Earlier tonight, during my contribution on the multi-party Agreement, I spoke of the need to regenerate the Border economy. Agriculture is the dominant industry in my constituency and I am grateful to you, a Leas-Cheann Comhairle, for giving me an opportunity to raise the important issue of milk quotas on the Adjournment. The issue I raise is relevant to the Border region, North and South, and I am pleased the Minister of State, Deputy O'Keeffe, is present to respond.
A detailed proposal on milk quota was put to the Department of Agriculture and Food and to the Department of Agriculture in Northern Ireland by the Cross-Border Quota Action Group, which is representative of farming organisations and dairy co-operatives, North and South. The group's very well researched proposal seeks additional milk quota for the Border region to help regenerate that economy which has suffered so much since 1969. All Members recognise that the troubles imposed a severe constraint on economic and social development in the Border region, North and South. Economic and social activity was reduced, the attractiveness of the area for industrial development was lessened, the tourism sector was severely depressed and cross-Border co-operation suffered.
The Operational Programme for Peace and Reconciliation was established with the support of the European Union and both Governments to tackle those problems and enhance economic activity. There is a united approach by all interest groups, North and South, in support of this proposal. The largest economic sector in the Border region is agriculture and, obviously, a vibrant and dynamic farming industry is essential if the economy of that region is to be developed. Agriculture employs about 18 per cent of the workforce and accounts for 16 per cent of the regional domestic product. Those contributions are further enhanced by the upstream and downstream activities of the sector to the economy of the region in respect of employment and valueadded. Dairy enterprise contributes more to the viability of farming than any other land-using enterprise. Dairying is, therefore, of major importance to the Border region, accounting for about one third of gross agricultural output.
The proposal put forward by the Cross-Border Quota Action Group refers specifically to the need to help small-scale farmers who have less than 30,000 gallons of quota. The number of milk quotas in Border counties for 1995-6 — the most recent year for which I have figures — is estimated at 5,900 and the average quota was 19,470 gallons. The scale of farming is small when one considers it is 30 per cent or more below the national average. Similarly, the average farm size is small and the dominant number of farm holdings is also small. The quality of the land provides little scope for farm diversification.
Two of the stated aims of the Operational Programme for Peace and Reconciliation are to promote rural and urban regeneration and create employment. That is particularly important given that the majority of farmers on both sides of the Border depend on dairying. The provision of additional milk quota would help enormously to regenerate that economy and its positive effects would be evident without delay. From an economic and social point of view, it is essential that the maximum quantity of milk is produced in the region. A decision to allocate additional quota to farmers with small quota would contribute enormously to stimulating that rural economy which needs regeneration.
Both sides of the Border experience similar problems, with the farm family population in decline and the consequent loss of economic and social benefits to the rural community in general. The very survival of many farmers into the next century depends on additional quota being made available to make their farm operations viable. To maintain rural communities, the maximum level of dairy production and processing must be retained.
The processing of milk and the agri-industry in the region contributes significantly to employment creation and additional quota would have a multiplier effect. It took political decisions to establish the Operational Programme for Peace and Reconciliation and it will take political decisions to advance this important and worthwhile proposal.
As the Leas-Cheann Comhairle and I met a deputation on this issue recently, we are very anxious, as public representatives for two counties in the south of Ulster that have suffered immeasurably over the years, that our practical proposal is advanced. It would be of significant benefit to our constituency of Cavan-Monaghan and our neighbours in Fermanagh.
