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Dáil Éireann debate -
Tuesday, 9 Oct 2012

Vol. 777 No. 4

Agriculture: Motion [Private Members]

I move:

That Dáil Éireann:

- acknowledges the central role that agriculture plays at the heart of rural life and as the engine of the economy of rural Ireland;

- recognises the vital need for clear decisive actions to be taken by the Government to support the agrifood industry which generates 300,000 jobs and contributes €24 billion to the Irish economy;

- notes the critical role that the Rural Environment Protection Scheme, REPS, Agri-Environment Options Scheme, AEOS, and the Disadvantaged Area Scheme, DAS, payments play in maintaining farmers’ income and ensuring that agriculture provides a viable livelihood for active farmers;

- fully accepts the impact that rising fuel costs has on hauliers, agricultural contractors and, in turn, on farmers’ basic costs;

- further notes the changes that the Minister for Agriculture, Food and the Marine has implemented in the DAS through new retrospective minimum stocking ratio requirements, a cutback that has had a direct negative impact upon farmers;

- observes that the new AEOS opened by the Minister caps the maximum payment at €4,000 and only has 6,000 places, despite the fact that 13,000 farmers came off REPS 3 in 2011;

- calls on the Minister to expand the new AEOS to encompass a €5,000 maximum payment and 8,000 places in order to accommodate demand and minimise the impact of the financial transition from REPS 3;

- further calls on the Minister to rescind the minimum stocking density ratio changes he has introduced in the DAS;

- and exhorts the Government to tackle rising diesel prices and introduce an effective essential user rebate scheme that will alleviate the rising pressure on hauliers, agricultural contractors and reduce costs on farmers.

I wish to share time with Deputies Timmy Dooley and John Brown. I am delighted to have an opportunity to speak on this very important motion. As the Minister for Agriculture, Food and the Marine knows, 10,000 farmers gathered outside Leinster House today to try and impress on him, the Government and the European Union the importance of agriculture to our economy. Agriculture represents 20% of our net exports and the agrifood industry generates 300,000 jobs and contributes €24 billion to the Irish economy. In that context, I welcome the announcement today by the Kerry Group of a major new development.

Over many generations agriculture has been a major element of our economy. The agriculture industry that we have today is a modern one which produces top class ingredients for a highly sophisticated food and drinks industry that literally exports to the four corners of the globe. High technology is now used in agriculture at all levels of the industry, from farms to large processors to niche artisan producers. It is vital for the well-being of our economy and for all the people of Ireland, both rural and urban, that we continue to have a modern, well developed agriculture sector. However, it is equally important that this sector continues to be based on the farming structure we have, that is, the family farm and that we do not move towards a farming system dominated by big commercial entities, as is the case in other parts of the world. Our farm structure has given Irish agricultural produce a very good name and our grass-based livestock production is one of the main selling points of our products.

It is also important when discussing agriculture to realise it is a very diverse industry and that people in different parts of the country face very different challenges based on the land in their area. All farmers, whether on highly productive land or on the poor land of the mountains around the country or of the west of Ireland, must be supported and encouraged to keep farming. Therefore, all of our agriculture policies must be focused to enable each farmer, irrespective of whether he or she is on an off-shore island or on the plains of Meath, to farm to the maximum ability of his or her farm.

I call on the Minister and on the Government to put down a clear marker in relation to the CAP negotiations. Nothing less than the same nominal envelope of €1.6 billion per year, as was available under the previous CAP, will be acceptable. This will mean a cut in the CAP money of 7% in real terms but any further cuts from this level will be totally unacceptable to the Irish people and to Irish farmers. It is a habit to say we are getting the same nominal amount but of course, what counts is the real value of money and not some notional value of money on an historic basis. It is up to the Minister to ensure that Ireland takes a pro-active role in negotiating the financial envelope and that this is maintained intact. Anything less will be an abject failure.

Since becoming Minister, Deputy Coveney has talked a good talk, but when it has come to actions all we have seen are cutbacks and under-spending. Last year there was a very significant under-spend of €60 million under the AEOS, REPS spend and a total underspend in the Department of €200 million. This is money that would have been a huge help to farmers who are struggling at this time and which was surrendered to the Exchequer. This year, belatedly, the Minister has announced an AEOS scheme that will not commence until 2013 and under which payments may not be made until 2014. If he had spent his allocation last year he could have introduced a proper AEOS scheme last May. Instead, when one takes into account that 13,000 farmers have left the REPS this year and that the average payment under the REPS was €6,000 per annum, he has already cut-back on next year's budget by between €60 million and €80 million. If the Minister does not pay the AEOS payments until 2014, the actual opening cut back is €80 million. This is totally unacceptable and I call on the Minister to increase the maximum payment under the AEOS he announced to €5,000 and to increase the number of places on the scheme dramatically. I also call on him to commence this scheme immediately rather than on the delayed basis that he has announced.

In relation to the DAS, the policy of the Department seems to be to hit the poor or the most vulnerable farmers all the time. I understand that 10,000 letters were sent to farmers in relation to stocking density, the vast majority of whom are living in very poor land areas and in many cases are restricted in the amounts of stock they can hold by regulations imposed by the Department of Agriculture, Food and the Marine and the Department of Arts, Heritage and the Gaeltacht. Last week I asked, by way of parliamentary question, for details on the number of people who sought derogations. I did not get an answer but the previous week I got an answer to the effect that over 9,000, out of just over 10,000, applied for derogations. I also asked how many of those who had applied for a derogation were granted one. The Department refused to tell me but my understanding, on the grapevine, is that the vast majority of those who went through this huge bureaucratic exercise, giving the Department information that it already had, will be entitled to the payment after all. The Department has engaged these farmers in a huge bureaucratic exercise that is delaying payments to thousands of farmers, who inevitably will be able to prove that they should never have had any question raised regarding their stocking density, as the information was already available to the Department. I call on the Minister, once and for all, to drop the retrospective minimum stocking ratio requirements introduced this year and to pay these farmers the money they are owed immediately. It would seem that it is of no concern to the Minister that many of these small farmers have been waiting anxiously for their payment only to be told that they will have to wait, in some cases until the end of the year to receive payment. There is a saying in Irish, mair a chapaill agus gheobhair féar. It is a very apt agricultural saying which means live horse and you will get grass and it seems the current Minister believes this policy is good enough for some of the most vulnerable farmers in the country.

It was Charlie Haughey who said that, when he was Minister for Agriculture.

We are ahead of where we have ever been.

Except for these farmers.

The Government's way is that of Marie Antoinette - let them eat cake.

The payments are ahead of schedule.

Yes, because Fianna Fáil left things organised for the Minister.

The payments ---

The Government policy is to let them eat cake.

I ask the Deputy to refrain from interrupting.

We are doing more for farmers than ever before.

Not for these farmers.

Charlie did not do much for farmers.

He did more for farmers than anyone in Fine Gael will ever do. He understood them.

I always reckon ---

He put them in jail. That is what he did.

No further interruptions please.

Deputy Hayes is interrupting because he is feeling sore about the truth.

Again, to quote another saying in Irish, tá an fhírinne searbh ach sí an fhírinne í. The Minister can translate that one for himself. I am once again calling on him to give aid to those farmers who lost all of their silage and face financial catastrophe because of the very poor summer this year. All farmers accept the general ups and downs of agriculture but where somebody faces total devastation of his or her livelihood, I believe aid is warranted. Instead of coming to the aid of these farmers, the Minister has stood idly by all summer and has not acted in any pro­active way to help farmers.

