Seanad debates

Wednesday, 26 January 2005

Sugar Beet Industry: Motion (Resumed).

 

6:00 pm

Photo of Paul BradfordPaul Bradford (Fine Gael)

We are discussing market reforms and structural reforms in Irish agriculture and I am aware that a similar debate is taking place in China. I welcome the Minister, Deputy Coughlan. As she is aware, she has the full support of every Member of the Oireachtas in the challenges which face her at European Union level as talks move towards a conclusion on the EU sugar proposals. It is important that she has full political support, in as far as is possible and politically practicable, from all sides of the House for her endeavours at European Union level. The future of the Irish sugar industry is at stake in the weeks and months ahead. The Minister, her party colleagues and all of us know full well that if the original EU proposals, or any similar set of proposals, are implemented it will sound the death knell of the Irish sugar industry.

The Minister put the issue in context when she referred to the fact that Ireland has 1.1% of the European sugar quota. That shows what a small player we are on the European and world stage. However, within Irish agriculture, the sugar industry remains a core sector. At one time we had four sugar factories and now that number is down to two with the intention of moving to a one-factory situation. Almost 4,000 growers are dependent on sugar beet for their livelihood. The number of people employed directly and indirectly is in the region of 10,000 which indicates we are dealing with a significant industry. The EU is now threatening the core of this industry.

A document on the reform of the sugar sector was issued by the European Commission in Brussels on 14 July 2004 to the European Council and Parliament. This was brought to the attention of the Sub-committee on EU Scrutiny of the Oireachtas Joint Committee on European Affairs, on which I serve, on 9 September last year. We immediately referred it to the Oireachtas Joint Committee on Agriculture and Food. All Members of the House, regardless of whether they are from rural or urban areas, are aware that these proposals would decimate this indigenous industry. We must send a strong message to Europe that the Irish political family is united behind the Minister in her attempt to secure the future of the industry.

The Minister said her negotiating hand is not in any way weakened by the recent Greencore decision to shut the Carlow plant. However, her junior ministerial colleague, the former IFA president, Deputy Parlon, thinks differently. I am not making a political point. The view of the Minister, Deputy Coughlan, is on the record, as is the view of the Minister of State, Deputy Parlon. Nobody can be totally certain of what will be the outcome. It must be most disappointing for the workers and growers in Carlow and the broader area and everybody involved in the local economy to see Greencore take such a sudden decision. We are very relieved in Mallow that it has been decided to retain the plant there. We consider that a wise decision. There have been many improvements in Mallow in recent years, not just from an infrastructural point of view but from a work practice point of view. The Mallow plant has a future as long as the sugar industry has a future. The challenge for this House and for the Minister is to address not where the factories are located but whether the industry will survive.

Senator Ryan stated that we cannot ignore the future of agriculture and hope the problems will go away. I have called for a debate on the future of agriculture in the House on a number of occasions in the past 18 months. We need to examine the question of young people in agriculture and the matter of diversification. If we are to diversify Irish agriculture, the sugar industry must play its part. We can ill afford to lose any of our tiny 1.1% sugar quota.

The Minister outlined the set of proposals coming from Brussels which include a quota reduction of 16%, a 37% cut in price and an inadequate level of compensation. If adopted, these measures would wipe out the sugar industry, which would result in the loss of up to 10,000 jobs. We cannot allow this to happen. Unusually in the context of EU agricultural negotiations we cannot count on the support of some of the countries that generally stand by us, especially France. That will cause political problems. It is important that the House unites on this issue and that we work with our sister parties across Europe to stress the importance of this industry to this country.

The Minister outlined her views on the issue of quota transfer. I welcome the fact that she appears set to strongly oppose quota transfer. That is very important because there are regions and countries waiting to snap up the Irish quota if it should become available. Now might not be the time to reach a conclusion on the ownership of quota issue. I hope the position is as straightforward as that outlined by Senator Callanan. I urge the Minister to clarify the matter and bring it to a conclusion as soon as possible. I accept that the advice of the Attorney General has been sought. However, beet farmers would like to know the exact position concerning quota ownership as soon as possible. I urge the Minister to expedite this matter.

The motions before the House are similar. We all have a reasonable command of the English language. I am disappointed we have not been able to reach a joint approach. Although the House will divide politically on the motion and amendment, it is vital that the political establishment takes a single approach. We must show a united front to the Minister's colleagues in Brussels. Sugar beet is an indigenous industry, which has been part and parcel of Irish agriculture since the mid-1920s. We will not accept any set of proposals, which would bring that industry to an end. We are cognisant of the changes that have to take place in agriculture at European level, and to the sugar regime in particular at a world trading level. The Irish sugar industry must be maintained. The Minister must put the security of this industry at the top of her agenda for the medium term. I and my party wish her well. We are united behind what she is attempting to do for this industry at European level. Irish farming would not be the same without the sugar industry.

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