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Dáil Éireann debate -
Wednesday, 10 Oct 2012

Vol. 773 No. 13

Agriculture: Motion (Resumed) [Private Members]

The following motion was moved by Deputy Éamon Ó Cuív on Tuesday, 9 October 2012:
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.
Debate resumed on 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.”
-(Minister for Agriculture, Food and the Marine)

I am delighted to speak on this motion and commend Deputy Ó Cuív and his Fianna Fáil colleagues on tabling it. Deputy Ó Cuív has a deep knowledge of farming in the west and although born and reared in Dublin, he moved to the country to gain an extensive understanding of rural development and all things rural. It is reprehensible that certain Deputies sought to castigate him for moving this motion and being political. I do not know if Government Members realise that they have been in Government for the past 19 months. They cannot continue to blame the legacy of what happened in every aspect of society. It is a sad legacy, unfortunately, but it is time to move on. The Government is preparing its second budget and it is time Government Members put out the shoulders that were so broad before the election and take responsibility for it. It ill behoves any Deputy to describe Deputy Ó Cuív as a clown. That is reprehensible language and should be withdrawn. It is unfair to make derogatory remarks about any Member of this House, let alone a man of Deputy Ó Cuív's capabilities.

I support the motion because 20,000 people took to the streets of Dublin yesterday to participate in a dignified march. Farm families, who brought with them a limited amount of equipment, took part. All the aspects of farming, from farm machinery operators to agricultural contractors and co-operatives, are vital to the recovery of this economy. I experienced two recessions in my short lifetime and each time the farming sector helped us to recover. We saw this in the National Ploughing Championships held in Deputy Wallace's county two weeks ago. I might have been critical of the traffic levels at it but they will get it right next time. There was a great display of equipment and trades on fine arable land, although the weather was not too kind. Many of the ordinary small set-ups were supported by rural development programmes and LEADER. It is the biggest outdoor show in Europe. That is a reason for pride. It is mainly associated with farming and all its spin-offs, whether co-operatives, sole traders or small start-up businesses. The meitheal spirit of farming survives. Farmers support each other and that is why they are the envy of every group that wants to protest. They are so well organised that they can turn out 20,000 people and feed them outside Merrion Square without leaving a paper on the ground. I commend the IFA, other farming organisations and the people who came from every part of the country. They were very dignified and they were gone by 3.30 p.m. There was no hanging about or rattling of drums.

These farmers sent a clear and stark message to the Minister for Agriculture, Food and the Marine that the Common Agricultural Policy cannot be dismantled because it is too important for our economy. This is a small island nation which has to export most of what it produces. We have clean and green food and our name is recognised around the world. We can expand on that. We have set ambitious targets for 2020 but we will not meet them unless CAP is left untouched. We must fight in Europe to retain all the aspects of CAP which make common sense and support farm families. I compliment the Minister on doing a good job thus far but we need to be ever vigilant. I have no problem with capping single farm payments to huge farmers, factory farms and those who are not actively farming. Give the lion's share of the money to the small family farms that will stimulate businesses and support jobs in local communities. These farmers are not interested in simply dealing with monopolies like Tesco. We should support the sheep industry, the suckler herd and the piggery sector. All small farmers, whether potato growers or grain growers, deserve our support. Unfortunately, we do not have beet growers. We had a difficult season this year but farmers rose to the occasion. They did not whinge. They went out to make the best of a bad lot in the harvest.

I defy anyone to attack Deputy Ó Cuív for tabling this motion because he understands more about rural small businesses than most Deputies in this House. He has a long and chequered career in that regard. Government Deputies should support the Minister in carefully studying the implications of cuts to CAP and in fighting off attacks from whatever country they come. We will give our support but Members opposite should not have the cheek to label anyone on this side of the House a clown.

The agricultural sector is very important to Ireland. I come from an agricultural background and was born on a 36 acre farm. I have been close to farming all my life. A couple of weeks ago I met members of the United Farmers Association, an organisation which represents smaller farmers. The association has raised valid points in respect of the single payment. Agriculture is in a good state at present but I fear that small farmers will be in a difficult position in the future. A considerable number of small farms have disappeared and if we do not make the system fairer, many more will go. I have nothing against big farmers doing well but we have an obligation to help the most vulnerable and to provide fairness, equity and balance.