The only gesture the Minister made was on the single farm payment, which would in any event have been paid in October and in respect of which he admitted that nothing exceptional is being done this year. It is paid in October every year.

It is not paid in October every year.

His colleague made a minor concession on the spreading of slurry and fertiliser but, as a farmer pointed out to me earlier, it was not sufficient because the weather is variable and unless it is good this week - the forecast is not good in parts of the country - farmers will face an impossible task in spreading slurry. Nothing has been done to help the farmers who have lost everything either because they could not save their hay or silage this year or because it turned rotten. The minor measures taken by the Government are of no assistance to them in their plight.

As we know, uncertainty is one of the reasons for the lack of confidence in the future. I call on the Minister to state once and for all whether a suckler cow welfare scheme and a sheep grassland scheme will be in place next year. Dangling farmers like a puppet on a string is not good enough and will not be acceptable to the farming community.

Many farmers took time off from their busy lives to come to Dublin today because they are genuinely worried about their future under the CAP and about the Government's intentions in the forthcoming budget. At a time of increasing food demand around the world, it makes sense to continue to invest in agriculture, a sector in which Ireland has a natural advantage, in order to support farmers with a decent livelihood, encourage young farmers to take up farming and ensure the future of Irish agriculture based on good environmental practice and high production standards. There is no question that the Minister talks the talk but it appears from everything I have seen since becoming spokesperson on agriculture that he does not walk the walk. Our fruit, vegetable and potato producers are under severe pressure from the supermarkets. Our milk suppliers are under pressure from the same source but this did not become a matter of public concern for the Minister until I raised it publicly over the summer.

It is great to have him back as spokesman.

Did he read the programme for Government?

I am pleased the Joint Committee on Agriculture, Food and the Marine is to investigate this issue and I hope the Minister will implement our proposals when we bring them forward. For the sake of the farmers of Ireland and an agrifood industry that employs 300,000 people, I hope we can finally rely on him to ensure that agriculture prospers and grows for the benefit of the entire nation. As Fianna Fáil spokesperson for agriculture, I am delighted to move this motion and I hope after today that agriculture will once again get the attention it deserves.

I second the motion and welcome the opportunity to contribute to this debate. I acknowledge the farming community's tremendous show of strength today and commend the staff and stewards of the IFA on organising a model for how an appropriate level of interaction can take place between parliamentarians and the industry concerned.

Well done lads.

The way in which they reduced the numbers on the streets was also recognised. Farmers were in some cases encouraged to stay outside the city. Otherwise 30,000 or 40,000 farmers could have taken to the streets, such is their concern for the budget and -----

He is not even saying this with a straight face.

I was told by farmers that some of their colleagues remained outside the city because they did not want to interact negatively with the consumers they regard as an important part of their industry. We will not get into semantics; it was an important demonstration of strength and all concerned have shown they can act in a fair and equitable way. We have moved away from the negative protests of the past, which were not beneficial to anybody.

The people with whom I spoke expressed several key concerns. They wanted to demonstrate the importance of the agricultural sector not only to Members of the Oireachtas, but also to the people of this country. Deputy Ó Cuív outlined the importance of this sector to the economy. I acknowledge the announcement by Kerry Group. Agriculture is often regarded as solely benefiting the farming community but when one considers the considerable employment and revenue it generates, it must be seen as a benefit to everybody. Many farmers believe it is important to maintain CAP direct payments for farm incomes. Some in this country regard direct payments as supporting the farming community but they do not realise that payments under the CAP helps to ensure safe and traceable supplies of quality food at a time when the global population is growing.

As the Minister will be aware, this is a critical time for negotiations on the EU budget, which is due to be agreed during the autumn. Farmers seek to retain the current envelope of money. We can discuss the details of how that money will be distributed at a later stage.

Farmers regularly point out to Members that farm schemes were hit disproportionately in budget 2012. Total expenditure across all Departments was cut by approximately 3.5% but the agricultural budget was cut by 6.5%. That is a disproportionate reduction which I hope the Minister will be able to reverse in the next budget. He has been in office for long enough to gain a better understanding of the concerns of farmers and the industry and I hope he will make a better fist of the Estimates negotiations this year. Under the agriculture budget generally, expenditure on farm schemes was cut by 17%. The Minister should by now realise the importance of these schemes to the farming sector. Deputy Ó Cuív spoke about the cuts to disadvantaged areas payments and REPS, which target the most vulnerable farmers. Farmers are concerned about the Minister's approach to budget negotiations for 2013. Cuts of up to €90 may be inflicted on the agriculture budget, which would represent a further 6.6% reduction in funding. However, the many kites that have been flown about the budget have allowed certain Ministers to escape the limelight. Perhaps we should not believe all we hear in this regard.

Farmers want to be treated with fairness and equality. They see themselves as primary producers who provide raw material for which they are price takers. They believe they will have a real impact on the recovery of this economy. They are committed to working their land and to providing the raw materials through which Kerry Group and other companies can generate profits for their shareholders and a considerable return to the State through corporation tax and job creation.

Without primary producers being able to maintain a standard of living that encourages them to continue to do their work and to attract their sons and daughters and younger farmers back into the enterprise, the seed with the capacity to do so much for the recovery of this economy will not germinate and will be lost. It is in that vein that I appeal to the Minister to look at the primary producers in a way that gives them protection, as the CAP has done in the past.

We can all remember a period when the CAP supported continuous production when demand was not there. We all recall the butter and beef mountains and the wine lakes. This seemed a crazy policy to some at the time, but we saw the benefits of it in the long run, because it retained the primary producers within their farming enterprises and saw them through the period when supply outstripped the demand that existed. Having succeeded in retaining so many farmers and families on the land, we are now in a position, thankfully, to benefit from increased demand across world markets. We have seen off the importation of beef from Brazil, we have seen off the competition from other sectors and have succeeded in maintaining a primary producer that will benefit the greater economy.

Now that the world population and the price of food have increased, we are in a position to be able take advantage of that. This is because at the time, people like former Commissioner Ray MacSharry and others saw the long-term potential for agriculture. I appeal to the Minister now to recognise the potential. It is now more obvious, because we can see the growth of consumer demand. We have a well recognised strategy, Harvest 2020, and it feeds into the increase in the consumer population and in demand. Unfortunately, however, if we continue to erode confidence in the farming sector and continue to put pressure on smaller producers, we will do them a disservice.

In the context of the CAP and the allocation of resources, we encouraged many farmers to remain in marginally viable farms and in the past we talked a lot about the protection of the environment and farmers being the custodians of the environment and lands in rural areas. It is vital that we continue supporting these farmers through providing support schemes. They may not be the strongest or greatest producers in terms of quantity, but they have a significant role. That is the reason schemes such as AEOS and others are of vital importance. I appeal to the Minister to consider this.

The regression on stocking density was outrageous and it has had a devastating effect on many farming families. The impact of it is affecting their livelihoods and their incomes.

Some 90,000 out of the 100,000 are not affected at all.

I accept that. However, the Minister has targeted a particular cohort of small farms, the stocking density of some of which is low because of the poor quality of the land.

They can appeal and are appealing.

