Dáil Éireann debate -
Wednesday, 25 May 2011

Vol. 733 No. 2

Agriculture: Motion (Resumed)

The following motion was moved by Deputy Michael Moynihan on Tuesday, 24 May 2011:

"That Dáil Éireann:

notes the potential and importance of agriculture to the Irish economy and in particular to support the implementation of Food Harvest 2020 and recognises that:

agriculture and the agri-food sector is Ireland's most important indigenous industry and will play a central part in job creation and our export led recovery;

the agriculture industry in Ireland has an annual output of approximately €22 billion accounting for more than 6% of GDP;

industry exports are currently almost €8 billion on an annual basis with food and drink exports going to more than 160 countries;

a total of more than 139,000 people are employed in the production of agri-food and fisheries products, which is approximately 7.5% of national employment;

this sector supports 128,000 family farms and 600 food and drinks firms;

a number of countries in Europe, including Ireland, narrowly missed exceeding their milk quota this year while other countries in Europe were 30% under quota this year;

a political solution must be found to allow the expansion of the dairy industry pre-2015; and

Irish interests must be protected in discussions on the Common Agricultural Policy, CAP, post 2013 and in the Mercado Común del Sur, Mercosur, talks;

and calls on the Government to:

negotiate a Europe wide quota rather than a national quota to allow for the orderly expansion of the dairy industry in Ireland between now and the ending of milk quotas in 2015;

negotiate changes to the superlevy system so that the levy is only applied where the farmer, the co-op, the country and Europe has exceeded the quota;

adopt a strong and unequivocal stance at the Mercosur talks to ensure the protection of the Irish beef industry;

ensure the protection and continuation of a strong decoupled direct payments system in negotiations on the CAP post 2013;

maintain the Agri-Environment Options Scheme as a major support for environmental farming;

recognise the importance of the western counties to farming and provide greater support to small and medium sized farms;

pursue the development of food labelling and traceability;

ensure that State agencies actively support the further development of the indigenous agri-food sector; and

enact the fair trade legislation as committed to in the Programme for Government banning unfair trading practices in the retail sector."

Debate resumed on amendment No. 1:

To delete all words after "Dáil Éireann" and substitute the following:

"notes the potential and importance of the agriculture, fisheries and food industry to the Irish economy and in particular to support the implementation of Food Harvest 2020 and recognises that:

agriculture and the agri-food sector is Ireland's most important indigenous industry and will play a central part in job creation and our export led recovery;

the agriculture industry in Ireland has an annual output of approximately €22 billion accounting for more than 6% of GDP;

industry exports are currently almost €8 billion on an annual basis with food and drink exports going to more than 160 countries;

a total of more than 139,000 people are employed in the production of agri-food and fisheries products, which is approximately 7.5% of national employment;

this sector supports 128,000 family farms and 600 food and drinks firms;

a number of countries in Europe, including Ireland, narrowly missed exceeding their milk quota this year while other countries in Europe were 30% under quota this year;

a political solution must be found to allow the expansion of the dairy industry pre-2015;

Irish interests must be protected in discussions on the Common Agricultural Policy (CAP) post-2013 and in the Mercado Común del Sur (Mercosur) talks; and

a comprehensive expenditure review is currently under way in the Department of Agriculture, Fisheries and Food; and

calls on the Government to:

negotiate at an EU level to allow for the orderly expansion of the dairy industry in Ireland between now and the ending of milk quotas in 2015;

adopt a strong and unequivocal stance at the Mercosur talks to ensure the protection of the Irish beef industry;

ensure the protection and continuation of a strong decoupled direct payments system in negotiations on the CAP post-2013;

maintain the Agri-Environment Options Scheme as a major support for environmental farming;

recognise the importance of western counties and disadvantaged areas to farming and rural life and the need for continued support for small and medium-sized farms;

pursue the development of food labelling and traceability;

ensure that State agencies actively support the further development of the indigenous agri-food sector; and

enact the fair trade legislation as committed to in the Programme for Government banning unfair trading practices in the retail sector."

— (Minister for Agriculture, Fisheries and Food).

Deputy Thomas Pringle

No one can argue with the content of the motion. There is no doubt that Food Harvest 2020 provides huge opportunities for growth in employment in the food and export sectors. With more than 139,000 people employed in the production of agrifood and fisheries products, the sector represents 7.5% of national employment.

I wish to concentrate on the fisheries and fisheries products sector where this growth can be realised very quickly. One of the great tragedies of our fishing industry and its development, apart from the Common Fisheries Policy which has been the greatest crime inflicted on the Irish people by the European Union, perhaps matched only by the bailout terms agreed last November, is that the fishing industry has never stepped up to the mark nor delivered on value-added product. This has significant potential for communities along the west coast. One must wonder what the western seaboard of Ireland would look like if we landed the fish that is taken out of our waters and brought to other EU ports and if that fish was processed into a value-added product. We would not then have the unbalanced regional development which currently exists and we would have a vibrant western seaboard with vibrant employment and growth. Adding value to fish is the only way to go, particularly as the impact of the EU quotas is experienced and with the reductions in the amount of fish which the Irish fleet is entitled to land. In most countries, every fisherman at sea creates ten jobs on shore whereas in Ireland it is two jobs for every fisherman at sea. There is a potential to grow the numbers employed in shore-based industries by five times and by adding value and exporting those products. There is no reason in the world why we should export frozen fillets and whole fish to Germany so they can be processed in German factories and sold to the German people. We should be processing the fish here in places such as Killybegs, Castletownbere, Rossaveal, Greencastle and Burtonport and exporting the finished product which would result in an economic and jobs boost. Food Harvest 2020 shows how we could make significant gains.

Deputy Luke ‘Ming’ Flanagan

Others have spoken about the important issue of how we can increase our exports in order to bring more money into the country but there is also an area of agriculture that needs to be developed in places such as where I come from, where last year, according to figures I have, we used in the region of €9 million worth of fruit and vegetables. Myself and a few other people tried to establish how much of this produce was produced in the area and we could only conclude it was in the region of 5%. I know we will never be able to produce all our fruit and vegetables nor will we be growing grapefruit or oranges in County Roscommon but I do not think it is too ambitious to set a target of 50% of that €9 million to be produced locally. Some people like Pat Kenny on "The Frontline" would lead one to believe that it cannot be done but I am not a spokesman for Tesco like he is so I will say it can be done.

I know a man in Strokestown who, with one acre of land, is making a living for himself by growing fruit and vegetables and selling bags of potatoes and various different products in Strokestown on Fridays. I know another group of people called Tulsk Fruit and Veg who, on 17 acres of land, cater for two adults and two grown children, four employees. A 19-acre farm in Williamstown successfully makes a living out of growing fruit and vegetables. It can be done; one can make a living on a small farm.

The multiplier effect comes into play. Johnny the farmer produces cabbages and sells them. He will then have more money to get his house painted. He will employ a painter and that painter needs to eat and he buys some of his produce and the money goes around in the local economy, unlike now where it leaves after one whirl on the money roundabout.

For this to happen, we need actual, physical markets at which farmers can sell their produce. We do not have such a market in Roscommon nor in many areas around the country. County councils should be encouraged to develop such markets so people can sell their produce directly to consumers and cut out the middle man.

