Kieran Phelan (Fianna Fail)

I welcome the Minister of State and wish the new Minister, Deputy Brendan Smith, well. He has a tough few months ahead but he is a great negotiator. The ongoing World Trade Organisation talks have the potential to seriously undermine and decimate agriculture in this country if Commissioner Mandelson is allowed to go beyond his remit and agree to major cuts in import tariffs.

Many in this House will be aware of a recent presentation to the Oireachtas Joint Committee on Agriculture, Fisheries and Food by the IFA on the implications of Mandelson's proposals on agriculture in this country and in the EU. The IFA's economic section has calculated that the proposals in the current format will cost the Irish economy €4 billion per annum, drive 50,000 out of business and cost the manufacturing and services industries 50,000 jobs. A 70% cut in tariffs on beef imports would lead to cattle prices falling to €2 per kg. As a farmer, I would find it impossible to survive financially if prices were to fall that low.

Equally, cuts of between 55% and 70% on other products, such as lamb, pigmeat and poultry, would have a devastating affect on the agriculture sector. Our traditional family farmers could not survive the impact of these reductions in import tariffs.

It is imperative we do not allow Commissioner Mandelson to sell out Irish agriculture in the name of getting an overall deal in the WTO talks. I echo the Minister's recent statement that the Common Agricultural Policy must not be undermined by ill-considered reform and unbalanced agreement.

The results of Mandelson's proposals would be devastating for Irish agriculture and the Irish economy at large. It is often forgotten how important agriculture and the agriculture food industry is to the Irish economy. We have become focused on other sectors of the economy.

To put the importance of agriculture to our economy into context, Ireland is the fourth largest exporter of beef in the world and the sector contributes 25% of jobs outside the greater Dublin area. This is one instance where farmers and the national interests are intertwined. Agriculture has been the mainstay of our economy since the foundation of the State and will continue to be as long as Commissioner Mandelson is not permitted to sell out the sector in the name of getting a deal.

The CAP was reformed in 2003 with the understanding that this reform was necessary to prepare for the WTO negotiations. It is clear that Mandelson has not taken cognisance of this fact in the WTO negotiations. I find this worrying as he is meant to represent the best interests of the European Union and undermining agriculture is not in the best interests of Europe and its people, particularly at a time when food security is a major issue.

There are some who claim that those opposed to Commissioner Mandelson's proposals are pursuing a protectionist agenda to the detriment of poorer countries but nothing could be further from the truth. The reality is that the only beneficiaries from the Mandelson proposals are the multinationals, the corporate ranchers, the US and South America. Only agreements tailored specifically for poorer countries' needs can help foster and stimulate Third World economies.

There is also a danger some farmers may vote "No" in the upcoming Lisbon referendum in the mistaken belief that this will serve to highlight their opposition to the WTO talks. I call on the IFA and my farmer colleagues to vote in favour of the treaty. Ireland needs to be at the heart of Europe to best represent its interests. Let us not forget that the CAP health check is under negotiation and a "Yes" vote will give us more leverage to get the best deal for our farmers.

I am encouraged, however, by the Trojan and spirited opposition shown by the former and current Ministers to Commissioner Mandelson's proposals in regard to agriculture. I hope that there may be a fair and equitable outcome to these talks. We are being strategic in our opposition and have forged many valuable alliances, especially with France and Germany. The Minister is energetic in this regard and met the French Minister, Michel Barnier, within days of his elevation. I also welcome the Minister's statement yesterday at the Council of Ministers meeting which underlined the resolve to achieve a balanced outcome to the WTO talks.

The Minister hails from a county which has a strong and very productive agriculture and agrifood sector.

He understands the imperative of protecting agriculture and I have every confidence in his ability to deliver a balanced outcome for agriculture here working together with other EU countries that have expressed concern and opposition to the proposals currently on the table.