Seán Connick (Wexford, Fianna Fail)

I thank Senators for their contributions. I have been present since 3.30 p.m. and listening to the statements has been interesting.

I am fortunate to be a Minister of State at one of the country's most important Departments. This is a critical time for agriculture and fisheries. As Senators are aware, the Common Fisheries Policy, CFP, is up for review and most of my first seven weeks have been spent working in that regard. The work of the Minister, Deputy Smith, on CAP is ongoing, so we take our role in this respect seriously. Ireland does not have a significant amount of indigenous industry, but agriculture, fisheries and forestry are critical at this point because they present an opportunity for job creation and further development. During the coming months we will watch developments in CAP post-2013 and the CFP carefully.

As Senator Coffey mentioned, I come from a rural constituency in which the loss of the sugar beet industry has caused difficulties. We almost lost the railway line as a result. The various crises we have encountered have had a significant knock-on effect for the social fabric of areas not just in my constituency, but also in the adjoining constituencies. A number of farmers regularly visit my clinic, so I am fully up to speed on the difficulties they are encountering.

In closing this debate, I will address a number of further points. First is the importance of the agriculture sector to Ireland and the EU. Second is the measures we have taken to provide for a competitive and sustainable agricultural industry. The agrifood sector is Ireland's largest indigenous industry, accounting for 160,000 jobs, some 8.5% of total employment, and 16% of industrial sector output. It accounts for 10% of our exports with an estimated value in 2008 of €8.16 billion.

Senator O'Reilly referred to the fact that Ireland is an export-led economy. It is clear that our recovery will be dependent on growth in this area. Agriculture, as the primary source of input for the agrifood and drinks sectors, will have a crucial role to play.

Senator Walsh referred to the lobbying power of the IFA and the other organisations that represent the sector. These are hugely important organisations and they are extremely professional in the way they operate. I look forward to working with them in order that we might maximise returns for the economy in the coming months.

The agriculture and food production sector is also hugely important in the context of Europe's economic and industrial recovery. The primary agricultural sector covers over 40% of the EU landmass - this rises to almost 80% if forestry is included - and is key to green growth and environmental sustainability. Primary agriculture alone contributes 1.9% to gross value added in the Union and 5.6% to employment. The sector is an essential platform for the EU food and drinks sector, which is the largest manufacturing sector in the EU and which represents some 9% of industrial value added and over 10% of industrial employment. Moreover, it is a sector in which global demand is guaranteed to increase.

Modern, productive agriculture, food and forestry sectors will support green growth by assisting in land management and social inclusion for rural communities. It will also ensure more sustainable use of natural resources and support climate change mitigation. From an economic viewpoint it will provide stable, higher-value employment opportunities that will require higher skill levels and qualifications, greater levels of research and development and, importantly, innovation. It will boost European exports and contribute to food security both within and beyond Europe.

In the context of Senator Carty's comments on the EU's 2020 strategy, the importance of the sector is illustrated by the recent decision of the Heads of State and Government at the spring European Council to include a reference in their conclusions to the need for all common policies, including the CAP, to support the new EU 2020 strategy. This is the replacement strategy for the Lisbon Agenda and it is designed to steer the EU to economic recovery, growth and jobs in the period up to 2020. The conclusions proceed to state that "a sustainable, productive and competitive agricultural sector will make an important contribution to the new strategy, considering the growth and employment potential of rural areas while ensuring fair competition". The inclusion of this point was made at the insistence of Ireland and a number of other member states. The proposed strategy was subsequently discussed by EU Agriculture Ministers and there was unanimous agreement that agriculture had a crucial contribution to make to the strategy in terms of sustainable growth, rural employment, territorial cohesion, mitigating climate change, economic growth, increasing exports and social inclusion.

The second matter to which I wish to refer relates to other more long-term initiatives relating to the agricultural sector. Several initiatives are under way to anticipate and prepare for the more competitive environment facing the agrifood sector in the future and to address upcoming challenges facing the sector. Strategies for the development of a consumer-focused, competitive and sustainable agrifood sector capable of meeting the challenges of more liberalised markets and broader societal demands both at home and abroad are already set out in the Agrivision 2015 report. These strategies identify the delivery of safe, high-quality, nutritious food, produced in a sustainable manner for high-value markets as the optimum route for the Irish food industry to take in the future. They span the entire food chain from primary production through processing to market access, which is key to developing export potential.

A high-level committee, which was appointed by the Minister, Deputy Smith, is currently engaged in an in-depth review of strategic policy for the agrifood, forestry and fishing sectors - looking forward to 2020 - to allow them to cope with pressures from the current economic climate, deal effectively with broader sustainability issues, such as climate change, food security and environmental management, and address some structural and other weaknesses that must be dealt with if the full potential of these sectors is to be realised. The deliberations of the committee are well advanced and it is expected to present a report in June. An interdepartmental market access group, chaired by the Department and comprising representatives from the Departments of Foreign Affairs and Enterprise, Trade and Innovation, Bord Bia, Enterprise Ireland and Bord lascaigh Mhara, is currently engaged in a co-ordinated effort to identify potential market opportunities for the full range of Irish food and beverages, prioritise market initiatives and deal with broader access issues.

Bord Bia published a strategy to boost food exports for the period 2009-11. This strategy comprises six key priorities to be addressed, including enhancing the industry's position on its home market to capitalise on the potential for growth and expansion of exports, with a particular emphasis on the eurozone markets. In delivery of this strategy, Bord Bia has implemented a comprehensive set of promotional programmes and services which have been developed in consultation with industry, bearing in mind the impact of the sterling differential on competitiveness.

