Robbie Gallagher (Fianna Fail) | Oireachtas source

Cuirim fáilte roimh an Aire Stáit go dtí an Teach. The horticulture sector contributes between €350 million and €400 million to agricultural output at farm gate level and provides over 6,000 jobs in the production sector and a further 9,000 jobs in the amenity services sector. In recent years, this sector has been put under increasing pressure from the large multinationals who are now dominating the Irish sector. It is now a matter of urgency that the EU acts in order to ensure the protection of smaller businesses and producers from the monopolisation of multinationals.

Fianna Fáil supports the banning of below cost selling of vegetables, fruit and potatoes. We have published a draft Bill to amend consumer law in order to provide for the establishment of a national food ombudsman to mediate and investigate disputes. The ombudsman would also oversee the relationship between retailers, wholesalers and their suppliers and would encourage transparency and a fairer sector so that retailers can compete fairly with each other. It would also try to ensure a more equitable food supply chain since it has been found that almost 40% of Irish farmers have an income of less than €10,000 per annum.

The monopolisation of this market by global low cost chains such as Aldi and Lidl does not incentivise Irish farmers to provide more produce as they are failing to make a profit and, in some cases, barely break even. The horticulture market is totally unsustainable for independent Irish farmers as they cannot afford to keep up with the unsustainable prices across the beef, dairy, tillage and sheep sectors and it is the Government's duty to ensure a stable income stream for these farmers. The dangers these multinationals pose are ones that need to be taken seriously. Not only have they created a culture in which people are buying cheapest and perhaps compromising quality, but they have also gotten rid of smaller independent shops who simply cannot afford to compete with these prices.

The UK exit from the EU is also a huge threat to Irish farming interests. Our trade links with the UK have led to a large agrifood export market and account for over 40% of Irish exports worth over €4.5 billion annually. Over 50% of our beef exports and one third of our dairy exports go to the UK each year. Teagasc recently estimated that a British exit could see a reduction in the value of Irish agrifood exports of up to €800 million a year. The fluctuating value of sterling has already hit Irish exporters and immediate action must be taken in order to come to an agreement regarding the possible return of trade barriers.

Almost 80% of employment in the Irish food and beverage industry is based outside Dublin. This means that the negative effects of Brexit are being directly felt by people living in rural communities who may not be able to readily avail of other employment opportunities. A hard Brexit would be disastrous for all Border counties and Border farmers. There is too much cross-Border agrifood trade for this to be taken lightly. It is vital that the Irish Government works with our European and UK colleagues to minimise any disruption to existing agrifood trade in future EU discussions so that Irish farming interests are safeguarded.In 2015 the annual review by the Department of Agriculture, Food and the Marine showed that the number of Irish mushroom growers fell to approximately 70 nationally. In 1996 there were almost 600 mushroom growers in Ireland. A significant decrease such as this in a relatively short period causes deep concern. However, the issue of most concern is that Ireland is one of Europe’s leading mushroom suppliers. We really are world leaders. We produce 70,000 tonnes of mushrooms each year, of which 80%, worth €120 million, is marketed to UK multiples. For the majority of Irish growers, 100% of their goods are exported to the UK. We control almost 60% of the UK multiple market and we produce more than the Germans, Italians and the British. However, the industry is facing threats internally and externally with the introduction of mushrooms produced in eastern Europe displacing Irish product due to their much lower production costs. This is mirroring the issues we have in the horticultural industry with the big chain low cost supermarkets, and we must act on this to protect Irish interests. A loss of jobs in the mushroom sector will also have a knock-on effect on the tillage sector as the mushroom industry is a significant purchaser of wheaten straw. Goods will stop being produced if the cost outweighs the rewards and, as a result, we could see unemployment skyrocket across these sectors, which are all located in rural Ireland.

The bottom line of these issues is their impact on Irish farmers. They are being crippled by low prices, market volatility, rising input costs and bank credit. It is totally unsustainable and unrealistic to expect farmers to produce more unless they are making a profit on their extra production. The average farm income is estimated at €26,526 per annum, but this is still substantially lower than the Irish average industrial wage of €37,000 per annum. This week, Fianna Fáil discovered that 50% of the 2016 rural development programme budget allocation has gone unspent in the 11 months to November 2016. This means that farmers are still waiting for €238 million in payments. How is this acceptable? These payments should be issued immediately and it is appalling and very disappointing that this is not being treated as a matter of urgency. Irish farmers are facing a severe cashflow crisis and the Government must be held accountable for part of this.