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Dáil Éireann debate -
Thursday, 3 Jun 1976

Vol. 291 No. 6

Vote 39: Agriculture (Resumed).

Debate resumed on the following motion :
That a sum not exceeding £114,361,000 be granted to defray the charge which will come in course of payment during the year ending on the 31st day of December, 1976, for the salaries and expenses of the Office of the Minister for Agriculture and Fisheries, including certain services administered by that Office and for payment of certain subsidies and sundry grants-in-aid.
—(Minister for Agriculture and Fisheries.)

As I pointed out yesterday, we are not taking full advantage of the very valuable assets we have. If we acted in the right way it would add considerably to our income by way of hard currency. Too much of our agricultural produce is going to Britain and after feeding the animals the British purchase from us they earn the hard currency we should be earning.

If we organised the raw materials available to us to sell to the best advantage, and if we produced the maximum amount of cereals that would feed us, it would be possible to have a further 20,000 jobs available. As I stated yesterday, we are selling meat everywhere for the prices that are going but we are not building up a market that we could hold in difficult times. We have the kind of meat that is more acceptable than that from South America, New Zealand or Australia and we should develop that part of the industry as we do with our salmon and fishing industry. We should have processing plants that would ensure our products go directly to the shops, rather than shipping the half sides of beef as we do at the moment, thus allowing other countries to earn additional money by carrying out processing work.

What we are doing at the moment is not the best policy for the future and a setback is bound to come. History has proved that the cattle trade does not keep going steadily. When it suits the Common Market countries, particularly the heavily industrialised nations, they will turn to the cheapest markets or not use any meat at all. We should be building for the day when we can consume our own agricultural products. Our population is steadily increasing and the time will come when we will not be so worried about selling to other countries. All our natural resources should be designed to give the maximum employment here and, while it might suit some people to sell for the quick £, our aim should be to produce the maximum number of jobs and to get the most advantageous prices, particularly in hard currency.

There has been a large reduction in our cattle population and there must be plenty of scope for the growing of more cereals, particularly barley. If we can prepare in a way that is acceptable to other countries we will be able to provide more jobs here. From a study of the subject, I am convinced that at least 20,000 jobs could be found in the area of meat processing, milling and the growing of more crops. In addition, more fertilisers will be used and this will also help the employment situation. With the land we have available we should not have to import raw materials for feeding stuffs.

There is a certain retrenchment in some of the products we produced in the past. For instance, the production of chocolate crumb is down and this would not have happened if we followed up on the markets that are still available for this product. There is one European firm—one I hope will locate in my county—that is interested in the production of chocolate crumb and the finished product for the European and the United States markets. The undertaking concerned is an Italian-German company.

More funds from Europe should be invested in this type of production. It is amazing that our organisations which are trying to attract and build up industry do not go after this type of industrialist. We appreciate the funds we get for the heavy industries which must import heavy steel and so on but we should be making maximum use of the raw materials we have such as milk and its by-products. There seems to be a lack of push in this direction and the Minister should have it explored.

I often wondered whether the IDA have personnel who are closely related to farming because such personnel would be able to see the advantages of this type of business. This type of induction is necessary within that organisation. The same applies with regard to fishing. Personnel interested in fishing should be involved in that organisation so as to push that industrial arm to the maximum. Time is running out and this industry will not be very attractive in the future unless something is done.

Our sheep numbers are falling rapidly and are dangerously low. In my area young people are not prepared to carry on the job their fathers did in looking after sheep. They are not prepared to climb around the mountains looking for sheep and with the low returns from sheep rearing they are more attracted to the more lucrative jobs. This is serious for the development of the Scotch breed. In the past we have been engaged in crossing the Scotch ewe with the Border Leicester and eventually getting the Suffolk breed from that type of cross-strain but if we lose our mountain sheep we will be in a serious situation. The recent directive by the Department changing the dipping position to one dip per year has not helped this situation. I approached the Minister in relation to this and he graciously agreed that dipping certificates would not be required this year but some thought must be given to the future.

The Department must bear in mind that mountain sheep farmers must sell their lambs in August or September but if this dipping certificate is necessary before that they cannot sell their lambs because dipping will only commence in October and continue up to February. Those farmers will be deprived of the subsidy which was intended to keep them in sheep breeding on mountain holdings. The Minister should design the lamb subsidy schemes so as to cater for those farmers. In my view the scheme which makes it obligatory on sheep farmers to have a dipping certificate cannot work. I can recall what happened some years ago when we had a heavy fall of snow in the mountain areas of my constituency. The snow lasted for a couple of months and in Kerry a lot of the sheep were lost. Sheep farmers were not able to follow their sheep. The sheep were snowed-in in gullies and cliffs. I followed a rescue party and discovered that the only way they could trace the sheep was by looking for a hole in the snow on the cliffs created by the breathing of the sheep. On that occasion of the 20 or 30 sheep lost only eight survived and they had the wool eaten off each other. This is the type of hardship sheep farmers must face. They make every effort to save their flocks and any scheme to help them must be tied in with the conditions under which they farm. If the Department hold that the dipping scheme must apply to them it can only result in more sheep farmers going out of this business. With our sheep numbers steadily falling that would be a catastrophe.

I hope the Minister will help the sheep farmers and not restrict their actions. The disadvantaged areas scheme has been of tremendous help to mountain farmers in my area but some anomalies exist. A big number of sheep farmers live in the electoral division of Kiltallagh, near Castlemaine. They farm very small holdings but have been excluded from this scheme. The electoral divisions of Kiltallagh, Kilnanare, Milltown and Droma should be brought into this scheme. On the other side of the valley in the Buffer district, there is exceptionally good farming land and that area is included but for some unknown reason the electoral divisions I have mentioned, particularly the Milltown district, are excluded. That scheme would be of great help to those farmers. Two of those electoral divisions are very mountainous and the others, by virtue of the type of land and the number of small holdings, are equally disadvantaged. The Minister should endeavour to have them included in the scheme.

Pig production is developing, something that pleases me. I have always been associated with pig production and I contend that a scheme should be devised to help individual farmers produce more pigs. I know substantial grants exist at present. A farmer who can produce 200 to 300 pigs annually can make a reasonable amount of money but there should be a stabilised price for feeding stuffs. The heavy costs of feeding stuffs is one of the big drawbacks in pig production. The price of feeding stuffs has increased considerably in recent years.

There should be some method of control to keep the price stable as far as possible so that people could and would invest to develop this arm of agriculture. This would encourage the production of more cereals, provide more jobs in manufacturing this material as well as helping small farmers to keep a son at home who could not be supported otherwise on the output of the small holding. It could bring considerable numbers back to the farmyard pattern. I emphasise this because I am not satisfied that we are working in the direction that would give maximum employment in agriculture generally. There would be considerably more jobs if our whole outlook was guided in that direction. We appear to be sitting down because everything is selling well. Our advisory bodies are quite satisfied with the way things are going but things do not continue going unless you think ahead in order to be able to direct output properly and keep on selling more and more, increasing the number of jobs and the money needed to continue development.

I believe we could go back to this pattern. Some 50 or 60 years ago yellow meal was the basic feeding stuff here. Everybody produced pigs and poultry which were a great addition to the farmer's normal output. There is no reason why we cannot have the same pattern today if we can get people to see the advantage of it. The same applies to our cattle. It should be possible to stall-feed or farmyard-feed some of the cattle so as to have a regular supply all year around. It is too easy to fatten them on the grass and it has the disadvantage that they all come on the market in October and November. This happens in every other country also and there are surplus cattle on the market at that time. If we are to maintain a steady input for factories—and we must do this if we are to develop the processing of meat down to the small packets in which it should be produced—we must train and educate farmers and producers in this system. The farmers and the country would be all the better for it.

Horticulture is in a rather poor state. It is amazing that last year we had to import potatoes, and ordinary crops of which we were never short, cabbage and so on. This is another side of agriculture that seems to have no output and does not inspire the enthusiasm it should arouse. One wonders what our Department are doing. This is an activity that should be developed to the maximum. Perhaps the present educational system is at fault. Many students who get their intermediate and leaving certificates think there are white collar jobs everywhere for them. This problem should be examined because the jobs are not there. Many of these young people, even in my own area, will not do ordinary jobs; they will not go behind counters because they have leaving certificates. They end up in Britain where they will sweep the streets and work afterwards in the building trade because they come up against stark reality and discover that while the leaving certificate is good in itself it is not the be-all and end-all. There is a problem in that regard. I see it affecting industry in my own area.

There should be an overall plan because if agriculture is to be developed there must be sufficient people available to produce the goods and develop the country as it can be developed. Educational and agricultural development should go side by side and unless we have a broad plan to cover that objective Departments will be competing against each other, doing their own jobs and not thinking in an integrated way as they should think for the benefit of the country as a whole.

