Jim Walsh (Fianna Fail)

Cuirim fáilte roimh an Aire Stáit. I congratulate the Minister of State, Deputy Seán Connick, on his appointment. He and I served together on New Ross Town Council more than a decade ago. His business acumen, ability and affability will stand him in good stead in his new position. We are fortunate to have an individual of his calibre in the Department at a time when serious challenges face the agriculture sector. The Minister of State and Minister, Deputy Brendan Smith, will be of tremendous assistance in ensuring Irish agriculture is not seriously disadvantaged as a consequence of the review of the Common Agricultural Policy from 2013 onwards. The determination and interest the former has shown in serving people at local level will transfer to the national level. I have no doubt he will serve with great distinction and wish him well in that regard. It is a pity the Gallery has been vacated because many of the Minister of State's friends and neighbours from adjoining parishes in south Kilkenny have just departed and would, I am sure, have liked to have been acknowledged.

Senator Norris and others noted that during the transformation of national economic life in the decades after independence the agriculture sector was the main driver of economic activity. While the position has changed in recent decades, the sector remains of major importance.

Agriculture is well served by its representative associations, notably the IFA and ICMSA, and other rural development groups. These organisations have become extremely proficient and professional in the manner in which they pursue the interests of their members. These attributes will be required in the debates on the forthcoming reform of the Common Agricultural Policy. I and most Members will support these bodies in the pursuit of their objectives, specifically the maintenance of a fully funded, index linked CAP budget post-2013. The IFA and ICMSA are also anxious to ensure that family farmers are not forced to produce below the cost of production. This is a major challenge and will probably become a key issue in debates between consumers and producers in the European Union given that countries that are net consumers tend to seek to drive down prices.

The development of the co-operative movement over the decades has done much to ensure produce from our agriculture sector secures the added value necessary in order that the benefits of exports accrue to the economy generally.

We all support the continuation of sustainable and viable food production, which is among the objectives of the farming organisations. They are also anxious to ensure that the annual allocations of €1.5 billion for the single farm payment and €100 million for rural development continue. An extra production link payment for vital production systems, including suckler beef and sheep, is also on their agenda.

They are looking for a continuation of the co-financing commitment by the Government.

Recent events within the EU cannot be ignored, even though there has been a certain amount of posturing involved. Leaked Commission draft papers certainly have raised concerns, as major policy changes were advocated including lower funds for the CAP. While they may be early drafts, they are significant and we need to be cognisant of what is happening. A timetable has been set out wherein formal communication will come from the Commission this summer, followed by legal proposals in 2011. The challenge this time around is greater, because we are facing a larger number of countries than before. As there are now 27 EU member states, there is great difficulty in getting consensus on any issue. That is addressed to some extent in the Lisbon treaty.

As somebody who is critical of our public service from time to time, I must acknowledge that those who have assisted in negotiations with the EU have generally done a very good job and served this country very well with their acumen, their ability and their determination to ensure the deals that were made served the national interest as well as the European interest. The Minister and the Minister of State have the personalities to build the contacts and the relationships that are essential at EU level to ensure the interests of the agricultural producing countries are very evident in the outcomes of those deliberations. France has been particularly supportive in the past, and while we may have differences with countries from eastern Europe on redistribution, countries like Poland will have a strong emphasis on family farming and that is important. The idea of being a guarantor of food security is essential, and the support of EU family farming is extremely important in that respect.

Senator Norris and others referred to the agriculture industry over the decades. I spent most of my school holidays on a farm in south Carlow. They were very small holdings and the people there lived in unserviced houses, and it gave me an insight into the culture and thinking of people in that rural area. There was a very distinct self-sufficient feeling and an air of accepting their lot, which was one of very limited financial resources at that time. However, they were rich in culture and personality. Listening to the story telling and so on, I often thought that young people in better times in Ireland could benefit from some of the education which that process provided.

Senator Quinn made some interesting points about the increase in world population from 6 billion to 9 billion by the middle of this century. When we look at the extent of the current population of the world that is starving, this population increase will require a co-ordinated global management system to ensure our agricultural sector is producing the food at the right price in order to cope with that increase. There is a significant statistic which shows that the importation of agricultural foods from outside the EU is worth about €70 billion annually. The cost of the CAP is about €55 billion. We import more than many of the other countries, including the USA, New Zealand and Australia put together. This is an issue that must be taken into account to ensure the family farming structure in the EU is maintained in the negotiations and is not sacrificed to cheaper food from outside the EU, which may not be sustainable and which may have an impact on climate change.

I wish the Minister and his colleagues well in this area. The House will be returning to the topic in the not-too-distant future as this debate rolls on.