Margaret Murphy O'Mahony (Fianna Fail)

Cuirim fáilte ar ais roimh gach duine. Go mbeirimid beo ar an am seo arís. I thank the Cathaoirleach for choosing this Commencement matter and I thank the Minister of State, Deputy Healy-Rae, for taking time out of his very busy schedule to come to us here in the Upper House today. I had requested last week that the Minister, Deputy Heydon, attend today to give us an update on the discussions about the rate of nitrates derogation in Ireland. To be fair, his office contacted me to say he is not available and I thank the Minister of State for taking up the baton. I will be asking the Minister of State for an update on the discussions and what he thinks is going to happen.

It is not that long since the then Minister for agriculture encouraged farmers to expand. Because of this, many farmers and processors went into large debt and now many farmers could be faced with the prospect of herd reduction or acquiring more land. Yet many of these farmers are already in debt. The discussions on the derogation rates are reaching a crucial stage. It is essential for our agricultural industry that the present rate is maintained. Otherwise, the consequences for individual farmers and the whole farming industry will be catastrophic.It is very unfair that farmers are getting such blame for the condition of our waterways when it is obvious that there are many other bodies contributing to these problems. I suggest that these bodies be asked to get their houses in order before our farmers are asked to take such drastic steps.

Denmark is often used as an example of how farming should be done. Not a week goes by in which the media do not say Denmark is doing this or Denmark is doing that. However, it must be noted that Denmark has now reapplied for a derogation. That shows how important it is.

Our water quality is on the up but it is a very slow process. We need to give it time. Despite having the greatest number of derogation farmers, the area I am from in west Cork is showing an increase in water quality, but this all takes time. At a time when generation renewal is being encouraged, it is very unlikely that any of our talented young men and women are going to come home to take over a farm if the first thing they will be told is that they have to reduce their herd or acquire more land. It is also very unfair for Ireland to be compared with other European countries. We have an outdoor system that is unique in Europe so we cannot be compared with other countries. It is like comparing apples with oranges.

Reducing the derogation rate will also have a detrimental effect on tillage farmers. It will have a domino effect. We must remember that tillage farmers are already on their knees. They are getting the same prices they got 40 years ago. It is incredible that could happen. I am not talking about four years ago but 40. If dairy farmers are going to try to acquire more land, it will put pressure on tillage farmers, many of whom will be unable to compete. Farmers are finding it very hard to manage the bureaucracy involved in calculating phosphorous levels in animal feed. Even the farm advisers are finding this very difficult to manage. One solution would be to allow dairy farmers to export their slurry but there needs to be a financial incentive for tillage farmers to take part in this. This would also reduce the use of chemical fertilisers.