We are very lacking in the production of honey and a considerable amount of it is imported. Again, blame must be attributed to our agricultural experts and advisory services who can secure this type of development. That is a job they should be directed to do. It seems that it is human nature to consider that when things are going well in a certain direction one's job is done but I think these aspects should also be examined. It should be the job of the Department to explore all these possibilities and find out from their advisers in the field why this type of agricultural effort is not pursued. There must be reasons. It would not be very difficult to get those reasons from the advisory services who cover every field in the country. They should know why people are not producing necessary horticultural crops, not producing honey and not doing many other things that can be done. One can only suggest that because of the low level of effort put into this side of production, the utilisation of the advisory services must be suspect.

I have asked many people who are on the dole in my own area of Killorglin why they have not been growing potatoes, or producing turf. They come into our business premises to purchase coal and gas. While I am on the selling side, it hurts me to see raw material there that could be developed and used if people were prepared to put the effort into it. The answer I get when I question them is that they cannot get any labour. I said to one man: "You do not need labour to cut enough turf for yourself. You have a bog in the corner of your land, solid low banks. If you go out only at eleven in the day and take the newspaper and a chair with you you can still cut 200 or 300 sods a day in a certain time and you will have enough turf cut for yourself." He said: "To hell with that. There is no future in that." This is the situation which we face. We have energy lying idle which should be producing the material that will save the import of fuels and so forth that are so costly and certainly should not be sold on my side of the country.

Our thinking is all wrong in this direction. We look for grants to have the roads and drains cleared but then the Department say they have no money. The money should be provided for this to try to help because this all comes within the agricultural sector. The production of fuel is a vital part of the smallholder's way of life and saving on imports of coal and other materials is necessary to the nation because we have to find the hard currency to pay for this material.

I may say here the Department are concerned with doing only their own minimum job. Good as they may be, there is no integrated outlook over the whole field to see that everyone is dovetailing and getting the maximum that should be got. Rather Departments are competing with one another. So long as they get their own job done they are not concerned with others. At Government level and in all organisations in this country we need forward thinking if we are to get over the top and make our place in the world with the great products we have. We must get the outside world to realise that we have meat and different agricultural products fresh from the land that would be accepted on the tables of Europe. We have to ship as quickly as we can to the British markets because they are slowly developing towards making themselves self-sufficient and while that is on the way we should be equally pushing into outside fields in order to be able to sell the materials we need to sell there to enable us to purchase the material we want inwards. In view of the present state of the pound, it is not advisable to be selling to Britain for sterling when Britain are able to sell our cattle afterwards into the European markets for hard currency. As I have stated, we import products many of which we do not need at all because Britain has not anything else to give us we have to take whatever she pushes our way.

The time to deal with the overall pattern is now. Time will be slipping by. We have had very good years in agriculture but they will not always continue. This is the problem because the world can be over-supplied with machinery and heavy industrial goods and industrialised nations can sell that machinery and they will not buy anything from us or anybody else.

We have to keep this outward impression. The Department of Agriculture and Fisheries have a very difficult job and a big job but they have to think ahead and keep looking into the future and think of what is likely to happen in nine or ten years' time and whether our directives are helping us towards attaining what we should attain in that period. If this is critical, it is not meant to be entirely critical of the Department. They are doing a good job. They produced a very useful document here but now is the time to consider this overall pattern.

When I was in Europe I spent a lot of time going to the farming areas to see the way of life there and what they were doing. In spite of everything we have not a difficult job. We have expertise, we have better farms, better production, better climate, but we lack that overall drive, that overall thinking to organise our farmers into the type of production that would suit them. This I think lies at the feet of our organisations of agricultural people both out in the fields and here in Dublin. It is time to get together to plan for the future, not to be living in what is happening today because what is happening will not keep happening.

The best field for mass production still lies with the smallholders, if we can get them organised or get them to start that type of production or to harness their efforts into producing something. I have found all too often that the advisory services pass them by because they have enough up-to-date farmers and they are able to keep their books right and able to convince the authorities that everything is going well. The productive farmer, the good farmer, is moving away and the small man is left behind. Unfortunately, he is getting depressed about this but it does not mean a terrific future for himself, particularly with costs today. Advisory services should be turned in on those people now and let them forget the better farmer. Let him plough his own furrow. He has had full advice all too long. Let us see what can be done with those small people. They can produce root crops. They can do many different things that will help the nation to produce animal feeds and help with horticulture and so forth which can find a ready market outside.

Milk appears to be on the increase. I have stated that we should be examining the possibility of developing it into finished products. I again ask the Department to get their advisors and technical people, particularly if they have them out in Europe, to examine the possibility of getting outside firms in here with the skills to turn our milk into an acceptable finished product. Certainly milk goes up and down in price from time to time but there are many by-products produced in other countries which we should be able to develop here and attract the industrialists and which would have the advantage of tax free concessions. It is a wide field and one in which I understand there is vast development taking place in America. If we leave it all in the hands of the IDA—who see only the necessity of creating an industry—it will not be as effective. I do not know whether there are personnel within that body who are au fait with every aspect of farm production and the necessity for the advancement of that type of raw material. Perhaps there are but we have not seen any great productive effort arising from their excursions abroad, if that is the term one should use.

There is vast potential in the overall pattern of agriculture. I am convinced that it holds potential for at least 20,000 jobs and, perhaps, even more, if we but followed up the processing of our agricultural raw materials. It would provide jobs for people in rural areas in particular because that is where such raw materials exist. I would ask both the Minister and his Department to give this very serious consideration. If we could but unite the effort of every Department for the benefit of this great arm of our industry then we would have a chance of getting somewhere.

Our farmers are advancing. Our young farmers particularly are doing a tremendous job. I see them in my own area. They take two nights a week off for leisure when they take their wives with them. This appears to be part of today's pattern and, I believe, it is a good thing because they work very hard for the remaining nights of the week. I notice them working at 8 o'clock, 9 o'clock and even 10 o'clock in their farmyards milling grain and so on. It would be easy to lead these young farmers into the type of effort that would produce commodities of a quality one might not get too easily in other parts of the world. It is the job of the Department to lead these industrious, energetic young farmers to undertake the type of work that will best serve the country.

I said yesterday that our external trade amounted to £1,441 million, of which agriculture amounted to £596.2 million. Of that £366.2 million went to Britain and £175 million to other countries. Here lies the job for our developers. The faster we get away from this dependence on the British market the better it will be for ourselves. Our imports reached a total of £1,700 million, a difference of £259 million. We must get more material into Europe to enable us earn the hard currency which will assist our industries. Agriculture is the main channel through which we can get such hard currency. Every bit of material we can get into Europe must earn hard currency for us.

At present Britain are getting our cattle into Europe. It is a well-known fact that, under their subsidy scheme, they purchase so many animals at the beginning of the year. If they can, they like to get three- or four-year-old cattle and carry them on their farms for 12 months. They are supposed to hold such fat cattle for two months after they have purchased them on the Dublin markets. But they take them and reship them the following morning for export to Europe, to Germany and Holland. This is the job we should be doing. If we have the fat cattle and we have to export them on the hoof, why cannot we export them direct? Why should we allow our cattle to go out through that channel and lose the hard currency they should be earning for us? Surely our agricultural people in Britain must know this is taking place. We must halt that practice now and step out on our own. Perhaps cattle exporters here who were involved in that type of procedure in the past do not want to see their way of living hit. I suppose it is understandable that they would try to channel things to serve themselves but that is not serving the nation. That is why we must take a hard look at what is happening, get the best out of anything we have to export and ensure that it is to our advantage.

I am proud of the farmers in my own area—not big farmers by any means, 40 or 50 acres, some a bit more and some a bit less—who are doing a tremendous job. They have a great way of life. I like their outlook on life. They have energy, courage and ability. They and their wives very largely make up the clientele of singing pubs on Wednesday and Sunday evenings. That is a good thing because, all too often in the past, the wives were left at home while the husbands went their own way. Now the husbands and wives seem to share the farming activities. There seems to be a great unity of purpose. With real thinking, guidance and leadership, we could get our young farmers into the type of production and activity necessary for the country as a whole. Such guidance and leadership can come only from those Departments which have the farmers interests and their future at heart.

I am asking the Department and the Minister to involve themselves in this type of thinking in regard to our agricultural arm because this is the best seller in the country. We have the energy and ability, but our farmers need leadership and advice to devise new markets and new methods of production. Above all, farmers need leadership and I am not at all happy about the way this is being provided.

In his address yesterday the Minister gave the House and the country a factual appraisal of our premier industry. It was pleasing to learn that the industry is exceptionally healthy and that progress can be reported in all fields of agricultural activity. The Minister deserves a great deal of credit for this position and so do the Government. I am aware of the many visits the Minister has been paying to EEC centres to discuss different aspects of our agricultural industry. As a result, many improvements have been made in agriculture generally. In saying that, I must include the departmental advisers because they give the Minister great help, particularly on technical details.

Consequently, the picture today is most favourable. It is only right to make that statement because if it were otherwise, as it was in the latter part of 1974 and early 1975 when cattle prices were not as good as we would have liked them to be, the Minister would get a great deal of stick from the Opposition, as if he alone were responsible. I have no doubt that the proximity of the by-elections is responsible for the absence of some Deputies but neither have I any doubt that the absence of Deputies from the Opposition benches indicates that they have no meat to chew on this Estimate.

