First, may I thank you, Sir, for allowing me to participate and seek permission to share time with Deputy McDaid.
Adjournment Debate. - Plight of Donegal Potato Farmers.
Is that satisfactory? Agreed.
I wish to bring to the attention of the House and to the Minister the necessity of financial assistance for a traditional industry in County Donegal. In December of this year we had an inordinate amount of rain and as a consequence almost all of our seed potato industry has been lost. For example, we have lost 1,116 hectares of certified seed potatoes worth in the region of £3.75 million and 913 hectares of ware potatoes worth approximately £2.53 million. Overall £6.28 million worth of seed potatoes have been lost in County Donegal. This has affected not only the growers and their families but all other agri-business associated with the potato industry in the county. It is not only of consequence to the county but nationally also because we have the proud record of being a tremendous exporter of seed potato and as a result of this damage we will lose our edge in the export trade. Unfortunately, other countries, especially Scotland, will be able to take over our markets. We will also lose to our two processing industries in the county, the chip potato factory and Sam Spud. They will be forced to import potatoes resulting in increased costs and this will have an adverse effect on our national industry.
I know the Department of Agriculture, Food and Forestry is aware of the problem, as is the Department of Finance and the Taoiseach. However, the season for the planting of potatoes is now starting but we will not be able to start this year and the farmers are getting anxious that they are losing out in an industry which is so important to them. The Department of Agriculture, Food and Forestry has lobbied the European Commission in relation to obtaining moneys from a disaster fund. I am asking the Department to put their full weight into obtaining moneys under the Structural Funds and have moneys reallocated under the Community Support Framework. It is imperative that a very strong case be made because we in County Donegal cannot wait any longer for an £18 million industry and over 500 jobs to be saved.
I thank Deputy Coughlan for sharing her time with me. I do not intend to be repetitive. Deputy Coughlan has stated the statistics and facts of the matter. An extremely serious problem exists with the seed potato industry in Donegal. We are highlighting this point now and, as Deputy Coughlan said, the Ministers and the Departments of Finance and Agriculture, Food and Forestry are fully aware of it.
It is well known that Donegal is the heart of the seed potato industry here. There are huge demands for our seed potatoes in Cyprus, the Canary Islands, the Spanish mainland and Israel. These exports also provide jobs, an issue which this Government has advocated for some time. They also provide exports to various countries in Europe other than the UK. Decision time has now arrived because farmers want to know if they can proceed and plant for next year. For example, Donegal Potatoes, DPL, who plant approximately 300 acres in the Newtowncunningham area took a decision last night that they will not plant any potatoes in the coming year. This decision will have to be made by other farmers. The Department of Agriculture, Food and Forestry and the Minister of State must impress upon the Minister for Finance that some form of finance is needed now and not in a few weeks time, because now is the time these farmers will have to make a decision.
I thank the Ministers for their involvement to date in the European context but I would be critical also of some MEPs who misled farmers in Donegal as to what action they were taking. They tended to give the impression that some form of slush fund was available either in Europe or in Ireland to meet these needs. This money must come from the Structural Funds. We must press upon the Minister for Finance, before the distribution of the Structural Funds, the importance of this matter and the urgent need for funding. Thank you, a Cheann Comhairle.
Deputy McGinley rose.
I was not aware of any further sharing of time. However, I will facilitate the Deputy by allowing him some seconds.
I support the comments made by my two colleagues from the county. This is a crucial matter for the potato farmers of Donegal. They have already met the Taoiseach and the Minister for Agriculture, Food and Forestry, as well as MEPs, but urgent action is needed if they are to plan for the coming season.
I thank Deputies Coughlan, McDaid and McGinley for bringing this important matter before the House. As we all know, a disastrous situation exists in Donegal presently in relation to the seed potato industry.
On 1 December, the Minister of State, Deputy Hyland, met representatives of Donegal potato growers who presented a report on the situation of the potato crop in the county. Arising from this discussion the Department made a strong case to the EC Commission before Christmas. The Department submission referred to the abnormal climatic conditions which rendered harvesting impossible for the bulk of the seed and ware potato crops. Reference was made to the hardship suffered by producers as a result and to the possible irreparable damage, particularly to the seed production base in the county. The strategic importance of the Donegal seed potato sector to the entire Irish potato sector was also highlighted.
The Commission was urged to provide financial support as quickly as possible to alleviate hardship and to enable affected growers to continue in potato production in 1993. The Commission reply dated 29 January was to the effect that there are only limited means available to them to help in these circumstances and that it was never the intention that Community funds should be used to compensate for loss of income due to poor weather conditions.
The reply went on to mention a possibility of Community intervention under the Community Support Framework for restoring agricultural production potential after natural disasters, though it adverted to the possibility of such intervention being extremely limited, especially in the present state of expenditure under the CSF for Ireland. I am now exploring this and any other avenues of potential funding and I am fully supportive of the efforts being made to secure some assistance for growers who have suffered serious loss.
In conclusion, I assure Deputies that every possible effort will be made to acquire funding to assist the seed potato industry in Donegal. The Minister for Agriculture, Food and Forestry is fully committed to this.