Fein)
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We had proposed to delete the words "negotiate at an EU level to allow for the orderly expansion of the dairy industry in Ireland between now and the ending of milk quotas in 2015" and substitute "negotiate at EU level to allow for the orderly transition of the dairy industry in Ireland to protect security of milk supplies, processors and suppliers after 2015". We believed the amendment was necessary because the Fianna Fáil motion and the Fine Gael amendment were a little short-sighted, looking only as far as 2015. Many farmers have made heavy investments, and these must be protected after 2015. I understand the spirit of the Fianna Fáil and Fine Gael proposals, but our amendment would have made it more clear precisely what we were trying to do.

When I first read the Fianna Fáil motion, I was not sure what its purpose was. I thought it was quite narrow in focus when there are so many areas of agriculture we need to talk about. However, I was heartened to hear the response of the Minister for Agriculture, Fisheries and Food. The comments of Deputies have gone beyond the narrow confines of the motion, which I welcome. In my first address to Dáil Éireann I said that as long as the Minister spoke openly and plainly and demonstrated his knowledge of and passion for the brief, and as long as we had general agreement on the road he was taking, he would enjoy my and Sinn Féin's full support. I reiterate that tonight. I thank the Minister, who obviously has a passion for his brief and great knowledge of it.

According to the brief given to the Minister for Agriculture, Fisheries and Food, the objective of the Department is to "lead the sustainable development of a competitive, innovative, consumer focussed agriculture, food, fishery and forestry sector and to contribute to a vibrant rural and coastal economy and society" by pursuing the following five goals:

1. Provide an appropriate policy framework to support the development of an internationally competitive, innovative and consumer-focused sector.

2. Ensure the highest possible standards of food safety, consumer protection, animal health and welfare, fish and plant health, including appropriate bio-security measures.

3. Promote economic, social, environmental sustainability, and appropriate structural change in the agriculture, fisheries, forestry, bio-energy and food production sectors.

4. Operate all our schemes and programmes in an efficient, effective and consumer focused manner, improve our quality of service delivery and simplify the regulatory burden on all our clients.

5. Continually enhance our capability by developing our people and systems, maintain the highest standard of corporate governance and implement the decentralisation programme and public service modernisation.

These are all very laudable goals. However, I have seen over the years a number of instances - I am not speaking specifically about the Department of Agriculture, Fisheries and Food - in which the enunciated vision and goals of Departments are not followed through in terms of the choices and practices of people working in those Departments. I suggest that the Minister look more closely at the operation of those Departments.

One of the objectives of the Department is to "[o]perate all our schemes and programmes in an efficient, effective and consumer focused manner, improve our quality of service delivery and simplify the regulatory burden on all our clients." Every Deputy, of every party, has several examples of farmers who are not paid on time, whose payments are held up, often for spurious reasons, and who continually face impediments in trying to obtain what they are justly entitled to - often after they have made serious financial investments in their businesses to qualify for a grant in the first place. I fully accept the veracity of the Minister's vision and his passion for it. However, he will have to make sure the troops behind him share that vision and that they are working in a changed way. It should not be a case of one person versus another. The public service, the public, producers, farmers and businessmen should work together to do the right thing. Often, that does not happen.

Food Harvest 2020 is an exciting document with ambitious targets. We should all work towards achievement of these targets, and it can be done. However, if we constantly see cutbacks in research and reduction in State investment in the very machinery that will help attain the targets set out in the document, and if we constantly reduce the income of those who produce the goods under the framework of Food Harvest 2020 and undermine the very basis on which they work, those targets will slip. We must do two things, namely, remove the impediments that exist and provide support in areas such as research and promotion.

We must bear in mind - I know the Minister does so - the importance of this industry in both economic and social terms. We must ensure that this industry, which is vital, is protected. The agrifood sector contributes €24 billion to the national economy. It generates 6.3% of gross value added and 7.4% of employment nationally. When the employment provided in inputs, processing and marketing is included, the agrifood sector accounts for almost 10% of employment in this country. Sometimes people who live in towns and cities do not understand the importance of agriculture. If an industry in a town is doing well, then everything must be all right. However, the country would be immeasurably poorer if there was a dramatic drop in the income from agriculture and those who live in its towns and cities would be much poorer as a result.

Agrifood is one of Ireland's most important indigenous manufacturing sectors, accounting for the employment of 150,000 people. The approximately 600 food and drinks firms throughout the country export to some 140 markets worldwide. This illustrates the huge size of the industry, which accounts for in the region of 8% of GDP. The primary agriculture accounts for 3% of GDP.

There has been a great deal of discussion regarding the manufacturing sector. Less than 17% of the raw material inputs required by the agrifood industry are imported. This compares to a figure of over 60% of imports required by the manufacturing sector. Most of the agrifood sector is, therefore, within our control and there is no need for us to worsen our balance of payments in order to improve its position. Given that the global population is increasing at a rapid pace, that consumption is rising and that the demand for food is greater than ever, agrifood exports represent a large potential source of revenue for this country. This is the case because, thankfully, Ireland is still seen as a rural and green island. We must capitalise on this and increase the level of our agrifood exports. I accept that the targets are ambitious but they can be achieved. However, the latter will not happen unless people change their mindset in the context of how we manage our agrifood business.

