Dáil Éireann debate -
Tuesday, 28 Jun 1983

Vol. 344 No. 3

Ceisteanna—Questions. Oral Answers. - Farm Incomes.

5.

Mr. Noonan

(Limerick West) asked the Minister for Agriculture if he will, in view of the Taoiseach's statement at the opening of a plant (details supplied) when he said that the challenge for the community was to ensure that by proper planning each farm was developed to its full output potential and in that way ensure that farmers generally had incomes that came within the income tax bracket, outline in detail how this will be implemented in view of the severe restrictions by the Government on finance to ACOT thus impeding the free flow of advice to the farmers.

6.

Mr. Noonan

(Limerick West) asked the Minister for Agriculture if he will, in view of the Taoiseach's recent statement at the opening of a plant (details supplied) when he said that the sharp fall in real incomes of farmers after 1978 received less sympathy than it deserves from the rest of the community, that the role of agriculture as a major contributor to employment and to exports has been under-valued to an extent that was not previously the case and that were such a catastrophic drop in real incomes and living standards to hit any other group in the community, the reaction would have been explosive, indicate the plans the Government have to increase the real income of the farming community; and, if so, when they will be implemented.

Minister for Agriculture (Mr. Deasy)

I propose to take Questions Nos. 5 and 6 together.

The Programme for Government and the actions already taken on foot of it clearly outline the Government's strategy to increase farm incomes. This includes a determined attempt to control the domestic factors which exacerbate inflation and thereby contribute to the cost/price squeeze on farmers. The latest inflation figure, which was announced last week shows that we are succeeding in this, inflation now being down to its lowest level since 1978.

Controlling inflation necessarily involves controlling public expenditure, including that in the agricultural sector. The effect of this restraint on the financial allocation to ACOT was reflected in the decision of the previous Government to phase out certain advisory services operated by ACOT. However, the present Government found it possible to lessen the impact of this measure on ACOT, with the result that the number of staff to be laid off is reduced from 140 to 57.

The Government's strategy also includes maximising the benefits from EEC membership, and in this respect the prices agreement secured this year, which is the best in real terms since 1978, clearly represents a major contribution. But a fundamental factor in bringing about agricultural expansion must be the determination of farmers to increase their incomes through increases in output. The package of special measures for Ireland agreed in Brussels during the price negotiations is designed to encourage such a response, and it is to the same objective that the Working Group on the Four-Year Plan for Agriculture has applied themselves. Their report is expected before long and their proposals will then be studied carefully by the Government with a view to further action.

Mr. Noonan

(Limerick West): Is the Minister aware that because of a suspension of the various aids, such as the farm modernisation scheme, the farm retirement scheme and so on, the development of agriculture has been jeopardised? Is he further aware that the devaluation of the Green £ has meant a net loss for this country?

Mr. Deasy

I do not see any reference in the original question to the farm modernisation scheme or to the farm retirement scheme and cannot see how they can be raised in this supplementary. The original question referred to ACOT and to farmers' incomes, to which I have already replied.

Mr. Noonan

Limerick West): Apparently the Minister is not prepared to reply to my supplementary——

Mr. Deasy

I am prepared to reply to any supplementary which arises from the question on the Order Paper.

Mr. Noonan

(Limerick West): I asked a supplementary arising from the Minister's reply that because of the devaluation of the Green £ the price increases negotiated by the Minister in Brussels meant a net loss for the country.

Mr. Deasy

Might I say, in reply to Deputy Noonan, that the leader of his party, Deputy Haughey, decried our agreement to the devaluation of the Irish pound.

An Ceann Comhairle

There should not be any argument on it.

Mr. Deasy

I fail to see why Deputy Noonan should complain. There was tremendous benefit to farmers, to the extent of over 5 per cent, as a result of the Green £ devaluations of March and June.

Mr. E. O'Keeffe

As there has been a reference to ACOT and since ACOT are allocated a total of £20 million and £1 million is all that is necessary to implement the new staff scheme, would the Minister consider implementing that scheme immediately? The go-slow is having a very severe effect on farming and the advisory services are not co-operating with farmers as much as I would wish. Would the Minister be magnanimous enough to make this £1 million available so that we would have a good advisory service?

Mr. Deasy

I am concerned that the ACOT staff scheme has not been implemented. However, that was originally agreed almost two-and-a-half to three years ago and there have been numerous occasions for its implementation. I am endeavouring to see that it will be implemented as soon as possible. I realise that this is causing problems as regards mobility of staff within ACOT and also as regards morale. I will be working towards a solution of these problems.

Mr. H. Byrne

Would the Minister agree that the third line of Question No. 5 asks the Minister to ensure that by proper planning each farm was developed to its full output potential. That relates to the farm modernisation scheme. It is quite obvious that this was part of the question. If what I say is so, in view of the fact that the Minister claims that inflation is down to 9 per cent, would he agree that interest rates should follow suit? This is not so at present. What do the Government propose to do about it?

Mr. Deasy

The Minister for Finance will answer that question. I do not feel that one automatically follows the other.

An Ceann Comhairle

Deputy Byrne, a final supplementary.

Mr. H. Byrne

Since this concerns the agricultural community, I ask the Minister not to dodge the real issue. Has he any input into what the Minister for Finance decides? Since the Minister has made great play of——

An Ceann Comhairle

Without argument, Deputy.

Mr. H. Byrne

——the fact that inflation has dropped to 9 per cent, would he not assume, following that, that interest rates should also drop? Has he, or will he have an input into seeing that that happens?

Mr. Deasy

I have the same input as any other member of the Cabinet — hopefully a little more. I assure the Deputy that if interest rates could be brought down, we would see to it that they were.