Ciarán Cannon (Progressive Democrats)

I also welcome the Minister of State, Deputy Sargent, to the Chamber and congratulate him on his recent re-appointment. He has a very interesting and challenging role and I am sure he will do an excellent job. I make this contribution today in the full knowledge of what is unique and valuable about Irish rural life and the economies that sustain it. I was raised in a rural part of east Galway where every single neighbour was either directly involved in agriculture or only one generation away from a farming background.

I acknowledge that our membership of the EU has provided major supports for Irish farming over the past 35 years but I also believe that we are now approaching a seminal moment when the very survival of Irish farming and our rural way of life is under immediate threat. The WTO talks are moving towards a final deal and conclusion and if the direction being suggested by Commissioner Mandelson is pursued to its logical conclusion, Irish farm incomes and Irish rural life will be devastated. Our beef industry, which represents more than 40% of our total agricultural output, could see prices fall to less than €2 per kilogramme and the dairy sector could see milk prices fall to less than 24 cent per litre. The negative impact on Ireland would at least be of the order of €2 billion per year, with the loss of our suckler cow herd and thousands of jobs in the meat industry. The concessions already suggested by the Commissioner Peter Mandelson have put 50,000 Irish jobs in imminent danger.

This Doha Round of the trade talks began in 2001 under vastly different global conditions to those that pertain today. Oil was less than a quarter of today's price and the world was judged to be submerged under surpluses of cereals, meat and dairy products. We now see a whole range of countries from the US to Russia to Argentina taking concrete steps to tax or limit exports of cereals to ensure their internal needs are met in the future. We see other countries such as India and China taking steps to limit the use of cereals in bio-fuel production and everywhere we see a new consciousness of the need for adequate food security. With oil prices approaching $150 per barrel and the responsibilities placed upon all of us in tackling climate change, how much longer can we justify transporting foodstuffs thousands of miles from farm to fork? I very much support the contribution made by Senator Boyle earlier on when he said that we must explore the strengths of the Irish rural economy and Irish farming in being able to provide for a whole new need for consumer-driven, high-quality foods.

Senator O'Toole also mentioned earlier on that he has the opportunity to travel to France every now and again, as do I. The very high regard for artisan-produced foods held by consumers in France always amazes me.

They are willing to pay a premium for such foods because they trust their origin and believe in the passion and commitment of the producers. That is an area of farming that has never been explored properly in Ireland. The Minister of State at the Department of Agriculture, Fisheries and Food, Deputy Trevor Sargent, has made good progress in that area and I would encourage him to do more.

The realities surrounding world trade in agriculture have fundamentally changed since these talks began. The WTO system has not recognised that change in agriculture. In particular, the system has not recognised the gaping differences between the standards in food production in Ireland and those of the so-called emerging economies. Irish farmers cannot be expected to compete with a Brazilian beef sector where there are much lower standards of traceability and the indiscriminate use of animal medicines is widespread.

I am particularly concerned about the so-called new concessions to farmers announced on Monday last. Mr. Shelby Matthews, the chief policy adviser representing European farmers, said the new proposals would give rise to agricultural losses of €30 billion per year and that these losses would not be made up by gains in industry or services. The new text means that sensitive farm goods, which the EU can choose to shield from the full impact of tariff cuts, would get almost no special protection from imports. The EU's sensitive goods list is likely to include beef, dairy, poultry and other farm products. Mr. Matthews went on to say that every time the talks produce new papers, it seems to get incrementally worse for farmers.

In Ireland we are at a critical time in our history when we are being asked to renew our faith once again in the EU and its institutions. I believe the EU deserves our support and our confidence in what it can continue to achieve for us, the people of a small island on the western periphery of Europe. Irish farmers, despite all of the difficulties I have described, also continue to have faith in the EU and in Ireland's ability to play a meaningful and powerful role in securing a viable future for Irish farming. For this faith to remain strong and unerring, Irish farmers and the people of rural Ireland need to believe their distinctive way of life will be protected for future generations.

I welcome the appointment of Deputy Brendan Smith as Minister for Agriculture, Fisheries and Food. He held the position of Minister of State at the Department in the last Government and has very close family connections with the agricultural sector. I was very enthused by both the content of the Minister's address to the House and the passion with which it was delivered. He will stand full square behind Irish farmers in these negotiations.

The Government must confirm that Ireland currently has a veto on the outcome of these talks and that it will retain this veto after the Lisbon treaty is ratified. It must also confirm that it will use that veto if the final trade arrangements threaten our farming sector. Such a commitment must be made very soon. In an interview in the Kilkenny Advertiser on 16 May, the former Minister for Agriculture, Fisheries and Food, Deputy Mary Coughlan said that it was far too early to consider a veto, but she confirmed that it could be used at some time in the future. While I agree the negotiations must continue to try to achieve a satisfactory outcome, it is now time to reassure Irish farmers that our veto is intact, will remain intact after Lisbon and that it will be used if our unique way of life in rural Ireland is threatened to the point of extinction.