I do not see many Deputies over there.

During the life-time of the Government, the Opposition have been destructively critical of agriculture and this has contributed to unfavourable reactions in some important sectors, such as the pig trade. The memorandum submitted to Deputies yesterday is a most constructive document which indicates comprehensively the activities of the Department. It will be of immense help to Members and to outside organisations interested in farm development. It would be an advantage to have copies of the memorandum in the hands of every farmer and every other person interested in farm development.

It is heartening to read in the first page of the document the advance made in our agricultural exports. In 1975 they were increased to £596.2 million, from £393.4 million in 1974, a very marked increase which carries with it increased farm incomes. The figure means that farm incomes have increased far beyond the inflationary trend that operates. The dairy industry is probably the most important in the development of our agriculture and we see from this document that marked improvements have been made in it. In 1975 the average price paid to milk suppliers was 30½p per per gallon as against 23.8p in the preceding year. The quantity of milk delivered to creameries last year was 628.8 million gallons as against 575.3 million gallons in 1974. Last year the value of milk delivered to creameries totalled £190.69 million as against £135.54 million in 1974, another marked increase which must have had a significant impact on dairy farming and in the homes of dairy farmers throughout the country.

In the beef and live cattle trades the picture is similar. Trade was exceptionally good and we are all very pleased with it. A lot was said in the course of the debate about cattle numbers, that as a result of the Government's policy there is a serious decline in cattle numbers. The facts do not bear out that assertion. We see in the memorandum that the total cattle population here in 1965 was 5.359 million, in 1970 it was 5.957 million, in 1973 it was 6.370 million, in 1974 it was 7.214 million and in 1975 it was 6.927 million. No one could say that that is a serious decline. The number in 1974 was much higher than average by virtue of the state of the market, particularly the export market, in that year when prices were at a low ebb and producers were not anxious to dispose of their cattle. That decline ended in early 1975 and naturally there was a rush of sales. That was only to be expected.

We must examine and give some thought to why this position came about in 1974. My view is that the restrictions imposed on the sale of young cattle, calves and weanlings in 1973 were ill-advised. I am aware that all the farming organisations and the Opposition were vehement in their opposition to the sale of our young stock. I gleaned from Deputy O'Connor's remarks today that he is also against the sale of young cattle.

What is the reality of the situation? A farmer has so many cattle but requires some money and therefore he must sell some. He is the best judge as to the type of animal which it would be in his best interest to sell. Whether he opts to sell a yearling, a two-year-old, a dairy cow or a young calf to get the required money, is his own business. While we may, through our advisory services, advise him on what we think best, the ultimate decision must rest with him.

Undoubtedly, the 1973 restriction gave rise to the glut of 1974, and was responsible for the peculiar state of the market and the difficulties our farmers had providing fodder for cattle in the winter of 1974. At present we export calves in accordance with our EEC commitment. Neither the Department nor the State have any right to intervene. It is to our advantage that we have this export market for calves. The price this year was quite good. Were it not for this export market, the figures for calves would have been far less than those which obtained in the calf selling season just passed.

Some Deputies in 1974 and in the early part of 1975, commented on the fact that Irish buyers were not able to compete with foreigners purchasing our livestock. What was wrong with that? If they could not afford to buy them, let the outsiders buy them. If our fatteners in the midlands were in favour of keeping calves and weanlings here, the way to do that was to compete on favourable terms with the outsiders. As they were unable to do that, I do not see why a farmer should be asked to sell at a price which is far less than he would get under free competition.

Cattle prices are of exceptional importance. While I agree that it would be more advisable to try to keep our young cattle at home, fatten them, process them here, thus giving employment in our meat factories, and sell them in their processed state, that cannot be done in all cases. Our processed cattle numbers are quite significant. It is pleasing to all that those numbers are still improving.

The dairy man can look with thanks and appreciation to the Department and the Government—and particularly the Minister—for their handling of this industry since 1973. The prophesies which emanated from the Opposition benches in late 1973, all of 1974 and part of 1975, have not been fulfilled. It is fortunate that the position is so. I hate to say it but I detected a gleeful atmosphere in the Opposition benches during the 1974 period. Whether on the Government side or on the Opposition benches every Member should be only too pleased to see that our major industry is progressing.

The sheep trade as outlined in the Minister's statement is progressing quite well. Whatever difficulties arise where the EEC are concerned, the Minister is making every possible effort to ensure that these obstacles will be removed or at least minimised. Anyone who reads the paragraph in this memorandum dealing with sheep will be satisfied that a good job has been done by the Department. Sheep farmers need have no worries. Their interests are being looked after carefully and diligently. Pigs are another important money maker on the farm. The number of pigs has increased. The figure stood at 880,200 in December, 1975, which was an increase of almost 100,000 on December, 1974. Breeding sows have increased from 88.7 thousand to 100.9 thousand in the period December, 1974 to December, 1975. During discussions on the pig industry on several occasions in the past few years gloomy pictures were painted by some members of the Opposition who said that the pig trade had declined so much that it would not be too long before it was wiped out. Fortunately, these prophecies have not been fulfilled.

The pig trade, as the figures indicate, is looking quite bright at present. While big combines, co-operatives and so on, can be very helpful so far as regularity in the flow of pigs to factories is concerned and in keeping pig numbers at a reasonably high level is concerned I am rather worried about people who produce pigs in small numbers to help supplement their incomes. That sort of piggery is certainly on the decline and the Department will say and the experts will say that it is not economic now to keep pigs in small numbers. Small numbers could be defined as a man keeping two, three or four sows and fattening 25 to 40 pigs at a time. It is a pity because I would like to see our pig industry spread out to a wider number of people. I would like to see the position that used to obtain, when prices and profits were not as good as at present from piggery earnings, where you would have a share of pigs on all our farms. In Cork in the not-too-distant past there were pigs on almost every farm. That position does not obtain now and it may not come back.

Grants under the farm modernisation scheme are reasonably generous but the standard set and the capital required by small farmers to avail of them are too high. It is very difficult for small people to get the credit necessary in order to build piggeries or other farm buildings. It is all right to tell us what the Agricultural Credit Corporation are doing and how generous they are in lending money. Whatever kind of yardstick they apply for measuring the credit worthiness of an applicant is, in my opinion, applied rather rigidly and small farmers who badly need money for development are turned down. That is not an infrequent occurrence. We read about the money that annually they pass on to so many farmers throughout the country but I maintain that in some of these cases the applicants could get the money from other sources if they were so pressed. I maintain that the principal job of State agencies, such as the Agricultural Credit Corporation, should be to help the smaller people to develop their holdings by providing money towards the purchase of farm machinery, farm buildings, cattle, or land development. From my experience, the Agricultural Credit Corporation are too rigid in their attitude in so far as determining applications from the small farmers. I have no hesitation in making that statement.

The position in relation to poultry and eggs is that poultry have disappeared from the farmyard. Whilst the picture is quite bright, as set down in the memorandum, the number of people engaged in the industry is far less than it used to be. I remember when in my part of the country the income from poultry could amount to 30 per cent of the income of small and medium size holders. Putting them back into the farmyard is something which is not likely to happen. Taking cattle, pigs, sheep and poultry together, it is pleasing to note that prices obtaining are quite good at present and, more important, the prospects for the future are exceptionally bright.

The next item I should like to deal with is the fact that £25 million of the sum for which we are seeking approval is to be devoted to consumer subsidies on milk and butter. We have had consumer subsidies operating in different periods in the past. We all appreciate that agricultural commodities, essential commodities such as milk and butter, are rather costly to the housewife in the city and town. Personally I was never in love with subsidies, and I have not changed my mind. The subsidies which seem to have the general approval of the House, and for which the Opposition were clamouring over a long period, undoubtedly help a percentage of the people. It would be very hard to determine the percentage who are hard pressed to buy commodities such as milk or butter.

To a large section of our population, subsidies do not make much difference. Those who have reasonable incomes could afford to buy those commodities without subsidies. A case has been made that, because of the subsidies, more milk and butter are consumed. I do not know whether that is so. If this system were not in operation, and if we had this £25 million at our disposal, which is a sizeable sum of money, we would be able to help people who need help to buy those commodities, and the balance of the money could be utilised in a more gainful way. In making that statement I am expressing my own personal view. Several people in my own party would disagree with it. I have taken particular note of this matter down through the years and I have come to the conclusion that subsidising milk and butter for people with large incomes is not too wise, to put it mildly.

The moneys expended under different headings by the Department, as outlined in the Minister's statement, are sizeable. The net provision for the farm modernisation scheme, including the scheme which the EEC scheme supersedes, is more than £13 million. Of this sum, over £6 million is included for the lime and fertiliser subsidy, as compared with an expenditure of £4.4 million in 1974. There is an impression abroad that the farm modernisation scheme is financed mainly from EEC funds. Many people, even those not engaged in agriculture, believe most of the money for this scheme comes from European funds, and that we should be more generous in our determination of applications, and so on, because we are spending someone else's money. Of course, that is not so.

