John Carty (Fianna Fail)

I welcome the Minister for Agriculture, Fisheries and Food, Deputy Smith, and thank him for his comprehensive contribution. I called for this debate for some time because the issues involved are of the utmost importance. I particularly welcome the practical contribution made by Senator Bradford. I hope that at those meetings they are not riling up the farming community to expect to get everything. From his contribution, I can see that he is being practical. He knows there are major issues and I am delighted to hear him give his full support to the Minister. I have no doubt the Minister, in the negotiations which will take place in Europe, will take cognisance of all that has been said and will do his damnedest to get the best deal for Ireland. I note, too, that the spokesperson in the Dáil, Deputy Michael Creed, said they would wear the green jersey on this matter. That is welcome because we do not want any division before we leave Ireland to go to negotiate in Europe. The Minister would agree with me on that.

It is clear that the Minister, Deputy Smith, has a determination to ensure there is a robust and properly funded Common Agricultural Policy after 2013. Today's debate is a welcome opportunity to discuss an issue of tremendous importance to this country and to emphasise the point that CAP is of importance not only to producers but also to consumers in this country and across the European Union. All of us who represent rural communities are more than well aware of the contribution that CAP has made to Irish farmers and rural communities and economies over the past 37 years. However, it is about more than Irish farmers. It is about ensuring a safe and secure supply of food for the more than 500 million citizens of the European Union.

The Minister, Deputy Smith, initiated a public consultation process on CAP post-2013 on 27 July 2009. He has been, quite rightly, a strong advocate for the maintenance of a strong CAP after 2013 and it is encouraging that his view is shared by the majority of his European ministerial colleagues. Today's debate gives this House an opportunity to speak with one voice in support of the need to emphasise the essential nature of a well-resourced CAP beyond 2013. This is an issue in the national interest and it is in the interest of every Member of this House, and producer and consumers alike, that Ireland's voice in support of CAP is clearly heard.

I know, from having spoken to many farmers throughout the country and the various farming organisations, that there is a clear realisation of the importance of CAP and the essential role it plays. It was particularly informative to read the findings of the recent Eurobarometer survey which, in a European Union-wide survey of CAP, showed that Ireland is among those countries which attach a particularly high importance to agriculture. This is, perhaps, not surprising given the importance of the agrifood sector to this economy and the undoubted potential it has in the economic recovery of the next few years.

At the current time the agrifood sector accounts for 6.6% of the economy's gross value added, 10% of total exports in 2008, a turnover of €24 billion and employment of more than 250,000 people when one includes primary production, processing, etc. This represents 7.7% of the total workforce and identifies the sector as the country's largest indigenous industry. In the Eurobarometer survey to which I referred and at a time when there is a great deal of debate on the future of CAP, it is very encouraging that 90% of the citizens of the European Union regard agriculture and rural areas as important for the future. Irish respondents to the survey recorded the highest level of precise awareness of CAP.

We must now build on that level of public awareness and support for CAP. We need to be acutely conscious of the importance of the European Union in ensuring security of food supply and the maintenance of family farming in Europe. As an exporting country we must be particularly conscious of the need for competitiveness and innovation. The scale of the challenge in terms of funding for CAP after 2013 was described in a recent newspaper analysis as a battle royal over the European Union's €57 billion annual agriculture and rural development budget.

The negotiations on the future of CAP must be seen in the context of a new European Union financial perspective for 2014 to 2020, with competing pressures for funds and the pressure for less money to be devoted to CAP in terms of a share of the budget and in absolute terms. In its European Union 2020 strategy, the Commission largely ignored agriculture. The Government's response was swift and highly successful. The Taoiseach insisted on the inclusion of a reference to agriculture in the spring European Council conclusions on the European Union 2020 strategy. This was a significant achievement for the Taoiseach, Ireland and her allies, and I congratulate the Taoiseach and the Minister, Deputy Smith, on ensuring this was done.

There is no doubt that just as CAP has its supporters and advocates, so too does it have its critics. We must be unstinting, therefore, in our efforts to continue to highlight the importance of CAP and counter the criticisms. The Minister, Deputy Smith, will continue to build useful and effective alliances with other like-minded Ministers who also support a strong CAP. Fianna Fáil Ministers for Agriculture, Fisheries and Food have always ensured Ireland has engaged fully in agricultural issues at European Union level, and this approach will be maintained by the Minister, Deputy Smith, and his officials.

Shortly after his appointment as Minister for Agriculture, Fisheries and Food he met Commissioner Ciolos and emphasised the need for a robust and properly funded CAP after 2013. I share the Minister's view that the future of CAP should be characterised by the twin goals of competitiveness and sustainability. I also share his commitment to the maintenance of decoupled payments. Full decoupling has been good for Ireland and Irish farmers. It remains the best approach to underpinning the incomes of small family farms while at the same time allowing them to respond to market opportunities. The income supports provided by the single payment scheme are vital for the continuation of sustainable farming in Ireland.

