Joe O'Reilly (Fine Gael)

There is a very poignant background to today's debate. A leading member of the agri-industry, the largest pig farmer in Europe and a great member of our county community has died today. Patrick "Buddy" Kiernan would be very well known in agricultural circles and his death is a sad backdrop to the debate.

There is a number of core issues that merit mentioning as we look at this question. A total of €1.3 billion comes into this country every year in payments to agriculture from Europe. That is an extraordinary figure and one that merits preservation. Agricultural incomes have been on the floor in recent years. The average agricultural family net income is €13,000 and that is not sustainable. It underlines the importance of the CAP to our farmers.

There is great potential for economic recovery through our agriculture sector, including our food sector, our value-added product and our grassland based product. Irish food has a potentially enormous market. The world population is growing enormously and feeding that population will be necessary. The potential for the Irish food brand to stand out must be great. We have a clean environment, good grassland production, a good reputation, and we have much to market.

There will be a co-decision dimension to CAP reform and the European Parliament will be involved in it. This makes it incumbent on all of us to lobby our respective groupings in the European Parliament. As Senator Bradford pointed out, it is a green jersey issue. The Commission is reviewing the European budget, and it is critical that agriculture holds its portion. It is encouraging to learn from the Minister that 22 like minded member states have recently come together in support of the Common Agricultural Policy. This is good news. As the world population figure of 6 billion is expected to grow to 9 billion, obviously food security in Europe is a major issue. It should be a pillar of our future position.

There are dark clouds on the horizon in that the South American states around Brazil have come together in an effort to re-enter the European market. While we have no objection to free trade and the development of their agriculture sectors, we need to be particularly vigilant, given that there have been critical meetings of a number of South American states in recent weeks. Our contention must be that the same standards of veterinary and environmental compliance and animal welfare should apply in countries from which we import. This is critical to the concept of a level playing pitch that we should advocate. While the flood of Brazilian beef has been halted, the problem may be emerging again, with enormous implications for the beef industry here.

The bottom line for Ireland must be the preservation of the single farm payment. If we need to concede a little, the wise money suggests we should concede that we might look at having a maximum payment, not modulated payments. That would involve the maximum figure anybody could receive, but we would be equally conscious of the need to maintain a very sensible minimum payment in order to preserve basic incomes. The bottom line needs to be preservation of the single farm payment, although people talk about preserving the environment by other methods, etc. It is worth mentioning that cross-compliance is required to receive the single farm payment. Farmers are required to be compliant with environmental standards for water quality, etc. The preservation of the environment and the production of healthy and good food are achieved under the existing single farm payment system. This is a point we need to reiterate strongly at European level.

I pay tribute to Deputy Creed for organising meetings on the Common Agricultural Policy around the country. Last week I attended one such meeting in Castleblaney chaired by my constituency colleague, Deputy Crawford, who is an expert on agriculture, given his background in the leadership of the IFA. At the meeting Mr. Matt Dempsey of the Irish Farmers Journal said that if a flat-rate payment, towards which there is movement, particularly in eastern European countries, was introduced, this country would lose at least 20% of its payments. Obviously, the bottom line for us is retention of the single farm payment, although we might look at having maximum and minimum payments. The point was well made at the meeting which was attended by several people with expertise in the area who said land values would fall greatly and that we would lose considerable amounts of money if a flat rate payment was introduced. They also made the point that if we were to renationalise the Common Agricultural Policy to the degree that each country would decide on its own payment levels and make its own payments to its own farmers, we would also lose in the allocation. Therefore, we need to preserve the status quo.

It is good that we have 22 countries on board supporting us. There will be a united position on the part of the IFA, the ICMSA and all the political groupings here. The Irish view will be united on this national question, on which our entire livelihoods and the future of the country depend. Irish agriculture has great potential. The world population will need to be fed. As the years go by, there will be greater demand for food from a healthy environment in which production is green grass-based and without the level of industrialisation achieved and pollution in other countries. There is great marketing potential, based on the nature of farming here and its traditions.

There is a case for considerable investment in innovation. We are not doing enough in the food sector in terms of investment in innovation and research. We need to ensure the Irish label stands out and eliminate the process whereby a few breadcrumbs are put on food and it is rebranded as Irish when it has been imported. I appeal to the Minister to take these considerations on board as we develop an Irish position. There is probably nothing of more significance to the areas represented by Senator Carty, the Leas-Chathaoirleach and me which cannot survive without the CAP.