John Carty (Fianna Fail)

I move amendment No. 1:

To delete all words after "Seanad Éireann" and substitute the following:

"notes that:

having regard to the objectives of budget 2009, including the objective of ensuring that Ireland has a solid basis for economic recovery when world economic conditions improve, the Minister for Agriculture, Fisheries and Food has protected the most productive elements of the Irish agrifood sector;

total expenditure in 2009 by the Department of Agriculture, Fisheries and Food, including EU funding, in support of the agriculture, fisheries, food and forestry sectors, will be €3.26 billion, in recognition of the role the sector has to play and the enormous contribution it makes to the Irish economy;

the Minister for Finance has confirmed the extension of a number of tax reliefs worth €65 million annually to Irish farmers;

a record level of funding of €355 million is being provided for the rural environmental protection scheme in 2009, bringing to €2.5 billion the amount provided for REPS this decade;

the Minister has ensured that the commitment, entered into with the farm organisations in partnership, to provide €250 million for a suckler welfare scheme is being honoured in full;

the Government is currently funding the most ambitious and generous on-farm investment scheme in the history of the State, through which €615 million of taxpayers' money is being provided for the farm waste management scheme between 2007 and 2009;

expenditure on forestry will increase next year by 6%, to €127.7 million, which recognises the importance of forestry in contributing to meeting the challenge of climate change;

the provision of €118 million for the seafood industry in 2009 demonstrates the Government's commitment to this important sector;

that the Government continues to negotiate the most favourable CAP framework for Irish agriculture and food, including at next week's CAP health check negotiations; and

that given the background of a significant tax shortfall and continuing pressures on public finances, it was necessary to make choices between competing demands and that, accordingly, the Minister

has reduced expenditure on area-based compensation payments in a targeted way that

ensures that the majority of farmers participating in the scheme will experience no reduction in their payments;

the average participant in the scheme will not be affected; and

that notwithstanding the economic pressures, the Department will still pay €220 million to over 100,000 farmers in 2009

has temporarily suspended entry for new entrants to the early retirement and young farmers' installation aid schemes, though the Department will still pay €48 million in pensions and €9 million in grants under the respective schemes in 2009;

has indicated that issues in relation to the disadvantaged areas payments as well as the installation aid and early retirement schemes can be reviewed as soon as the current budgetary constraints allow; and

acknowledges

that the Government recognises fully the role of the Irish agrifood and drink sector, which accounts for 9.7% of the country's exports and 8.2% of total employment and remains absolutely committed to the continued support and development of the sector as the most important indigenous sector in the Irish economy.''

I welcome the Minister of State, Deputy Sargent, in the absence of the Minister for Agriculture, Fisheries and Food, who is on important business in the US. I welcome the opportunity to speak in this important debate.

We are living in turbulent times, which is having an extremely negative effect all over the world. Our public finances are in rapid deterioration and, in budget 2009, necessary changes were made to try to stabilise our economy. Every section of society and every Department had to make reductions because, if not, our economy would go down and we would revert to a worse situation than in the 1980s. This is a world recession, involving every place, not just Ireland or Europe. This week, China pumped €600 billion dollars into the economy to try to avert disaster. The sum in the USA was $170 billion and in Japan, it was $50 billion.

It is unfortunate that agriculture had to bear a proportionate amount of the burden. The Minister, Deputy Smith, went about this in a fair way that would not have a hugely adverse effect on the farming community. It is important to remember that €3.2 billion will be spent in 2009 supporting the agricultural sector.

There is much criticism of the suckler cow welfare scheme, suggesting there will be a shortfall in payments in the next couple of years. That is not exactly true. Some €250 million was ring-fenced for the scheme over a five-year period. This amount will be paid. Some €77 million will be paid in the next week to 54,000 farmers, working out at approximately €80 per cow. There will be less next year but more the year after, up to the total amount of €250 million.

The young farmers installation scheme and the early retirement scheme are being suspended, to be brought back in 2010 and 2011. The schemes are being suspended for new applicants but have not been stopped. Some €9 million has been provided to ensure payment is made to applicants whose applications were received before 14 October. Some €48 million is provided to pay pensions in 2009. The Minister has assured me that the schemes will be reintroduced after a period of time.