Dáil debates

Thursday, 6 October 2011

5:00 pm

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
Link to this: Individually | In context

Question 9: To ask the Minister for Agriculture; Fisheries and Food if he will commit to maintaining funding for all the main farm schemes in Budget 2012; and if he will make a statement on the matter. [27947/11]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context

This is about the farm schemes again; it is a pre-budget submission from Deputy Moynihan. The answer is the same as the one I gave earlier. There will be reductions in expenditure, and I have been frank about that since the week I took office.

Currently, we are lucky to be in charge of an industry that is expanding. Agriculture and agri-food have been the big good news story for the past six months. Unfortunately, that does not disguise the fact that there will be two difficult budgets in a row, with the first more difficult than the second. My Department must undertake its fair share of the reductions in expenditure that are required of all Departments. The Deputy will be familiar with the four year budgetary commitment made under the previous Government and which this Government is committed to implementing. Even though agriculture is a performing sector, we will still have to apply reductions in expenditure in the agriculture budget.

The political challenge for me is to work with the farming organisations, Opposition spokespeople and my party colleagues - and there is a great deal of talent in Fine Gael in the agriculture area at present - to find ways to reduce expenditure that do not damage the growth story of agriculture and that protect vulnerable sectors within agriculture that are not benefitting in income terms from a strong harvest, strong prices and good yields. For that reason I have repeatedly said I will do everything I can to protect the rate of payment in disadvantaged area payments and to support vulnerable sectors within agriculture such as, for example, suckler beef, which is vulnerable to an expanding and growing dairy sector.

At present, 50% of our beef comes from the dairy sector and 50% comes from suckler herds. The high end quality product generally comes from suckler herds. We must try to keep that ratio intact which means we must try to support high quality suckler farming. I will be as open as I can be in the build up to the budget. When we make decisions, they will be based on trying to be consistent with the targets set in Food Harvest 2020, as well as protecting vulnerable families and sectors in agriculture.

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
Link to this: Individually | In context

What is happening in the agriculture sector is a good news story and the predictions are that it will continue to be. However, it is vital that in every discussion the Minister has and in every decision he makes in the next couple of months which will be difficult, about which there is no doubt, peripheral regions and low-income sectors are protected. One often hears people living on the margins say they will be the last generation farming in a region. They have suffered a lot during the years, including as a result of the tough decisions made in recent times. I appeal to the Minister to ensure they are looked after in whatever way he can.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context

I agree with the Deputy. There are vulnerable persons in rural Ireland on farms, the sizes of which do not allow them to expand and grow and increase their income from farming activity. We all have a responsibility to keep them on the land. I am not a Minister who will impose policies purely on the basis of economics and solely focus on the efficiency of food production in making decisions. While we need to increase the efficiency of food production and improve the skills set of farmers, we also need to recognise that unless we support farming in certain regions under the schemes in place, people will simply leave the land. That has happened in other parts of the world as supports have been done away with. That is not the environment we want to create in rural Ireland.