As an indication of the factual position, the total money paid for this scheme in 1975 was £3.4 million, and we expect to be recouped from EEC funds. Under the farm modernisation scheme the EEC pays 10 per cent and 90 per cent is the Irish taxpayers' money. It is no harm to mention that fact in view of the erroneous impression which has been created in some areas about the origin of the funds expended under this scheme.

The Minister announced the provision of £17.5 million, an extra £1 million, for cattle headage schemes in the coming year. This is a sizeable sum which is being paid to the severely disadvantaged areas. There is an increase in the maximum figure of from £300 to £348. Undoubtedly this kind of payment is beneficial to farmers in the severely handicapped districts. It is confined to the severely handicapped districts and those outside those areas feel rather annoyed that their areas are excluded.

It is very difficult to define borders having regard both to the criteria laid down by the Commission and to the availability of money for the payments of grants. Last year the Irish taxpayer had to pay 75 per cent of the amount necessary but this year that is reduced to 65 per cent. On a number of occasions the Minister has dealt in the House with the question of extending the severely-handicapped areas. Such an extension would be difficult and if all the claims made in this regard were to be conceded we would be in conflict, perhaps, with the EEC regulations governing this scheme. In addition, we would have to find the extra moneys to finance the scheme, a scheme which is very generous so far as the people in these areas are concerned. However, I have much sympathy with those living in severely-handicapped areas. Coming from one such area I am aware of the difficulties involved. Because of the indifferent nature of our climate and its low productivity, it is difficult for people in these areas to make a living. That is why they must have these Government aids. Another factor mitigating against these people is that it is common in such areas for the milk season to come to an end in October and it does not recommence until early May. Apart from the grants paid to these people the Government are paying out a good deal of money to them under the unemployment-assistance schemes. In these circumstances it can be said that farmers in the disadvantaged areas are being looked after very well by the Government.

I should hope that within the not-too-distant future a system will evolve whereby part-time farming will be recognised and that a man will be enabled to find some supplementary employment within his own area so as to supplement the income from his farm. It would be my wish that the moneys being devoted now to payments under the social assistance schemes would be channelled to supplementing any fund for the provision of such part-time work because farmers, whether young or not so young, would prefer to be able to supplement their incomes by part-time work rather than to have to avail of the system that operates now. However, until such time as this change can be brought about, we must continue to operate as at present.

I am a little concerned regarding the EEC directives in respect of the farm modernisation scheme whereby it is laid down that a man must derive 50 per cent of his income from farming and must devote 50 per cent of his time to that work in order to qualify for a grant within the terms of the scheme. That is all right in respect of those who are in good employment, professional people and others, but it is a different story so far as the small man is concerned, who may endeavour to get a few days' or a few weeks' work on some scheme. He is the type of person who should not be discriminated against in respect of the farm modernisation scheme. Our whole effort should be aimed at developing more industrial employment in the severely-handicapped areas. Initially this type of development might not be viable but in the long term it would be a much better proposition than the paying of social assistance which, while of much benefit to those who receive it, has no return value.

Regarding disease eradication the provision in respect of TB and brucellosis is £17.8 million or £7 million more than the 1975 figure. We are all disappointed with the rate of progress in this field. The cost of disease is alarmingly high in relation to agriculture. It would be very difficult to put a figure on it. Before there was any question of a dispute with the veterinary profession I said here during debates on previous Estimates that progress in disease eradication, particularly in regard to TB, was unsatisfactory. Millions of pounds have been spent on this programme but I do not think we got value for it. However, I hope that when testing is resumed we will be more watchful so as to ensure that we get value for our money. People are puzzled that, although this disease is declared eradicated, it manifests itself again. This is a matter which should interest everybody concerned so as to ensure that it will not be necessary for this type of eradication scheme to continue for ever. It is a worrying factor.

I have made my views known in this House on the present strike. There is no need for me to repeat them except to say that the proposals submitted by the Minister are exceptionally generous. We have another problem which applies to other activities as well as to agriculture. We now have people with expertise in a particular field claiming that unless their demands are met they are going to stop work. Of course, this is not at all unusual at present. I do not believe we can survive that kind of pressure. The State has only a certain amount of money. The Minister for Finance has the difficult and thankless task of trying to get money to meet our requirements. We have demands for increased public services as well as demands for reduced taxation.

There are courts and tribunals to determine private disputes. We should have some kind of tribunal to determine the disputes which arise so frequently all over the country. All sections of the community are pressing claims for a bigger slice of the cake than they are getting at present. If one section got more than their entitlement the other sections would have to take a smaller share.

We must be more watchful about disease eradication including sheep scab. It is the business of the Government to ensure a return for the money that is expended on disease eradication schemes. I mentioned at the outset that agriculture was doing well at present. From our point of view, the co-operative movement is making a significant contribution to the economy. Yesterday Deputy Gibbons was critical of the co-operative movement. If the co-operatives are as bad as Deputy Gibbons says they are, they should be restructured. A case has been made that this Government are trying to undermine the co-operative movement by taxing it unjustly. Nothing could be further from the truth. The Government are fully behind the co-operative movement and it is our business to ensure that all co-operatives work efficiently.

If Deputy Gibbons' statement is taken at face value, it would seem that co-operatives are not efficient. The aid given to co-operatives by this Government should not be overlooked. Since we came into office in March, 1973, the IDA have paid £6.9 million to co-operatives for development purposes. Therefore, far from trying to undermine the co-operative movement, the Government have shown their faith in the movement by the generous funds they have given for development. The co-operative movement appreciate the Government and know that we are favourably disposed towards co-operation for the benefit of all. Some people are trying to make trouble by making statements which do not bear scrutiny and which are not factual in regard to the measures in the Finance Act. Some people think that co-operatives should not be taxed. The co-ops are getting all the advice that can be given. The Department are always ready to discuss their problems with them. Any moneys to be collected from the co-ops will be ploughed back into them threefold. It is not a question of collecting this money into the Exchequer and not putting anything back into the co-op movement.

It is pleasing to the Department, and to the Minister particularly, that the hard work of the Department is bearing fruit and that all farmers, big and small, are doing reasonably well. I hope now that part of their increased income will be passed on to their employees. Farm workers are becoming smaller in number due to the introduction of farm mechanisation and I should like that those of them who are left will be treated fairly, on a par with their industrial counterparts.

The last few sentences of the Parliamentary Secretary's speech gave us an indication of the new strategy being employed by the Government in relation to the many disputes there are at the moment. When he spoke about the situation in regard to the co-ops he said that some people were stirring up trouble, that their statements did not bear scrutiny, that they were not factual. That is their strategy in relation to most of the disputes there are at the moment—that certain individuals are stirring up trouble, that their statements are not factual. In other words, everyone is out of step except the Government. If the Government had listened to some of the things that are being said by people outside Fianna Fáil, people who are just worried about day to day affairs, the Government would not have got themselves into the fix they are in.

There is in the country grave concern at the taxation imposed on the co-op movement and I feel that this, above all times, is the wrong time to do it. It is the time when trade unions throughout the country are crying out for extra employment, and the co-ops could provide the base on which such employment could be built, if they were encouraged. The Parliamentary Secretary made great play of the £6.9 million that has been given to the co-op movement. The IDA could give that amount to one industrial firm by way of grant. A lot more could be and should be done for the co-op movement to encourage their members to continue the vast expansion they have been doing in recent times. It is significant that another co-op have gone in Waterford.

Although I did not hear the speech of Deputy James Gibbons and I am not, therefore, in a position to agree or disagree with the Parliamentary Secretary's thinking on it, I have heard Deputy Gibbons many times talking about the co-op movement and I feel the Parliamentary Secretary has been rather hasty in suggesting that what the Deputy said was a complete and utter condemnation of the co-ops. What Deputy Gibbons would have said is that some of the co-ops need to have their management looked at. That could apply to any company. Some of the co-ops will definitely have to get their management structures looked at.

The Parliamentary Secretary and the Minister have given us a glowing picture of the state of agriculture. I agree that agriculture is not doing so badly, but if we take 1974 into consideration as a base, they would need to make ten times more because many of them lost heavily in 1974. Indeed some of them suffered losses from which they have not yet recovered.

The Minister is now in a position that he must work within constraints imposed by the CAP. He was given very lavish praise by the Parliamentary Secretary. I congratulate the Minister on doing his job but he was selected as Minister to do the job and we all expect him to do it. The Parliamentary Secretary prefaced his remarks by saying they were personal remarks. He gave as the reason for the slump in cattle prices the restriction imposed on the sale of young cattle in late 1973. He left out one reason—some might say a much more relevant reason—and that was the fact that there was a considerable importation of cattle through East Germany into the EEC from Poland. This was allowed to go on for some considerable time and the Minister for his own reasons, reasons of which we are not aware, did not see fit at the time to use the veto. He did not do that until, in my view and in the view of the farming organisations, it was much too late. That is the major reason why our cattle dropped to such a low price in 1974.

The disadvantaged areas scheme has just finished its first year of operation. It is highly significant that the vast percentage of the grants due in west Mayo were paid around November while a considerable number due in the section of the county I represent have not yet been paid.