They can. I have filled out more appeal forms in this regard than the Minister has and I have seen the difficulties these farmers encounter as they come from a particularly disadvantaged area of the country. They are just as important to the entire ecosystem that is the farming community as are large producers in other areas of the country who are fortunate enough to have quality land. We must treat individuals with equality. What we do not want in the rush to fulfil Harvest 2020, which was an initiative of the previous Government, is to create a national divide and only have the best land farmed. We should not allow parts of our rural landscape to go fallow, wild and unused because that will impact on one of the other primary elements of the economy, tourism. We must get the right mix and balance. I agree it is important to support the large-scale producers, who have a significant impact on the economy, but we cannot do that at the cost of those farmers who followed proposals at the time and got into REPS and AEOS schemes on the basis of being custodians and protectors of the rural community, in addition to being primary producers.

Another significant element of our motion concerns costs relating to farming. The increased price of diesel is having a huge impact, not just on domestic motorists, but on farming contractors and hauliers hauling produce. The previous speaker identified the fact that approximately 90% of all agricultural produce must be exported. In order to do that and to ensure that prices for farmers remain competitive, we must deal -----

Where would the money for that come from? Who would it be taken from?

As Deputy Hayes knows, many international hauliers currently buy their diesel outside the State, because a rebate system exists in a number of other states.

This is a motion on agriculture, yet the Deputy is talking about contractors and hauliers. Where would the money the Deputy is talking about come from?

I will explain if the Deputy gives me a chance. We are asking the Government to move toward the introduction of a rebate scheme for hauliers.

Where will the money come from?

Allow the Deputy to continue, he has only one minute left.

Additional revenue will be generated through diesel being purchased in the State. Also, if the Government is prepared to take on the criminal fraternity that is laundering diesel, considerable revenue will flow to the State.

Fianna Fáil let them away with it long enough.

That will allow the capacity to reduce the price of diesel to agricultural contractors. As a fairly significant farmer, Deputy Hayes understands the impact of the rising costs of fuel, silage wrap, feedstuffs and fertilizer. This puts enormous pressure on his neighbours. Many farmers in south Tipperary do not have an additional income and it is fairly hard on them. They do not have the capacity to generate another income outside the farm and must be assisted through reducing costs.

The Deputy is playing to the people in the Visitors Gallery now, but they understand money is needed. Where will the money come from?

I meet farmers and when I come up here, I do not lose sight of from where I come. Sadly, I see people now on the Government benches who forget how they got here. It is a sad reflection on the capacity of the Government that it cannot deal with the farming community in a way that considers rising costs and asks what it can do to help. I do not suggest cutting the price of diesel by 50%. However, I suggest that the Government can work with all concerned to try to come up with a solution that makes it possible for farmers to get through the tough years.

There will be better years. In fairness to the farming community, when they have good years, they spend money and do not gripe. However, when their backs are to the wall, they need help. I do not see that help coming from that side of the House.

I support the motion put forward by Deputies Ó Cuív and Dooley. Like Deputy Dooley, I was outside today with the farmers. In particular, I met farmers from my county of Wexford, one of the most productive farming counties in the country. Government backbenchers made many promises to the farmers outside today and the Minister will have his hands full delivering on all of them and on the promises made to deliver on all of the issues we have asked for in our motion. It was good to see the backbenchers outside, but the Minister has a lot to live up to following the promises made by them today.

Farming is one of the success stories of recent times. Despite the difficult economic climate, farming has been the driver of the economy in recent years and many more young farmers are staying on the land in comparison with some years ago. All of the agricultural colleges are full, because young people see a future in farming and want to remain on the land. It is very important that the Minister encourages and supports younger farmers to remain on the land and become even more productive.

The agrifood sector in Ireland contributes a value of €24 billion to the national economy, generates 6.3% of gross value added and provides over 7.4% of national employment. There are more than 300,000 jobs in the agriculture sector. That signifies the importance of agriculture at present and into the future. Food Harvest 2020 represents one of the good ideas that came from the previous Government. It is now supported by the Minister. It needs practical support.

Many people in the farming and food sectors who want to develop and expand their businesses are encountering a great deal of bureaucracy and red tape. Like people in every sector of the economy, they are finding it difficult to get bank loans. This area needs to be tackled. As we know, the banks are reluctant to allocate loans in any way, shape or form. Their representatives go on radio and television to tell us they are providing loans hand over fist, but that is not the case. I have met many people in the food sector who are finding it difficult to get bank loans without high interest rates. They are also being held back by other areas of red tape and bureaucracy. Many people in the farming sector are also concerned about the prices they are receiving for their products. I am not blaming the Minister for this because it is not his fault. The supermarkets and the people who are purchasing from farmers are squeezing the production sector and farming as a whole. Various Governments have tried to tackle the supermarkets and the multinationals and to change the way they deal with primary producers, but they have not been successful. It is important for us to continue to encourage the paying of a decent price for the products that are on the shelves of supermarkets.

I have raised with the Minister the issue of the Leader programme, which is really at the heart of rural Ireland. I suggested on Question Time a number of months ago that responsibility for the programme should be transferred from the Department of the Environment, Community and Local Government to the Department of Agriculture, Food and the Marine. As the Minister knows, many farmers and others in the agriculture sector want to diversify into other products. They are finding it difficult to do so because bureaucracy and red tape are preventing them from getting grant aid under the Leader programme. Given that agriculture and fisheries are at the heart of rural Ireland, responsibility for the Leader programme should have remained with the Department of Agriculture, Food and the Marine. Deputy Ó Cuív might not agree with the view, which I have always held, that this should be part and parcel of the Department of Agriculture, Food and the Marine. Some of the roadblocks farmers encounter when they try to diversify into alternative food products should be removed and grant aid should be made available in this area. I ask the Minister to examine this matter again to see how the Leader programme can be made more relevant to rural Ireland and the farming sector. Many farmers in my county who apply for grant aid are told they cannot get it because of rules laid down at EU level. Such difficulties are blocking them from getting grants.

The issue of Common Agricultural Policy reform has been highlighted when agricultural issues have been debated in the Dáil in recent months. The manner in which it is handled is crucial for the future of agriculture in this country. It is important the current €1.6 billion envelope remains in place. From next January, it will be in the Minister's gift to ensure farmers are not short-changed in these negotiations. He will be in the chair at the Agriculture and Fisheries Council when Ireland holds the Presidency of the EU for the first six months of next year. It is important for the Minister to use his good offices and his time in that chair to ensure some of the ideas and suggestions with regard to CAP that are being made at present are thrown out the window. That is necessary if we are to get a CAP reform programme that is relevant to Irish farming. Some of the suggestions that are being made in this regard at present are of major concern to Irish farmers. The high level of concern about CAP is one of the main reasons so many farmers came to Dublin today. Irish farmers are concerned they might be short-changed or might lose out when the future CAP proposals are made.

We have to bear in mind that the decisions that are made with regard to CAP will remain in force for a number of years. If the €1.6 billion envelope is not retained, it will have a serious effect on farming. It could be argued that reductions should be imposed on productive farmers at the higher end. At a time when we want to see productivity in farming and we want agriculture to develop further in this country, surely it is important that cutbacks are not imposed on the productive farmers in my county and other counties who provide the raw materials for the food sector and other sectors in the agricultural community. There is serious concern in this regard. I have attended IFA meetings and public meetings on CAP reform. Many farmers are worried by the threat that CAP will not be what it was in the past, that the overall budget within the EU will be reduced and that agriculture will have to take a higher cut than it did in the past and certainly a higher cut than any other area of the EU budget. It is important for the Minister to use his position as chair of the Agriculture and Fisheries Council to ensure that does not happen.