We need to change from the current system whereby the more land and animals a person has, the more money Europe will give him or her. That money should be used to help develop small family farms where more people can be employed and which produces a better product with higher standards. It will not solve all our problems but it would go a small way towards solving local problems. Exports are very important but the local economy must be developed because it has been forgotten.

Deputy Mick Wallace

We are all fairly well aware that we are short on indigenous industry and very dependent on multinationals to provide employment and to drive the export market. Of the indigenous industry, farming accounts for approximately 60% of exports and it plays a significant role in the domestic economy. There is little doubt that the deal the farmer gets from supermarkets leaves much to be desired. I note the farmer's share has changed in a number of years. The report, Equity for Farmers in the Food Supply Chain, states:

The farmer's share of the retail price has declined significantly in the major commodities over the last 15 years. For example, since 1995 the farmer's share of the retail price for liquid milk has declined from 42% to 33%. For cheese, the farmer's share has fallen from 34% to 20%, for pigmeat from 51% to 27%, and for beef from 60% to 50%.

The multiple chains have grown stronger in this country. Successive Governments have allowed the small shopkeeper and small farmers to be pushed out. We are familiar with the practice of hello money which enabled farmers and producers to put their products on supermarket shelves but this practice has been banned. However, it is alive and well today under a different name. They call it advertising marketing contribution. This allows the multiple to dictate who will survive and who will not, with the result that many small farmers have been driven out of business. They are unable to compete. The person who grows 10,000 tonnes of tomatoes has a significant advantage over the person who grows one or two tonnes. There is no fairness in the system. This country has an obligation to protect agriculture which is the only decent indigenous industry we have.

An Leas-Cheann Comhairle

The Minister of State is sharing time with nine other Deputies who have either three minutes or two minutes each so I ask for their co-operation. The Minister of State has five minutes.

Minister of State at the Department of Agriculture, Fisheries and Food (Deputy Seán Sherlock)

I propose to take five minutes.

I refer to a point made by Deputy Luke ‘Ming' Flanagan about maximising a potential within communities to grow that sector and to develop local markets. I completely agree with the Deputy on that score. I looked at models in upstate New York of community-supported agriculture. I am very much on the same page as the Deputy on that issue. A consolidation of the dairy sector and the meat sector would mean a smaller number of larger farms feeding into a co-operative structure which will probably be restructured. One must then have due regard for the smaller community-based agriculture and the smaller farm and their place in a community and social structure. Because they are so vital we need to ensure they are not left behind. I hope that once the new Oireachtas committee structures are up and running we will be able to discuss those kind of issues. Local authorities should be encouraged to maximise a new space and look at models being rolled out in places such as Tralee and other towns. The use of land could be maximised especially around urban areas. We need to ensure we do not lose the family farm structure. The family farm should not be left behind.

I would like to speak about the consolidation of the dairy sector. Milk quotas will be abolished in 2015. We all buy into the Food Harvest 2020 proposals. However, we are not blind to the fact that it may present some constraints. Will greater consolidation of the dairy sector result in jobless growth? Will it result in the existence of just one or two milk dryers in this country? What would be its permutations be for regional growth in this country? There are challenges in this regard. If there is a 50% increase in milk production, it must be accompanied by job creation. We cannot have jobless growth.

We must ensure we continue to add value to milk as a commodity. That is where my research and innovation brief comes into play. Teagasc is doing a great deal of work on infant formula at its Moorepark facility in Fermoy. It wants to ensure the commodity has a research component and to add value in order to create jobs. There is an engagement in that space. If we do not engage politically, however, there is a danger that we could get left behind. My role is to prioritise research so that we can mine as much potential as possible from the food industry while feeding into policy at the same time.

I hope we can realise the potential of research in assisting the added value process. If that does not happen, there is a danger that we will go down the commodity line and, as a result, fail to create the type of jobs we need to create in this sector. I am very conscious of that. It is all very well to talk about the expansion of the dairy and meat sectors, but there is a danger that growth will not be accompanied by job creation. We all favour expansion. We do not know what the post-2015 scenario will be. Many younger farmers are scaling up at the moment because they can see the potential that offers. We need to have due regard for those smaller farmers who do not have the required economies of scale to act in a similar manner. We are conscious of the needs of that sector of the agricultural community.

Deputy Regina Doherty

The agriculture and agrifood industry is undoubtedly among Ireland's most important indigenous industries. According to the Irish Farmers Association, 38% of all households are located in rural Ireland. One in four of those households is an agricultural household. This industry is vital and must be supported. Despite the growth in exports in 2009, the number of people engaged in agriculture fell by 40% by comparison with the 2007 number. Employment in the food and drink processing industry fell by 10,000. The challenge faced by policy makers is to develop a sustainable strategy that enables the agriculture and agrifood industry to grow over the next decade. The Food Harvest 2020 programme reflects this aim. The comprehensive nature of the programme reflects the Government's commitment to improving exports in all sectors of the industry. The Minister, Deputy Simon Coveney, aims to increase the value of agrifood and drink exports by 3% this year. The aims of the Food Harvest 2020 programme are welcome.

I would like to address the development of labelling and the traceability of food. According to the Food Safety Authority of Ireland, which monitors this country's food traceability and labelling regulations, in general terms food labels are not supposed to mislead the consumer. A general requirement of the regulations on the labelling on products is that the labelling, presentation and advertising of foodstuffs must be clear and unambiguous and must not mislead the consumer to a material degree. The term "labelling" refers to any word, particulars, trade mark, brand name, pictorial matter or symbol relating to a foodstuff that is placed on any packaging, documentation or label accompanying the foodstuff. Labels must be easy to understand and clearly legible. If a product is being sold in Ireland, the label must be in English with the option of Irish. While this is all well and good, as a consumer I continue to be confused by labelling at times. If I see that a product has a label that says "guaranteed Irish", I may decide to buy it. If I turn the product around and read the detail on the reverse, however, in many instances I will learn that the product is not made in Ireland. It might be just 50% Irish. Where do consumers stand on such issues?

The rules of the Guaranteed Irish organisation provide that any product or service in respect of which at least 50% of the adding of value took place in Ireland can qualify to be deemed as "guaranteed Irish". In the case of services, the award criterion is that the company must have majority Irish ownership and must be creating employment in Ireland. The only terms or phrases that seem to mean what they say on the tin are "free range", "traditional free range", "organic" and, in some instances, "fresh". These terms are protected by legislation and inspectors are employed by the State to inspect possible cases of fraud. Why is the same thing not done to protect the origin of foodstuffs? As the regulations state, we should have clear and unambiguous labelling that does not mislead me and other consumers. Why should a person who runs into a supermarket to get something for his or her dinner have to read the equivalent of an essay on the reverse of the package to make sure what they are buying is Irish?

We need to work with the Minister for Health, who has overall responsibility for general food labelling, and the Food Safety Authority of Ireland to ensure customers know where their food is coming from. If a chicken kiev originated in the UK but was processed in Ireland, that should be made fully clear on its packaging. Under the EU general labelling directive, the place of origin of a foodstuff must be given only if its absence might mislead the consumer to a material degree. Under EU legislation, specific country of origin labelling is only required in the case of beef, unprocessed poultry and fruit and vegetables. This is all well and good, but it needs to be much clearer. We need to make it so clear and unambiguous that there can be no doubt in my mind as a consumer where each product comes from. We need to make Irish labels stick in consumers' heads and make shopping for Irish goods as easy as possible. That is essential for the continued success of the Irish goods market.

