Francis O'Brien (Fianna Fail)

I am glad to speak here today and I welcome the Minister of State to the House. I gather that the Minister, Deputy Walsh, is in Luxembourg representing our interests, as he has done so well and so often in the past. He has been a truly outstanding Minister for Agriculture and Food. His record in office and in Fianna Fáil since 1992 will stand up to any reasonable scrutiny. At all times, agriculture has been kept centre-stage. During the boom years and even during the recent international downturn we always focused on the fundamental economic and social importance of the sector.

Over these years a sophisticated and modern agri-food sector was developed. This sector accounts for over 20% of net foreign earnings and it remains the backbone of rural Ireland. It also supplies safe and high quality food and it further acts as the custodian of our countryside. We must always remember that the sector is contributing almost €10 billion to the national economy or almost 9% of GDP. Notwithstanding years of great change and, at times, crisis, the sector continues to account for almost 10% of total employment.

One point we can definitely make about the Minister, Deputy Walsh, is that he is excellent in a crisis. The challenges of BSE and foot and mouth disease not only had the potential to destroy farming in this country but also to inflict serious damage on the whole economy. With calm and resolute leadership these external threats were overcome. In spite of the enormity of these crises, we were not deterred from ensuring that the interests of Irish agriculture were represented successfully through a series of CAP reforms culminating in the Luxembourg agreement last June. This reform of the CAP, in tandem with the October decision to opt for full decoupling of premia payments from production, heralded the beginning of a new era in Irish farming.

It must be emphasised that while this is a time of change it is also a time of great opportunity. Farmers will be released from the excessive paperwork and bureaucracy with which they have wrestled for so long. Instead, they will be offered an opportunity to realise their potential in the marketplace. We all know they want to be engaged in worthwhile activity that serves markets and consumers well.

The very nature of agriculture and its needs means that it deserves support through public funding. This support system will only be sustainable in so far as it allows farmers to concentrate on producing high quality food for real markets. Last year's mid-term review of the CAP involved tricky and prolonged consultations. As I said at the time of the conclusion of these negotiations, the deal delivered by the Minister represented a significant improvement on what the Commission had proposed a year earlier. A real victory for the Minister was the protection of the €1.6 billion in annual support for agriculture, secured under the Agenda 2000 agreement. I have no doubt that the new CAP structures will allow agriculture to develop in a viable manner.

The single farm payments will enable farmers to get on with the job of supplying markets and focusing on minimising production costs while maximising their incomes.

I am pleased that as part of the process of adapting to change, the Minister achieved a significant increase in funding for his Department. The 2004 Estimate for the Department amounts to approximately €3 billion. This is substantial expenditure and proves a strong and systematic commitment to the sector. For example, an additional €70 million will be spent on the rural environmental protection scheme, REPS.

The decision to opt for full decoupling is one where, as the Minister has rightly pointed out, Ireland has shown the lead to Europe. It is a wise decision that allows us to move ahead with certainty. We can now look forward to the elimination of the massive EU bureaucracy that had expanded around the range of schemes currently supporting farm incomes. I have no doubt we can ensure that the transition to the new payment arrangements is as flawless as possible for farmers.

Farmers will now be able to direct their production towards maximising quality instead of maximising quantity. Concentrating on quality production in an improved environment will provide our food business with the capacity to take on and succeed against its competitors in both home and export markets.

Farmers will approach this change in a positive manner and will adapt quickly to the new framework which they know will secure their future. We can be sure that with this Fianna Fáil-led Government and this ministerial team, priority will continue to be given to agriculture and we will be able to meet any challenges in the future. I thank the Minister of State, Deputy Aylward, for coming to the House to take this debate.