The United Farmers Association was at pains to point out that the CAP aim of ensuring a fairer standard of living for those who engage in agriculture has failed thus far to provide a floor on incomes that could stop the exodus of farming families from the land. The current system lacks equity and fairness and this must be remedied if the CAP's policy objectives are to be realised in a meaningful way. The association recommended a ceiling of 80 ha on the number of hectares qualifying for payment. That is not an unreasonable ceiling. In response to a parliamentary question I submitted regarding the association's recommendation of a flat rate of payment per hectare, the Minister for Agriculture, Food and the Marine indicated that he was open to working towards this objective. We should endeavour to achieve it to provide greater fairness. The Minister admitted that 76,000 Irish farmers would gain an average of 86% on their current payments if they received a flat rate per hectare, whereas 57,000 farmers would lose an average of 33%. That does not sound unfair to me.

I am sure Members have seen the article by Fintan O'Toole in The Irish Times of yesterday which argued that the current system locks in historical privilege because it is based on stock owned in 1999 and 2001. This skews the benefits towards farmers who are better off and essentially means that the more money a farmer has, the more the EU will give him or her. In 2008, which was one of the few years in which the figures were released, 37% of single farm payments went to the top 10% of farmers. Larry Goodman's company received more than €500,000, Kepak farms received €346,000 and eight other farmers received more than €200,000 each that year.

This needs to be challenged. Putting a ceiling on the number of hectares qualifying for payment must be a good and fair proposal.

Currently some farmers receive €1,200 per hectare, while others receive as little as €25. The Friends of the Irish Environment argue that 80% of funds go to 25% of the best-off farmers and the society describes the proposed new flat rate as a salvation for farmers on disadvantaged lands in rural Ireland. Given that much of rural Ireland is under serious threat from what I regard as a worldwide neoliberal agenda, I believe that if the system was made more fair for smaller farmers, it would do much for rural Ireland.

Deputy Ann Phelan will share time with Deputies Martin Heydon, John O'Mahony, Seán Kyne, Michelle Mulherin, Michael McNamara, Pat Deering, Áine Collins, Arthur Spring and Tom Barry. Is that agreed? Agreed.

I thank the Leas-Cheann Comhairle for allowing me speak on this motion. We are all critically aware of the importance the role of agriculture and the agrifood sector in general plays in our country from both a social and economic perspective. One of the sins of the previous administration, one it should never be allowed forget, was the closure of our sugar industry. This was based on greed and we in Carlow and Kilkenny have suffered very badly because of that.

The agriculture industry operates throughout Ireland and has an impact on every town and village in the country. Over €8 billion is spent by the agricultural sector within the local economy on an annual basis. Some €4 billion of that alone is estimated to be spent on agricultural inputs, most of which are purchased within a 36 km radius of the locality. Therefore, this is vital for local economies. It is vital that we keep our eye on the ball in respect of this sector and, more importantly, that we stay in tune with Harvest 2020 and the delivery of its targets, particularly the target of sustainability.

There has been a significant increase in employment within the food manufacturing sector over the past two years, which should be highlighted. We have the potential to create a further 25,000 new direct and indirect jobs with Harvest 2020. Some 300,000 jobs alone are supported by the sector as it stands. Although over the years Ireland has deflected from being an agricultural island primarily made up of small farms to a more mixed economy, it is still very much focused on the agricultural sector. This has been aided by the ongoing support of the EU, which through its funding and policies allowed Ireland to further develop technologies and contribute to the global markets.

For a small island, we manage to maintain a large presence on the EU circuit. This can be attributed to the high quality of our meat and dairy products. Glanbia is a prime example of this presence. We cannot underestimate the level of investment made by Glanbia, which is one of the largest food producing companies in the country. Glanbia has been particularly beneficial, not to mention convenient, for farmers as a market place. It is exciting that Glanbia has now gained planning permission in south Kilkenny for the construction of another processing plant which will be close to Waterford port. This sends a clear message of the willingness of Glanbia to consolidate its manufacturing role in Ireland. Glanbia has also recently invested in China. I should also mention Connolly's Red Mills, which has also established links with China to service the horse industry there. In conclusion, nobody underestimates how important agriculture is to our economy.

