Martin Mansergh (Fianna Fail)

I welcome the Minister and her report. One County Tipperary Senator succeeds another, but while I appreciate that Senator Coonan was playing devil's advocate, it should be pointed out that the farming organisations backed the package. I accept they did not do so easily, but they are satisfied with what they have been given.

I congratulate the Minister on her widely praised stewardship of the Department of Agriculture and Food. Since 1997 and previous periods when the Government parties were in office, there has been a consistently supportive framework for farmers. They are confident that the Government is basically on their side and will cope with problems that arise, some of which are unforeseen.

The key backdrop to this situation is the European funding until 2013, negotiated in 2003. The World Trade Organisation negotiations were of concern, particularly in light of the distrust of EU Commissioner Mandelson, given the well known hostility of Britain and its Labour Party to the agricultural sector. That battle was fought and won by the Minister and her European allies and the issue will not return to the agenda in the near future. The notion that European agriculture should be sacrificed for the sake of clerical jobs in London was offensive.

The Minister outlined the benefits of social partnership. While one organisation was involved in 1987, others have since come on board. Previously, the stark divisions between trade unions and farming organisations were not to the benefit or credit of either grouping. The Minister stated that farmers "have also been able, through the partnership process, to look beyond their own interests in taking a wider view of the economy and society". The same could be said of trade unionists, employers and the voluntary sector.

Apart from long-term plans and commitments, partnership is a way of working through difficult problems. An obvious example this year was the nitrates directive, a matter that has reached a satisfactory conclusion. This week, the required derogation was confirmed. This is not to say that there will be no other problems to work through, particularly in respect of pig farmers. In the Minister's speech, she mentioned the restructuring of milk quotas and how the matter will be worked through with farming organisations.

The farming, agrifood and agricultural services sectors are important to our economy and large tracts of the country outside the main cities. While its relevant importance may have declined due to the strong expansion of other sectors of the economy, this does not imply an absolute decline. If one examines the statistics, there is no evidence of such.

I am sometimes asked on doorsteps about whether farmers still have political clout, my answer to which is an emphatic "Yes". Farmers have lobbying organisations that are second to none, a fact brought home to me when I was a member of the delegation to the European Council in Berlin in 1999. Only one organisation was present in force, namely, the Irish Farmers' Association. It is not entirely coincidental that the issue on which the Taoiseach battled through the night was funding for farming until 2006. The trade unions, employers and the Construction Industry Federation were not present. If we had slipped and lost €5 billion in Structural and Cohesion Funds, would anyone have noticed? The farmers would have noticed if we had dropped that amount and there would have been a huge row.

In connection with the sometimes discussed topic of Seanad reform, I hope that the agricultural panel will continue to exist with its nominating bodies after any reshaping. It is part of the legitimate influence over the political system exercised by the farming sector.

The single farm payment is fixed, as Senator Coonan pointed out. Therefore, ways and means had to be found to further boost farm incomes and they are in this package. Inflation, in the low single figures, is a fraction of what it used to be. Once upon a time farmers complained about the enormous interest rates they had to pay, 10% to 14%. Thanks to being in the euro zone, even interest rate rises will leave rates very low.

The increase in funding which the Minister is providing is very impressive. One of the differences between now and ten or 20 years ago is that in the 1970s and 1980s, we were almost entirely dependent on European funding for farming and the Exchequer could not afford to do very much. Now, because of the good management of the economy and social partnership the Exchequer is able to provide substantial funding additional to what comes from Europe. There is no question of our not availing of European schemes because we cannot afford to increase our input.

There are some interesting and exciting schemes, such as REPS 4, which is now being discussed. I am very attracted by the idea of a provision of €25,000 to conserve old farm buildings, of which there are some very attractive examples around the country. They are not commercial or economically viable but add to the appearance of the countryside and are environmentally sustainable.

Everything nowadays, not just farming and industry but household waste, must be done on an environmentally sustainable basis. REPS is a very good way of boosting farm income, providing money for investment and engendering acceptable environmental standards. I plead with the Minister to do what she can to facilitate earth and slurry lagoons because they are economically beneficial from the point of view of farming and, in most parts of the country if not all, are environmentally sustainable. The suckler cow premium is very welcome and I look forward to the further enhancement of the biomass sector which is both energy efficient and environmentally friendly and also has relevance for agriculture.

The Minister's predecessor, Deputy Walsh, has just become chairman of Horse Racing Ireland and that is a very important industry. I hope the budget will clarify what will replace the stallion fee exemption.

Senator Coonan chose to mention the 2004 farm income figures rather than those for 2005.