Deputy Joe O’Reilly

As a representative of my constituency I am happy to arrive in Dáil Éireann at a time when it is recognised on all sides of the House that the agrifood sector will be in the vanguard of our economic recovery. I am happy that a recognition of its crucial role in our recovery forms the background to this debate. The Irish food sector employs 150,000 people and has an annual output of €24 billion. The target of the 2020 project is to increase primary production output by €1.5 billion, value-added output by €3 billion and general exports by €12 billion. We need to work towards meeting those wonderful and ambitious targets.

The dairy sector has survived the bad times of 2009. The EU and world markets are performing strongly. I am happy that the grants for modernising milking parlours, collecting rain water and developing better infrastructure are on stream. I am pleased because such schemes have great potential There is a need for better banking facilities in the dairy sector. That needs to be addressed in the general context of the need to solve our banking problems. There will have to be lending. It is our duty to enter into dialogue with banks. We should make it a condition of any investment in the banks that they facilitate investment in our dairy sector, which has the potential to create jobs and lead economic revival. Dairy farmers need banking facilities if they are to expand. They may also need favourable tax recognition to that end. That needs to be examined by the Department of Finance. The Minister of State made the valid point that we do not want dairy expansion or consolidation if it happens to the detriment of employment. I am proud to say that the cream used in Emmets Irish Cream and Baileys Irish Cream comes from my county. I believe there is great potential to develop value-added products like liqueurs. That can be done in each sector.

I conclude by drawing attention to the difficulties being experienced in the pig sector, which is a crucial one if we are to meet our ambition to achieve the 2020 target. An average of €12 per pig is being lost in the pig sector at the moment. That needs to be addressed, for example, by means of better banking facilities. The cartels and monopolies of the retail outlets, some of which are using pork products for below-cost selling, need to be tackled. They are damaging the pork, bacon and chicken industry. I ask the Minister to examine the position of conglomerates in the retail sector. I was alarmed to learn anecdotally recently that these companies were in the process of buying up food processing outlets in an effort to take complete control of the market. This is a serious matter.

The agriculture sector has significant potential and requires support. It will be important in the renegotiation of the Common Agricultural Policy to maintain the single farm payment and investment in agriculture. I have no doubt that the Government will actively engage in that process.

Deputy Noel Harrington

I welcome the opportunity to speak to the motion. This debate presents an opportunity to highlight the good news story of increasing exports in the agri-food sector. The Food Harvest 2020 strategy offers major opportunities to the dairy sector to significantly expand and will substantially increase agrifood exports. While this is welcome, I sound a cautionary note because the strategy could cause problems. We are hearing mixed messages about providing on-farm jobs. It will be pointless to pursue the strategy if it does not deliver additional employment. I am concerned that as farmers and landowners take the opportunity to pursue the strategy, smaller, less viable land holdings will find it increasingly difficult to compete. While I am reluctant to sound a sour note, it would be regrettable if the strategy resulted in a net loss of jobs in the dairy sector.

I strongly encourage stakeholders in the dairy industry. On-farm entrepreneurs are being encouraged to ratchet up production via acquisitions and other means. However, if processing and supporting infrastructure are not similarly ratcheted up, increased production will be pointless and we will not achieve our targets in terms of increases in exports and values. We may even experience a net loss in the number of farm jobs. We must be careful, therefore, to encourage off-farm businesses to ratchet up their capacity. In many cases, increasing capacity on farms requires increased or changed breeding programmes which will require an effort over three years. We are trying to encourage farmers to change their breeding programmes and increase capacity and production, while skirting around the super-levy issue. In this respect, we must be careful to send the correct messages.

The motion and the amendment refer only briefly to aquaculture, one of the key growth areas of the economy. In the past ten years Ireland has lagged far behind other countries in promoting our aquaculture industry. Norway which has a similar coastline and enjoys similar advantages to Ireland produces 100 times more in aquaculture than we do. Scotland has made considerable progress in aquacultural production in recent years and currently produces ten times more in this area than Ireland. Global demand for aquacultural products is significant. For every 1,000 tonnes of aquacultural products produced, seven jobs can be created in coastal and peripheral areas. If we could increase production to Norwegian levels, we would create 7,000 jobs. This figure cannot be ignored and I hope the Minister will take it on board.

Deputy Paul J. Connaughton

I welcome the opportunity to speak to the motion.

The state of the economy means we are constantly focusing on sectors, including agriculture, which are performing well. While one hears that sheep and cattle are fetching excellent prices, it is important to note that the price of inputs such as fertiliser and concentrates has also increased. The sector is doing well and will, I hope, continue to do so, but we must address the concerns of many farmers.

The position of the Common Agricultural Policy after 2013 will be of fundamental importance. The various sectors of production tend to be focused in different regions. I represent the west which has a large number of small farmers. The discussion on boosting milk production reflects a focus on one sector. We must protect small farm families in the west, not only on the basis of their contribution to agriculture but also because of their role in local communities and economies.

We have heard forecasts about the role agriculture will play in the economy and all the agricultural sectors have been discussed in this debate. If we are to encourage off-farm businesses and assist farmers to become involved in other key aspects of their business, including marketing, accountancy and so forth, we must concentrate on education. As the Leas-Cheann Comhairle is aware, the only remaining agricultural college along the western seaboard is under threat. It is located in Mountbellew in our constituency. Like many young farmers from County Donegal down to County Cork, I studied at the college. Many former students have been successful in the agriculture sector. Two of my former classmates, for instance, were the first people to secure an investment on the "Dragon's Den" programme, as a result of which they have started to create jobs.

Achieving the goal of increasing production in the various agricultural sectors means ensuring a supply of people with an appropriate education, ability and background. If we want to maximise our potential, centres such as Mountbellew Agricultural College must be protected. This year the college was forced to refuse applications from students who were seeking to become involved in farming and agribusiness. Realising the potential on the western seaboard will depend on educating young farmers. If we are to bring agriculture to where it should be in the next ten, 15 or 20 years, we must protect educational opportunities for young farmers.

Deputy Michael McCarthy

I am pleased to speak to the motion. It is essential that we afford the appropriate amount of time and priority to this issue. We have argued consistently that the rural and social economies will be rebooted, in no small part, by a vibrant agrifood sector. It is important, therefore, that the House give prominence to this issue in its weekly work.

Agriculture was once the cornerstone of the economy and Ireland in general. Following the emergence of greater diversity in the economy, its importance declined somewhat during the years. I do not say this in a pejorative sense.

Deputy Harrington spoke eloquently about the marine aspects of the agricultural economy. The presence of items from family run food companies in west Cork such as Glenilen cream and Gubbeen cheese is a testament to the entrepreneurial skill and potential of vibrant rural economies. We can tackle unemployment while showcasing excellent products on the international stage. The agrifood sector offers a way forward for rural economies because it can create and sustain jobs and reboot rural and social economies.