This debate is timely. As a proud Kildare man, it is timely in that this week we had a great announcement in Kildare. Not alone will 900 jobs come to Kildare from an indigenous company, Kerry Group, but we have the establishment of a global technology and innovation centre. It is worth noting that the site in Naas beat off stiff competition from London and Amsterdam. For those who are not aware of it, the Kerry Group has been in existence 40 years and is a highly successful public company with current annual sales in excess of €5 billion. It was launched as a public company in 1986. Its market capitalisation has grown to its current level of approximately €7 billion. It employs 24,000 people in over 140 countries on five different continents. This is an indigenous Irish company which has the confidence to invest huge resources in Ireland in an investment costing approximately €100 million. This is a huge vote of confidence in the expertise of the graduates we are producing in food science and will encourage more students to enter this area in the future.

Yesterday, at the Oireachtas Joint Committee on Agriculture, Food and the Marine representatives from the food and drink industry set out the position of that industry and brought home to us its rank and importance in the economy in comparison with farming and agriculture. The Irish agrifood sector provides one out of every eight jobs in the Irish company. The point was made yesterday that one out of every eight jobs in the German economy is created by the car manufacturing industry. This is the level of impact the agrifood sector has here through its approximately 690 enterprises. The industry had €9 billion worth of exports in 2011. The target of Food Harvest 2020 will see that rise to €12 billion. The industry brings about €11.5 billion worth of purchases in the domestic economy and it involves an annual payroll of €1.75 billion. Ireland is the largest exporter of beef, lamb and dairy ingredients in Europe. Yesterday, we heard about barriers to expansion that need to be overcome. If we get it right, there is growth potential of up to 30,000 jobs in the sector.

With regard to the points made in the motion on the issue of CAP, the IFA had a day of action yesterday. What the IFA wants is what we want. We all want a CAP that is well resourced and retains Ireland's share of the CAP funds and that has flexibility for member states. Simplification of the CAP is a key issue. There are challenges around the issue of allocations. I am concerned by the comments made by Deputy Wallace because I believe there are huge implications with regard to his proposals. Ireland needs to very careful in seeking change. Moving to a national flat rate will be an issue of concern to farmers, particularly farmers in Wexford who are some of the biggest producers. These farmers have put huge investment into their farms and enterprises over the years to produce on a large scale. Some of those farmers could lose an average 86% of their income. While that is not good for farmers in Wexford, it is not good for the agriculture industry overall either.

I fully support the Minister in the move towards an approximation measure. I congratulate him on the significant progress he has made in winning over the support of countries like Spain, Portugal, Italy, Luxembourg and Denmark. This must be supported.

I welcome the opportunity to contribute to this debate. I thank the Fianna Fáil Party for raising the issue and for keeping agriculture at the top of the agenda because that gives the Minister an opportunity to articulate the progress he is making and which has been made in agriculture and the agrifood industry and to point out the key role this industry plays in helping the recovery of the country and in providing growth and jobs, as evidenced by yesterday's announcement by the Kerry Group.

I also compliment the farming community throughout Ireland, north, south, east and west, which carried out such a dignified protest yesterday. It sent out a strong message yesterday through its day of action. I was glad to meet farmers from Mayo and the west in particular and to listen to their concerns, expectations and demands. I agree with speakers from all sides of the House that every farmer, whether one with small, large, good, fertile or infertile lands, deserves to be supported in earning a living on the land. There is sometimes a perception that small farmers in the west of Ireland are not productive, but I would like to kill that myth once and for all.

I also welcome the recent announcement of a €20 million AEOS scheme by the Minister. I hope too that the suckler cow welfare scheme will be extended or rolled over. In that context, I note the previous Fianna Fáil-led Government halved the rate of this scheme. The CAP negotiations are entering a crucial stage.