I contradicted this emphatically but apparently what I said is not accepted by the Deputy.

Will the Minister listen? What I am going to say may ease his conscience a little. In fairness to the Minister, there would appear to be some minor fault in the case of the grants still outstanding. From my experience in checking it would appear the greatest difficulty at the moment is the fact that the herd number is in the name of another person. In many cases it is in the name of a deceased person, generally a husband. This should be a minor administrative difficulty and it is one that should be ironed out very quickly because a great many grants are still unpaid. They are due to people who need them. In many cases they were applied for by the widow of the deceased in whose name the herd number is. I would ask the Minister to discuss this with his advisers to see how this difficulty can be overcome. It is bound to recur every year.

There is a particular irritant where the beef cattle incentive scheme is concerned. An applicant is waiting for a cheque and, instead of a cheque, he gets a letter from the Department asking him what he is doing with the milk. This information should be obtained at the time of inspection. It is very frustrating to a person expecting money to get a letter looking for information that could so easily have been obtained at the time of inspection.

A matter the Parliamentary Secretary passed over very neatly was the considerable decrease in cow numbers. This is a matter of concern to all. It is imperative that our breeding herds are kept at the maximum level so that we will have sufficient good stock. One of the reasons we joined the EEC was so that this industry would prosper. There has been an almost 50 per cent increase in the export of live cattle. While we will always have this particular kind of export we should continue to encourage the export of carcase beef. This is very important from the point of view of employment.

It is somewhat discouraging at various jumping events around the Continent to hear Michael O'Hehir commenting on the fact that a successful Italian, German or British rider has won and that the horse was bred in Ireland. The grant to Bord na gCapall is £647,000. I think it is too small. I do not say this by way of criticism but rather with the hope that some scheme will be devised to keep our best horses at home so that, when they win, they will win for Ireland. There are not many Michael O'Hehirs around to let us know where particular horses are bred and this is the best advertisement we could have for the industry. Again, it is very hard to stop a person from selling a horse for which he is getting a good price and to ask him to sell it to the Irish Government or to anybody else for a lesser price. However, if we can expand the leasing scheme, we would then have the best of both worlds and would continue to hold the best horses for ourselves.

There has been considerable talk recently about the need to revise the farm modernisation scheme. I do not know the exact figure, but I think the number of development farmers in Mayo is only about 3 per cent. There is an immense number of very small farmers there whose living is solely from the land and who have to rely on social welfare payments to make up the difference between what they receive from their very small holdings and the income necessary to maintain them. I would ask the Minister a question on something which possibly would be more appropriately addressed to his colleague, the Minister for Lands, but which he has mentioned in his speech, and that is, in an area like Mayo where there is such a small percentage of development farmers, would a small farmer who is not a development farmer be entitled to obtain land from the Land Commission where a neighbour has given up land under the retirement scheme?

The answer is yes, if it made him viable.

That would be the problem because it would not make him viable; the holding would still be small and it is a question of trying to discover what would make a man viable. I would ask the Minister—and I know he is sympathetic towards this —to take into account the anxieties of the farming organisations and the committees of agriculture about the terms of the farm modernisation scheme. While I realise he will have to engage in very tough negotiations to get these terms modified, I would beseech him to co-operate with and to co-ordinate the fight that these organisations will be putting up to get the terms of this scheme more suited to areas such as I represent.

I will refer briefly to the veterinary dispute. This has taken up a considerable amount of the Minister's time and he has tried very hard to find a solution. I would ask him to keep all channels open and not to make any pre-conditions about future talks with the vets, because this dispute will strike at the very heart of our economy unless a settlement is reached in the very near future. We have only 18 months left to become TB free, and it would be a tragedy if, because of a lack of effort on anybody's part, our best asset went by default.

I am sorry the Parliamentary Secretary has left, because he said he was not satisfied that the best value had been got from the money spent on eradication up to now. It is not enough to say that. He should spell out exactly why he feels this was so. He may have been expressing a personal opinion; if so I accept that, but if that opinion is helped by any records or any dealings he might have had with the Department, then the country should know in what way the Department feel they have not got value for the money spent. I do not think statements like that will help in any way to settle this dispute. I would ask the Minister to continue the efforts I know he has made in the interest not only of the agricultural industry but of the economy as a whole.

I had what was to me a most distressing experience five or six weeks ago. It involves a case in which I have been in touch with the Minister and in which, unfortunately, he said he was unable to help. A man told me that 15 years of hard, painstaking work had been wiped out in a short period of three months by brucellosis. This man had always reared his own replacements and, as he said himself, foolishly he bought one animal, and the result is that his whole herd, built up over a lifetime, is now wiped out. Apart from all the long years of work, the maximum he can get—and I stress the maximum—for a replacement is only £200. This is happening at a time when in Ballina mart animals somewhat similar are fetching between £300 and £400. I know there are constraints on finance but I would ask the Minister to raise this figure if at all possible. In a letter in 1974 he said it was a considerable figure but I should like to stress that the maximum was £200 and that price was paid in very few cases. I could not see any inspector in 1974 allowing the maximum figure for replacements. The reality of the situation is that very few farmers will be able to replace stock taken from them unless the figure is raised considerably. I should not like to find myself in similar circumstances again because the sympathy I could offer was of very little use to the person and it was a poor substitute for the ending of a lifetime's work.

Perhaps the Minister might comment on the idea prevalent that animals who have aborted should not be taken off the land on the principle that when new animals are brought in they can pick up the germ that is still on the land much easier than the other cattle. It appears that every second year cows will calve normally and the idea is growing that the animals should not be taken. I admit I have no expertise in farming but personally I do not think this idea should be allowed to grow. I have seen the effects of brucellosis on human beings and they are not very nice.

In his speech the Minister mentioned a matter that is the cause of some concern, namely, the possibility —and one can only stress possibility —of rabies coming to this country. With the Minister, I should like to congratulate the officer from his Department who spoke on the radio this morning regarding this problem. He dealt with the matter in a factual way and he described the dangers that can arise from carelessness. I should like to stress to people who may be going abroad on holiday not to take their pets with them. It is much better to be without a pet for a fortnight than to be without a child for the rest of the parents' lives. I saw the BBC programme that was mentioned this morning and if it were shown on RTE it might go a long way towards discouraging people who have the attitude that such a disaster could only happen to somebody else. The anguish of the mother in the film would do much more if it were shown on RTE than anything I or anyone else might say on the subject.

Not long ago I saw a pound of butter that was packaged in Northern Ireland but on the label were the words "Produce of the Republic of Ireland". If the label was correct that butter was exported from here to be sold at a lower price in the North and it could come back into the Republic under the EEC rules at a price considerably less than what a person would pay for it here. Frankly, I cannot see any way that this can be ended but it seems foolish that we can export butter at a price considerably less than what we pay in our shops and people near the Border can cross into the North of Ireland and buy 30 or 40 pounds of such butter. When this happens our own butter is left on the shelves of the shops and supermarkets.

In his speech the Parliamentary Secretary made great play of the food subsidies. He mentioned a figure of £25 million. He qualified this by saying that it was his personal opinion but he felt the money could be put to better use although he was unable to quantify the percentage of people who would benefit. The women who were in the public gallery some weeks ago would be able to tell him how hard pressed they are. This subsidy is badly needed. I hope the view expressed by the Parliamentary Secretary is a personal one and that he was not engaging in kite flying to test reaction.

Some time ago I referred to the farm modernisation scheme and the efforts being made in the west to modify it somewhat. If it was modified on the basis of the small farm incentive bonus scheme it would be more beneficial to the majority of farmers in my area. Those farmers have proved that once they have specific set targets to meet they are able to make progress. They proved this while operating under that scheme. In this regard I should like to mention that the instructors of the various county committees of agriculture did excellent work. I should like to congratulate the instructors of the Mayo County Committee of Agriculture on their work, example and encouragement in operating this scheme.

The Minister mentioned winter farm schools. Such schools have been operating in Mayo for many years. In referring to the various matters dealt with by the Minister the Parliamentary Secretary passed quickly from sheep. That did not surprise me because the sheep population has gone down drastically in recent years. The number of sheep has reduced from 4,260,400 to 3,796,000. I am aware of the efforts being made by the Minister to improve this position and I should like to see him redoubling his efforts to ensure that sheep farmers get a fair crack of the whip and that this trend is arrested.

The Parliamentary Secretary devoted a lot of time to the pig industry. While he did not give us the sheep figures, he quoted the figures for pigs. He told us that the number of pigs has increased but he did not go further and tell us that the number of pigs slaughtered in 1975 was less than the number slaughtered in 1974, and less than the figure for 1973. The document circulated by the Minister to Members stated:

The reduction in pig slaughtering in 1975 was brought about by the high level of sow slaughterings in 1974 which in turn was caused by the severe difficulties then being experienced by the industry, i.e. high feed costs and adverse market conditions on our main export market, Britain. However, as indicated above, the national pig herd is now being rebuilt.