On the domestic front, the funding for a number of critical farm supports was slashed in the last two budgets in a manner that has limited the capacity of farmers to farm. The new agri-environment options scheme that was announced recently is too limited in scope and in payments. The Government should increase to 8,000 the number of places on the scheme. As Deputy Ó Cuív has suggested, the maximum payment under the scheme should be increased to €5,000. The suckler cow welfare and grassland schemes have played an integral role in improving livestock quality and have formed the backbone of the beef industry. The Minister must quell the rumour that he intends to cut these schemes by ensuring they are fully protected in 2013. It has been rumoured that the Government intends to cut this scheme by reducing significantly the moneys involved. That would also have a devastating effect on the farming community and the beef industry. I hope the Minister will put that to bed in his reply and bring an end to the rumours that are circulating.

I wish to speak about diesel costs. I worked in the oil industry for a long time. The price of oil in this country is far too high, even allowing for the price on the spot market at present. I have always held the view that a cartel is operating in this country's oil industry. The hauliers and farming contractors associations have submitted a number of suggestions to the Minister and his colleagues, the Ministers for Finance and Transport, Tourism and Sport, on how the high cost of oil might be alleviated. The Minister for Finance established a group in his Department to look at the matter, on which the Departments of Agriculture, Food and the Marine, the Environment, Community and Local Government and Transport, Tourism and Sport were represented. We are still waiting for the group's report, which has been completed but unfortunately has not been made public. Certainly, no action has been taken in relation to the report. I am sure the group made some suggestions on how to deal with the problems faced by hauliers, agricultural contractors and farmers. It is important for the report to be made available. The suggestions in the report on how to alleviate these problems should be implemented without any further delay. The cost of diesel is having a serious effect on the haulage and agriculture industries.

The Minister and the Government should take on board the Private Members' motion put forward by Deputy Ó Cuív and let us move forward together to make sure CAP reforms are implemented to the benefit of Irish agriculture and that some of the bureaucracy and red tape that exists at present is taken out of agriculture. The Minister must restore some of the schemes he has cut in the past and put adequate money into schemes to ensure farmers have a viable family farm for the future.

I move amendment No. 1:

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

“acknowledges:

— the economic role of the agrifood sector and the importance of Food Harvest 2020 which is being led by the Minister for Agriculture, Food and the Marine as a strategic vision for the agrifood sector;

— the increase in employment in the food and beverage manufacturing sector between 2010 and 2012 and the potential for 25,000 new direct and indirect jobs through the delivery of Food Harvest 2020 targets;

— the initiatives taken by the Minister in leading several trade missions, most recently to China and the USA, to develop new markets for the Irish agrifood sector and the opening of markets in Singapore, the United Arab Emirates and South Africa for Irish produce; and

— the commitment of the Government to the Irish agrifood sector, evidenced by the strategic importance attached to the agrifood sector in budget 2012;

recognises:

— the importance of an effective and well-resourced Common Agricultural Policy, CAP, in creating sustainable development of agriculture across Europe supporting the ambitions and targets of the Irish agricultural sector;

— that the amount of EU funding attributable to CAP will depend on the outcome of parallel negotiations for the new multi-annual financial framework for the EU budget from 2014 onwards;

— the need for the current reform discussions to respond to future challenges for agriculture and rural areas, increasingly from external sources, so as to maintain viable food production, sustainable management of natural resources and respond to climate changes; and

— the reform proposals in respect of the distribution of funds among and within member states and the need to retain levels of funding and provide maximum flexibility for member states;

supports the Minister in continued strong negotiations on CAP reform in order to maintain Ireland’s direct payments and rural development at current levels as a means of best achieving Food Harvest 2020 targets; and

notes:

— the importance of payments to farmers under the single farm payment, the rural environment protection scheme, REPS, the agri-environment options scheme, AEOS, and the disadvantaged area scheme, DAS;

— the introduction of a new €20 million AEOS scheme which will deliver an annual income in return for farming to high environmental standards;

— the advance payment of the 2012 single farm payment from 16 October which will represent the early payment of some €600 million to farmers;

— the payment of some €161 million to date under the DAS, benefiting close to 76,000 farmers; and

— the payment of €64 million under 2011 REPS to date.”

I thank Deputy Ó Cuív and the Fianna Fáil Party for bringing forward this Private Member's motion. Today is a very significant day, both for farming in terms of the strong statement that thousands of farmers made on the streets of Dublin today, but also in terms of the agrifood industry generally. The announcement by Kerry Group this morning that it is making the single biggest food innovation investment ever witnessed in Ireland is hugely significant. Not only will this create 900 permanent jobs and 400 temporary construction jobs, it is a fundamental endorsement of the Government's Food Harvest 2020 strategy, the innovation agenda which has been driving the Government's efforts to build a reputation for creativity, enterprise and innovation through the food sector. Graduates emerging from agrifood courses in universities and agricultural colleges across the country will now have an opportunity to compete for high-end jobs in one of the world's leading food nutritional and ingredients companies.

At the heart of the Food Harvest 2020 strategy is innovation. We are taking a strategic approach to developing quality food products, adding value and competing at the top end of markets worldwide. Kerry is leading the way with this investment in terms of innovation but I believe other companies will follow in time.

I want to focus today on the progress that has been made in the agrifood sector since the Government took office. Political priority has been attached to the sector from the very beginning and the agrifood and drink industry is now recognised as a major building block for recovery in the economy. In my view, it is by far the most important sector within the economy and has proved its worth today.

A significant amount has been achieved in 18 months. The strategic vision for the agrifood sector, Food Harvest 2020, which was put in place during the last Government's time in office, has been an integral part of this progress. The vision is simple - smart, green and sustainable growth for the agrifood sector. I published a second progress report on Food Harvest 2020 during the summer which shows how targets are being met. Action has commenced or has been advanced on 90% of the Food Harvest recommendations. Significant progress has been achieved to date on the main growth targets, including a 19% increase in the value of primary production against the 33% projected target for 2020, while exports have already reached 10% of the planned 42% growth by 2020.

An independent report recently published in Trinity College estimates that achieving Food Harvest 2020 targets could deliver 25,000 new direct and indirect jobs. The Irish food and drink sector is now truly operating on a global scale. In 2011, agrifood exports were valued at €8.84 billion, a 12% increase on the previous year. In fact, agrifood exports accounted for almost a quarter of the total increase in revenue from goods exported in 2011. From primary producers to food industry giants like Kerry Group, the agrifood industry is working together to develop high end, quality products with added value, aimed at key emerging markets. Food Harvest 2020 is a work in progress and will continue to be. We have quarterly targets which are monitored by my Department and we constantly review how the strategy is being rolled out to meet the targets in terms of what the market demands.

On a macro level, we are starting to see some of the ambition of Food Harvest 2020 being met in terms of trade opportunities opening up for the sector. Earlier this year, I visited China to discuss the possibilities around developing trade relations between our two countries. Subsequently, we signed an action plan on mutual co-operation between the Chinese Ministry of Agriculture and my Department on both the agriculture and fisheries sectors, as well as protocols in a number of specific areas. Tangible examples of this kind of co-operation are now starting to become more visible. Kerry Group last week signed a partnership agreement with Beingmate of China for the supply of Irish dairy ingredients for infant nutrition applications in China, and it is worth noting that Beingmate has 5 million customers a day buying its product. These kinds of partnerships will be hugely important to Ireland in a post-quota climate where secure paths to market for increased levels of production will be vital.