Deputy Arthur Spring

It is a good day when the non-government or Opposition benches produce a motion with which we can all agree. It is living proof that the cowboy and farmer can be friends. It is vital to remain focused on what we can do, namely, our core competencies of tourism, energy, agri-business and micro-enterprise. We must also ensure we focus both on the economy and society. We have an opportunity to examine how people living along the western seaboard can enjoy sustainable livelihoods. There are enormous opportunities and our agencies need to focus on them. We also need to look at branding and delivering for small producers in a sustainable manner, not only through the normal forms of agriculture but also through opportunities that arise from organic growth.

It is a good day when we can look with 20-20 vision and say we have something to be proud of and that jobs will be created as a result. We must put all our ideas and enthusiasm towards that. It is something I am happy about.

Deputy Andrew Doyle

I welcome this motion. We must be doing something right. Recently, in a Sunday newspaper, a celebrity economist identified the agrifood business as a key driver of the economy. The same person understood that, as we used to say in Wicklow: "When they're boiled, eat them up to that." I wish to make a few key points. Departments will have to adopt a flexible mentality. At present, the key to driving this is to look on matters differently now than in the past. We must train young people to become involved in farming, making it a career and a life rather than a struggle which it was in the past. At times, it was financially rewarding but it involved high demands. The younger generation of farming families are not prepared to accept what their fathers might have accepted.

We must adopt a system that allows land to get into the hands of young, trained and educated entrepreneurs — young men and women in the farming business. That may require alterations to the tax code. It cannot be the case that a person must own land because it is too expensive, even with reduced prices. When I was a young man, I had the good fortune to spend a year working in New Zealand where land ownership was not seen as a barrier to land operation and management. The Revenue Commissioners and officials in the Department of Finance will have to get their heads around this matter by being flexible.

The motion recognises that both regional and national food labelling needs to be improved. It must be accurate and honest in dealing with issues such as health, country of origin, rearing and slaughter. In that way, people can make an informed choice. We are committed to introducing fair trade legislation. It is acceptable and cool to buy coffee with a fair trade logo from somewhere in the world, but we seem to have a slight difficulty in adopting the same principle here. There are a few who are controlling what is an €11 billion or €12 billion retail industry in this country, depending on what one brings into the equation. That must be tackled.

According to research carried out at University College Cork, this country is made up of 54 local economies. Most of those are centred on provincial towns with a big rural hinterland. It is a known fact that when agriculture is doing well in such areas, so do the economies of such towns and communities.

Deputy Joe McHugh

In the short time available I will focus on aspects of fishery, which is point four on the motion. Statistics indicate that the world's population will increase to 9 billion by 2050. There will be a consequent increase in demand for agriculture products and we must place ourselves in a strong position by setting out our stall to promote and sell our brands. We must ensure the quality that has been inspired by many in the agriculture and fisheries sectors will continue to grow positively.

Many farmers have bought into the cross-compliance and traceability agenda. While prices are coming back a little, we should ensure their commitment is a two-way street. We can reciprocate that by ensuring quality is rewarded by pricing.

The old Chinese proverb has it that without fish, there is no dinner. I am glad we are joined in the Chamber by the former Minister of State with responsibility for fisheries, Deputy John Browne. In his time in the Department, he would have known that there are many historical challenges in the agriculture sector. There is also a mindset of possible paralysis within the Department as a result of the 2007 European Court of Justice ruling which found that this country was in breach of the birds and habitats directive. Since then, there has been a lack of confidence in trying to drive the marine agenda forward.

We must examine the added value potential by advancing our domestic processing capacity. We should look at examples such as Spain where in Zaragoza alone there is a 76,000 sq. m factory dedicated to fish processing. We must also address anomalies that exist in the licensing of processing, especially within the aquaculture sector. We have tremendous potential advantages for shellfish, including mussels, oysters and scallops. In addition, we are exporting in excess of 12,000 tonnes of salmon per annum, but Scotland exports more than 100,000 tonnes annually. That is an example of how we are not realising our potential by using our comparative advantage to drive the agenda.

In Donegal, we have people working at the raw material end with good processing units. However, we cannot realise the full potential owing to Department of Agriculture, Fisheries and Food regulations. There are good people working in that Department but there is also a mindset that needs to be challenged. The Department should take risks in the interests of sustainability and conservation. Without stepping over the obvious parameters, we must still take risks because we can fish our way out of the recession. It is not all about big boats and deep water fishing. It is also about realising the potential of inshore fisheries. Scallops, mussels and oysters are being exported raw to France and elsewhere. We must examine the processing capabilities and potential in order that shellfish can be exported to India and China.

Unfortunately, the country's busiest fishing port at the moment is Cork Airport in Deputy Noel Harrington's county. It is a sad indictment of our fishing industry when we are importing packaged fish products from as far away as Vietnam. That is the challenge we are facing and it is why we should not lose our focus.

Deputy Barry Cowen

This is one of the most relevant and important motions to come before the House since the new Dáil was convened. The agriculture industry will play a major economic role in helping to drive us out of recession. The motion highlights key statistics and indicators which are relevant to the weight of this sector which is our most important indigenous industry. Its annual output is worth €22 billion while agricultural exports to 160 countries amount to €8 billion. Some 140,000 people are employed in the provision of agrifood and fisheries products and services. The sector supports 128,000 farm families as well as 600 food and drink companies. When one considers that we narrowly missed exceeding our quota while others underscored by 30%, one begins to realise that a political solution must be found to allow the expansion of the dairy industry before 2015.

The Government must adopt a strong and unequivocal stance at the Mercosur talks to ensure the protection, viability and future of the beef industry. The Government has stated it will deliver on the Food Harvest 2020 programme and has indicated it agrees with its vision and targets for the continuing growth, improvement and prosperity of the agricultural sector.

I will address the issues of the milk quota and the beef sector. We cannot allow a situation to arise whereby Europe as a whole is under quota while some countries can face super levies for being over quota. To say that this can facilitate a soft landing of the industry before its opening up in 2015 does not hold water. Before the figures crystallised some time ago, the Minister believed we would come in over quota and face the super levy fine. He has also stated there will be no political solution to this issue before 2015. If the Government parties are to support this motion, they are committing to finding a political solution.

The Irish dairy industry has 35,000 employees. We export 80% of our dairy products. We encouraged dairy farmers to invest in stock, machinery and parlours. We facilitated improved farm buildings by means of grants because we recognised the indigenous value of the sector. The number of dairy stock entering the system will increase significantly. We must support the sector. The Government must insist on a European quota that will not only ensure a soft landing but will also leave the Irish sector so well placed as to meet the objectives set out in the Food Harvest 2020 document up to and beyond 2015.

When the former Minister introduced this document, he introduced a roadmap for the industry. We appreciate the current Minister's commitment to it but we call on him to stand by and use it. With farming bodies, we must enforce the will of the country in realising European-wide milk quotas.

The Government must outline our stance in respect of beef, namely, that it makes no environmental sense whatsoever for the EU to allow its production to be displaced by less sustainable systems such as those operating in South America. The quota sought by the Mercosur countries seriously undermines Ireland's beef industry and cannot be allowed. For the sake of the beef sector, Ireland must be prepared to use its veto in the industry's defence. Our beef exports are worth €1.5 billion and 90% of our output is exported. We are the largest exporter of beef in Europe and the fourth largest in the world.