I compliment the Minister on the way he has thrown himself into the task of forming alliances with other countries. That will be to the benefit of Ireland's cause and will help us to secure what is good for Ireland. I welcome his engagement in holding public meetings around the country. I look forward to welcoming him to Claremorris next week for the first of those meetings. I also welcome the announcement that the payment of €500 million in single farm payments is starting today. Those payments are in addition to the disadvantage payments that were made some weeks ago. It has been a difficult summer for farming, but farmers have met the challenges. The message of yesterday's demonstration was about making it happen rather than letting it happen. It will allow all of us at all levels to bring a stronger message to Europe about the importance of agriculture in Ireland.

I would like to speak about the issue of land mobility, which is a precursor to discussions on payments and our targets under Harvest 2020. In years gone by, I attended many auctions in counties Mayo and Sligo in my capacity as a young solicitor. I encountered a well-established auctioneer who followed a particular routine and ritual at the beginning of every auction. When he was selling land, he used to say he was selling a commodity that God was not making any more of. It might seem obvious that no more land is being produced, especially in this part of the world where we do not have to deal with volcanos and plate tectonics, thankfully, but it remains a fact that land is a finite quantity. Young farmers need land if they are to farm.

The passing on of land is vital for young people who have the ideas, education and enthusiasm to enter into farming and thereby ensure the industry continues to be driven on. The growth of this sector is crucial if we are to achieve our Harvest 2020 targets. Access to land is one of the greatest obstacles that faces young farmers. Discussions on the possibility of ring-fencing young farmer top-ups on the single farm payment under CAP, or providing start-up aid for young farmers under pillar 2, are academic if young farmers cannot get land in the first place. A straw poll in one of the agricultural colleges has suggested that half of its graduates do not have land to farm. Statistics which can be gleaned from the payments made by the Department of Agriculture, Fisheries and Food tell us that approximately 5% of farmers are under the age of 35, whereas 28% of them are over the age of 65. Some sources estimate that between 10,000 and 15,000 farmers who are over the age of 65 have not lined up a successor to pass their land to. They have not made a plan for who will carry on the baton of farming. It is not helpful for farm continuity to be broken, even for a temporary period, when we are trying to achieve targets.

There has to be real concern about land mobility. We already have a favourable tax relief regime. We have land transfer and capital tax reliefs, the young trained farmer stamp duty relief and agricultural relief to help young farmers. In many cases, the farmer who is disposing of land can apply for retirement relief. The land-leasing tax exemption allows older farmers to gain tax relief if they rent or lease out their land over a long term. Despite these incentives, there continues to be a problem that needs to be tackled if we are to encourage older farmers to exit or retire from the sector with dignity and thereby facilitate young farmers who want to start up. This is necessary if the industry is to be more productive and generate more income for our economy. I welcome the research document that was commissioned by Macra na Feirme, and supported by the Department, the IFA and the Irish Farmers' Journal, to examine the issues of farm succession and transfer. I look forward to the publication of the report towards the end of the month. In advance of that, the key is to incentivise older farmers, especially those over the age of 65, to bow out gracefully from their land, even on a temporary basis, and allow young farmers to access the land they need.

As somebody who grew up on a farm in a farming community and who continues to farm, I do not need to be reminded of the importance of agriculture to this economy. I thank Deputy Ó Cuív and his Fianna Fáil colleagues for giving us an opportunity to discuss this matter tonight. The motion they have tabled notes "the critical role" the rural environment protection scheme plays in our economy. This Government is very cognisant of that. Some €64 million has been paid out under the scheme so far this year and it is estimated that €121 million will be spent by the end of the year. Despite this country's constrained economic circumstances, the Minister, Deputy Coveney, launched a €20 million agri-environment options scheme a couple of weeks ago. A maximum payment of €4,000 per annum will apply to individual applicants under the reopened scheme. In the past, the average payment has been lower than the maximum. Up to 6,000 new participants can be accepted into the scheme, which will be similar to those of previous years. There will be some minor changes which are designed to target increased benefits to participating farmers and the environment. Furthermore, targeted reforms to the disadvantaged areas scheme were introduced last year to prioritise payments for active farmers and ensure farm families that are actively farming in disadvantaged areas continue to receive assistance. The rate of payment in eligible areas under that scheme remains intact to protect the most vulnerable active farmers in disadvantaged areas. Nevertheless, the Fianna Fáil motion "calls on the Minister to expand the new AEOS to encompass a €5,000 maximum payment and 8,000 places". I listened to Deputy Ó Cuív's speech last night, but I did not hear him explain how these figures were arrived at. Is it just that they are a little better than the previous ones? Is there any particular rationale for these figures?