Senator O'Malley referred to forestry, for which I have special responsibility. Members will be aware that the renewed programme for Government commits to a review of forestry policy to take account of its critical role in respect of climate change, its importance to construction, bio-energy, biodiversity and its potential to deliver long-term employment in other downstream industries, including eco-tourism, furniture and crafts etc. Following this review, which is under way, the current range of supports will be overhauled to facilitate the attainment of an afforestation programme of 10,000 hectares per year. Such a programme will yield significant economic benefits and will contribute to meeting our climate change commitments. In the past 30 years, the level of afforestation in this country has increased from 1% to 10%. That is a major improvement. Members will be aware that this is a long-term project because what is planted today may not mature for 20 or 25 years. I welcome the major commitment that has been made in respect of forestry in the past 30 years. The initiatives to which I refer, coupled with a proactive policy on my part and that of the Department in respect of evolving market situations, will help to position and consolidate the Irish agrifood and forestry sectors in the home and global market.

Senator Norris referred a meeting with representatives of Safe Food Ireland last week. As Minister of State with responsibility for fisheries, I am obviously trying to promote increased consumption of fish. We hope to continue to make progress in this regard. I spoke with Martin Shanahan, host of the television programme "Martin's Mad About Fish", who is doing a fantastic job in this regard. He informed me about the level of contact he has had from fishmongers throughout the country whose business has already increased as a result of his programme. We will continue to promote the consumption of fish, particularly those caught in Irish waters.

As the Minister stated, the Common Agricultural Policy will provide the main policy framework for development of the primary agriculture and agrifood industries in Ireland and the EU to 2020 and beyond and it is of the utmost importance that it should continue to underpin the development of a competitive and vibrant agricultural sector. Ireland's goal in the upcoming negotiations is for a Common Agricultural Policy that is robust and properly funded and that will be based on the twin goals of increased competitiveness and sustainability. Senators Prendergast, Quinn and O'Reilly referred to the need to foster innovation and quality and we will certainly take their comments on board.

Full decoupling of payments from production has been a success for Ireland and we should continue with this approach. We favour the two-pillar structure which is currently in place and which comprises income supports and market management measures in one pillar and more targeted mechanisms for rural development in the second pillar.

A number of Senators referred to the threat to our market as a result of cheaper imports from countries which do not adhere to the same standards of production as the EU. As the Minister indicated, we will be seeking to ensure that future EU agriculture policy will continue to recognise and reward the high standards that apply in respect of agricultural production in the EU and that full equivalence will apply with regard to imports.

Reference was also made to abattoirs and the high standards that apply. A number of Senators referred to the strict nature of domestic legislation in this regard. I accept that very strict rules apply. However, I consider this to be a virtue, particularly as it has resulted in high standards being adopted and led to Ireland being in a position to market meat produced here throughout the world. In addition, it has been able to establish a presence in high-value, well-paying international markets.

A number of Senators also referred to the need to exploit the potential offered by farmers markets. I fully agree with them in this regard. I have also raised the possibility of involving fish markets as part of this sector. However, it must be acknowledged that developing these markets will not, on its own, guarantee the future sustainability of Irish agriculture. We must also focus on business aspects, export potential and our ability to develop niche and high-value markets in Ireland and abroad.

The structure of the new CAP must recognise that the core function of the single payment is the support of farm income. I am of the firm belief that income support in the form of the single payment will underpin farming activity and the security of food supplies and protect the family farm as the platform for the production of public goods. However, there must be some recognition and acknowledgement of the differences between member states with regard to costs of living, comparator incomes etc.

Senator Burke and others referred to market support. We need to retain the market management mechanisms that are already in place and be prepared to have recourse to them as necessary. My view is that they are currently at a safety-net level and must be maintained as part of the future CAP.

Flexibility will be required in the operation of these mechanisms. Moreover, to deal with increased volatility in the markets and provide an additional safety net for our farmers, additional measures will be required to counterbalance severe price fluctuations. There is a good measure of support for these views within the Agriculture and Fisheries Council.

There will be a lot of argument in the forthcoming negotiations about the payment models to be used for the single payment system. Members are aware of Ireland's strong views in this regard. However, before reaching that point, there will be difficult discussions on the future EU budget and the amount of money that will be made available to agriculture. There is no doubt but that there will be great pressure for reduced funding for the CAP. In that context, Senator Bradford mentioned the good value for money one gets from the CAP and both he and Senator O'Brien spoke about its original principles, as enshrined in the Treaty of Rome. It should be remembered that the recently ratified Lisbon treaty reaffirms the principles of the CAP as enshrined in the Treaty of Rome, namely, to ensure the rational development of agricultural production, to ensure a fair standard of living for the agricultural community, to stabilise markets, to assure the availability of supplies and to ensure supplies reach consumers at reasonable prices. In the forthcoming negotiations I will again make this point.

As Members have referred to the wearing of the green jersey, I will recount my experience with regard to the Common Fisheries Policy. I recently briefed the MEPs who also are donning the green jersey on this aspect of the negotiations and would like to think this will also be the case with regard to the CAP negotiations.

In brief, in the negotiations to come we intend to defend robustly Irish agriculture and insist on a future Common Agricultural Policy that will be true to its original aims and provide a platform for a modern, competitive and sustainable Irish agriculture sector.