Trevor Sargent (Dublin North, Green Party)

Ar dtús báire, tá mé ag fanacht le haghaidh nótaí os rud é nach raibh mé anseo i rith na díospóireachta ar fad. Tá brón orm faoi sin. Leanfaidh mé ar aghaidh mar atá mé. Gabhaim mo bhuíochas, agus buíochas an Aire, an Teachta Smith, a thosaigh an díospóireacht, leis na Seanadóirí a labhair i rith na díospóireachta.

I thank the House for granting time to discuss the future prospects for agriculture. As the Minister outlined earlier, the industry as a whole is well placed to address the wide range of challenges confronting it, notwithstanding the difficult budgetary scenario in which the country finds itself.

I share Senator O'Malley's analysis that we need to focus much more clearly on food security as well as fuel security and other aspects within the Department's remit. I may be biased but if the Department were the only one left standing, it would do a good job in taking on many of the responsibilities of other Departments, including the Departments of Education and Science, Health and Children and Foreign Affairs. Everything goes through my Department one way or the other. For example, Senator Burke referred to Bord Bia and how our international relations are connected to our agricultural base. I have had the good fortune to accompany Bord Bia representatives at a number of international meetings and on trade missions to France and Germany. We attended Anuga, an international food fair in Germany, and the Terra Madre conference in Turin, Italy.

Irish products worth approximately €600 million are sold on the German market while the value of products sold on the French market is €400 million with hundreds of millions of euro more sold in Italy. Domestic companies have relations with one or all members of the EU and Russia and so on. The EU is our key market and that is positive from a sustainability point of view because this is the closest market to us in the context of transportation. Kepak, for example, does great business with Coop Italia, one of the large Italian supermarket chains, Carrefour in France and SPAR and other large chains in Germany. Clare Island organic salmon worth €20 million is sold in Germany annually. Significant business is being done internationally thanks to Bord Bia's excellent ability to nurture and maintain markets.

The Ministerial Council commencing in Brussels tomorrow is vital for the agricultural sector and everyone has wished the Minister well in his endeavours, in particular, Senator Bradford. This week's negotiations on the Common Agricultural Policy health check will determine the shape of the policy until 2013 while discussions on the post-2013 scenario will take place in parallel with a wider discussion on the EU budget for the new financial perspective for the period 2014 to 2020. There is a continuing strong case for an effective and well-resourced Union CAP, especially given the central importance of agriculture in current global challenges.

Central to the negotiations over the coming days will be the subject of the milk quota, which was raised by a number of Senators. Ireland would like the implementation of a soft landing approach to increases in milk quota in the lead-up to their removal in 2015 to avoid shocks, with appropriate market support in place to underpin the process. We are anxious that these pragmatic proposals and measures be adopted.

Ireland has been to the forefront in seeking to develop mechanisms for the measurable simplification of the various processes with which domestic farmers must comply, especially in regard to cross-compliance. All farmers in receipt of direct payments must practise farming in accordance with specific environmental requirements meeting broader sectoral demands. I accept farmers generally employ good farming practices in operating their farms. As part of the simplification process, it must be ensured the administrative burden on them is reduced while maintaining environmental standards.

The proposal before Council on modulation remains of concern for Ireland and runs contrary to the expectations of our farmers who are still adjusting to the introduction of decoupling three years ago. The Minister has put in great effort over recent months in working with the Commission, the Presidency and other member states to find a meaningful resolution having regard to these concerns. Last week we had a full debate, notwithstanding disagreements, on the budgetary measures. The Minister clarified earlier, as I attempted to last week, the need to protect as best we can the areas of greatest need and the productive capacity of the industry. We want to ensure sectors that can stand on their own two feet do not suffer handicaps or obstacles. As Senator O'Malley said, farmers who are traditionally resourceful, resilient and able to adapt should be given every opportunity to adjust to the changing circumstances we face nationally and internationally.

I refer to forestry and funding, which can sometimes raise unintended obstacles. It was incorrectly reported in one newspaper that the Department did not avail of full EU funding for the forestry sector. The Department wrote to the newspaper explaining the position. The position is that one forestry scheme which was eligible for EU funding was included among others in a submission to the EU under the Rural Development Programme. However, under the EU rules grants could amount to only 80% of total cost to farmers for the forestry scheme. The Department, in order to increase forestry planting, had a policy of 100% funding for the scheme and withdrew the scheme from its submission to the EU. However, the full amount of EU funds available was drawn down in the other elements of the rural development plan and the forestry scheme was paid for by the Exchequer. Often there can be different ways of drawing down that money. If it means we lose money, we will find another way of drawing it down.

The House will note, as it has been acknowledged, that forestry generally has been one of the beneficiaries of the budget. This also stresses the point I made, that the productive side of the sector is what we want to continue to encourage and ensure that we are able to maintain a sustainable sector which is resilient enough to withstand the changing circumstances, world wide as well as nationally. We will continue to ensure that forestry and all aspects of agriculture are central to the Irish economy given that they are our largest indigenous resource.