A number of new markets for Irish produce have come on stream within the last few months. The United Arab Emirates recently removed the age restriction on beef exported from Ireland to the UAE. Agreement was reached with the veterinary authorities in South Africa which allows for the exportation of sheepmeat from Ireland to South Africa. A similar agreement for sheepmeat was reached with the veterinary authorities in Singapore. I also led a trade mission to the USA during the summer months, focusing on a number of areas, including beef access to the United States, which I believe will materialise in the not-too-distant future. My visit to Beloit, the location of the Kerry Group's headquarters outside Chicago, was made for obvious reasons, as people will understand from the developments at 10 o'clock this morning.

In March of this year, I launched a €2 million Africa agrifood development fund with my colleague, the Minister of State, Deputy Joe Costello, which is supporting new partnerships between the agrifood sectors in Ireland and exciting new growing markets in Africa. I hope to visit a number of other countries between now and the end of the year to continue to drive new market opportunities for Irish produce. I will be in Saudi Arabia for three days in November with that in mind.

We are now exploiting the potential that exists for Irish companies due to significant investment in recent years across traceability, food safety, veterinary practices and animal husbandry. This is now opening up new markets which are looking for the kind of standards and quality that we have come to expect in the Irish agrifood sector.

To ensure new and growing markets have a sustainable and secure supply of top quality produce, we have to make sure the fundamentals of primary production are firmly in place. In last year's budget, the Government, in particular the Minister for Finance, recognised we need to get the basics right for the future if we are to drive the Food Harvest 2020 agenda. We introduced a range of measures that are designed to help the sector to plan for the future at farm level and to allow the next generation a chance to thrive. Budget 2012 introduced a new stock relief incentive to encourage farm partnerships and a reduced stamp duty rate on agricultural land from 6% to 2%, with a half rate of 1% applicable to transfers to close relatives until the end of 2014, a change that will substantially reduce the stamp duty payable on transfers of farm land by gift or by sale. We introduced the restructuring of the retirement relief on capital gains tax to incentivise the earlier transfer of farm assets to the next generation and to encourage the sale of land by those farmers with no successors. We introduced a capital gains tax incentive for property purchased before the end of 2013 to try to stimulate the land market. I put it to Deputy Ó Cuív that things are happening; it is not just talk.

If we are to drive our reputation and market access globally, we also need to ensure that we have the science to back up what we already know, namely, Ireland is one of the most sustainable, environmentally friendly and low carbon producers of food on the planet. Bord Bia recently launched Origin Green, a national sustainability development programme which will help Ireland become a world leader in sustainably produced food and drink. If Members have not already done so, I urge them to look at the promotional video accompanying this initiative, which features Saoirse Ronan, who offered her time free of charge to support the project. In my view, it encompasses all that is good about Irish food.

Some 64 Irish food and drink companies have registered their interest in Origin Green, with a commitment to meet key sustainability targets and deliver a progress report on an annual basis. The companies are signed up to a sustainability charter which will ask them to reduce energy inputs, minimise their overall carbon footprint and reduce their impact on the environment. This will not only make them more environmentally sustainable, but also more efficient in terms of how their companies are run. The aim is to arrive at a place where 75% of all food and drink exports are sourced from Origin Green members before the end of 2014 and 100% by the end of 2016.

This programme is building on work Bord Bia and Teagasc have already been undertaking with farmers across the country. Ireland is the first country in the world to monitor the carbon footprint of producers on a national scale. A pilot programme for the dairy industry was initiated in 2011 and a national scheme, equivalent to that operational in the beef sector, will be implemented in 2012 to 2013. By the end of this year we will have the carbon footprint of 32,000 beef farms in the country. Within the next two years we will have audited and have the carbon footprint of all 18,000 dairy farms in the country.
The day of action the IFA organised today sent a strong signal to the Government, the European Commission and consumers at home and abroad that the Common Agricultural Policy is a fundamental part of our agricultural future and food security. I compliment those who organised the day of demonstration. It was handled very well. The inconvenience caused to those living in Dublin was within reason and kept to a minimum. The IFA deserves significant recognition for this, considering the numbers involved.
From an Irish perspective, I wish to ensure we have a well resourced CAP, that the country retains its share of CAP funds and that as a state we have flexibility in delivering reforms on a national level. There are two strands of negotiations ongoing on the CAP and they are fundamentally intertwined: the multiannual financial framework, MFF, negotiations, which is euro-speak for the European Union's budget, to decide the overall EU budget, the amount for the CAP; and the allocation for Ireland. The CAP reform negotiations will decide the future policy framework for EU agriculture in terms of how the money is spent and the schemes it will support. The timescale for and delivery of CAP reform will be linked with the level of progress made in the MFF negotiations, something my Department and I are watching closely.
Throughout the summer and in recent weeks, I have travelled extensively to try to communicate Ireland's position on the CAP to other agriculture Ministers and Commissioner Ciolos whom I have met on numerous occasions on the matter. I also sought to learn what the key issues were for other countries. During the summer I was to Rome, Berlin, Budapest, Paris, Strasbourg, the three Baltic states, as well as Brussels, Cyprus and Luxembourg. This must be done to drive reform and achieve consensus at EU level, but with 27 member states and widely varying interests, it will be challenging to reach an acceptable outcome to the CAP negotiation process. I will not sign up to an outcome that is not in the interests of Irish farming.
One of the most crucial issues for the country will be the allocation of direct payments within member states. The priority for Ireland is to have as much flexibility as possible for member states with regard to payment models. The Commission's proposal to move to a flat national or regional rate would cause large transfers from the more productive farms to more marginal and less productive land. We want flexibility to limit the amount a farmer could lose in a redistribution and to achieve this, we have proposed an "approximation" model, by which all payments could move gradually towards but not fully to an average payment. A number of other member states now support the Irish proposal, including Portugal, Spain, Italy, Denmark, Luxembourg and, in principle, France. This has not happened by accident. In the coming weeks I will travel to various locations around the country. We have organised large public meetings with the IFA and the Irish Farmers' Journal to speak to farmers directly about why we have taken certain positions on the CAP and what the final compromise outcome might look like. I encourage Deputies to come along to these meetings if they wish to contribute to them.
The retail environment is another issue which was highlighted successfully by farm bodies today. I am happy to report the Government is making progress in this area. The programme for Government commits the Government to introduce legislation to have a sense of balance between producers and retail buyers. The Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, will introduce a consumer and competition Bill which is due for publication during the current Dáil session. The Bill will make provision for a mandatory code of conduct for the grocery goods sector. The Department of Agriculture, Food and the Marine has been closely involved in the development of the code.
I acknowledge that the past 18 months have not been easy for many involved in the agrifood sector, particularly given the poor weather we experienced during the summer. I recognise that not all farms will be able to take advantage of the opportunities I have outlined in terms of Food Harvest 2020 because of their location or restrictions on production. That is why I have availed of every opportunity to bring forward advance payments where possible and introduce schemes to assist those farmers who rely heavily on them for income.

What about the figure of €200 million?

The European Union has given Ireland approval to pay an advance of the 2012 single farm payment. A total of €600 million will be paid out from 16 October. My Department is working hard to ensure payments will be processed as quickly as possible thereafter. Despite tough economic conditions, we are investing significantly in the REPS to ensure farmers are supported in delivering the environmental benefits attached to the scheme. To date, €64 million has been paid out under the scheme this year.

If the Minister had paid the money last year, he would have another €60 million to pay out again this year. He cheated farmers out of €60 million under the REPS

Order, please. The Minister is in possession.

The Deputy should give over.