Food Harvest 2020 aims to create 3,500 to 4,000 jobs and provides for an increase of 50% and 20% in milk production and beef output, respectively. We appreciate the Government's commitment to this document but taking it in charge means the Government is responsible for its implementation and for ensuring the parameters, atmosphere, criteria and will that will allow for its success.

The past week was a fine one for the country, given the way in which it welcomed its esteemed visitors, the way in which it was portrayed in a positive light and the way in which the hopes and aspirations of those who saw it were lifted. We heard about "Yes we can", "Is féidir linn", living the dream and spring being around the corner after a hard winter. Our beef sector is in good shape, has good potential and possesses marvellous economic and social values dear to the hearts of those who own, manage and produce from our lands. To the Government I say, do not blow it, stick to its guns and insist on a European milk quota and on the protection of the beef industry from those who aspire to tear it asunder. We do not want any sad stories. One man has been synonymous with "Yes we can" and "Is féidir linn". Do not allow anyone from this Chamber to tell us "No we cannot". It is not something with which we could live. The Government will not do that but I must emphasise the significance of this motion.

I appreciate the commitment by the coalition parties in Government in this regard. The Government must show us its mettle and prove that in accepting the Food Harvest 2020 document, it can meet its demands and aspirations. The first step is to protect the milk and beef sectors, as this will ensure a 50% gain in milk production and a 20% gain in beef output, which would be of great service to the country.

Deputy John Browne

I welcome the opportunity to speak on this motion and compliment the Government and Deputy Moynihan on reaching an agreement on its unanimous acceptance. It recognises the value of agriculture and the food industry to Ireland and shows that they remain at the heart of our economy. I wish the Minister of State, Deputy McEntee, every success in the Department. I spent some time there. It is an important Department and he will do a good job. He was in my county for a recent strawberry function, although he did not invite me to it.

Deputy Shane McEntee

My apologies.

Deputy John Browne

I attended another strawberry function a couple of days later where the Minister of State, Deputy Kehoe, and I launched the new Sunny Wexford Strawberries. It is a marketing concept whereby County Wexford's strawberry growers have joined together to sell their strawberries nationally under that brand. It has already proven to be a successful campaign among supermarkets and retailers up and down the country. We all know that Wexford strawberries are the strawberries in this country.

It is important that agriculture be addressed in the same way, that is, a single brand or logo under which to market products. Fine Gael's election manifesto called for a single brand under which to market Ireland as a green food island. This would be important, as all of the agricultural products produced in this country are practically organic, given how they are grass-based and of high quality. It is important that we continue down that road and use these virtues as a selling point into Europe and elsewhere, as proposed by Deputy Cowen and others.

In recent years, the agricultural industry has invested a great deal of money in farm waste management and environmental matters in particular. They brought it up to a high standard, at enormous cost to farmers, but they were also given substantial grants by the outgoing Government. I hope that will continue.

I hear all the talk about the milk industry, which is important to this country. We were able to deal with the possibility of going over quota this year, but we should consider a Europe-wide quota system. We need to be careful, however, because we do not want to saturate the market. I hear that the milk market will be opened up and we will do away with quotas in 2015, but we have not yet had an analysis of the effect of this on prices. In addition, I am led to believe that co-ops are currently at peak capacity, and there will need to be major investment in milk co-operatives up and down the country before they can deal with increased milk quotas in the future. Young farmers are saying to me they want to avail of milk quota and get into the milk industry, but again, there is a major cost factor, including the upgrading of milking parlours and the development of new milking parlours to cater for increased milk quotas. I wonder what plans the Minister has for grant aid in this area, because it will not happen otherwise. Farmers will not have the financial wherewithal to invest in this area unless they get substantial grant aid from the Government and from Europe. We need to tread carefully in the future.

I understand there was a vote in the European Parliament today on a report on the CAP by Albert Dess, a German MEP. After 2015 we will have CAP reform, and I understand the report suggested that payments under pillar 1, single farm payments, and pillar 2, rural development, should be protected, that the term "active farmer" should be defined once and for all and that grant aid should be paid towards this area. A debate on payment modules also took place.

It is important to recognise that only 7% of farmers in the EU are under 35, and we have the same problem in Ireland. Young farmers also need to be targeted under CAP reform. We must consider the education of young farmers, as mentioned by Deputy Andrew Doyle earlier. In the days of the Celtic tiger, as Deputy McEntee knows, many young farmers left the farm and went into the construction industry and related areas. Thankfully, however, many of them are now returning to farming, including in my county of Wexford.

During the years of the Celtic tiger, farming colleges were practically closed and there was not a great demand for places, but now things have gone in the other direction, and we have a major demand for extra farming places in agricultural colleges. Last year, many young farmers in Wexford or their parents were ringing me to say they could not get into Kildalton or other agricultural colleges because there were no places. This is an area close to the heart of the Minister of State. We should consider seriously how we can increase the number of places in agricultural colleges. We should also consider allowing such courses to be run in VEC colleges. I understand that from 2012 there will be some changes under which that may be allowed to happen. Young farmers from Wexford should not have to go to Cork or Meath or other faraway places. These courses could be put on by vocational colleges and outreach centres such as the one run by Carlow IT in St. Peter's College. This would be an ideal place to set up such a course for young farmers from Wexford and Carlow. This is something the Minister should consider for the future.

We had a large number of farmers outside the gates of Leinster House today. It was like the old days, when the farmers used to come in busloads. Something like five busloads came from Wexford and I am sure there were similar numbers from every other county. I thought farmers only protested when Fianna Fáil was in government, but it was good to see them there today as the Labour Party and Fine Gael are in government.

Deputy Shane McEntee

Start as they mean to go on.

Deputy John Browne

They are letting the Labour Party-Fine Gael Government know that farmers are very much aware of what is going on.

Deputy Seamus Kirk

They will be coming regularly.

Deputy John Browne

They promised that they would be back on a regular basis. It is important that the Government takes note of that.

I want to mention the food supply chain. Farmers are concerned that supermarkets, particularly the multinational supermarkets, are ripping off farmers. I read in the last few days a report carried out by a European economic body, the European agri- and economics institute, entitled profit on invested capital in the agrifood sector, which pointed out a number of problems within the industry. It stated that feed producers get 15% of the profit margins, co-ops or dairy producers get 18%, retail bodies get around 25% and the farmer, or the cowman, as one person wrote in the paper, gets 0.3%. It can be seen that the farmer is the poor relation in this regard. This is a matter of grave concern to farmers up and down the country. We will see more protests about this.

Strawberry producers tell me that when they are supplying strawberries to supermarkets, the supermarkets set up promotions under which customers can buy one pack and get one free, or get two packs for €4, but it is the producer who must supply the strawberries at the reduced price so the supermarket can maintain its profits. It is important this is tackled. It will not be easy. I was in the Department of Agriculture, Fisheries and Food when the then Minister, former Deputy Mary Coughlan, met the multinationals to discuss this issue, and they did not listen to her. I am sure it will be the same with the present Minister. However, it is in the interests of farmers and with the aim of creating and maintaining jobs that we must deal effectively with the multinationals and make sure the producer is getting a fair price.

