Feargal Quinn (Independent)

I welcome the Minister of State. I have spoken on the Common Agricultural Policy during the years. Approximately ten years ago Herr Fischler appeared before the Joint Committee on Agriculture, Fisheries and Food. I criticised him for speaking for 20 minutes about food and agriculture without once mentioning the consumer. I have a small hang-up on the issue, that, to a large extent, Members are biased in this regard by being greatly influenced by the interests of farmers, rather than necessarily thinking of consumers. I will try to be more balanced this time.

I served on the expert food group which was established in 1993 to ascertain how we could best handle food production and which eventually led to the establishment of Bord Bia. It was then that I learned of Ireland's great ability to produce food and the huge opportunities that arose therefrom, albeit without guaranteeing it was all based on Irish produce as such. There are two different businesses, namely, the food business and the agriculture business. One of the reasons for my minority report on that issue was that there was a need to emphasise that Bord Bia, or whatever it was going to be called at that stage, ought to be established anywhere but under the aegis of the then Department of Agriculture and Food because the food business and the agriculture business were different.

The CAP is different and of tremendous importance to a country such as Ireland which hasd gained worldwide recognition in and a reputation for the production of outstanding agricultural products. Such produce comprises Ireland's largest indigenous industry which affects us all. One need only consider the facts. A report in The Irish Times states, "Whereas official figures show the Irish agricultural sector made a surplus in excess of €1.6 billion last year, the [result] is that farming would have incurred a €200 million ... loss without the contribution of the EU". According to the Department of Agriculture, Fisheries and Food, nearly €2 billion was paid to Irish farmers and businesses under the CAP in 2009. Moreover, the level of aid under the CAP has maintained production in all rural areas of the European Union, with approximately 27 million people depending on agriculture for much required employment. It is worth remembering that farmers comprise less than 5% of the European population but use approximately 80% of the land of its territory. As other Members and the Minister noted, the CAP is of vital importance in securing the environment, including water, soil and air quality, for future generations.

I turn to the subject of food production. I have noted previously that the agrifood sector in Ireland is a massive growth area, given our inherent strengths. I was glad to see a new report entitled, Pathways for Growth, prepared for Bord Bia by Professor David Bell and Ms Mary Shelman of the Harvard Business School. It states Ireland should adopt a strategy of developing a world-class agriculture industry by 2016 and set itself the goal of becoming the most efficient, most highly innovative food and drink country in the world. The analysis concludes that the agrifood industry is failing to take advantage of its natural resource base and international reputation as a trusted supplier of high quality food products, in spite of the great work being done by Bord Bia. The key inhibitors identified are the fragmentation of both production and processing and the lack of a consumer focus. The report also identifies a clear lack of leadership. It states, "No one has stepped forward to articulate and champion a vision of Ireland as a player to be reckoned with in the world food market". While I have great admiration for the work being done by Bord Bia, this is a reminder that it is not enough simply to produce food. If one wishes to make it a success, it must be valued.

On the issues of food security and the supply chain, the CAP is vital in attempting to give Europe much greater food security. Members should consider the situation in Africa where the Chinese are buying up millions of hectares of land simply to grow food. I was not aware of this until I carried out some investigations.

In the coming decades we will face changing and accelerated demand worldwide caused by growing populations. The population of the world is now 6 billion and it is expected to increase to 9 billion by 2050. Demand will also be influenced by changing diets in emerging countries, the massive uptake in the consumption of milk and dairy products in China being just one such example. Another factor is the risks caused by climate change, particularly in other parts of the world. The position of farmers within the food chain must be examined given the immense buying power of only a few retailers, a business about which I know something.

Commissioner Ciolos indicated that he wants to move towards more local production and quality produce. His big idea is to ensure that CAP mechanisms help small farmers to sell directly to local shoppers, thus bypassing the big supermarket chains. He also wants more precise labelling to encourage consumers to buy local produce and move away from imports. It is interesting to note this development. I have some involvement in Europe on this basis and this change is happening not only in Ireland but elsewhere. It is a welcome development but the recent eruption of the volcano in Iceland shows the vulnerability of the supply chain. Supermarket stocks of certain fruits and vegetables became disrupted within only a few days of the eruption of the volcano. This disruption in supply is affecting a great deal of businesses. Retailers in Ireland buy a substantial amount of vegetables from Africa that it is not possible to produce here.