If Deputy Éamon Ó Cuív wants to get political, if we had to operate under the expenditure ceilings on which the Government of which he was a member signed off, we would not have anything like the schemes we have in place.

The Minister is selling a pig in a poke.

The facts are in black and white; the numbers are available.

The Minister underspent by €200 million last year, a sum he could have had available this year.

The Deputy does not want to hear the truth. He does not want me to address his hypocrisy on the issue.

It is not hypocrisy.

I was happy to outline in a non-partisan way what the Government had done in the past 18 months, but I must refer to the hypocrisy of the motion and what Fianna Fáil is calling for, given what it left the country with before it left office.

The Minister underspent by €200 million last year.

I had to negotiate an increase in the expenditure ceilings last year because of the mess left by Fianna Fáil.

The Minister could not even spend the money we had left him. It could have been carried forward.

If I had not managed to negotiate that increase, we would never have seen an AEOS in place.

We are going to have a challenging budget for next year, but I will do what I did last year, that is, be upfront and honest with farming bodies and work closely with them, as I already do on the CAP and as we did last year in the build-up to the budget to try to find the savings we needed to make, as every Minister must do within his or her Department, to cut the cost of delivering services. We have, for example, reduced the number of district veterinary offices nationally from 67 to 18 in order to reduce the cost of service delivery. We have also reduced staff numbers in the Department. The cost of running my Department and its agencies has been reduced in the past 12 months by €18 million in order to avoid cutting farm incomes. We will continue in this vein to reduce expenditure where possible and avoid an impact on farmers. I will not give a commitment on what Fianna Fáil has sought in its notional motion which totally ignores-----

The reality.

-----the expenditure ceilings it had left us with and we had to adjust upwards.

The Government could not even spend the money we had left it.

The Deputy's party left the country broke.

The Minister had an extra €200 million availabe, but he would not spend it.

I will do everything possible to protect farm incomes and the supports available for farm families, particularly after the difficult summer they have faced.

Will the Minister spend those millions?

The Minister is getting so good at not spending money, he is not even spending what he has been given.

It is welcome that the motion is being discussed on what is a red letter day for the agri-sector. Everybody in the country is aware of the importance of agriculture after today's events.

As the day of action concluded, the all-party committee on agriculture met IBEC representatives of the food and drinks industry, Irish Dairy Industries Association, Meat Industry Ireland and the consumer food section of IBEC. In light of the jobs announcement today, I refer to a statistic. One in eight jobs in the Irish economy is directly related to the agrifood sector whereas, by comparison, in Germany one in eight jobs is in the automotive industry, or car manufacturing. That is the context. We are all acutely aware how important the car industry is to Germany. Today there was an announcement of 800 to 900 jobs, plus 400 construction jobs. As far as I can recall, in the past 15 years there has not been as significant a jobs announcement, one which went back to our basic resources. All the major job announcements in that period came in sectors other than agriculture. This will probably be the biggest jobs announcement this year. At long last, the industry people described as a sunset industry is coming front and centre of the Irish economy. It was never the case that it was not in that position; it was just overlooked. That is important to bear in mind.

Although the Opposition motion does not directly refer to the CAP, these negotiations are critical. During the coming months, during the lifetime of the Irish Presidency, those negotiations will be completed. The Minister is correct to state that the first thing that must be agreed is the overall budget. One thing that has become plain during the discussions that have taken place lately is that the budget which goes towards the CAP will be based on the Commissioner's fundamental principles, namely, producing as much food as possible within the EU, doing so sustainably and supporting rural economies. It has become apparent that the last factor is key to keeping the European model of producing food to a high quality, doing so with animal welfare at the core and, critically, supporting communities. China decided lately that to keep its people in rural areas it will build around food production and agriculture, in particular, dairy.

One fact that came from today's meeting with the IBEC representatives is that there are certain areas of common purpose. Next week the committee will meet the Irish Dairy Board and Bord Bia and we hope to develop further these areas of common purpose. In regard to achieving the Food Harvest 2020 goals there are two specific areas involved: first, the coming conflict on climate change, climate change objectives and goals and our increased targets for food production; and, second, the distortion of the price take by the retail sector. This is something processors and producers absolutely have in common. We cannot achieve the targets otherwise. The delegates we met referenced a figure of a potential 30,000 extra jobs. The Minister mentioned 25,000 in his speech. In order to achieve that we have to tackle head on those two issues. We must adopt an international standard of carbon calculation to demonstrate clearly that the Irish model of food production is either the most efficient or among the most efficient. There is no point in yielding on this point in order to achieve a target that is unsustainable.

I welcome that the consumer and competition Bill will be brought to the House during this term. It is long overdue. I advocated the Bill when in opposition and I fully support all efforts to bring it to fruition.

Deputies Tom Hayes and Michael McCarthy have three minutes each.

I thank the Ceann Comhairle for giving us the opportunity to speak on this motion. As a rule, most Deputies are very interested in discussing this important topic but it is clear to anybody who reads this motion that it is nothing short of a political ploy by Fianna Fáil and an attempt to drive a wedge between the farming community and the Government. If the party was serious about the motion there are other issues it would have included. I heard party speakers mention meeting farmers today. I meet them every week. Last Friday, it was Tipperary, on Saturday it was Cashel and there have been many Mondays in Thurles. I meet farmers throughout County Tipperary. I can tell Deputy Ó Cuív there are three big issues facing farmers but the single biggest one which has faced them for the past month is the price of beef in our factories, how much the factories return and how they push down the price in spite of an enormous market being opened up across the world by this Minister, Deputy Coveney. That is their concern and if the Deputy was genuinely serious that is the number one issue he would have tabled.

The second should have been the renegotiation of the Common Agricultural Policy. Anybody I spoke to on the demonstration today wanted to be supportive of Ireland and its Government. They wanted to put the green flag on their back-----

We want to represent our constituents.

-----and fight tooth and nail for this country because what this Government needs is support. I respect that Deputy Ó Cuív is new in holding the agricultural portfolio but-----

New. That is good.

-----he should put on his thinking cap and see there is a broader agriculture there than the kind he talks about in the west of Ireland and the hills about which he talks so plainly.

I talk about all parts of the country.

Do not denigrate the west.

There are productive and commercial farmers right across Ireland who can give a great amount to this economy.

(Interruptions).

These are the people who actually support and help it and that is the reason Kerry Group announced such a massive development, bringing 800 jobs to the middle of Ireland. Hopefully, this will happen in other parts of the country. We should support this Minister on the road he goes.

When will you get your own portfolio?

He has a very tough job on his hands and I wish him well. That is the most important thing.

Rather than put this motion to the House, I suggest that every Member stands four square behind the Minister to help the farmers of Ireland and the country. The Members opposite would be doing a far better job in that rather than politicising as they have done tonight.

Is that not what the Opposition is elected to do?

Shame on them for doing so.

I welcome the opportunity to contribute to the debate tonight. There are a number of points I wish to make. Everybody acknowledges the absolutely outstanding role agriculture, the agrifood sector and even the marine sector play in terms of the economic recovery that is so badly needed by our country. There is no part of this country unaffected by the blight of unemployment. Creating sustainable jobs in the agrifood industry and all that follows rotates around having a fine and functioning agrarian background. That is of critical importance to our economic recovery. Creating sustainable jobs in rural Ireland contributes to the recovery of the economy, particularly the social economy.