Deputy Timmy Dooley

I welcome the opportunity to contribute to this important debate. While I accept there is an agreed motion before the House, there is a considerable difference between the Government and those of us on this side of the House on a number of important issues. While we broadly agree on the policy framework that is now underpinning the agricultural industry, Food Harvest 2020, there are important factors that must be taken into consideration. There is broad agreement on many of the points made in this document, but there are issues that need to be addressed. It is important that new systems, new ways of doing business and new ways of improving the sector are developed. If we are to see the kind of innovation that is necessary to reach the targets set out in Food Harvest 2020, we will need ongoing input from this Government. It will not be enough for the Government to say this is the legacy it was left by the previous Government. It will need to develop its own set of initiatives to ensure there is support for the framework that is now in existence.

To that end, the Government will need to take a fresh look at the area of innovation, and as part of that, it will have to consider Teagasc and the service it provides. It will need to consider the level of innovation it is delivering within its corporate structure, but also its level of involvement with farmers on the ground. Sadly, a decision was taken by the board of Teagasc, as a result of budgetary measures, to close offices around the country and reduce the level of interaction between farmers and advisers, suggesting the private sector would somehow have the capacity to do much of the form-filling that was involved. I have no problem with that in principle, but the agricultural advisers provided a much greater level of input into the capacity of farmers to re-engineer their ways of doing business, develop new streams of income and develop their farms to the greatest extent possible.

I grew up on a small farm in the west. As a result, I am aware of the importance of the work done by agricultural advisers over many years in assisting people who farmed on marginal lands in exploiting, to the greatest extent possible, the outputs from those lands. There is a need for a complete review of the policy of Teagasc. I request that the Minister of State, Deputy Shane McEntee, engage with the board of Teagasc and as its members to review, in their entirety, the proposals relating to the closure of some of the organisation's offices.

I have no wish to be parochial but a number of offices in Clare are earmarked for closure. The office in Ennistymon has already been closed and the one in Scariff is destined to follow suit. I have examined, from an economic point of view, the logic behind the closure of the Scariff office and I can state that it makes absolutely no sense to me. It is going to cost more to transfer the service from Scariff to Ennis. We are discussing an agricultural service and it seems ludicrous to suggest that the entire delivery of advice to farmers would be centralised into an urban area. That just does not make sense. I ask the Minister of State to review what is proposed. Perhaps we might have an opportunity to discuss the matter at some future date.

The previous speaker referred at length to the fair trade issue. When it was in government, Fianna Fáil promised action on this issue and significant moves had been made before the party left office. I hope the current Administration will take up the reins and move matters forward. It was outrageous that farmers were obliged to take to the streets earlier today. The number of farmers who took part in the protest outside the gates of Leinster House during what is their most productive and busiest period and especially when farming is going well should speak volumes to the Government and to those in the Department of Agriculture, Fisheries and Food in particular with regard to the concerns that arise in the context of the issue of fair trade.

It was scandalous that officers of the Competition Authority were allowed to raid the headquarters of the IFA. If the main farming organisation is not in a position to speak on behalf of its members, it undermines the entire principle of representation. What occurred would not have happened if a trade union were involved. I do not understand why it was allowed to happen in this instance. We all know that farmers are price takers and that it is the multiples which dictate the price. If there is collusion, then I suggest that the Competition Authority should look towards the people who are setting the price. Farmers certainly have no responsibility in that regard.

The Government will be making a major and fundamental mistake if it does not take immediate action on this matter. No one should be allowed to suggest that the organisation which represents farmers should not be in a position to seek to ensure a viable living for its members. I do not know what the courts will ultimately decide in respect of this matter. However, what happened in recent days does not get us to the nub of the matter, namely, where the price is set. If a change in legislation is required in order that this might be achieved, then the Government should introduce the relevant measure quite quickly. This matter, which arose on foot of the actions of the Competition Authority, must be dealt with without delay. I hope the Government will bring forward proposals on it in the near future.

I was disappointed by the announcement by the Minister, Deputy Coveney, during his first few days in office about the agri-environment options scheme, AEOS, and the considerable curtailment, from €5,000 to €4,000, in the amount payable to farmers under the scheme. Some of us on this side of the House fought hard when our party was in government to try to ensure that the scheme was put in place. I am not trying to be exclusive with regard to this matter but Members from the west know the importance of the payments associated with the rural environment protection scheme, REPS, and the AEOS. We are also aware of the effect such payments have in the context of the livelihoods of small operators. Some of the latter are not commercially viable in their own right but they provide a good service and supply an appropriate level of commodity to the market. Such schemes help to keep people on the land.

As a result of the Minister's announcement, farmers availing of the AEOS will each be worse off to the tune of €1,000. There is some dispute about this matter but the money for the scheme was set aside in the Estimates and it is clear that a payment plan — with which the Minister of State's officials will be extremely familiar — which would have delivered up to €5,000 to each farmer was envisaged. I hope Minister, Deputy Coveney, will be in a position to reconsider this matter. I contributed to the earlier debate on the Finance (No. 2) Bill and if the Minister is concerned that there is a funding shortfall, I can inform him that the Government will be raising an additional €110 million this year as a result of the introduction of the pension levy. I suggest that he seek some of this money because, ultimately, it comes down to priorities. I accept that money is scarce. However, the Government is still generating money, particularly, as already stated, through the imposition of a pension levy. So funding is available.

It comes down to priorities. If the Government is serious about supporting the vision set out in Food Harvest 2020 and if it is prepared to recognise the fundamental benefits this will deliver to the State through the creation and retention of employment and the protection of the rural environment, it must then be prepared to make the necessary choices to support this policy. In my opinion, such support must focus on encouraging research and development, ensuring that we obtain the maximum benefit from the land currently being farmed, particularly for those who have returned to farming, and backing those whose enterprises are not commercially viable in the current environment through the restoration of the €5,000 upper limit relating to the AEOS.

I request that a debate take place when the new joint committee on agriculture is established. I expect that the latter will be set up in the near future, particularly as the Seanad is now sitting. I ask that a consultative process be put in place within the Houses. Due to the fact that there is general agreement on the importance of the industry, which is evidenced by the way in which this motion is being dealt with, I am of the view that there should be a more informal approach to the entire agriculture sector in the context of developing the policies relating to the vision I referred to at the outset.

I ask the Minister of State and the Minister, Deputy Coveney, to begin working with the new joint committee at the earliest opportunity so that the broad spectrum of views which exist might be presented to them through the committee by the various stakeholders in the sector. Given that I come from the west, the aspects of agriculture with which I am most familiar relate to the beef and milk sectors. I would be less familiar with milk and more conversant with the suckler cow and beef sector. There are people with different interests, including, for example, those who operate in the horticulture sector — particularly in north County Dublin, on the border with the Minister of State's constituency — who must also be heard. There must be a significant level of input from all the stakeholders rather than Ministers outlining what they believe to be the best approach and then proceeding to adopt it without engaging in consultation.