I hope the lesson learned from this will be taken into account and that we will not in the future hear the Minister using the word "sows" instead of "pigs". One of the difficulties of the pig producer is the peak and valley periods. This has affected the small producers. Too many of them got their fingers burned and would be reluctant to go back into this business. Many pig farmers in my area have the buildings but they feel that the rewards are not worth the risks involved. If the Minister encourages such people to return to pig producing, he will have done a good day's work. The Parliamentary Secretary spoke about a farmer having one or two sows but I do not think we will ever return to that day again.

There seems to be a difference of opinion on the method under which grants are paid. The Minister said they were being paid as a flat percentage of the cost but I should like to know if it is the estimated or actual cost, as certified by receipts, that is involved. I have had a number of complaints from constituents that, even though they produced receipts to inspectors stating that the cost of materials and labour came to a certain amount, they got considerably less than they felt they should get.

The Parliamentary Secretary spoke of off-farm employment and hoped there would be a considerable amount of it in the not-too-distant future. He was repeating what my colleague, Deputy Seán Flanagan, said as Minister for Lands many years ago. This is something we should all like to see because it would be a tremendous benefit to the industry in that the farmer would not have to wait for money; he would have ready cash coming in weekly and would be able to put more into his farm.

My complaint about the Minister's speech is that it was a general report on the past year, almost like a report to a board on the activities of the year. It also gave the expenditure it is hoped to meet in the coming year but it set no standard or goal towards which the industry should direct itself. There was an absence of any definite target, no real indication as to where this major industry is going. This is not good enough in times like these and this is what has been responsible for the peak and valley periods we have had in the industry, responsible also for the lack of confidence in the industry every so often and the overconfidence at other times when people jump on what appears to be a bandwagon to produce what appears to be a worthwhile commodity and by so doing create a glut. This managing director's report, as we might describe it, reflects the situation of our major industry, which needs leadership and a goal. It needs a complete development plan; it has the potential, the raw material and the techniques and it is still, and will be for a considerable time to come, our most important industry.

I congratulate the Minister on the manner in which this document "Main Activities of the Department" has been produced and it is rather a pity that it should not be more widely circulated. The debate on this Estimate each year is one of the most important we have in this House. We know the importance of agriculture to the economy. Development of the agricultural sector offers the best hope of economic growth. I say this because of its contribution to employment, incomes and exports. About 40 per cent of the work force depend on agriculture and 25 per cent are indirectly employed in farming, so that really agriculture is the dominant export industry accounting for about 40 per cent of our total exports and therefore must have a great bearing on the economy.

The gain from agricultural exports is considerable because of the low import content. An example is the direct and indirect import content of livestock which is less than 10 per cent. The ratio for manufactured exports is more than 40 per cent and sometimes as much as 70 per cent.

When we joined the EEC the benefits to agriculture were foremost in mind. We expected incentives that would result in greater growth in agricultural output in real terms. But, unfortunately, the growth rate now in the 1970's is little, if any better than in the 1960's. This is a pity because agriculture has the potential to double the present output and it is important that we should move in that direction. One wonders what can be done to increase output. The amount of land under grass is about 90 per cent, so that any real growth we would be likely to see must come from the livestock sector.

In this regard it is disturbing to see the export of calves from this country. It is a good thing to have an export market. The Minister on the question of exported calves mentioned that under Community rules the Government had no authority to restrict this. The price being paid at the moment by the Italians for our calves is in the region of £40 per head. It would be more to our farmers' advantage, in view of the good prospects for beef, if they were to hold these calves themselves because, apart from the likely profitability for the farmers concerned, we should consider the difference between exporting these calves now at £40 per head and exporting them in two to two-and-a-half years' time when they could possibly be worth something in the region of £300. The beef processing plants here need all the animals they can get, and indeed these plants have made a considerable investment in increased capacity in 1975. Therefore, the more calves we export now the less fat cattle we will have for the factories in two years. This, of course, would mean increases in processing costs and it would reduce the employment opportunities for our skilled labour, something that we would not want to happen in these rather difficult times.

While I refer to the question of calves, the 1974 cattle prices caused farmers to lose a certain amount of confidence in beef production. There is now a need to restore confidence in the profitability of beef production. We know that cattle numbers have fallen and they are not going to recover overnight, so to avoid the under-utilisation of the land, and also for economic reasons, there is every justification for increasing our tillage acreage. Indeed on a recent occasion some months ago when the Minister was in my constituency of Carlow with An Foras Talúntais he spoke very forcibly on this matter of increasing our tillage acreage.

With reference to the dairy industry, prospects are good and the benefits of increased milk production are numerous. Apart from the direct benefit to the dairy farmers themselves, the processing has made the greatest contribution to employment growth in the food sector. I say this because in recent years about 30 per cent of the total employed in food processing are working on milk products, and expansion in the region of 10 per cent per annum in milk production is a reasonable target. The reason I mention this expansion is that it means a big capital investment for our farmers. Naturally they must borrow large amounts of money for any major development programme which they may undertake. I would like to see the option given to those concerned of repayments over a period of, say, up to 20 years. Certainly, there needs to be more flexibility regarding terms and conditions of loans in those circumstances where such a large amount of money is involved.

The Minister in his speech mentioned a figure of over £6 million for lime and fertiliser subsidies. I would be seriously concerned that there was importation during this present year of a number of inferior quality fertilisers which were sold to, I suppose the word we should use is unsuspecting farmers. I would suggest to the Minister that the Department of Agriculture and Fisheries should insist that on all imports of fertilisers coming into this country his Department should get one month's notice at least of the importation and that they should be given full details of the analysis of the products to be imported. Failing these regulations being complied with importers should not receive the fertiliser subsidy. Why should the Department of Agriculture and Fisheries subsidise inferior fertilisers for use by our farmers especially when one realises that some of these fertilisers cost in the region of £100 per ton? Surely our farmers are entitled to be supplied with nothing but the best? It is with that in mind that I draw the Minister's attention to that fact.

Coming from a sugar beet growing constituency—the sugar factory being located in my own town—one feels the Minister should be congratulated on his efforts in that respect during the past three years. During 1974 the Minister secured an increased basic sugar quota of 182.000 metric tons for the period 1975-76 to 1979-80. That compared with 150,000 metric tons previously. I know there was a fall in our beet acreage in 1974 but that has now been rectified and the prices being paid for beet are rising substantially. The minimum price per ton back in 1973 was £7.49. This year it is £15.49, an increase of 107 per cent. That is the type of progress needed, with our farmers getting reasonably profitable returns for their efforts.

The efforts of the Minister on behalf of our farmers, in Brussels and elsewhere, since he assumed office have been widely acclaimed. Great credit is due to him for the manner in which he is carrying out his duties at home and abroad. He is recognised as a fighter for our farmers' rights and I believe our farmers and people recognise him as such.

The question of the veterinary dispute was mentioned earlier. I know the Minister is doing all he can in this respect, and I am sure will continue to do so. It would be a pity if this matter could not be resolved at an early date in the interests of all concerned and of the economy at large.

The previous speaker mentioned the question of rabies. I listened with interest to an officer of the Department of Agriculture and Fisheries this morning. While his comments were very enlightening, it was horrifying to think what can happen as a result of this disease. I know that every precaution will be taken by the Minister and his officers to ensure that we are kept free from this horrible disease and the dangers of people bringing in pets will be publicised.

The Minister and the officials of his Department are doing a fine job. I could not let this occasion pass without placing on record my appreciation of the courtesy and help I have received from them over the years whether it be in Dublin or at local level. They are well known for their civility and assistance. As long as we have people like that, the Department cannot fail to bring the sector with which it deals, agriculture, to greater things in the future and I believe there is a great future for our farmers.

Reading the Minister's address to the House one must feel that he has been lucky that the past year has been such a good one for the agricultural industry. Indeed that is as it should be if our country is to continue to prosper. The Minister's statement was a long one but what attracted me most were his comments to the effect that, for the first time since we joined the EEC, the agricultural industry has become market-orientated and that in this situation a farmer's decisions as to whether to undertake extra drainage, increase his stock, change his marketing system or otherwise intensify his activities will depend on the price he gets on the market place. While that is absolutely true, to my mind it is not sufficient; it is not laying the emphasis in the proper place. I am restating the obvious when I say that the sale of an article is the most important factor. Probably that is more important than the price. In other words, if a farmer or anybody else finds himself at the end of his productive line with an attractive price but unable to get rid of his product, then there is no incentive for him to continue his activities.

When we were advocating our entry into the Common Market we were led to believe—and indeed we led others to believe—that, once we were in, there would be an endless market for our agricultural produce. I recall a very well-informed member of the agricultural hierarchy indicating that there would be a very considerable beef deficit over the next few years. I saw this as an end to the problem of the farmers in my constituency. I felt this would be the incentive that the farmers needed down the years, that they would be able to break with the British market and whatever they produced would find an outlet at a guaranteed price. However, this did not prove to be correct. It is true to say, irrespective of what remarks are made from time to time about farmers, that if they get the return for the work they do at least 90 per cent of them will produce the goods.

