Brendan Ryan (Labour)

I welcome the Minister. I am stepping into the breach for my colleague Senator Michael McCarthy.

The future of the Common Agricultural Policy must be addressed now. We are fast approaching 2013 and, with every day that passes, the situation for Irish farmers becomes more critical. Agriculture remains at the core of Irish rural life and the CAP 2013 is vital to securing the viability of farming as an option for young men and women. We must encourage young people to get involved.

CAP reform must protect small producers who form the backbone of rural Ireland and it must ensure they are not neglected in preference to larger operations. The single farm payment is key to the livelihoods of most small farmers. Our Government must act in a decisive manner to protect the single farm payment from the threat posed by the future negotiations of CAP. The CAP process is not something intangible: it is about real people, real families and real communities.

I am glad this debate is taking place. It is time for an informed debate to begin. We cannot wait until 2013. Now is the time for action, to decide what it is we want from the CAP and for the future of the agriculture industry.

My colleague, Alan Kelly MEP, carried out a survey of farmers earlier this year. The findings show that 97% of farmers believe the CAP is of major or vital importance to Irish agriculture but over 90% of them believe the future of CAP will have a negative impact. He revealed these results at the "Future of CAP - Crisis or Opportunity for Rural Ireland" conference which took place at the end of March. This conference was the first of its kind in Ireland and it saw attendees from across Ireland gather to hear speakers, including Deputy Eamon Gilmore and the IFA President, John Bryan, discuss the future of the CAP for Irish farmers.

The CAP is worth over €1 billion to the Irish economy in purely financial terms. Unfortunately, because it is an agricultural issue and an issue for rural Ireland it does not get the attention it deserves. We must present a united front in Europe to protect our national interests and ensure a future for Irish agriculture. We need a strong vision for the future of the CAP. We cannot have a CAP that provides almost random subsidies to large farmers and companies. We need a CAP that will protect and foster the family farm structure.

If we believe in the future of Irish agriculture, we need to structure the CAP in such a way that it fosters and encourages innovation, sustainability and quality. My colleague, Deputy Sherlock, Labour Party spokesperson on agriculture, has been calling for this approach for some time. As they say, the devil is in the detail and the CAP is no different. It is obvious there are real concerns in the farming community that the CAP will lead to a significant reduction in income within the agricultural sector. The fact that ever-increasing numbers of farming families have been awarded a payment under the farm assist scheme since the beginning of the year is further proof that many families in rural Ireland are on the bread line. This is a worrying trend and reinforces the need to ensure that any decision regarding the CAP will not further negate farm incomes.

We often make the mistake of believing that the interests of those in rural Ireland are different from the interests of those who live in urban Ireland. Nothing could be further from the truth. We are one Ireland and all our interests are intertwined. Deputy Gilmore stated:

Real vibrant communities will not survive and thrive without some support. As CAP moves more and more away from direct support for farmers, it can have a new role in protecting and enhancing rural life.

Small rural businesses, cottage industries and green energy can be supported through a restructured CAP. We cannot hope to develop sustainable communities in rural Ireland unless farming is in a healthy and sustainable condition.

If the global population is to increase from 6 billion to 9 billion by 2050, it is vital that the Irish agrifood sector is supported by adequate resources in both pillars of the CAP. Global food security is a major challenge. Coupled with increasing demand for dairy products in Asia, in particular China, this should see Ireland well placed to take advantage. The economic downturn in Ireland can be tackled by ensuring the €1.3 billion we get from the CAP will place an emphasis on the agrifood business. There is considerable potential for growth in this sector and, if we go about it the right way, it could turn into a business with a turnover of more than €25 billion. I am glad the Commissioner has stated that direct payments are critical to the future of the CAP and that these would be backed by market measures. The new round of the CAP must benefit those who are innovators within the industry and the Labour Party will press for its preservation.

I welcome this timely debate. It is time for the Government to engage with all stakeholders to ensure a fair and beneficial reform of the CAP for all. I wish the Minister well in his discussions in Europe.