Deputy Joe Carey

Food Harvest 2020 outlines the potential future for Irish agriculture. It contains ambitious targets in relation to the dairy, beef, pig and sheep sectors. I have some reservations about what is happening and on how Irish farmers are to be facilitated to meet the targets to which I refer. A 50% increase in milk production and a 20% increase in beef production by 2020 will stretch the sector at a time when we have stated our intention to keep the fundamental principle of the family farm in place.

As Food Harvest 2020 gears up, we are witnessing the retrenchment of the Teagasc advisory service countrywide. The Teagasc office in Ennistymon in north County Clare has already been shut down and there is a proposal to close the office at Scariff in the east of the county. In addition, there is the embargo on the recruitment of agricultural advisers. The preferred option of Teagasc seems to be that of research and academic publication. It is difficult to see how the organisation can leave aside its research on behalf of farmers in order to facilitate the goals of Food Harvest 2020, particularly if it is intent on closing or running down its advisory network.

The Minister must carefully consider how we are to achieve the targets set down in Food Harvest 2020. I am strongly of the view that the role of Teagasc in respect of this process must be redefined from two perspectives. The first of these perspectives relates to the key role of the advisory service and office network, which are both allied to the continued education of Irish farmers. The second perspective relates to the future of research facilities relating to the dairy, beef, sheep and pig sectors. This model should not be the responsibility of Teagasc on its own, rather there should be a strategic partnership between it and farmers involved in the sectors.

There is no doubt that there is huge potential in Irish agriculture and that this potential will benefit the entire economy. It is vital, therefore, that we should ensure that none of this potential is lost through bad judgment or inactivity.

Minister of State at the Department of Agriculture, Fisheries and Food (Deputy Shane McEntee)

This debate has not alone been very welcome but also very encouraging, demonstrating a unity of purpose on all sides of the House to ensure agriculture and the agrifood sector will be at the centre of Ireland's economic recovery.

It is now accepted Ireland's economic recovery will be export-led. Bord Bia estimates 11% of all exports last year came from the agrifood sector, an increase of almost 8% over the 2000-2009 average. The agency also estimates that food and beverage exports may increase by 3.3% this year.

The impact on the domestic economy is also particularly important, as illustrated by the fact that economic expenditure on raw materials and services accounts for 72% of total expenditure in the food and beverage sector. Several speakers pointed to the agrifood sector's social as well as economic importance. The Government recognises the value of agriculture and the agrifood sector, including the fishing, forestry and drinks industries and fully appreciates the contribution they make to the national economy, as well as to many local rural and coastal communities.

Food Harvest 2020 charts the way forward for the next decade for this industry. The Government is determined to ensure its ambitious targets are met. As the Minister for Agriculture, Fisheries and Food, Deputy Simon Coveney, said last night, our job is to progress the implementation of the strategy and to build capacity so that we can build production.

Several Deputies identified the dairy sector as one which has enormous potential for growth with calls to change the quota system. This motion calls for an "orderly expansion of the dairy industry in Ireland between now and the ending of milk quotas in 2015." While the Minister, Deputy Simon Coveney, said he is trying to establish a coalition of countries that wishes to see dairy production expansion, the fact is that, as recently as last December, the European Commission came to the conclusion there was no need to revisit the quota elements of the 2008 Common Agricultural Policy health check agreement.

Nonetheless, we would like to see a soft landing for farmers in Ireland and other EU member states. Ongoing challenges experienced by some member states, including Ireland, in trying to achieve a soft landing, should be acknowledged by the Commission. Efforts should be made to help ensure a smooth transition from the milk quota regime in the period prior to 2015.

The dairy sector is of critical importance for this country. Several Members referred to the regulatory burden on the sector. The Department of Agriculture, Fisheries and Food has no desire to impose any unnecessary administrative burden on farmers or the agrifood sector.

Neither does it unnecessarily delay the processing of farm payments, as was suggested last night. For the processing of payments, it is necessary to have regard to the various EU requirements. For example, it is essential the Department's land parcel identification system is accurate. Any failings or shortcomings in the system would leave the Department open to a very real risk of significant fines. We cannot afford to take such a risk and we will not compromise the value of direct payments to farmers. The criticism of the Department for delays in processing applications is misplaced. Last year, Ireland was, once again, one of the first member states to release single payment funding.

Several speakers referred to the possibility of a trade agreement with the Mercosur group of countries. I share the deep concern of Members on all sides and agree that Ireland's interests must be protected. The preliminary results of the EU impact analysis bear out our concerns, which are primarily though not exclusively, about beef. All Members agree the displacement of Irish beef in the EU market by imported products would have significant economic and social consequences for rural Ireland.

Since my appointment as Minister of State at the Department of Agriculture, Fisheries and Food, I have been both impressed and encouraged by the optimism around agriculture and the agrifood, fisheries and forestry sectors. This debate has been constructive and positive and demonstrates a shared vision for the future of the industry. The past week has been a showcase for this country with the pictures from the State visits beamed around the world set to yield enormous benefits. The image of Ireland as a green country is one on which we must capitalise, creating that strong link for consumers between Irish food, high environmental standards and sustainable production.

Consumers must be at the heart of this sector and its development. In that regard, the Brand Ireland concept, with which Bord Bia is progressing, will be a crucial marketing tool in the years ahead. The Government's commitment is to work with all those in the industry to ensure it is greater than the sum of its current parts. My determination and commitment, and that of the Minister for Agriculture, Fisheries and Food, Deputy Simon Coveney, is to ensure agriculture, the agrifood and marine sectors play a central role as part of the Government's plans for economic recovery and that the targets of Food Harvest 2020 are not only met, but where possible, surpassed.

Deputy Michael P. Kitt

I congratulate Deputy Michael Moynihan on bringing forward this motion and I thank the Minister for accepting it. I was impressed the motion recognised the importance of the western counties to farming and to provide greater support to small and medium-sized farms.

Last night I was heartened when the Minister for Agriculture, Fisheries and Food, Deputy Simon Coveney, pointed out there was an increase in the number of students attending agricultural colleges in recent years. I know applicants have been turned away from Mountbellew Agricultural College recently. Last year I and some Members from the 30th Dáil had to meet with Teagasc authorities to ensure a reprieve against the closure of the college. I must record my thanks to the former Minister for Agriculture, Fisheries and Food, Deputy Brendan Smith, and Minister for Finance, Deputy Brian Lenihan, for their help in this regard. I must also thank the Franciscan Order for providing the opportunity for many young people in the area to receive an education in agricultural science. We must build on this and I believe Teagasc has a role in the future development of the agrifood sector.

Problems with red tape are being raised by many farmers. Some in the west have informed me about the new sheep dispatch sheet for the sale of sheep which is a very complicated document. The new agri-environment options scheme, AEOS, describes a specific type of fencing required by farmers. This is not the way to go. Many farmers have pointed out the problems with this over-bureaucratic approach.

Today, farmers marched in Dublin to highlight the gap between the price they receive for milk and the price in the supermarkets. This is another area that needs to be addressed.

There has been disappointment with the delays in the 2010 AEOS payments and the maximum payment of €4,000 in the new scheme. This should be rectified, particularly when one considers how the rural environment protection scheme, REPS, improved farming over the past several years with up to 60,000 farmers participating in it. It is frustrating that many of these environmental measures and schemes get much support in Europe yet Ireland cuts back on them.