I remind the House of the requirement to save €114 million from the agriculture budget this year. Like everybody else in the House, Deputy Ó Cuív is aware of the need to make savings in these difficult times. Along with everybody else who sat on the Government benches prior to last year's general election, he voted for the memorandum of understanding on 15 December 2010.

Is that the memorandum of understanding that the Government keeps renewing, along with the bank guarantee?

It has not been renewed. It was agreed for a five-year period.

The Deputy has to dig himself out of the hole he is in.

The Deputies who are putting their hands up destroyed the country.

They are suffering from amnesia.

The record of this Government contrasts with that of Fianna Fáil, which suspended the early retirement and young farmers installation aid schemes, cut the disadvantaged payments scheme by €34 million and halved the rate of the suckler welfare scheme. That is before we reach the worst cut of all. According to a media report from 2009, which was three years ago:

The EU has posed a major headache for Taoiseach Brian Cowen by lobbying for Tánaiste Mary Coughlan as Agriculture Commissioner. The Irish Independent has learned she was proposed to government officials as the prime candidate for the plum job at a crucial juncture in the reform of farm subsidies. However, if the Taoiseach were to accede to the requests he would further risk his already slim majority.

I invite Deputy Ó Cuív to take time in his reply tonight to outline whether he argued for the Government of the time to take the hit and lose a Dáil seat so that Ireland might have an agriculture Commissioner at this crucial time.

I hear the Government is going to send the Minister, Deputy Hogan, over there next time.

There are Ministers queueing up to go.

As a farmer, I am delighted, like previous speakers, to have an opportunity to speak on this important motion. I welcome Fianna Fáil's renewed interest in rural Ireland and particularly in agriculture. The same party spent the last ten or 15 years developing bricks and mortar at the expense of farmers in rural Ireland. It is ironic that this motion is being discussed on a day when 1,300 new jobs are being created in the Irish food sector. Deputy McNamara mentioned the former Minister for Agriculture and Food, Mary Coughlan. It is important to remember that she was instrumental in ensuring this country's sugar beet industry never returned. I come from Carlow, which was the landmark town for this country's sugar industry.

It has never recovered from the demise of the industry. We must always remember what the sugar factories and the sugar industry gave to this country. It is important for us to get the best possible deal from CAP. I compliment the Minister, Deputy Coveney, on the work he has done to date to try to ensure we get the best possible deal.

In ensuring that best possible deal, it is important we break it down into four different areas, namely, delivering a well resourced CAP, retaining Ireland's share of the CAP fund, which is currently €1.6 billion, maximising payment flexibility and simplifying administration. It is also important to remember that in every recession we have had, as history will show, agriculture played a key role in ensuring the economy got going again. It is ironic, given Fianna Fáil put down this motion this week, that next week the applications for the new agri-environment options scheme, AEOS, are coming on stream. This is a scheme we got going when we came into government last year because Fianna Fáil had put no funding behind it despite having put it in place.

Some €200 million was underspent last year.

No funding was put in place for this scheme last year. If it had not been for the work done by the Minister, Deputy Coveney, in ensuring we have a very adequately funded scheme for the year going forward-----

If they had spent the €200 million, there would be no problem.

After a difficult year, it is also important that we have the 50% payment of the single farm payment coming through this week.

Deputy McNamara referred earlier to what Fianna Fáil contributed to agriculture in this country in recent years, namely, suspension of the early retirement scheme, suspension of young farmers installation aid-----

The Deputy should conclude.