There is a point worth mentioning, one that is put to us every time we meet the IFA. I acknowledge the very fine protest the organisation ran today, being mindful of people living around the capital city. The IFA is a fine organisation that not only conducts a very honourable service to its members but is very good at communicating with decision makers and policy makers, the people who are key to the success of their members. Its representatives tell us that credit is a significant issue. We must remind ourselves of a number of developments this year - the agrifarm investment scheme fund from Bank of Ireland and the agrifood fund from Allied Irish Banks, offering €200 million and €250 million, respectively. That is absolutely critical. One of the many criticisms of the economy is the lack of credit available here. People are trying to run businesses without that bedrock of funding being available to them. That is a significant issue and one that did not happen by coincidence.

In Deputy Coveney, we have a reforming Minister for Agriculture, Food and the Marine who has driven this issue to top priority at Cabinet level. He is also responsible for many reforms and developments happening in the marine sector, which are worthy of acknowledgment. The motion from Fianna Fáil must rank as the most brazen piece of political hypocrisy witnessed in this country for a hell of a long time. Its party members have come into the Chamber with fairytale economics, expecting expansion of this and that. It is a bit hard to take. I remind Deputy Ó Cuív that in the dying days of the last Administration, when the Green Party was jumping up and down, he was silent. He could not find his tongue then.

The Deputy voted to abolish installation aid and the early retirement scheme, and this had a hugely negative impact on farming families.

I note they have not been reinstated.

The previous Government created a property bubble and this led to fine, young and enterprising farmers leaving the land and obtaining jobs in the construction industry.

Will those schemes be brought back in the budget?

Why does the current Government not bring them back?

What happened during the previous Administration's term was shameful. In its dying days, it also announced €50 million in respect of the agri-environment options scheme. That was monopoly money. No one knew anything about its whereabouts because it did not exist.

Is the Deputy making an announcement?

It is laughable, to say the least, for those opposite to expect the Minister to take lectures in respect of decision making on funding, schemes and so forth, within his Department.

Is the Deputy making an announcement?

I would have to commend the calibre of clown that led the debate this evening.

What was the Deputy's final comment?

I call Deputy Martin Ferris.

On a point of order, I did not hear what Deputy McCarthy said.

I have called Deputy Martin Ferris.

On a point of order, I did not hear the final word Deputy McCarthy uttered. He referred to the calibre of something.

The final word I uttered was "evening".

No, the Deputy uttered a derogatory remark and it should be withdrawn.

I did not hear anything.

I am sure the Leas-Cheann Comhairle heard what was said. I certainly heard it.

Clearly, the Deputy did not hear it because he has inquired on two occasions as to what I said.

The remark should be withdrawn. It was an insult.

I did not hear what was said. We must move on. I have called Deputy Martin Ferris. We will listen back to the audio recording to discover what was said.

No. Is there something wrong with the Leas-Cheann Comhairle's hearing?

There is nothing wrong with my hearing.

The Leas-Cheann Comhairle said he did not hear the remark, but I heard it.

I did not hear it. I have called Deputy Martin Ferris. Deputy Mattie McGrath should resume his seat.

That remark was insulting to the mover of the motion.

Deputy Martin Ferris is on his feet. We must move on. Deputy Mattie McGrath must resume his seat.

That is not good enough. This is not the first occasion on which Deputy McCarthy has done something like this.

Deputy Mattie McGrath can pursue the matter with the Office of the Ceann Comhairle.

The Ceann Comhairle will say that the Leas-Cheann Comhairle was chairing the debate.

I welcome the motion and I wish to place on record the fact that Sinn Féin will be supporting it. I also wish to place on record the fact that Sinn Féin and I will be fully behind the Minister in his endeavours in respect of the CAP negotiations. We might have differences on particular issues but when it comes to obtaining the best possible deal for Ireland, the Minister will have our full support.

The CAP is not even mentioned in the motion.

That is for technical reasons of which the Minister is aware.

(Interruptions).

Deputy Martin Ferris is entitled to be heard.

The motion refers to the massive importance of the agricultural sector to the economy, the large numbers who are either directly or indirectly employed in it, and the many billions its contributes to the national income. In that context, I welcome today's announcement by Kerry Group that it is planning to build a technological innovation centre at Naas. This will lead to the creation of 900 jobs and will provide a further boost to the development of the wider agricultural and food sector in this country. Sinn Féin recognises the centrality of the food sector to the economy. As the largest indigenous sector, to a certain extent it can be utilised to create further jobs and growth independently of the wider economic situation. For example, fewer than 20% of inputs in the food sector are imported. This compares with a figure of over 60% in the area of manufacturing. The sector has also proven to be remarkably resilient in comparison with others that have been hit by the economic downturn.

Apart from the issues to which the motion refers, there are other matters that are crucial to farmers at present. The key matter in this regard and which will be at the centre of everyone's attention for the next year is the 2013 reform of the Common Agricultural Policy. This was the subject of a debate in the Seanad last week. I was interested to learn from my colleague, Senator Ó Clochartaigh, that the Minister accepted a Fianna Fáil amendment to the text of the original motion tabled in the Upper House. This is especially interesting in view of the fact that part of said amendment called on the Minister to support a reform that would cap the maximum single farm payment post-2013 and make corporations and conglomerates ineligible for this payment.

That is correct.

That is a position which my party is happy to support. Indeed, it is one we pioneered. Since I was elected to the House in 2002, Sinn Féin has consistently stated that the single farm payment should be capped. We have also called for the payment to be changed in order that the maximum limit would be set at €100,000. I would like to hear the opinions of the members of all other parties in the House in respect of this matter. I am of the view that setting a maximum upper limit should be the basis for a common approach on the part of the Minister and his counterpart in the Six Counties, Ms Michelle O'Neill, MLA, during the negotiations.

As I understand it, the European Commission's current proposal for a flat-rate, area-based payment would lead to a substantial increase of over 80% for most farmers but also to a 33% cut for those on the higher rates. Obviously, this proposal will be the subject of a process of negotiation and compromise. I am of the view that there is a strong mood for radical reform that would give rise to a redistribution away from the huge beneficiaries - most of whom are not active farmers in the instance - and towards active small to medium and even relatively large producers. An example of the imbalance that exists in respect of the single farm payment as it currently stands is that in 2007, just over 2,000 of the largest beneficiaries received more than €150 million between them. At the lower end, more than 55,000 farmers received payments of less than €5,000. Details relating to individual payments are no longer available. It is clear, however, from the 2008 list of those who received payments of €100,000, that most of the really large payments went to businesses rather than active farmers. I am glad there is now all-party agreement on the need to end those payments to businesses. I would like all parties in the House to commit themselves to an upper limit of €100,000.

If an upper limit such as that to which I refer were put in place, active farmers would have access to the funds within the national envelope which could be redistributed. In my opinion, an area-based payment has merit and there are some interesting proposals in this regard which are worthy of closer examination. At present, the average per hectare single farm payment for Irish farmers is €275. There are, however, farmers at the upper end whose per hectare payments are much greater than this. At the lower end, there are farmers whose payments, when averaged over the total area of their holdings, are much lower. A great deal of focus, both within and outside farming, has been placed on those who draw down large payments. The reality is, however, that the majority of farmers are on relatively small payments. This reflects the basis on which decoupled payments were introduced as part of the 2003 reform of CAP.

