Mary Coughlan (Donegal South West, Fianna Fail)

I am glad to learn the Senator reads The Irish Times. According to Teagasc, the average farm income in 2005 was €18,000 rather than €15,000. The average age of Irish farmers is 11% below the EU average of 35 years. Although there has been a move away from land in the European farming sector in general, we have done comparatively well in this country.

I did not refer in particular to the sheep sector because it is difficult to focus in every sector. Under the stewardship of the former Secretary General of my Department, I established a group to consider and make recommendations on the needs of the sector. I have accepted the recommendations put forward and the implementation group is now making proposals on developing the sector. I acknowledge that the sector is undergoing difficulties but farmers appreciate the importance of REPS and the fact that we renegotiated arrangements for designated areas. The sector needs to look for new markets and qualities. We must ascertain why we are superb in the summer months but cannot compete in shoulder areas, even though our competitors in Scotland and Wales can do so. I intend to drive reforms in that respect.

The issues of roll-over relief taxation, CPO, land consolidation and long-term leasing are being addressed on an ongoing basis. However, as with many other tax incentives, some have abused the opportunities afforded to them. The Minister for Finance has undertaken a review of tax incentives and reliefs, including those obtaining in the farming sector. While he has expressed concerns on abuses, he has also acknowledged the difficulties that arise in terms of land prices, the need to facilitate young people and the transfer of activity from older members of society to the next generation.

The ongoing WTO negotiations will become more difficult in the context of the outcome of the recent elections in the United States of America. Before the election, I met the Democratic Party spokesman on agriculture and found his views to be more trenchant than those of the Republican Party, which leads me to believe that any legislation on farming will be watered down and that it will be difficult to reach an agreement under the WTO. We are also concerned that a Mercosur agreement will be reached which would not be beneficial to Ireland and, therefore, we will be expressing our worries in the context of a move towards such an agreement. As Senators will be aware, former Commissioner Fischler did not agree to the Mercosur deal which was on the table previously. The current proposals are also totally unacceptable.

Perhaps we should have all ensured that the nitrates directive and the associated plan were brought to fruition much earlier. That said, there was much consultation and hard work, not only involving departmental officials and the Commission, but also me and the Minister for the Environment, Heritage and Local Government, Deputy Roche. We have achieved as satisfactory an outcome as could have been obtained.

I have reflected on the farm waste management scheme, which recognises the relevant costs. We have introduced standard costings and the Minister for Finance has supported me in ensuring there is a roll-over clause in the scheme. The scheme must close on the last day of this year, no matter what happens. However, I have stipulated that a letter of intent for planning permission is sufficient to allow people continue in the scheme. They can forward their plans and planning permission in March 2007.

Our work on the farm waste management scheme has reflected the needs of the farmer on the basis of economic cost. The derogation is very beneficial and included among REPS farmers will be those who have obtained one. This will be very important to the farmers, including the dairy farmers in County Clare and elsewhere. The current approach to farming encompasses environmental issues and recognises the cost of addressing them. This is why the package is so important. The 17% increase in the REPS allocation is a seismic support for farmers and will result in a great increase in the number involved in the farming enterprises.

I am legally curtailed from speaking on the sugar beet issue because, as Senators will know, the issue is sub judice. However, we must look towards bio-fuels. Much work has been done on addressing our energy needs and a new Green Paper on energy has been produced by the Minister for the Environment, Heritage and Local Government. The Cabinet is working to ensure that we put together a package in this regard. I, as Minister for Agriculture and Food, must acknowledge the reduction in grain production in Ireland and that a balance must be struck between producing crops for energy and for food. This will cause a great deal of anxiety for some and ensure higher prices for the farmer. It may result in consequential increases in the cost of food which will, in itself, cause difficulties for some of our competitors. Our feedstock requirement for livestock will increase, thus causing a rotation effect. We must therefore be very careful about how we approach the production of food crops and energy crops. I am working towards a new incentive and initiative in this regard.

It is unlike me to be political but, lest I forget I am a politician, I must say, without a doubt, that Fianna Fáil and the Government, including me as Minister, have taken on board a vision for agriculture based on innovation, the consumer and quality. We have increased our market share and have centres of excellence, including Teagasc and Bord Bia. I have increased funding for research and development to €100 million. This is the current position on food and food quality.

The Minister of State, Deputy Brendan Smith, is considering innovative ways of working with the food sector, the State agencies and the chief executives of small and large companies and of linking this work to research and development to produce a roadmap for the agrifood and drinks sector for the coming 15 years. He secured an increase of 15% in forestry grants and is considering new opportunities pertaining to biomass and wood products. He is working with farmers to develop a sector that will be very important. This process is not without its difficulties and concerns but is vital to rural economies. It is linked to real rural policy, rural employment and the question of addressing global warming.

As a team, we are working very closely with the farmers and have seen results. We have implemented the agri-vision programme, which I launched some months ago. We have invested in farming and are working to achieve quality and put in place support mechanisms. When people have to make choices, they will note that the Government has delivered. It will continue to develop the sector and produce a roadmap for successful farming in the agrifood sector. Perhaps people should reflect on what Fine Gael did when in Government. It stopped live export whereas I allowed it again, and it abolished the farm waste management scheme whereas I quadrupled the money being made available in this regard. There was a crisis concerning the suckler cow herd but Fianna Fáil, while Deputy Walsh was Minister for Agriculture and Food, increased the herd to 1 million. I will sustain the quality of the herd.

I have outlined Fine Gael's record. If it gets into power and works with the Labour Party, God help us.