We must formulate a strategy in respect of agriculture and food farming and the wider issues of rural development and job retention and creation. We should identify the jobs which might be created in the agrifood sector. In addition, we must bear in mind a set of broader policy objectives in order to place the economic analysis relating to the agrifood sector in context. Only through an observation of such objectives can the current analysis be treated in an adequate manner.

The type of overarching policy objectives to which I refer include minimising the country's vulnerability to recessions generated by international markets by developing indigenous industries - as envisaged under Food Harvest 2020; reducing our over-reliance on foreign direct investment, which makes us vulnerable to global economic downturns; promoting the development of small and medium-sized enterprises - including agrifood enterprises - from which the bulk of employment currently stems; promoting a progressive enterprise culture, particularly in the context of supporting the development of national and local brands; and bringing about balanced regional development by redressing geographical imbalances and inequalities in infrastructure and employment.

Sinn Féin is of the view that the core objective of any rural development programme involves creating a co-ordinated programme; retaining the maximum number of people on the land and preserving the social fabric of rural life; and ensuring that everyone has a dignified standard of living. We also want real reform of the Common Agricultural Policy, the original objective of which was to maintain the maximum number of farmers on the land while ensuring a proper standard of living for farmers and fair prices for consumers. It has not delivered in this regard and it must be changed. However, we must be careful with regard to the changes we might seek in respect of it.

Sinn Féin would also like a funding initiative to promote organic farming to be introduced. Organic farming becomes commercially viable on much smaller acreages of land than is the case with farming which utilises the more common and popular methods. I invite the Minister to visit the organic centre located at Rossinver in north Leitrim. This centre is well regarded nationally. In fact, it is considered a model of excellence. There is a food hub in Drumshanbo where expensive equipment and marketing methods are shared in a co-op approach by various producers. This hub is also a model of excellence. When he is travelling to Killybegs, perhaps the Minister will stop off in north Leitrim in order that we might show him these wonderful facilities. There are also a number of models of excellence in County Sligo which he might visit. Perhaps he will contact me when he is on his way to Killybegs because I would be delighted to show him around the facilities to which I refer.

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
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I call Deputy Mattie McGrath. I understand the Deputy is sharing time with Deputy Healy.

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
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I welcome the opportunity to contribute to the debate on the motion. As previous speakers indicated, the importance of agriculture to this country and its economy cannot be overstated. In previous recessions and downturns we turned to agriculture in order to get ourselves out of the morass. With the provision of the right supports and the removal of unnecessary regulation, we can prosper again. If we take the steps I propose, farmers could employ more people and make rural areas - which in recent times have become quite lonely places in which to live - more vibrant.

The annual output of the agriculture industry is approximately €22 billion. This accounts for more than 6% of GDP. It is, therefore, an enormous industry and is worthy of more than mere lip service. Agriculture has been neglected by recent Governments and there is no point in stating otherwise. When the so-called Celtic tiger was on the prowl, we forgot the animals which inhabit rural Ireland. During the period to which I refer, industry became fashionable and it was no longer stylish to be a farmer. As a result, there was a flight of farm families from the land. Indeed, the dwindling number of farm families is a serious development. No only does the reduction in the number of such families affect agricultural outputs, etc., it also has an impact on entire rural communities. I refer here, for example, to the effect it has on rural schools and sports clubs and small villages and towns.

The farmers markets which sprang up in recent years and the country markets which have been in existence for over 40 years are vital and are being given support. With the disappearance of the so-called Celtic tiger, people are beginning to support local markets and so forth and to buy local produce. It is important that this type of development should be nurtured.

I am of the view that there is far too much regulation in many sectors of the economy. This is particularly the case when in the case of agriculture. The behaviour of the Competition Authority in the context of its recent smash-and-grab raid on the headquarters of the Irish Farmers Association, IFA, was outrageous. In the recent past there was literally no regulation in financial circles. It was, therefore, very damaging that, in the interests of over-regulation, 15 officers of the authority executed a search warrant in respect of the offices of the IFA.

Photo of Séamus HealySéamus Healy (Tipperary South, Workers and Unemployed Action Group)
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The agricultural industry is vital for social and economic development and as part of the fight back against the current economic recession. The industry is annually worth €22 billion, representing 6% of gross domestic product, and accounts for €8 billion in exports. It provides 150,000 jobs on 128,000 farms and in up to 600 industrial firms. Irish agriculture has the benefit of being organic and green, a good platform from which to tap into the global food market which has seen increased consumption. This worldwide expansion in consumption provides an opportunity to expand the industry and create more jobs in it. State enterprises can assist in this area through, for example, providing research and development. Our universities have up to 3,000 postdoctoral and 3,000 other researchers who can be used as the base for developing State enterprises in the food and agricultural area, creating jobs, putting many on the dole queues back to work and thereby making huge savings in social welfare payments.