James Heffernan (Labour)

I welcome the Minister to the House and thank him for the comprehensive briefing. As many Members know, the agricultural sector is hugely beneficial to local rural economies. The contribution made by farmers cannot be overestimated. Farming and agriculture are the life blood of rural Ireland. The Minister stated one will not see many millionaires farming and that is true. When one considers the number of man hours and work time that goes into the industry one can see how labour intensive it is. One starts at the crack of dawn and, at this time of the year in particular, one can be up at all hours of the night, with cows calving and so on.

I wish to speak about the growing relationship Irish agriculture has with the emerging economies and the opportunities that exist, for example, between this country and a place such as China. Last year, after the visit of the Chinese Minister, the Minister stated:

The Chinese market is one of huge importance, being the world's largest food importer and the fifth largest exporter of agricultural produce. With a population of 1.3 billion and rising, and with increasing organisation and affluence, China offers the Irish agri-food and fishery sector enormous potential in the future. China is already a significant destination for exports of Irish agri-food and seafood produce and last year Ireland exported over €170 million in food, seafood, beverages, forestry products and wool to China, as well as a further €95 million worth to Hong Kong. China can play a key role in fulfilling the ambitions of Food Harvest 2020 strategy in terms of increasing export value in the agri-food sector.

The Minister also referred to combining the strengths of the Chinese agricultural market with the technological expertise of the Irish farming community in order that both countries would benefit. He specified animal husbandry, food safety and fisheries as areas in which we could business. I would like to ask a few questions about this because a return trip is planned for later this year. What is the Government doing to encourage Chinese investment in the food industry, given its potential? Are Chinese food companies seeking a foothold in the European markets by setting up in Ireland and using it as a base? Are they looking to expand their expertise? If so, what opportunities are available to offer education and training to Chinese farmers and food producers?

With regard to CAP reform, the Minister said the proposals suggest that the individual historic reference to the single farm payment scheme will be replaced by a regional model rather than using national averages. He also said that there is not a great deal of support among member states for the retention of the single farm payment model used in this State. He is seeking as much flexibility as possible for member states to determine payment models based on the individual needs and conditions of the farming system. Perhaps the Minister will provide use with a progress report on the proposal for us. I thank him again for his time.