The Food Harvest 2020 programme has an ambitious target to increase the value of agrifood exports from €8 billion to €12 billion by 2020. The green image of Irish agrifood must also be promoted in conjunction with tourism agencies. I hope the Minister of State will ensure this progress is made. I thank the Minister for taking on board this motion. Deputy Michael Moynihan's motion has allowed us to develop points on improvements in the agricultural sector, of which the farming community is deserving.

Deputy Seamus Kirk

It is the first time I have had the opportunity to congratulate my colleague from the north east, Deputy Shane McEntee, on his ministerial appointment. He represents the Meath East constituency while I represent Louth. There is a code of good neighbourly behaviour in the north east for most of the year, except for a few months in the summer.

Deputy Dara Calleary

Not in Croke Park.

Deputy Seamus Kirk

Due to the significant increase in the volume production of milk, there is a prospect of a severe super levy payment due from the State and individual farmers on 31 March 2012. While production is buoyant in Ireland, it is not the case in other EU member states. Based on the statistics for recent years, it is clear other member states are not even filling their milk production quotas. It is unrealistic that Irish farmers will be penalised because of a marginal over-production when other farmers in the economic community area are not fulfilling their individual or State quotas. There is a strong argument for the calculation of the super levy milk quota system on an EU community rather than national basis.

The Minister and his senior officials would be doing an excellent job of work for the dairy industry if they could succeed in getting a significant block of the unused quota of other States made available to Irish farmers. This is an issue of urgent importance to the industry. At a time when our economy could do with a leg-up from the EU decision-makers this is an obvious way to help, one which will not result in a cost in so far as the EU exchequer is concerned.

On agricultural education, some 7% of farmers EU-wide involved in the primary end of agricultural product are under 35 years of age, which has clear implications for the industry going forward not alone in Ireland but right across the Union. There is a need for the Department of Agriculture, Fisheries and Food and Teagasc to look at the educational programmes which they are currently organising. I had occasion recently to make inquiries on behalf of a constituent wishing to take part in a green certificate course. Owing to a reduction in the number of personnel operating in the educational end for Teagasc there appears to be no prospect of the green certificate course being delivered over the three year period. It must be a full time course, which has its own implications for young people working on farms. This issue needs to be addressed.

The programme for Government promises that we will have a fair trade Bill, in respect of which there is an urgent need. There is also an urgent need to get right the negotiating equilibrium between the primary end of the agricultural industry and the supermarket or retail outlet. A weighting arrangement needs to be put in place that will tilt the balance between the farming community and the multiples to a point of fair play. The multiples exercise a control that is way out of proportion to their position in the food chain supply industry in Ireland.

The Competition Authority raided the offices of the Irish Farming Association in recent days. It is hard to understand the reason it found it necessary to do so. The agricultural industry is at this time facing much greater problems with the multiples, who might warrant such a visit at this point. I am conscious that my colleague, Deputy Calleary, wishes to contribute. I hope we will have an opportunity to revisit many of these points at a time when there is real prospect of the agriculture industry recovering and making a significant contribution to the economic recovery of this country.

If one wants to designate areas that are truly national wealth creating areas then the dairy and beef sectors clearly fill that bill. They are way ahead of many other areas of economic activity, hence the importance of having policies tailored to ensure we are getting optimum benefit from their development and expansion.

Deputy Dara Calleary

I welcome the opportunity to speak on Deputy Moynihan's motion and commend the Government for agreeing to it. Like many Deputies, I share the sense of irony that we are debating a motion on the development of Irish agriculture and the promotion of jobs through the Irish agricultural industry on a day when thousands of Irish farmers, through the IFA, have gathered to protest at the action and inaction of another State agency. I am sure many Members of the Fine Gael Party were nervous about members of their sister organisation being on the streets.

Deputy Shane McEntee

I would not bet on it.

Deputy Dara Calleary

As has been said by many Deputies on all sides, it is difficult to understand the actions of the Competition Authority last week in the context of the ongoing difficulties faced not alone by farmers but by many small producers in their dealings with large multiples. It is difficult to understand why organisations such as the IFA, who are doing their utmost to keep the dangers of this issue in the public eye, are the ones being targeted. Given the inaction of regulators during the past number of years, leading us to where we are in so many other sectors, one would have hoped that those regulators still in business would have learned how to do their job that bit better. I know that the Minister, and I am sure the Minister of State, shares Members' concerns. However, I hope that concern is shared at the Cabinet table and that the Minister, Deputy Bruton, will express his concern about this matter. Otherwise this will continue.

For those of us who deal on a daily basis with agricultural issues it is no surprise that an arm of State, through red tape, tried to block the progress of Irish farming. Deputy Kitt has already referred to the difficulties in the new sheep scheme and we are all aware of the difficulties with the AEOS. If we are to collectively maximise the potential of all sectors of Irish agriculture, to reach the ambitious targets laid down in Harvest 2020 and to secure the future not just of rural Ireland but Ireland as a whole, then we must as a House declare war on needless red tape and ridiculous over-inspection. Surely, it is within the capacity of this House to devise a set of regulations and inspections that do the job that needs to be done in terms of compliance and keeping Europe happy but do not, as is currently the case, choke the opportunity to maximise the potential of Irish agriculture or frustrate many farmers to the extent that they would rather leave the industry than put up with it on an ongoing basis.

Surely, it is also within the capacity of this State to come up with a proper payment schedule and to give farmers information in regard to when they will be paid. I do not share the enthusiasm or hope of which the Minister of State spoke in regard to payments being made on time. Considerable difficulties and challenges have arisen in regard to mapping, issues that could be resolved if we had in place a more focused system that would allow people to get their money on time, again encouraging investment in the industry.

The agreement we have in this House will form the backdrop of what the Minister and Minister of State will have to deal with in the coming years, namely, the renegotiation and reform of the Common Agricultural Policy, which is one of the biggest economic issues facing this State. It is on a scale of importance with the renegotiation promised by Government of the IMF-EU deal, such is the impact it will have on this country. There is a willingness in the House to have a cross-party approach to agriculture. The Minister and Minister of State should try to build on this as we move into the talks for 2013. We all agree that failure to get the right result from the review in 2013 will fatally undermine the potential for a home-grown economic recovery, a recovery based on our meats, dairy, grain and, most of all, vibrant rural economy.

I did a great deal of work on farm safety during my time in the previous Dáil, in respect of which the figures continue to rise. None of us want to see needless injuries or deaths on farms across the country. I again ask the Government, including the Minister of State as a practising farmer, to pay particular attention to this issue and to guide the Health and Safety Authority in its approach to this issue.

Deputy Moynihan's motion has given us a roadmap in terms of planning agriculture and placing it at the heart of an economic recovery. The work done by former Minister for Agriculture, Fisheries and Food, Deputy Smith, on Harvest 2020 provides much direction in that regard. The agreement we have in this House this evening around this motion and around the aims and ambitions for Irish agriculture should be maintained through the agricultural committee as face towards 2013 and the challenges this will place on communities across the country.

Amendment put and agreed to.

Motion, as amended, agreed to.