John Paul Phelan (Fine Gael)

I welcome the Minister of State, Deputy Sargent. The Minister, Deputy Brendan Smith, was here earlier and I congratulate him on his appointment as Minister for Agriculture, Fisheries and Food. His appointment comes at an important time for the development of the agriculture industry here.

I am glad we have the opportunity today to discuss the WTO talks. I have been seeking debate on the issue for some time and am glad it is finally taking place. I pay tribute to the Irish Farmers Association because nobody would be discussing the WTO talks if it had not highlighted the issue. Previous speakers referred to the protest that took place a number of weeks ago where over 10,000 farmers gathered, close to here, to highlight the difficulties involved for Irish farmers with regard to the proposals put forward by Commissioner Mandelson for the Irish agriculture industry. I completely oppose those proposals. The Government must send a clear message to him that we will not accept what he has put on the table so far with regard to Irish agriculture. If what he proposes is implemented, family farming as it exists here will be destroyed. I come from a farming background and am still involved, as relief milker, when the call comes from the family farm. Farming is close to my heart.

Previous speakers mentioned the Lisbon treaty, which I encourage the farming community to support. I believe, however, that the WTO talks and the Lisbon treaty have become linked, despite the fact there is no direct link between them. This has happened because the farming community rightly believes that the Government has not done enough to stand up for farming interests. Farmers see the treaty as the only opportunity they have to get a result on the WTO talks and want to use the opportunity to get some leverage with the Government. I urge the Minister and the Government to provide farmers with some reassurance over the next few weeks so that they will be encouraged to vote on the merits of the treaty on 12 June rather than on the difficulties pertaining to the WTO talks.

Mr. Mandelson has a clear policy on the food industry, namely to promote cheap food, and this has been the policy in the United Kingdom for a number of years. This is in direct contrast to policy in this country and most of the rest of the European Union. At a time when there is such global concern with regard to food security and when 5% to 6% of the global population lives with starvation, it is important that we consider carefully the proposal by the European Commissioner for Trade to decimate our food industry.

I know something about the WTO talks as my area of the country suffered directly, as a result of decisions taken at previous negotiations, when we lost our sugar beet sector. The beef sector here is 30 times more important than the sugar beet sector was and if any decision is made at the WTO talks that will have a detrimental effect on the beef sector, it will have devastating consequences for large parts of the country.

I wish to highlight the fact that under the existing regime within the European Union, the 49 poorest countries in the world have access to the European agricultural market. Many of those who oppose the CAP are opposed to it because of the harm that is being done to the developing world, but the European Union does more than any other trading block to help the poorest countries in the developing world with regard to their agriculture. If Mr. Mandelson gets his way, those 49 countries will be the first to be decimated. They will be swept away before the Irish agricultural sector because their preferential treatment within the Union will be hit first if Mr. Mandelson's proposals see the light of day.

Previous speakers referred to the sectors affected by Mr. Mandelson's proposals, namely, the beef, lamb, sheep, pigmeat, poultry and milk sectors. Under his proposals the price of beef could fall to approximately €2 per kg, almost half the current price. The price of milk could fall from 34 cent per litre to approximately 24 cent per litre. This is at a time when energy costs have risen enormously and the cost of fertiliser has increased dramatically, having doubled in the past six months and likely to get even more expensive in the coming months. It is clear that our agriculture industry will not be able to continue on those reduced prices.

If Mr. Mandelson's proposals are implemented the loss to my county, Kilkenny, is projected at approximately €120 million per annum and approximately €50 million to €60 million per annum to County Carlow. Under his proposals, some 700,000 tonnes of prime cut beef steaks will enter the European market, more than 25 times current Irish output. This will happen despite the stringent guidelines we have for our food producers in terms of food hygiene, standards under which the product is produced, labour restrictions and ever improving environmental standards. This is in stark contrast to production in many countries, particularly in the beef sector in South America. All of these proposals are being made at a time when there is no prospect of any benefit from the WTO talks for the European Union in terms of services and industrial goods. We get nothing in return and agriculture will be sold down the Swanee if Mr. Mandelson gets his way.

I urge the Minister and the Ministers of State to ensure that Mr. Mandelson knows we are prepared to use our veto. I would like to see a situation where it is not necessary to use it, but we must be prepared to use it as a threat. I urge the Government to send that clear message in the coming weeks, because if the proposals as they stand are implemented they will be the death knell for rural Ireland as we have known it.