Phil Prendergast (Labour)

I welcome the Minister of State to the House. I congratulate Deputy Brendan Smith on his recent appointment to Cabinet and I wish him well in the onerous task that awaits him. I appreciate the opportunity to contribute on my own behalf and on behalf of the Labour Party to the debate and I thank the Leader, my friend and colleague, for facilitating this discussion. He has provided time for a number of interesting and constructive debates since taking up his role last September and this debate is no different.

Coming from a rural constituency in Tipperary, I am acutely aware of the importance of the WTO talks and the genuine fear and uncertainty farmers are feeling about the negotiations. We face one of the greatest threats to Irish agriculture since we entered the Common Market in 1973. The industry has been the backbone of the economy. When it is thriving, Ireland does well and when it is in crisis, everybody is affected and not only the farming community. Commissioner Mandelson's proposals to open the EU market, increase food imports and reduce tariffs by up to 70% will have a massive and detrimental consequences for our farmers. The IFA estimates the cost of the deal on the table at approximately €4 billion per annum. This will decimate Irish agriculture. There is no other way to put it. It is time for the Minister and the Government to get real on this issue and to start fighting for Ireland and Irish agriculture.

There was much talk, and rightly so, about the closure of the sugar industry in Ireland and I do not want to diminish in any way the difficulties that this caused for people, particularly in Mallow and Carlow. However, the current WTO proposals will have much more serious and far-reaching consequences. The loss of the sugar beet industry should have been a lesson to us all.

Rural Ireland has been through a tough time on this Government's watch. Since this Government came into office 11 years ago, it has activated policies that are slowly but surely closing the lid on rural Ireland. Rural creameries are now a thing of the past. The Government finished off the rural pub and rural post office as if it were eating them for breakfast. Between itself and the Health Service Executive, it is making a good job of bringing about the extinction of the rural pharmacy as well.

Any deal of this sort would seriously damage the EU's stated commitment to preserving the European style of farming, which is based on family farms. The future viability of the family farm structure as we know it is now in danger as a result of these proposals. This deal also effectively allows large volumes of food to be imported from outside the EU, which undermines the biosecurity of the agricultural sector, an area that Irish farmers have done their utmost to protect. I know that the Minister of State, Deputy Sargent, has a great interest in that regard.

In recent times, we have heard of numerous food scares with non-EU produced food products. Any agreement must ensure food safety and security. We have also heard about problems of global food shortages and the dramatic rise in food prices. Food security needs to be made a high priority in these talks and this is not the case at present.

It is not right to have a situation where Irish agriculture measures up to the highest standards of production, hygiene, safety and traceability and yet large quantities of imported products from dubious sources are allowed to enter Ireland and the European Union. The question arises as to what the Minister and his predecessor have done to protect Ireland's welfare. We are told that they have been working to build alliances in Europe in an attempt to get a better and more balanced deal. If that is the case, I ask the Minister to inform the House today if, after all the alliance building, there is a sufficient blocking minority at the Council of Ministers to force a rethink on this deal? It is a simple question and the House deserves to know the present status.

This is not a good deal for Irish agriculture, rural Ireland or Irish exports and the Government should not be afraid to say it. The Government should not be ashamed to stand up and protect the interests of Ireland. So far, it has failed to do so. A colleague in the other House put it best when he said:

The Minister and the Government must do whatever is necessary to protect Irish farming by ensuring there is no sell-out in the WTO talks. Time is running out and a marker must be put down quickly. It is not sufficient and it is too vague to suggest that we will negotiate a balanced agreement.

The Taoiseach left the Department of Finance a few weeks ago in turmoil. Unemployment and inflation are rising at a rate unseen for 20 years, competitiveness is disappearing and tax revenues are falling. Let there be no doubt about it. If Commissioner Mandelson's proposals for agriculture under this deal become a reality, the picture will get worse.

Dairy farming is extremely important to the local economy of south Tipperary from where I come. This deal will put dairy farmers in Tipperary to the pin of their collar and put many more of them out of business altogether. After dairy farming, the beef sector is the main staple of Irish farming. In recent years, margins have been so tight that most beef farmers have had to take on another job to subsidise their way of life. Beef farming is now largely a part-time venture. This deal will make it unviable and if viability were to collapse, it would be devastating for rural Ireland and the agrifood sector.

I really feel that the Government is failing in its duty to Irish agriculture. By its failure to keep farmers informed, it has created a great sense of fear for the future among the farming community. The Minister's predecessor refused to make available or to articulate her analysis of the implications for Irish agriculture of Mandelson's agenda. This has done nothing to ease the legitimate concerns of farmers. Perhaps the new Minister might be prepared to do things differently.

Over recent weeks, we have all been going around the country informing people about the EU reform treaty. This work is important and the people have the right to know what is in the treaty. This is equally the case for the WTO talks and the implications for Irish agriculture and jobs in all sectors. I urge the Minister and the Government to be more open.

If a deal is to be made, and I am not that confident that agreement at WTO will be reached, it must be fair and balanced. In no way must a deal be made at the expense of Irish farmers and the future of Irish agriculture. The Government must spare no effort in defending Ireland's interests. That is its duty and it will be held to account by future generations if it fails. My final question to the Minister of State is a simple one and it requires a simple "yes" or "no" response. Is the Government prepared to give a commitment to the House that it will use its veto at the Council of Ministers if the WTO deal is bad for Irish agriculture?

I will end by quoting Deputy Sherlock's concluding remarks during a recent Private Members' motion in the other House. His remarks powerfully articulate the Labour Party's position on these negotiations:

Our view is one which unashamedly seeks to protect the national interest. In seeking to do so, we are protecting our economy, particularly the rural economy, and a way of life that is under threat. Commissioner Mandelson has an agenda which is incongruous with the founding principles of the European Union on issues of subsidiarity and its position as a Community-based trading bloc. We are now left with an appalling scenario whereby the Mandelson agenda is totally at variance with that of certain members of the Council of Ministers, including our Minister. The Commission must take its mandate from the Council of Ministers. It must not exceed its mandate.

We cannot and must not trade away the rural economy at a time when other sectors of the economy have been undermined. The agribusiness sector is the one that has remained constant through thick and thin and throughout the history of our State. It is the sector that will always be there. If we are to trade away the concessions that have been hard won through tough negotiations and diplomacy, all those concessions will have been in vain. I thank the Minister of State for his attention.