Feargal Quinn (Independent) | Oireachtas source

I welcome the Minister and his achievements on the CAP negotiations. He has obviously done well as it was an extremely tough job and not an easy task. I could commend the efforts of the agriculture sector, of which everybody is well aware, but instead I would like to raise a couple of issues which do not often get enough attention. I agree some farmers rely on the payments to survive but there is a real need to question CAP more closely given issues such as the success of some farmers in Ireland and the fact that it breeds inequality. We have a situation where CAP is paying €60 billion per year to European farmers and yet European countries will not buy fruit and vegetables from their neighbours in north Africa.

On the issue of food security and the supply chain, I understand CAP is vital in attempting to give Europe much greater food security. Members should consider the situation in Africa where the Chinese are buying up millions of hectares simply to grow food. In the coming decades, we will face changing and accelerated demand worldwide, caused by a growing population. Currently, the world population is a little over 6 billion and it is estimated to increase to 9 billion by 2050. Demand will also be influenced by changing diets in emerging countries and the massive uptake in the consumption of milk and dairy products. China is a good example of the success we have had.

Another factor is the risks caused by climate change, in particular in other parts of the world. Even in Europe, Cyprus is suffering from water scarcity and farmers there produce tomatoes by using massive amounts of water. Should the European Union pay more attention to issues such as this? Perhaps the Minister will comment on that.

It was interesting to consider the findings of the UK All-Party Parliamentary Group for European Reform that if, hypothetically, CAP and other EU measures to protect farming, such as tariffs, were fully liberalised and if the money freed up was rechannelled to more productive areas of the economy, it could be a boost in output equivalent to around 1.1% of European GDP. It is an argument I had never heard before. We are sold the argument that cash payouts are essential, and perhaps they are for certain farmers, but it may hurt the wider economy. Of course, Ireland must be very careful in this respect given our reliance on agriculture. Looking back at what happened in New Zealand some years ago, 1% of farmers went out of business following liberalisation but the remaining farmers became much more efficient.

Now they do not have any subsidies and New Zealand seems to be doing very well, particularly in milk production and dairy products. The Minister has done a very good job. I wish him well but there are questions and queries in that area.