I remember in one of our supermarkets being criticized by Deputy Rabbitte of the Labour Party for selling South African oranges during the Apartheid era more than 20 years ago. I told him we did not have a choice at that time of the year as we had to import such produce from the southern hemisphere but I told him we gave our customers a choice and that we were selling oranges from Chile. This was during Pinochet's rule and the Deputy said he would not touch those either. He would not buy produce from Africa nor from Chile. This is a reminder that the choices people have are consumer driven and that is the area to which I am referring.

I wish to deal with the issue of genetically modified crops. This issue of genetically modified foods is very much related to the CAP. The fact is that the world must produce more food. According to the UN, an increase of 70% in food production is needed by 2050 by which time it is forecast the world population will have increased to 9 billion. Food production is one of Ireland's strength and such increased demand presents an opportunity for us to develop this sector. We should be able to debate the issue of genetically modified crops and discuss whether crop productivity can be improved with science. I am not sure who is right regarding this issue but I am sure that we should debate it. We should not ban such a debate and I do not believe we are willing to do that.

Three reports published last month documented the benefits of genetically modified crops throughout the world. A review of peer-reviewed surveys of farmers worldwide who use the technology compared to farmers who continue to plant conventional crops, published last week in Nature Biotechnology, found that by and large farmers have benefited. Another report released last week by the National Research Council in the United States concluded that many American farmers have achieved more cost-effective weed control and reduced losses from insect pests. A survey of farmers in Brazil, which is a leader in the global adoption of genetically modified crops, shows benefits for soybean, cotton and corn growers. The Guardian, a British newspaper, reported that last year 14 million farmers in 25 countries grew genetically modified crops commercially, with more than 90% of them being small farmers in developing countries. The benefits were found to be greatest for small farmers in developing countries. The average yield improvements for developing countries range from 16% for insect-resistant corn to 30% for insect-resistant cotton, with an 85% yield increase observed in a single study on herbicide-tolerant corn. I mention this because we have excluded ourselves from such production. Genetically modified crops were also found to help agriculture play a crucial role in preserving the natural environment. This is an important aspect because people think that genetically modified crops will not help the natural environment but they do by reducing the number of insecticide applications on insect-resistant crops and facilitating reduced tillage on herbicide-tolerant crops. In March, the European Commission permitted the cultivation of genetically modified crops of a certain potato which was not allowed previously. Will we debate the issue or take an anti-science stance, which poses the danger that our agricultural industry could be left behind? I mention this issue because it seems clear an opportunity exists to develop this area. Máire Geoghegan-Quinn is the Commissioner for technology, science and innovation and I am confident she will say that such production makes sense. To do otherwise would be like saying we should not have had cross-fertilisation 200, 300, 500 or thousands of years ago when we started such production and that we must leave everything as it was in the past.

I also wish to deal with the potential of hills in terms of food production. It is worth noting there have been several calls in Scotland for better use to be made of hills in terms of producing food. Mr. Tony Waterhouse of the Scottish Agricultural College said he wanted to see a revival of the hill livestock industry as this sector could revitalise the rural economy on the hills. The National Farmers Union Scotland vice-chairman, Mr. Nigel Miller, put forward a similar message. He said:

There is an extraordinary amount of hill land available. A lot of it is not being used and, although it would be a big challenge, it could open up the way for new extensive farming systems to develop. Landlords could be encouraged by tax incentives to let land through limited-duration tenancies. We have to look at these options, otherwise hill farming will die.

Ireland does not have as hilly a terrain as Scotland. Nonetheless, perhaps we should exploit its potential much more in terms of tourism. One need only think of the market for hiking and hill walking in countries such as Germany and Switzerland. The CAP is much wider than we have generally thought in he past. We must make sure we cover all the area under its scope. There is an opportunity to develop our food production under the CAP. We are going in the right direction but we have a lot further to go.