James Bannon (Fine Gael)

The Government appears intent on driving such farmers from the land and out of business.

A total of 141,000 people, or 12% of the workforce, were employed in Irish farming in 1994. By 2004, this figure had been halved to 113,000 people, or 6% of the total workforce, which constitutes an indictment of the Government.

I wish to bring the Minister back to the programme for Government of 2002 which stated:

We believe that a strong agriculture sector is a vital part of a strong Irish economy and the cornerstone of a vibrant rural community. Our aim is the continued enhancement of agriculture and our vision is for rural communities where young people have a choice between attractive options.

With a few violins playing, one could almost hear Eamon de Valera back in situ, fantasising about maidens at crossroads — a habit Fianna Fáil has never given up. The spin of the above would make one believe we have not moved on much further.

In 2003, the disease levy was doubled, costing farmers an extra €10 million. In 2004, the Government refused to fully roll back this levy and only reduced it by 50%. In budget 2003, roll-over tax relief was abolished. While the revenue yield of abolishing section 605 relief will not be significant, the abolition will severely penalise those farmers who are worst affected by compulsory purchase orders, for a minimal increase in tax yield.

The average farm income in 2004, revealed by Teagasc, was €15,557, half the average industrial wage of €30,000. In 2004, almost 40% of farmers earned an average income of less than €6,500. The average farm income on cattle rearing systems was €7,286. Average farm incomes on sheep rearing systems declined in 2004 by a massive 16%. Average industrial earnings in 2004 were €29,000, with average public service employee wages at €39,000. Lamb and pig exports fell by 12% and 7% respectively in 2003.

Almost half of farmers' earned income is now non-farm, compared with 30% in 1987. In 2004, farmers were paid for their milk at 1989 prices, with a massive 40% margin going to supermarkets. There has been a 22.5% fall in farm profits since 1995. So much for the Government's avowed support for rural communities and a strong agricultural sector. This is not a record of which the Government can be proud.

Now, following on one threat after another to the viability of Irish farming, we are faced with a worldwide situation that threatens the heart of what remains of the Irish farming sector. The EU offer to the World Trade Organisation in advance of the Hong Kong summit has the potential to destroy Irish farming. It is clear that the EU has made too many concessions too quickly and there is a serious danger that the Commission's offer will destroy the internal market for food, which will, in turn, decimate both Irish farmers' livelihoods and the rural economy.

Further concessions are likely, despite assurances by the EU Trade Commissioner, Peter Mandelson. These concessions could be made in an attempt to rescue the multilateral trade negotiating process of the WTO but would be disastrous for EU farming and, by extension, would further decimate the already suffering Irish farming industry. The heavy emphasis on agriculture in the WTO is masking the enormity of non-agriculture trade and these issues have yet to be debated at the WTO.

The EU offer of 28 October goes beyond the CAP reform agreement and the EU negotiating mandate and it is imperative that the Government brings pressure to bear on the Commission to withdraw its offer. John Dillon, IFA president, who came before the environment committee yesterday, has warned that under Mandelson, Europe will become the dumping ground of the world food market, where there will be no control over quality, no tagging and no food traceability. He says that the consequences of such a policy would be greater exposure to food and mouth disease, swine fever and avian flu. What we will get is beef of over 30 months that is produced by slave labour and, although it has been disputed this morning, full of hormones.

On a recent visit to South America I spoke with South American farmers. I was surprised to learn that in many cases they do not test their animals until they are at least four years of age. This beef can be imported into this country and could destroy our clean, beef producing sector. It is extremely worrying that our food safety budget is being cut, according to the Estimates, despite the fact that the number of food scares is growing, particularly from inferior food imports such as Brazilian beef. Irish farmers have invested much money and effort to ensure that Irish food is the safest and most secure in the world. With increased threats from foot and mouth disease in Brazilian beef or Asian flu and so forth we certainly cannot afford to reduce funding for food safety.

The IFA president has called on consumers to stand by our farmers in return for a secure supply of top quality, safe and traceable food at reasonable prices. It is imperative that the Minister impress on the Commission the need to defend and protect the CAP in the negotiations and oppose attempts to undermine the green box arrangement. Agriculture must not under any circumstances be sacrificed for the sake of the overall agreement. I was surprised to read in the Minister's speech that concessions in agriculture should be a precondition for movement or progress in other aspects of the negotiation.