Fergal Browne (Fine Gael)

When the Minister of State, Deputy Parlon, was canvassing in the general election in Laoighis-Offaly, he created the impression that he would solve every problem in agriculture, yet the minute he was elected, he ran as far away as possible from the Department of Agriculture and Food and has not been heard of since. He did not bring the House down when the Government immediately following the general election changed the capital gains tax implications for farmers whose land was being acquired by CPOs. His voice went very soft and he could not be found. It is very unfair that farmers whose land has been compulsorily purchased for motorways receive a double whammy. They cannot reinvest in land without paying capital gains tax. This is a disgraceful decision by the Government and I have written to the Minister for Finance about it. Whatever concerns the Members opposite have about the Greens in a future Government, they should look at their own track record. Fine Gael will always ensure that the agricultural community is looked after.

It is correct that the nitrates directive has not been implemented since 1991, but 13 years later it will be suddenly implemented. The analogy of taking a sledgehammer to crack a nut has been used. I understand that two different standards will apply between the nitrates directive for Northern Ireland and that for the South. In my end of the country many dairy farmers use the New Zealand system where the cattle are brought in late in the winter and let out early in the spring. Those farmers would not be happy with the proposals. The blanket application of nitrates directives is not good. Pollution control grants for farmers and the young farmers insulation grant need to be increased. The insulation grant is currently €9,000, but that needs to be re-examined.

The website of the Central Statistics Office provides significant information. Prices are falling in every sector of farming but costs are rising. To illustrate the point, the cost of fertiliser in 1993 was €132 per tonne and it is now €186 per tonne. The compound 0-10-20 was €153 per tonne and it is now €201 per tonne. If one contrasts these increases with prices in various areas, one finds they are clearly not in line with inflation.

Will the Minister of State explain the reason the number of animals slaughtered, particularly pigs and sheep, appears to have declined in certain areas? Sheep and pig slaughtering lags far behind other European countries and Ireland and the United Kingdom appear to have a difficulty in this area. Butter production has also fallen by 8.9% in recent years.

The export market is crucial for agriculture. Given that we export approximately five-sixths of our agricultural products, marketing is vital. The Government has proposed decentralising Bord Bia to Wexford. Perhaps it should decentralise the agency to the four corners of the earth and establish offices in Tokyo, Berlin, Washington and other important centres with significant powers and greater funding to market and sell Irish products abroad. What will be the real benefit of decentralisation of Bord Bia to Wexford? It will have a knock-on effect on the town but the Government should consider the bigger picture at all times.

Research and development is as important to agriculture as other sectors. We need to examine how we can develop products and make them more attractive to consumers. Easy cheese and similar ploys have been successful in this regard. We need to invest significant sums in research and development, particularly in dairy and meat products to create more markets for them.

It is vital that we have family farms in future because without them we will have poor society. The recent census figures show major growth in towns, which is not necessarily a positive development. Sitting for hours in one's car travelling to work every day is not a good way to spend one's life. The growth of towns will have a considerable impact on rural post offices, primary schools, football and hurling teams and so forth and will diminish society.

The rural housing guidelines announced recently will not make a real difference. We need a sensible approach. I disagree with the approach to which Senator Kitt referred, which appears to have been adopted in Galway, although I may have misunderstood him. The policy of making it easier for applicants to receive planning permission the further away they are from the city sounds daft because it encourages people to spend hours travelling by car. We need to have a proper housing policy which encourages people to build houses in the areas in which they work and to make a contribution to local communities and society. We will not help rural communities by encouraging people to travel 40 miles to work every day because they will have no association with the community.