Eamon Scanlon (Fianna Fail)

I welcome the ratification of the new social partnership agreement, Towards 2016, by the farming organisations represented in the social partnership process. We should acknowledge the work done on this by the Minister and by farming organisations such as the IFA, the ICMSA, ICOS and Macra na Feirme. The outcome of several months of negotiations is a package of measures which aims to ensure a strong, viable and competitive agriculture sector in Ireland in the future. This is particularly important in the context of a ten year social partnership framework.

The conclusion of Towards 2016 once again demonstrates the value of the partnership process in securing consensus. While it was inevitable in the negotiations that not every demand would be met, the package of measures agreed on shows that participation in social partnership is the best way to secure an outcome that takes account of everybody's interests. A few days ago the Taoiseach spoke about the benefits of social partnership. He described how 400,000 working days were lost in 1990 due to strikes and disputes in this country in a workforce of 1 million. Last year, in a workforce of over 2 million, 27,000 working days were lost as a result of disputes. That demonstrates the benefit of social partnership and what it has done for this country.

The agriculture chapter of Towards 2016 envisages building on the Government's AgriVision 2015 plan for the sector. Recognising the significant challenges currently facing the sector, it aims to secure the sustainable development of a competitive farming and consumer focused agri-food sector which contributes to a vibrant rural economy and society. In this regard, it contains significant commitments regarding the next phase of the agricultural elements of the rural development programme.

I welcome the announcement of a package of measures worth €6.8 billion for farmers for the period 2007-13. These measures relate to the agricultural elements of the rural development programme, which has been central to the partnership negotiations on agriculture over the past few months. The Minister set out the final position of the Government on the funding of these measures at a meeting with the four social partner farming organisations. Funding for the rural development proposals involves a major commitment on the part of the Government. Of the €6.8 billion, Exchequer funding for the farming measures in the next seven years will be €4.7 billion. That is a substantial contribution. Compared with the €2 billion in the current round, it equates to a 135% increase. The proposals will also attract €2.1 billion from European Union and modulation funding.

The major elements of these proposals include a 17% increase in payments under the rural environmental protection scheme, which will be very beneficial. The announcement on the nitrates directive in the past few days means many more farmers will be able to avail of REPS, which is to be welcomed. An 8% increase in disadvantaged area scheme payments will benefit 100,000 farmers. There will be a 15% increase in forestry premium rates. A 55% increase in installation aid rates brings that figure to €15,000 a year but, as we said last night, young farmers who want to qualify for the farm pollution grant have to apply before the end of this year. If they do it might exclude them from the extra installation aid, which comes on stream after 1 January 2007. The Minister might examine that area. There is also a new scheme for the suckler herd, which is welcome.

The €6.8 billion package is clear evidence of this Government's commitment to farmers and to rural life in Ireland. This unprecedented increase in Exchequer funding has a dual aim. It will assist competitiveness in the agricultural food and forestry sector and it will help to ensure respect and enhancement of the environment. It is fully in line with the EU rural development framework and is fully consistent with its vision for the future of farming and the agri-food sector here as set out in the Agri-Vision 2015 action plan. The additional Exchequer funding is concrete recognition of the pledges set out in that plan. It is important we all work together to ensure that plan gets the requisite EU approval and is implemented early in 2007.

On the beef sector, people often ask about the relevance of farming to this economy but figures I read last night indicate that beef production in the overall Irish economy continues to be extremely valuable, with 2005 exports valued at almost €1.4 billion, or nearly one fifth of total agri-food exports. Total slaughterings to the end of last month are up 100,000 a head, representing an 8% increase on the same period last year. Cattle prices for the period up to the end of October 2006 were up 12% on average relative to the same period in 2005. That is an increase in incomes, which is welcome but also needed.

The growth in exports of beef to EU markets continues with shipments in 2006 expected to reach almost 490,000 tonnes, which builds on the previous record of 450,000 tonnes set last year. That will leave more than 90% of total exports going into the high value EU markets compared to just 50% as recently as 2000.

Live cattle exports for the first ten months were at 220,000, an increase of 43% on the same period last year. I agree with Senator Mansergh's statement that the attitude of the Green Party to live exports is worrying because exporting those cattle is an important issue for farmers, particularly those in the north west who produce these weanlings. We must not let anything happen to that trade and we must support it. I recognise the work done by the Minister to ensure those exporters get all the help they require to export those cattle. What will we do with 250,000 cattle every year over the next seven or eight years if we cannot export them?

On the beef quality assurance scheme, the Government allocated €1.9 million to fund up to 14,000 farm audits this year to add to the 5,000 audits funded by the industry last year. One of the most important aspects is the introduction of a mandatory country of origin labelling on beef in the restaurant and catering sector in July 2006. This represents a major step forward in improving transparency for the consumer.

The Food Safety Authority is in the process of enforcing this important legislation by regulations, which are being drafted, to extend these labelling rules to all meat and it is hoped these can be submitted for EU approval in the near future. That is very important because there is no doubt beef from questionable sources was coming into the country on an increasingly larger scale. I understand the Food Safety Authority is carrying out checks and it is important checks are done. I was told by an official at a meeting of the Oireachtas Joint Committee on Agriculture and Food that a test can now be done on cooked meat to indicate whether it is from Ireland. More work should be done in that regard and restaurant owners and caterers should be told beef can be traced even if it is cooked.

I wish the Minister well and thank her for the job she is doing. There is no doubt farmers are satisfied with the job she is doing on their behalf.