Noel Coonan (Fine Gael)

Mr. Mandelson is rowing back. The Minister accepts that these trade talks in Hong Kong are unlikely to bear fruit and it may be necessary to meet again in mid-summer. Last week in the European Parliament Mr. Mandelson stated:

Let me be clear. I have no plan to make a further offer in agriculture. This is not justified and would further unbalance the negotiations. The time has come for others to match the effort we have made.

He emphasised the word "further", admitting that the current talks are unbalanced because EU agriculture is carrying too much of the weight of the negotiations. It is being used as a negotiating tool. I ask the Minister to revoke this process and not to allow European, and particularly Irish agriculture be used as a tool in the further negotiations. We must take a firm stand on behalf of the farming community.

The Minister mentioned the CAP reforms. In 2003, farmers coming from a background of 30 years' protection through quotas, tariffs, export refunds and whatever, bit the bullet by agreeing to the reform of CAP. This was a mid-term review, it was not due until 2007. They took the pain and accepted reform in 2003 which included single farm payments. As the Minister said, those payments ruled out trade distortion because they were decoupled from production. That was helpful.

Less than two years later, before the first cheques were issued, the Minister is asking the farmers again to renegotiate CAP and these payments. Many of the farmers have not yet received their cheques. She said she is concerned about the single farm payments and the future ability of the European Union to allow those payments.

This is terrible news for the Irish farming community. Farmers have accepted reform as it has been put to them but in future reform it is important that they have a level and equal playing pitch. They do not have that now because the cost of production is constantly increasing and is being pushed up by regulations, traceability, cross-compliance, the nitrates directive, animal transport regulations and the introduction of prescription only medicines. These procedures are laudable if there is fair trade on a level playing pitch.

There is no traceability on the imports from South America. Out of a stock of 200 million cattle only 16.5 million are registered in Brazil. They are registered only six weeks before slaughter yet that meat comes freely in here. We were told that part of the CAP reforms were based on the theory that because of decoupling production in Europe would fall. As a result, we were told, prices would increase. They have not increased.

The vacuum has been filled with cheap imports from third world countries, particularly Brazil and, to a lesser extent, Argentina. There is no traceability record on the meat from Brazil, which reeks with foot and mouth disease. We must be concerned about the health and safety of the consumer. If one eats a nice steak with blood dripping out of it but it has no traceability record, God only knows what can happen to one's health and that of the next generation. What a shame this will be in replacement of the fine quality product produced by the Irish farmer. We speak about developing countries and fair production. In Brazil, for example, growth hormones, such as clenbuterol, are used in the beef industry. Is this fair trade, particularly when one considers Irish farmers went to jail for using such products? One can say rightly so as it was banned in the EU. Why is its use acceptable in Brazil and other countries? Why is there an unfair playing pitch? US beef producers are allowed to use hormone growth regulators and steroids to boost milk production but the US has not withdrawn supports to its farmers. It has announced it intends to do this if the same happens but the EU has made legislation and implemented regulations in this area. Again, Irish farmers must compete with an unfair system.

The Minister must take a stand on this issue on behalf of Irish farmers, otherwise they will be wiped out. European consumers are entitled to the same level of traceability and biosecurity. Why are these imports allowed in on this basis? Why are these trade regulations accepted by the Minister and then imposed on Irish farmers?

There is an inequality of scale with approximately six large ranches in Brazil devoted to beef production. Much of it is produced by slave labour which is of no benefit to Third World countries. Those working on them are poorly paid. How does this improve the lot of the Third World countries?