The list is endless as to what they contributed to agriculture in recent years. I will conclude by thanking Fianna Fáil once again for giving us the opportunity to highlight the current position of agriculture and the importance it will play in the future. I compliment the Minister, Deputy Coveney, on the work he has done to date in trying to ensure we get the best possible deal in Europe.

I welcome the opportunity to speak on the motion. During the period of the Celtic tiger, the focus on agriculture was put on the back burner. Neglect of our most valuable natural resource led to some disastrous decisions during this period, one of which was the ending of the sugar beet industry. I have heard my colleagues speak about the effect this had on Carlow and it also had a huge effect in Cork North-West, where the sugar factory in Marlow was closed with the loss of many jobs, both direct and indirect, which we would all appreciate having now. There was also an opportunity for by-products such as ethanol which are of huge value as commodities throughout the world at present.

Agriculture is a sustainable industry in the economy. We have significant natural resources in our grass-fed dairy industry, which is renowned worldwide for its outstanding produce. Dairygold and Kerry Group are major drivers in this sector in Cork north west. We saw yesterday the announcement by Kerry group of 900 jobs in Kildare. It also recently signed a partnership agreement with a Chinese group for the supply of Irish dairy ingredients for infant nutrition in China, and we hope to have an announcement soon on an increase in employment at its Charleville plant. All recent world statistics show growing concern for the ability to produce sufficient food for the world market, concerns that are echoed within the EU itself. New markets such as China provide great opportunities for growth in agrifood opportunities and we are already beginning to take advantage of these.

The Minister has clearly laid out his priorities on the negotiations of CAP, namely, delivering a well resourced CAP, retaining Ireland's share of CAP funds, maximising payment flexibility for member states and simplification of administration. These aims are a monumental task for both the Minister, Deputy Coveney, and the Taoiseach. The overall funding will be decided by the heads of state. The Commission at present proposes a freeze on the budget, which would result in a decline in real terms. As always, there is intense pressure from some quarters to reduce the overall EU budget and, in particular, the CAP budget. The Taoiseach will be doing everything possible to hold the line at the various European Council meetings.

The central issue for the Minister, Deputy Coveney, is to change the Commission proposals for the allocation of funds within member states. A common approach to dealing with the Commission proposals has already been agreed by Ireland with Spain, Portugal, Italy, Luxembourg and Denmark. It must be remembered that many details remain to be fleshed out and there will be many ups and downs in this process. I am confident the Minister will achieve the best possible deal for Ireland, maybe not one that will satisfy every individual farmer, but one that is fair to all farmers, with the ultimate benefit to the economy.

I thank Deputy Ó Cuív for putting down the motion on the very important issue of agriculture. I commend the Minister, Deputy Coveney, on the recent announcement of AEOS. For a long time, the National Parks and Wildlife Service, NPWS, has been designating land along the west coast under SAC, SPA and NHA designation and has been sending out site packs stating that the compensation for this designation is under REPS and AEOS, so it is hugely important we have an AEOS scheme in that area.

I am a long-time believer that farm payments need to go to active farmers who are producing to the best of their ability on their land. With regard to Connemara, I was agreeable to the increase in the stocking rate from 0.15 to 0.3 because I knew that the vast majority of farmers in Connemara would be able to qualify for a derogation under the commonage framework plans, under the REPS restrictions and in regard to the Twelve Bens area. The majority of the land involved is blanket bog where the NPWS would put down stocking limits of 0.15 and it would not be possible to increase to the 0.3 rate, so I welcome this measure.

Deputy Ó Cuív stated earlier in the year that the Minister could have achieved his cuts of €29.5 million by targeting the larger dairy farmers and giving an exemption to the smaller milk producers. I disagree with this and note he did not classify what he meant by large and small, or what the quotas were. Under Food Harvest 2020, we are looking to increase dairy production by 50%. There are many Galway farmers in the eastern part of my constituency who are committed to dairying and who have worked hard and built up their herds, such as those farmers in Oranmore, Castlelambert, Athenry and Coldwood, and they are entitled to receive their disadvantaged area payment. Will this become official Fianna Fáil policy under Deputy Ó Cuív? How many will lose their disadvantaged area payment, as was reported in the Connacht Tribune in May? I believe these farmers are entitled to their payments.

