Paudie Coffey (Fine Gael)

I welcome the opportunity to contribute to the debate. I also welcome the Minister of State, who is from a neighbouring constituency in Wexford. I am sure he is well aware of the challenges facing farmers and farming in general. It is very important we debate this issue well in advance of the deadline. We should be fully informed of all issues relating to the debate and the matter should be properly discussed, not only in the Houses of the Oireachtas but also in farming organisations, among members and in farming families. As Members, we should always be listening to the concerns aired by farmers every day.

Farming is one of the indigenous industries in this country and Ireland has a great track record in farm practices and food production. In the current economic climate, farming could be prioritised. Instead of removing supports and grant aid for farmers, we should introduce incentives for young farmers to innovate and engage with new farming practices that will bring new opportunities to exploit the potential of our land.

Some speakers mentioned the direct payment system which is in place. Many farming families have become accustomed to the system and their financial structure and cashflow is built around it. I suggest it cannot be altered unless the possible alternative is properly thought through, especially as it relates to development-led grants or payments.

In Ireland there could be vast areas around the Golden Vale with significant potential for development but lands in mountainous areas could be disadvantaged and would not have the same access to development projects. I urge great caution in the area and we must be very careful that if there is an alteration in the direct payments, it should be properly weighted and there should be proper allowances for people in areas that may not have the potential to develop fully because of geography etc.

I will speak from the enterprise side of farming and focus on that area of the debate. I attended a day-long conference recently in Dunhill which was attended by the current Minister for Social Protection, Deputy Ó Cuív. It concerned sustainable rural development and dealt with innovative ways of creating employment, keeping farms sustainable and keeping jobs in the heart of our communities. We can see how the co-operative society developed in Ireland over the years and it was a good example of farmers and their communities coming together to create jobs with a critical mass to make them viable and sustainable. There is considerable ongoing debate on whether farmers will take over the Glanbia co-op. In a recent vote, 73% of farmers voted in favour of doing that, just 2% short of the percentage required. I did not get involved in the debate because the decision on managing farmers' futures in co-ops is their own, but they should take control of their destinies. Opportunities exist but the Government needs to support farmers and give them the confidence to engage in such rural enterprises and activities.

Under the corporate structure of Glanbia, many smaller co-ops that were the heartbeat of communities closed. They were the places where farmers met every day, engaged with one another, exchanged ideas and gave advice. We cannot afford to lose them. If we do, the expertise and value in farming will be lost as well. We must develop this area.

According to the conference I attended, 50 jobs were created in a small rural enterprise called Dunhill Cuisine. Its model should be rolled out across the country because it is a small enterprise that takes produce from within a 20-mile radius. Farmers produce food as the primary basis for the produce while Dunhill Cuisine packages it and puts it into ready dinners that are sold to the wider public via supermarkets. Getting access to supermarket shelves is difficult, but Dunhill Cuisine has managed to do it and is now running a successful business. I spoke to the managers of the enterprise. It is creating sustainability in the local area and giving farmers a reason to produce quality food that can then be bought by the public or be exported.

Dunhill Cuisine's managers have an idea about school, hospital and prison dinners, namely, that Irish produce should be used. A system used across Europe involves companies cooking ready-made dinners and transporting them to the institutions in question. In these days of obesity and health concerns, in terms of which there will be significant expenditure, this is a fundamental and simple argument. We should give children and others in hospital good quality dinners instead of the processed foods that many of them are getting. We would kill not one or two birds with one stone but many birds. We would give farmers a reason to produce locally, create employment in the preparation and packaging of that product and create further employment in servicing the institutions. We should consider running it as a pilot project for schools or hospitals. I will pass Dunhill Cuisine's figures to the Minister of State, Deputy Connick, as he is interested in the subject. Issues such as this need to be examined.

I am framing my contribution in this way because CAP and direct payments assist farmers by giving them a cashflow to engage in production and to ensure there is a market for their produce. It is all related. I wanted to bring the idea to the attention of the Seanad and the Minister of State.

Farmers, especially young farmers, face significant challenges. The Minister of State and I know the problems experienced when the sugar beet industry left the south east. The impact has been considerable. Young farmers sustain their farms by working in the construction or manufacturing sector, but many of those jobs are gone and farmers are back on the land. We need to give them a real incentive to make money and become viable. This suggestion has potential if the political will to restructure regulatory systems is present. We always seem to jump in and let our European counterparts follow us. We need to step back as regards food. Farmers markets and food stalls are successful and generate a whole economy. Senator Quinn, who is in the Chair, is supportive of that initiative. We need to get back to basics in terms of determining how to promote Irish produce, finding markets and putting supportive structures in place. This will create a momentum and allow the rest to follow.