Fidelma Healy Eames (Fine Gael)

I welcome the Minister of State to the House. I am glad he is here for this debate because he is sincere in his interest in this area. Our food exports are important to us as a nation. I am worried about the future of Irish farming. I am married to a beef farmer and grew up on a dairy farm. Therefore, I have a fairly intimate knowledge of both sectors. Like previous speakers, I seek information, which is needed, on whether the Government will use its veto if there is an unacceptable deal for agriculture arising from the WTO talks.

This is ultimately about the protection of Irish farming and farm incomes. Farmers are vulnerable to outside threats. I must be honest and say I could not possibly rely on farming to make my living. Farmers are vulnerable to global factors, such as energy costs, with the increases in the price of oil and fertilisers, the price of the latter having gone through the roof. Farmers' livelihoods are literally wavering in the wind, not to mind weather conditions that can pose a threat to cattle and sheep.

To satisfy farmers, clarification is needed about the use of the veto prior to the vote on the Lisbon treaty referendum. I accept, as Senator Carty rightly said, that the Lisbon treaty and the WTO talks need to be decoupled. Farmers, however, need that reassurance. Their stance is holding up agreement on a "Yes" vote in the referendum, but one cannot blame them because they are under threat.

It appears Commissioner Mandelson is selling out European agriculture in favour of other industries and services. We have no proof he is achieving anything in those other sectors, yet we have considerable proof he is losing a great deal in terms of agriculture. Where is the gain? I was disappointed to hear the Minister, Deputy Smith, say in his contribution that, "These are his proposals, not conclusions." I ask the Minister of State to convey to the Minister not to string on Irish farmers on this issue. The Minister of State and the Minister are Irish and we are relying on them now. There is a cross-party approach to work together for Irish farmers. I ask the Minister and Minister of State not to fool us but to deal with Commissioner Mandelson because he is sending Irish agriculture down the swanny.

No country in the EU is as dependent on food exports as Ireland. This is why we are so vulnerable. In the overall context, we are the fourth largest beef producer in the world, after South America, North America and Australia. We cannot compete with those large countries with their vast tracks of land, low labour costs and, countries such as Brazil, where there are no environmental or health controls. I know the Minister of State appreciates the importance of such controls. We need a safe food supply. That is what needs to be impressed on the consumer.

To take the example of my own County Galway, under Commissioner Mandelson's proposals beef prices will decrease from €1.20 per lb. to 70c per lb. Such a price decrease would take the floor from under the industry. Following the BSE crisis, farmers were struggling, and I know this was the case when the price of beef was 87c to 88c per lb. We had far lower energy and fertiliser costs then. The price of milk — about which one should talk to my father — currently at 36c a litre, would decrease to 24c a litre under Commissioner Mandelson's proposals. Lamb prices would be decimated and Galway is the largest sheep producing county in thecountry.

We were former land buyers but that business is gone due to farmers gradually getting out of sheep farming. Effectively, if Commissioner Mandelson gets his way, there will be no sheep or suckler cows in Galway. The only dairy farmers who will remain will be ranch-type ones. I am focusing on Galway to localise the issue. In Galway there has been a loss of €134 million in farm outputs which puts jobs, rural towns and rural life at risk. There is something much bigger at stake than farming. Rural life is under threat. I would like the Minister of State to say whether the Government will use its veto if there is an unacceptable deal for agriculture arising from the WTO talks. We need this clarified in advance of the Lisbon treaty referendum. I ask the Minister of State to let us know where he stands on this issue. I thank him for listening to me and the Acting Chairman for allowing me this time.