I agree western farmers were hard done by under the last CAP. Too many of the benefits they had accrued through hard work and producing quality weanlings was taken up by farmers elsewhere in gathering up the entitlements. The suckler farmers in the west will be key in terms of producing quality beef post the removal of quotas. This is very important for them, and I agree that even partial coupling should be considered in regard to the suckler herds in the west.

As a commercial tillage farmer and one who was brought up and raised on a dairy farm, I welcome the opportunity to discuss the vital role that agriculture plays in our economy. One in every eight jobs in the Irish economy is linked to agrifood, with €9 billion in exports in 2011. The agri-sector contributes €11.5 billion in purchases in the domestic economy and a payroll of €1.7 billion, which is the largest of any manufacturing sector in the country and is comparable to the car industry in Germany.

Food Harvest 2020 seeks a 40% increase in our growth targets to reach €12 billion by 2020. Its targets have been a great help to this country and I am glad to say the omission of the tillage sector, which was not represented properly in Food Harvest 2020, will be addressed in the coming weeks with the publication of a bolt-on document which will also show the potential of our tillage sector.

I am glad to see that our colleagues in Fianna Fáil have finally recognised the central role that agriculture plays in the heart of rural Ireland. Under their stewardship, we have seen the single-handed destruction of our productive economy.

Who wrote Food Harvest 2020?

In 2000, some 39% of farmers were aged over 55 and when Fianna Fáil left office that figure was 52%, which is a clear indictment and shows they did not encourage young people into this industry. Under the directorship of their Galway tent, they oversaw the destruction of the sugar industry. They may not like to hear this but they might come clean tonight and apologise for the thousands of people who are now out of work and who have had to emigrate or face financial ruin because of the scandalous and reckless carry-on with regard to the sugar industry.

On a positive note, I am glad to say that due to the tireless effort and work of a number of people who l have had the pleasure of working with, there is now a realistic chance we will once again see the sugar industry returned to this country. I recognise the help of Deputy Ó Cuív in this matter.

We will return to manufacturing and we will return to prosperity and tidy up the mess that exists. The farmers of Ireland who marched to Dublin this week will play their part in returning this great country of ours to prosperity and they will not shirk their responsibilities. With the help of forward thinking and clear policies under the confident stewardship of the Minister, Deputy Coveney, this will happen.

In conclusion, I acknowledge and congratulate Dairygold, which is in my own constituency, on its €120 million expansion in Mallow, which is very welcome in these austere financial times.

I call Deputy Spring, who has two minutes.

Two minutes is rather brief. Our majority might be just too big at times, but that is a reflection on those on the other side.

We are going to be spared.

They will not be spared by the time I am finished. I want to begin by quoting Mr. Stan McCarthy, who spoke yesterday in regard to the announcement of 900 jobs. Things are not so good in Kerry that we can give jobs to Kildare, despite what some might think.

He said the future for agriculture looks bright. He also said in response to a question about what had happened in recent years that the agrifood sector must have got lost in translation because it did not get the same amount of emphasis behind it. I have been trying to translate that. It meant that people became obsessed with property rather than progress. One could point straight across the floor and say to people that they did not have an idea of how to run an economy in a prudent and meaningful way. Every step of the way since we have ended up with this deficit, and when faced with the budgetary measures we have had to introduce, Fianna Fáil is not willing to get behind them and support them. It will not support any tax cuts or tax increases. Fianna Fáil members are turning to the people of the country and saying they are now their saviours but that will not wash with anyone. There is an awful long time of salvation involved. The important thing to remember is what agriculture does for rural areas and the country in general.

I wish the Minister, Deputy Coveney, and the Minister of State, Deputy McEntee, the best of luck in the negotiations on the Common Agricultural Policy. There is hope in this country. If County Kerry is giving 900 jobs to County Kildare, I am sure the Cabinet will give a minimum return to County Kerry. I look forward to hearing about it.

