Brian Ó Domhnaill (Fianna Fail)

Yes. In total, the sector is worth €8 billion to the Irish economy and we are exporting approximately 85% of the food we produce in Ireland. The reality is that the economy is in a very difficult position but, through agriculture, we can work to stimulate it. Reports show that every €100 of agricultural output creates at least an additional €73 for the local economy. When we take on board the fact Irish farmers spend about €8 billion on living expenses and agricultural costs, and given most of that money is spent in the local economy, it is clear the benefit of agriculture to the Irish economy cannot be overstated.

The Minister has outlined some of the challenges facing the agrifood sector. There have been huge benefits in terms of the Food Harvest 2020 report which is currently being implemented and which is trying to achieve the goals that have been set out. The industry is buying into that, including the organisations representing farmers, as are the Department and the Minister's office, which are working towards those goals.

The big challenge will be the proposed changes to CAP, which go far beyond the current CAP and some of which would almost go as far as the MacSharry reforms of 1992. As the Minister noted, they include changes to the manner in which payments are made to farmers and challenges in regard to greening. At the same time, many benefits and good suggestions are contained within the proposed CAP, in particular in respect of the benefits that might be available to younger farmers. However, there also are difficulties. The 30% figure for greening, as the Minister pointed out, is too high. When the Commissioner attended the committee last week I made the point that perhaps greening should have been funded from the pillar 2 aspect of the CAP instead of from pillar 1. The Commissioner did not agree. A greening element of 30% will certainly affect productivity, in particular among larger farmers.

I take on board the point made by the Minister in regard to the difficulty the flat rate payment will provide within the Common Agricultural Policy. However, we must also remember - and never forget - that many hill farmers are prohibited in many circumstances from increasing stocking rates because they cannot re-stock on the hills. The Minister referred to one such farmer who has 60 ha. As a result, they cannot buy additional stock even though many of them want to do so. I do not believe they should be penalised by any reform in the CAP. For example, if the funding in the single farm payment scheme were to be directed towards productivity we should not forget these farmers, particularly those in severely disadvantaged or hill areas. They must be compensated. We can discuss that later during the questions session.

The big challenge facing Europe is the financial one. The fact there has been no agreement to date by the European Parliament on the multi-annual financial framework is a cause of concern to farming organisations, not only in Ireland but throughout Europe, especially as to whether we will have that framework in place in time to implement and activate the transfers from the CAP in 2014. Perhaps the Minister might give us his thoughts on that.

I will not continue because we will have questions and I do not want to encroach on the time of other speakers. We will get to the crux of some of these matters when we get to questions, including regarding payments currently available to farmers and the re-opening of a number of schemes. The Minister may be able to throw some good light on these matters then.