Rónán Mullen (Independent)

Cuirim fáilte roimh an Aire. In concert with Senator Quinn, I congratulate the Minister and wish him well with the excellent work under way with Food Harvest 2020. The Seanad spends considerable time discussing the challenges facing the economy and the hard choices we need to make. We pin all our hopes on the key issue of achieving growth. Everything will change for the better if we can secure the necessary growth in the economy in coming years as we try to bridge the €15 billion gap. The agrifood sector is one on which we can pin our hopes for growth.

Students of history will remember hearing how the Spanish Armada had been defeated by the smaller and more responsive British boats. That could be a metaphor for the economy. If, in relying on our natural genius, we are responsive to the demands of the market and the challenges we are facing, particularly in the sphere of agriculture and food, we have the capacity to secure victory in terms of growth because we have tremendous resources on which we can rely. We should see the agrifood sector as the key driver of employment and economic activity. The Minister put his finger on it when he talked about the cost of inputs. There are approximately 230,000 jobs in the agrifood sector which represent one eighth of total employment, with more than half of the number being in farming. When one considers that each job in manufacturing supports four additional jobs in the economy, one realises just how important the agrifood sector is.

The embedded economy value of the figure of €27 billion in gross added value in the food and drink industry in 2007 was €22 billion. In the pharmaceutical industry the embedded economy value was €10 billion out of €36 billion, while for ICT it was €7 billion out of €28 billion. Activity in the agrifood sector must also be seen for its spin-off benefits. However, without competitiveness in labour, waste management and energy costs, the impact will be that much worse as a result, which means that even with the advantage there is a potential disadvantage. We could sum up what we need to do by saying we need to export more and that our products need to cost less. We need to play to our strengths as outlined by the Minister, including, classically, our reputation as a clean green country that can produce food using methods that are sustainable and environmentally friendly. We also need to address the ongoing challenges posed by increased production. The Food Harvest 2020 report makes it clear that food safety regulation will be vital because it is essential to continuing to develop our reputation, but that must be smart.

While admiring and supporting what the Department of Agriculture, Fisheries and Food wants to achieve, it has been put that it can be too conservative and that inspection and penaltys seem to be the priority. There may be a need for the Department to be more responsive in order to reinvent the situation.

Regarding education and the work of Teagasc, the agency suffered a cut of €10 million in the last budget. Does the Minister foresee a change in that approach in order that the necessary education can be provided?