When we entered the Common Market we found that the market we believed would exist, and which we suggested to the public, was not there. We found that at times imports were allowed into the EEC. This is understandable if agricultural products were scarce in the EEC and prices were rising and going above target prices. This is not the whole story. As I understand it, the situation is that in the negotiations on the other side for industry and markets of all kinds the agricultural industry is also used as a bargaining point. It has happened that we had to allow agricultural produce into the EEC in return for getting out manufactured goods, which seems reasonable enough. About 12 months ago we had to give something on the agricultural side so that we could import uranium from Australia. I tried to focus some attention on that at the time but I did not succeed in getting anything done.

Other speakers have pointed out that the Minister has a difficult time in the negotiations in Brussels. I have to accept that this is the situation. I feel it is important, therefore, in a debate like this that Deputy Carter and I as well as other Deputies who represent rural communities should come into the House and indicate definitely what we believe is to the advantage of our constituents. When the Minister is negotiating he would then be able to say to the people on the opposite side of the table "That is all right, but I have 100,000 people at home who want something different. If I do not ensure this for them I am not representing their wishes". In this way the Minister will strengthen his position. I suppose one answer to this is a gradual erosion of the situation to our advantage so that the market for agricultural produce and particularly the beef produce of the EEC will not be open to any outsider until such time as it is obvious we cannot supply the market ourselves. I believe it will be a long time before that happens.

The farmers should be able to receive a guarantee that everything they produce will be sold for an adequate price. I can probably be told that the intervention system guarantees that whatever is produced will be taken up. This is true but it does not solve the problem I am putting before the Minister. It has happened that the producer did not get adequate compensation for what he produced. The intervention system is there but our experience of it is that when there was a glut of meat in the country it was anything but satisfactory and edifying. At that time the middleman made huge profits but producers made no profits whatsoever. I urge the Minister to ensure that this will never occur again.

We are aware that the Minister has some inter-departmental committee sitting trying to find a solution to this problem. I regret he had nothing to say about it in his statement in the House yesterday. We were assured some time ago that a report would be brought in soon. I hope the result of this report will ensure that, if ever such a situation arises again, the producer will be the first person to get his just reward for the work he has done and for the produce he has produced from his land and that the middleman will be the last to get his cut out of it. I believe that if this situation is brought about the farmers will do what the Minister and any understanding person believes they will do, that is, produce an ample supply of food at an acceptable price and continue to do so.

It is not the ideal thing to come into the House and say that the price of beef or the price of anything else has been increased over that of 12 months ago. The ideal thing to say is: "You will get a reasonable price for whatever you produce." I believe the more reasonable the price the higher the consumption of the product will be. Beef is one of the products which suffers as a result of increase in price because consumption falls. If the price for beef remains stable and does not increase excessively more people will eat it. Figures published recently indicate that the Irish people are the lowest beef eaters in the EEC.

I believe the nub of the agricultural policy as it affects Irish farmers is that the EEC markets, irrespective of what the other pressures are, should be kept for the agricultural community of the EEC. Industrialists may think otherwise, but then farming is so totally different from industry that it should be treated in a special manner. I believe this is the most important message for Deputies to convey to any Minister.

The Minister indicated that Ministers inquiring into the agricultural policy made certain observations about it. The agricultural policy of the EEC has given some security and stability. The Ministers agreed that there were regional imbalances throughout Europe which must be corrected. The headage payments probably go some way towards doing this. The mountain sheep scheme also helps, but I believe much more needs to be done. The area in which I live, the Drumlin belt, which comprises Leitrim, Sligo, the bottom of north Roscommon and part of Mayo, is naturally deprived because its soil is not as good as that of a large part of the country. This is very obvious. When one moves around the country and one sees the differences, economically and population-wise between parts of the country, one must eventually come down to the fact that it is due primarily to the land and the situation of the people who have been living on it for the last few hundred years.

It has been pointed out to me that something more could be done for those soils by suggesting a different type of winter farming and by providing more coverage for housing of one kind or another. From time to time I have suggested specific schemes for this purpose but got no encouragement even though, I understand, it is done in other places. When one sees the way these lands are cut up and rutted as a result of poaching, even a person with the least knowledge of farming must realise that the obvious thing to do would be to get the stock off the land and on to a more sheltered surface. This would preserve the land for better use in the spring and summer.

This is another way the Department could help rectify the regional imbalance that exists in my constituency. One hopes money will be made available for this purpose. In the past it was believed that much could be done by draining the land. It has been proved that drainage does not achieve the optimum amount one would like. When the technicians are agreed on this, there is an obvious compulsion on the Minister and the Department to think of something else and do it, thus making a further contribution towards correcting this imbalance.

Part of our county, especially south Roscommon, the flooded area of Clonown, have been left out of the headage grant scheme. To my mind this was an obvious area for inclusion. Reasons why it was not included were given; they seemed to be mostly financial. One hopes they will be included this year. Previous speakers referred to the delays in paying the grants. My experience is more or less the same; people did not get them for one reason or another, due to documentation or a change of herd owner.

Over the past 12 months there was one aspect of this problem which I felt was heartbreaking to some people, not very many fortunately. Some people sent in their applications to be included in the headage grants but their applications did not arrive in the Department at all, or arrived late. It is very hard luck that a person whose application arrives a day or two late should be deprived of a grant. It may be too strong to say it is unjust, but it is bordering on the unjust.

We have been told that there must be a final date for such schemes. That is acceptable. For this reason I believe there is an obligation on the Department of Agriculture and Fisheries, and any other Departments that provide a final date for their schemes, to ensure that applicants are aware of those final dates. Written into the application form should be something to the effect that they should get a certificate of posting when they post their documents. This would take the blame off the Department and the people who make the applications. The Department at that point would be able to say that that was a genuine application which had been lost in the post, and they could make some provision to deal with its acceptance. There is a tendency to assume that applications that do not arrive at the Department were not sent in in time or that they were forgotten about. That works the other way too. Yesterday I pointed out to the Department of Agriculture and Fisheries that a grant they sent out last March has not yet arrived.

Every citizen must find sometimes that letters do not arrive at all or arrive late. Fortunately there are not many people involved in this. Because there are so few, and because there are some genuine applicants among them, in my view the Department should have another look at this and ensure that people will not be deprived of something to which they are justly entitled.

With the advance of the dairying side of agriculture, it is surprising to find that the production of condensed milk seems to have ceased as a dairying activity. My attention was drawn to this by a very alert constituent. The figures and subsequent information elicited indicates that his information and observations were true. It is extraordinary to find that this activity has ceased at a time when we are looking for outlets for milk and when we have to import condensed or evaporated milk. I am glad to see that, as a result of this man's activity and of questions, some efforts are being made to revive the industry and provide another outlet for milk.

The Minister indicated that he will seek an increase in the grants payable for sheep. I am told this is absolutely essential. If it is not done, the sheep industry will suffer another decline. The Minister indicated that this has still to be negotiated with the EEC. It is well to put it on record that my constituents are interested in this subject. They have pointed out that not alone are the grants for selling the product not sufficient, but the grants for mountain fencing are not adequate. The cost of wire and posts has gone up. The cost for the use of machinery has also increased. They have suggested that here too increased grants must be made available. I hope the Minister will see his way to do that some time in the future.

We all regret that the dispute which the Minister has with the vets is continuing. It is hard to understand exactly what the difficulty is. Many people have made suggestions to settle it which have proved to be of no avail. At one stage the vets indicated that they were prepared to accept the lay testers on the basis that their clinical involvement would be greater. How exactly this involvement could arise is difficult to understand but I took it at the time that if a herd was found to have certain animals in it which were affected by brucellosis instead of waiting a period to decide whether to test the animals again a vet would walk amongst them and decide which animals were doing well and which animals were not, and that those animals which were not doing well would be tested. What contribution that would make to the reduction of brucellosis I do not know but looking at it from the medical point of view one would feel that it would make some reduction, whether the cost would be justified or not.

I recall the case of one herd owner who had an out farm, and when he was using his home farm he had no brucellosis but unfortunately he transferred his cows to his out farm and in his next test his cows had developed brucellosis. He was offered £200 but he did not want to part with them. I join with the others in asking the Minister to see to it that the price of those animals is increased, because if the farmer had to replace the animals it would cost much more than £200 and unfortunately there were three or four concerned.

There is a cost involved here for the State and one wonders is there any way an insurance company could be asked to interest itself in a scheme such as this, on the basis that a herd would not be offered for insurance until such time as it had been tested and proved to be disease free, and that it must continue to produce tests of disease freedom over a certain period of time, perhaps more frequently than is necessary for export, that the premium would be geared to take up the extra price over the £200 or £250, that the State would pay the basic £200 or £250 and that the insurance company would come in with half the remainder. In this way herd owners might be encouraged to insure their animals. Having heard this man's story I feel that the veterinary services should be organised in such a way that as soon as it came to their notice that this man's herd had become infected on the out farm they should be able to send out personnel who would investigate not alone his farm, but every farm around it, for the presence of brucellosis.