According to figures supplied to me by the Minister two weeks ago, more than 52,000 farmers drew down single farm payments of less than €5,000 in 2011. Not only is this sum very small, it also reflects an overall low income level for such farm households. Such households are struggling, and in many instances failing, to cope with debt and the cost of living. It is, therefore, disingenuous for some observers to claim that all farmers are living the high life on EU handouts. The average farm income in 2011 was just €21,500. That is more than €10,000 lower than the average industrial wage. Even this does not reflect the true picture for farmers at the lower end, including most of those on single farm payments of less than €5,000.

There is also a certain level of dishonesty on the part of some who are sympathetic to farmers. The statistics on average farm incomes are often highlighted, but no differentiation is made between the small number of extremely high earners and the large number of low earners. Nor does there appear to be much recognition of the need to create a fairer system in the context of determining the rate of single farm payments. I am of the view, therefore, that there would be merit in introducing an element of area-based payments to ensure a certain level of income security for small family farms. There are some interesting proposals in respect of this matter within the farming community and I hope these will be taken on board as part of the debate on the proposed reforms.

As stated, the Minister has our full support in his endeavours to obtain the best possible deal for the country. However, there will be a need to consider the adoption of a more equitable approach. In that context, we must examine the position of small income farmers who are struggling to survive and whose continued existence within their communities must be guaranteed. There is a need to maintain farming communities and to keep as many people as possible on the land in order that we might retain a vibrant society within rural areas. If we lose that vibrant society, we will lose our souls. That is why consideration must be given to everything as we move forward.

I commend the IFA on organising a peaceful, dignified protest today during which 20,000 people marched through the streets of Dublin. I am of the view that this protest was in support of the Minister in the context of the forthcoming negotiations in Brussels. In addition, those protesting were informing those of us in this House that we should be working together rather than bickering across the floor and shouting each other down. People want us to work together for the greater common good and for our farming and rural communities. We must be seen to do what is necessary to create the type of vibrant society that is necessary.

This morning, Kerry Group announced that 900 jobs will be created in Kildare. I would prefer it if those jobs were going to be created in Kerry. As a legislator, however, I must see the national picture. An influx of 900 jobs into the economy is a major development and will be of tremendous benefit to everyone concerned. I hope what is envisaged will have a knock-on effect on rural communities.

I advise the Minister to go to Brussels. He said he will not return unless he can stand up and defend a budget that will look after our farming community. He has our support in doing that and I know that by working together we can deliver something for our communities and for our rural communities in particular in order to give them a viable economy in the future.

Agriculture cannot be divorced from a discussion about rural Ireland which has suffered many attacks since this recession was visited upon us. The cuts affect schools, hospitals, local post offices, Garda stations, transport services. Off-farm income has dropped and young people are leaving in droves. The farming community has not escaped lightly. While there have been improvements in yields in recent years, this year has been particularly tough and the Minister will know this. Although improvements have been made and the wealth generated by agriculture is helping our economy, it does not mean that it is trickling down to the average farm family. The agrifood industry was worth €24 billion to the Irish economy in 2011 but the average farm family income was €25,000 and in the area I represent, that income would be a fraction of €25,000. That does not sound to me like fair distribution of wealth.

Our EU Presidency next year presents a great opportunity for an agreement on the reform of the Common Agricultural Policy. The Minister knows as well as anyone the immense importance of agriculture to the economy and the resultant jobs in manufacturing and transport. The Presidency should be used to encourage debate on real reform and to push Ireland's agenda. I am confident the Minister will do so. I repeat that he has the full support of Sinn Féin.

I know the Minister has a good working relationship with the Minister for Agriculture in the Six Counties. We have a shared future on this small island and this must be developed and exploited. There are many mutual benefits to be gained for farmers both in the Six Counties and in the 26 Counties and close co-operation will maximise those opportunities.

Sinn Féin has continuously highlighted the importance of the agri-environment options scheme, AEOS, which is an important aspect of farmers' annual income and is essential for the upkeep of many farm families. AEOS was introduced in order to carry on the important role of REPS in developing sustainable agriculture in Ireland. With regard to the environmental and wildlife aspect of agriculture it is essential that good environmental practices continue to be incorporated into Irish agriculture and AEOS plays a vital role. The tourist industry, along with agriculture, is another major industry. Agriculture and tourism must go hand in hand in developing our rural areas and AEOS is a process through which this can be done better.

The changes to the stocking rates under the disadvantaged areas scheme is a step away from the environmentally aware aspect of agriculture and it is important that land that is not sufficient to carry high stocking density should not be over-grazed. Many farmers are aggrieved about the cuts to the disadvantaged areas scheme because these farmers who were originally supposed to benefit from the scheme now believe they are losing out. Sinn Féin lobbied the Minister for a derogation to be introduced to allow farmers who had a genuine case to be given leeway with regard to stocking rates. We are pleased that this leeway was introduced but I suggest it needs to go further. I ask him to reconsider that decision when planning for next year's budget.

Agriculture and the food industry make up the leading indigenous sector of the Irish economy and they play a key role in Ireland's export-led economic recovery with positive growth in the sector over the past two to three years and with output growth in primary agricultural and agrifood exports far outpacing the rest of the economy. The economic and social benefits of this growth are widely dispersed throughout the country, with more than 300,000 jobs being supported by the agricultural and food industries. This accounts for up to 15% of the total employment in the country, with 115,000 directly employed in farming. Up to €8 billion per year is spent by farmers and their families in their local communities and catchment areas.

Our land is excellent and it is not over-stocked and it is the best grass-growing land in Europe. The grass provides quality fodder which is highly sustainable. This year's weather has been disastrous for the viability of agricultural holdings with the impact being felt throughout the winter and into next year. However, it is the exception rather than the rule in weather terms. The retention of the agricultural schemes and subsidies will mean that the financial effects of this year's weather should be minimised over the short to medium term.

I thank the Minister for his recent announcement of the AEOS scheme which is very timely in view of the high dependency of a large number of farmers who are small land-holders in the west of Ireland in particular. It means these farmers can derive a living off their land and ensure they can continue to have a viable family farm. The Minister estimates that up to 6,000 farmers will benefit and it is a lifeline for many of them. I welcome the €20 million made available which amounts to €4,000 per recipient.

The most crucial issue facing Irish agriculture is CAP reform. I believe we have an advantage in our favour due to the fact that we will have the EU Presidency from January until the middle of 2013. The analysis by the Department of Agriculture, Food and the Marine, shows that the current historic single farm payment system in use in Ireland is the best fit to target money towards active farmers. The EU Commission proposals would see payments per hectare levelled out from 2014 to 2020. This would mean that land which is currently farmed at a low level would draw the same payments as land that is actively farmed. Farmers with entitlement values above the national average of €270 approximately, per hectare, would drop down and some would lose up to 50% of their payments. I am sure the Minister will do his best. I refer also to the retention of the hedges within the AEOS as these were in danger of being left out last week. I thank the Minister of State, Deputy McEntee and the Minister, for their intervention.

We have included them.

Like Deputy Martin Ferris, I welcome the announcement of jobs by Kerry Group. However, I am very disappointed because Kerry Group has created nearly 24,000 jobs outside of County Kerry and outside of the State. It is a most successful company and I wish it the best for the future but the people of Kerry have been let down. The people and the farmers of Kerry set up the co-op and it expanded into a private limited company. There is no job creation as a result in County Kerry, only some administration work and some co-op stores. I ask the Government to take up this issue with Kerry Group because I brought it to the attention of IDA Ireland. It is most disappointing that these jobs are not located back where they should be, in County Kerry.

Debate adjourned.
The Dáil adjourned at 9.20 p.m. until 10.30 a.m. on Wednesday, 10 October 2012.
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