I also support the Minister's stated position of opposition to a European Union-wide rate payment. I welcome the fact that, in his contribution, the Minister, Deputy Smith, mentioned that Commission Ciolos would be coming to Ireland on 1 September and will meet the Joint Committee on Agriculture, Fisheries and Food. I look forward to that meeting.

The importance of CAP was also highlighted by the farm income figures published by EUROSTAT last week. They show that, despite the fall in farm incomes, CAP played a vital role in supporting farm incomes. In particular through the sustained efforts of the Minister, Deputy Smith, the use of the market management mechanisms put a floor under milk prices at a very difficult time for dairy farmers. As the new Commissioner for Agriculture and Rural Development said last week, the difficult year experienced by farmers shows how important CAP support was in maintaining farm incomes and stabilising prices using the existing market instruments.

I concur with Senator Bradford that the small dairy farmer with 40 or 50 cows should be included in the negotiations to try to get as much help as possible. They are a dying breed, especially in the west and the Minister's constituency where, 20 years ago, there was a high proportion of farm activity in the area. That has virtually gone. There are a number of reasons for it but price is one. There is also an ageing farming population which is no longer able to sustain the very intensive form of farming which involved working seven days a week. Something should be done to encourage young farmers to keep it on because it is vital in our communities, especially in the west.

The Government has taken some very difficult decisions over the past two years. Last week's Exchequer returns show that tax returns are on target for the period to the end of April and will strengthen as the economy returns to growth later in the year. In an open economy such as ours, economic growth and recovery will be export led. As the Taoiseach said last week in an address to food and drink industry leaders, the food and drink industry will need to be at the forefront of that effort, harnessing our indigenous resources to generate earnings on global markets. We have quite a number of products which have benefitted farming, in particular dairy farming. We have cheeses and our butter is recognised as being of top quality across Europe. One of our great products from the drinks industry is Bailey's Irish Cream which has been a huge success. We should build on that and try to get other products to match it.

The Irish agri-food sector is well positioned to play a central role in the export-led recovery of the economy. The manufacture of food and drink products is our main indigenous industry with 800 companies employing more than 45,000 people and producing more than one third of our net export earnings from primary and manufacturing sectors. Although there are many challenges facing the sector in terms of international competitiveness and environmental sustainability, there are also enormous opportunities opening up in the EU and global food and drink markets.

Earlier this year the Minister launched a new medium-term strategy process which is being driven by a group of high level players from the sector, including farmers, primary processors, food and drink manufacturers and retailers. The 2020 strategy committee is currently drawing up a strategy for the agri-food, forestry and fisheries sectors and I am sure we all await with interest the outcome of the committee's deliberations next month. I share the stated view of the Taoiseach that the work of the 2020 committee will ensure that Ireland's food, fisheries and forestry sectors can help to lead the way on the road to recovery.

We must achieve joined up thinking along the food chain from the consumer to the farmer and in both the private and public sectors. We need a strategy for the whole sector that will focus all our efforts. The 2020 strategy committee has been given a tight timeline and its work is critical to ensure the industry is best placed to exploit fully its undoubted potential.

There have been some encouraging signs recently. The recent improvement in the dairy market situation, in particular, is to be welcomed. The position has improved considerably since last autumn and, more recently, has shown signs of a robust recovery with increased commodity prices on world and EU markets and a consequent rise in milk prices. However, challenges remain and as we move closer to the end of the milk quota regime, there is a need for a shift in attitude and emphasis. Scale, efficiency and innovation must become the norm at both farm and factory levels.

Beef production continues to be an extremely valuable component to the Irish economy with an export value of €1.4 billion in 2009. Some 90% of Irish beef production is exported with more than 90% of the product exported to the high value EU markets. I compliment the Minister and his predecessors on the tough regulations on animal disease which at times we criticised. However, they proved to be good decisions and the consumers across Europe can have faith in the product and the way we produce it. We cannot get away from that and we should outline it at every opportunity, that is, that we have safe and good quality food. I compliment the Minister on how fast he and his officials moved following the pigmeat crisis. Even though it was at great cost to the country, they ensured no doubt was left in anybody's mind but that our food was of top quality.

Given recent developments in the international and domestic economies, the immediate prospects for the Irish beef sector remain challenging. While the market performance of, and the price return on, beef products is a function of supply and demand, the Minister and his Department remain committed to working with producers and others in the sector in responding to evolving marketing challenges and providing a sound framework for the development of the sector.

This debate is an important opportunity for this House to make its contribution to the debate on the future of the CAP, Irish agriculture, the agri-food sector and the more than 250,000 people whose livelihoods depend on that sector. The CAP has been a cornerstone of EU policy relating to farming and rural areas for more than half a century. It is significant that there continues to be a strong perception that the CAP is particularly effective in securing food supply in the EU as well as ensuring agricultural products are of good quality, healthy and safe.

Today offers us the chance to put our efforts behind those of the Government in robustly defending the principles of the Common Agricultural Policy and to seek to secure sufficient resources to preserve the principles of solidarity and support for primary production, food security, food quality and food safety and the need to maintain family farming in Ireland and across Europe.