Trevor Sargent (Dublin North, Green Party)

Ba mhaith liom mo bhuíochas a ghabháil don Seanadóir as an cheist seo a ardú. Tá an-suim agam sa cheist, go mór mhór nuair a deireann sé go bhfuil ceardaí ag dul thar fór. Caithfear a admháil chomh maith go bhfuil an-chuid airgead i gceist atá ag dul i dtreo na tionsclaíochta bia agus iascaireachta. Nuair a cuirtear airgead náisiúnta agus airgead na hEorpa le chéile táimid ag caint faoi €3.4 billiún i 2009 mar thacaíocht do comhlachtaí agus feirmeoirí bia agus iascaireachta. Ní beag an méid airgead é.

Having said that, I must tell the Senator that the Minister, Deputy Brendan Smith, and I are acutely aware of the difficulties facing farmers and the rural community in general against the background of the global economic recession, the serious deterioration in the public finances and the exchange rate difficulties with sterling. The farming sector has also been badly hit by poor prices, market returns and difficulties in accessing credit. It is something of a perfect storm, if one was to put that in an economic context. It is affecting the farming sector, and pretty much every other sector as well.

As a small open economy, Ireland has been particularly exposed to the global downturn. Our economic difficulties have been exacerbated by the international credit crisis that compounded the problem, particularly in the construction sector. In order to address these problems, the Government has embarked on a strategy to restore the credit system, get the public finances under control and provide the necessary stimulus to restore confidence in the economy. This week a critical element of the overall strategy, the establishment of the National Asset Management Agency, is being debated in the Seanad and in the other House.

Nevertheless, notwithstanding the current economic difficulties the reality is that very substantial funding continues to be provided by the Government for agriculture and the agri-food sector. Despite the budgetary constraints, more than €1.9 billion gross has been provided in the Revised Estimates for the Department in 2009. When combined with EU funding of about €1.4 billion, which is administered by the Department, this represents a very substantial level of support for the agricultural sector.

Direct payments, which are of particular benefit to farm families, are continuing at a very substantial level. The payment of the €220 million provided in the Department's 2009 Vote for the disadvantaged areas scheme commenced in September. Almost 100,000 farm families have received their payment under the scheme.

This year for the first time, advance payments of 70% of the single farm payment were issued by the Department beginning on 16 October. To date, payments amounting to more than €830 million have issued to nearly 120,000 farm families. The combination of these two schemes, together with payments under the REP scheme and the suckler cow scheme, will result in payments of almost €1.8 billion to farm families in 2009. This is in addition to more than €250 million in investment support on farms and almost €120 million in supports for the forestry and bio-energy sectors.

There has been much negative and often misinformed comment about the closure of the REP scheme which I believe overshadows the massive level of funding which has been provided and continues to be provided for the scheme. This year, expenditure by the Department will be €330 million. All existing contracts will be honoured and I expect that €1 billion will be spent on REPS in the next three years. This is in addition to the €3 billion that will have been spent on it by the end of this year since its introduction in 1994. Under the current budgetary circumstances, expenditure on the scheme could not continue at that level. However, the Department is in discussion with the Commission on the details of a new agri-environment scheme with funding of €179 million which the Minister is confident will be introduced in 2010.

The Minister is also continuing with efforts to develop the agriculture sector further. In that context, new targeted on-farm investment schemes were announced recently worth €113 million together with proposals to spend €75 million in unspent single farm payment funds in support of incomes in the sheep sector and efficiency improvements on dairy farms. These measures will help to ensure Irish agriculture is well positioned to achieve its full potential and benefit from future economic growth.

Vital work is also continuing on a number of other fronts, including continuing investment in research and development in the agri-sector, the provision of investment support for the processing sectors, the protection of Irish farms from animal and plant diseases and, of course, in our continuing efforts to ensure the deployment of the full range of market support instruments to support the dairy sector through this very difficult time. In that regard, the House will be aware that the European Commission recently announced a package of funding to support the dairy sector. The Minister played a leading role over several months, together with other like-minded member states, in ensuring the introduction of this funding.

I believe there is very convincing evidence, therefore, of the Government's commitment and determination to support the agriculture sector and farm families in particular. The Government will continue with these efforts to develop a strong and sustainable agriculture sector and to support farm families both in terms of providing funding and in representing the interests of Irish agriculture at EU level and internationally.