A more frequent story is that an animal was brought somewhere and was taken into the herd. Once such a case is revealed personnel should be ready to move out immediately and trace that animal not alone to his previous herd but to the stock with which he came in contact, perhaps being taken in a lorry or mixing in a mart. By doing this intensively and conscientiously over, say, a 12-month period I believe much could be done to break down the chain of brucellosis spread throughout the country. It would keep under observation people who are breaking the law and taking cattle from one place to another, thus helping to spread the disease. There has been an allegation that brucellosis is spread by badgers and foxes. This brings up the question of providing incentives to kill those animals. There is some incentive, perhaps it is not enough. Perhaps it should be increased within the area which is free from brucellosis.

It must be obvious to everyone that irrespective of how soon the Minister settles his problem with the vets it will be very hard to catch up with the backlog. The work that I am suggesting would involve lay people and it would involve vets. Perhaps in this way it would provide the vets with an incentive on the clinical side and they would be prepared to divest themselves of the more mechanical side of testing. Possibly the lay testers could do a preliminary test and the final test for export could be done by the vets. In this way the work could be divided. There would be more work for everyone. It would probably involve an increased cost to the State at the beginning but over a long period it would lead to a reduction in the cost to the State.

Another aspect of the farming problem is the fact that co-operatives are to be taxed in the next financial year. In the beginning one was of two minds about this, until one learned that even though they were free of tax on certain of their activities, they were not free of tax on other activities. Those were the activities in which they were competing with the local business people. On the agricultural side freedom of tax is a very important incentive and it is one that should be preserved. One would like to think that the Minister for Finance would change his mind about this next year. It is obviously in the long run a tax on those farmers whom it was never intended should be taxed when it was introduced first. But judging by the reports that are being made available all farmers will eventually be caught in the tax net. The co-operatives' profit, one would like to think, would find their way back into the pockets of the farmers.

Looking at some of the figures which have been produced in relation to farmers' costs, one must agree that this is necessary. The figures that were produced in January, 1975 indicate that in 1974 the percentage increase in farming costs was 37.8 per cent. This was a colossal increase. Last year they were down to about 20 per cent. Our figures are higher than other countries in the EEC which seem to be only about 10 per cent to 15 per cent or less. It is hard to understand why the costs to our farmers in 1974 should be 37.8 per cent. Were they so far behind in investment and development that they had to put in this increased cost to catch up with their colleagues on the Continent, or are there more middlemen in this country supplying goods to the farmers? Are the co-operatives not doing this? It is obvious that they should provide outlets and cheaper goods to the farmers for their production. I would like this theme to be developed and to have an answer to it. One would like to think that the co-operatives instead of recording profits would in fact plough some of those profits into the reduction of farming costs. If this were done the money would not be there to tax. Even if it were, it would escape the tax net in a justifiable way.

These are my observations on the Minister's statement introducing the Estimate for his Department. The Minister should ensure that, in future, so far as possible, the agricultural markets of the EEC are kept for the farmers of the EEC. This includes our own farmers. If at any time a difficulty in regard to prices arises again, he should ensure that the increase does not go to the middlemen but to the producer. The fact that cow numbers have fallen by 116,000 and overall cattle figures have fallen by 280,000 suggests there will be a scarcity in the coming year or two. If this is so, it will be quite reasonable to import extra meat to meet the demands in the EEC. Probably prices will then increase and we will have an increase in numbers in three or four years' time. Whoever is Minister then will have to be on his guard to ensure that, if the people are encouraged to produce extra, they will be amply rewarded for doing so.

This debate covers the activities of our largest State Department. The Minister's introductory speech and his notes dealing with the activities of the Department convey a good deal of information. We are always grateful for notes of this description. They help us to recall some of the points we want to make as representatives of rural areas.

I welcome whatever increases are taking place in general output. When one talks of exports, one immediately thinks of beef, milk, milk products, pigs, and so on. It is understandable that we should have an increase in exports at this stage. I hope that trend will continue. The ramifications of the Department are many. We must examine what can be done to provide better leadership. I am not saying the Minister is not providing all the leadership he can possibly provide but, since we entered Europe, there has been a tendency for the Minister to have to divide his time. This is a very serious aspect of organisation. The Minister has to give a great deal of his time to European affairs.

Ministers engaged in this type of activity should consider upgrading the status of their Parliamentary Secretaries, who have to attend in this House in the absence of their Ministers, to a standard which would ensure that the House would have as much confidence in the Parliamentary Secretaries as in the Ministers. I am not saying any Minister holding the portfolio of Agriculture and Fisheries will not be worked to the bone. He will, and beyond it. I have heard former Ministers say they would prefer to run any three Departments of State than the Department of Agriculture and Fisheries, even allowing for the fact that the Department have one of the best backups in Europe. I know this from my experience as a Deputy. We have a wonderful backup at central and local level in this Department. To make them more efficient and to provide better leadership, this whole aspect of the division of duties of Ministers should be considered.

We all know costs have risen greatly in the past few years. It is a regrettable fact that they will continue to rise as time goes on. Apparently, farmers have taken advantage of the package deal provided by the ACC late last year or early this year for a series of loans to farmers. The ACC had a target of £1 million in mind. It seems farmers have confidence in the future because they are looking for more than £1 million. I believe to date applications to the ACC have gone far above the £1 million mark.

The price of steel used in farm buildings is to go up. Apparently British Steel complained in commercial circles that their product was being sold too cheaply and have now decided to increase their prices. To avoid as much of the increase as possible, it would be a good thing if the technologists in the Department considered to what extent steel could be replaced in the construction of farm buildings. We have many other products. We have Cement Ltd. The Department's advisers should provide information to farmers on the type of material to be used in the erection of those buildings, since farmers have to go into debt to erect them and pay a fairly high amount of money to service the loan and so on. We must try to cut costs to the bone in the matter of farm buildings. As we all know we are underdeveloped, so to speak, in regard to farm buildings.

It is obvious that, even in respect of the smaller units, there must be a concentration on better housing if we want to preserve grass, to have earlier and later grass, better silage and so on. In some counties winter lasts for almost two-thirds of the year especially, as Deputy Hugh Gibbons said, in the drumlin soil areas where it is not possible to put cattle out to grass particularly in a year when there is a very wet winter and a very late spring. Therefore we should be able to plan our production in a way that would avoid the necessity of putting cattle to bad grass too early. Otherwise the cattle leech the soil so that it is not capable of producing further grass. This happened in the past especially in 1964 which was a bad year in relation to markets and so on. Regardless of whether moneys borrowed from the ACC are utilised for the improvement of grassland, for the enriching of land, for the development of housing or for the purchase of nitrogenous manures, we must keep an eye at all times on the question of cost, because the more we develop the greater will be the cost.

Deputy Gibbons referred, too, to the orientation of the farming mind towards markets rather than towards aids. We should all welcome this trend which involves many elements, but in this regard we have fallen down in the past in relation to the question of co-operativism. When one speaks of co-operativism in agriculture one thinks in terms of co-operation on a basis other than on a very narrow front. There is widespread opportunity for co-operation but now that we are in Europe we might be said to be almost late in this regard. However, now that this question has come to the forefront, let us consider the extension of the co-operativism we have. It might be said that, apart from dairying, co-operation in agriculture is non-existent, although in the west there are various extensions of the co-operative movement. These have been led by the Department and have proved to be very satisfactory in relation to the generation of money and the wise use of it.

To this extent this type of activity is to be welcomed, especially in the smaller farming areas. Speaking of the definitions "small" and "large" in relation to farmers it is my contention that we should talk about farmers generally, all of whom are contributing to the national product. Let us forget about trying to put one section of the community against another. We have farming organisations whose whole time is spent on this sort of argument and counter argument, but one should deplore those bogus organisations which purport to speak for farmers but sometimes misrepresent them. I am not speaking of the large and well-founded organisations such as the IFA, Macra na Feirme and the ICA. Rather, I am speaking of organisations set up for the purpose of misleading individuals. If farmers wish to join an organisation I advise them to join a national organisation, such as the IFA or Macra na Feirme in which there is plenty of leadership. All farmers, be they large or small, should be in some such organisation.

The year 1975 could be regarded as a good farming year despite the fact that it was one of the driest periods on record. What was regrettable about the year was our failure to deal with the distribution of the potato crop. The acreage under potatoes last year showed an increase on previous years. This resulted in increased production but it was a shame that we did not take advantage early on of the alleged scarcity and invite the Sugar Company or some such organisation to buy all the potatoes on the market at harvest time when the going price was about £50 per ton and then to release them to the market at a later stage. It is a reflection on us that in times of shortage, alleged or otherwise, we have more spivs than has any other country in Europe, people who are ready to take advantage of any such situation. Our laxity in regard to potatoes last year is all the more regrettable when one realises that this crop is a major part of our staple diet. In any event, we should endeavour to ensure that no such situation will arise again, that we will not allow the spivs to regulate the market price which in the past year has been a scandal. I recall a statement made by the North Dublin Growers to the effect that they could have produced potatoes last year and sold them at £50 per ton whereas they were sold afterwards for prices three times as great as that. This sort of situation should not occur in what is basically an agricultural country.

Debate adjourned.
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