We must focus on tourism, energy, agribusiness and micro-enterprise. Property is a consequence of a thriving economy, not a leader. It is a shame on those who think one can turn around and say that one is not responsible for the mess. Fianna Fáil must start to support things and make proposals. Fianna Fáil signed off on a property tax with the IMF, yet when it comes to implementing any form of property tax, the party wants nothing to do with it.

There is no property tax in the four year plan.

That is not the way to govern properly.

We did not see it in the Labour Party plan.

It is a site value tax.

Honesty is required in order that one can go towards recovering the Irish flag and the sovereignty of the people of this country. That is what the debate is about and that is what this House is about.

I commend Deputy Ó Cuív on tabling the motion. We all agree that we want to defend the Common Agricultural Policy and maintain the agriculture budget. The IFA put that message across strongly yesterday in its dignified national day of protest. There are fears of further cuts to agriculture in the December budget. It would be unfair and wrong to target lower income farmers, in particular farmers in the west who have smaller holdings, following on the cuts to last year’s disadvantaged areas scheme and the agri-environment options scheme. With the severe weather conditions and increasing input costs, there has been significant pressure on farm incomes. One must also take into account the dominance of the retail multiples. Given the number of jobs and exports involved, it is important we defend this important industry.

I wish to refer in particular to the disadvantaged areas scheme and the minimum stocking ratio requirement. In many situations in the west, the main holding is not in a disadvantaged area and therefore not in the disadvantaged areas scheme, DAS, which has resulted in cuts to payments under the scheme to the farmers in question. That issue must be examined. Farmers have sought deregulation. I was told that 350 farmers have been accepted and 1,000 farmers have been refused. The Department has written to approximately 950 additional farmers seeking more information.

The ICMSA president, John Comer, raised the issue of seeking help from the EU solidarity fund. He pointed out that funding of €30 million was available in 2009 under the EU solidarity fund. While the weather this year might not have been as bad as the awful weather in 2009, it is worth considering the possibility of getting assistance for people who are badly affected. Deputy Ó Cuív suggested a helpline should be set up to offer support and advice on the effects the bad weather is having on farmers and their families.

We have a helpline that is run by Teagasc.

The price of cattle and the drop in sheep prices was referred to, in particular the 35% drop in prices for lambs. For those reasons there is a need to improve the schemes that have been mentioned.

I commend Teagasc on the role it has played. We had a good breakfast meeting with Teagasc last week. I hope we will have more meetings, including public meetings. Teagasc referred to the fact that many young people are interested in courses in agricultural colleges. There is much emphasis on young people getting involved in farming and on the transfer of land. It is interesting to note that last week Catriona Murphy indicated in the Irish Independent that, according to the latest Central Statistics Office figures, there was an increase in the number of farms owned by women – something of the order of 15%, amounting to 17,324 farms in the ten years between 2000 and 2010. There is a low rate of female land ownership in this country.

I also commend Foróige on the survey and questionnaire it carried out among young people on farm safety, and also the project on farm safety by three young students from the Dominican college in Galway city for the BT Young Scientist & Technology competition to measure gas emissions from slurry tanks, which as we know have been a source of accidents and fatalities. I commend Teagasc and the Health and Safety Authority on producing a new leaflet highlighting the importance of safe slurry handling.

The Government must retain CAP funding after 2013. The single farm payments and the rural development scheme must be fully protected. In the context of farm organisations, the Irish Cattle and Sheep Farmers' Association has strongly pressed the Minister to ensure the maximum number of farmers receive advance payments to alleviate financial pressure caused by the weather in recent months. I hope that can be done as quickly as possible.

I am grateful for the opportunity to partake in the debate in a calm and rational manner now that certain Members have left the House.

I congratulate the Minister, Deputy Coveney, on his part in delivering the positive announcement by the Kerry Group yesterday. It behoves all of us to acknowledge that. It was a great news announcement for the country. However, I wish to follow up with a small “but” – the jobs are on the east coast. As the Minister is well aware, I am a Deputy representing Limerick and the mid-west. We have not seen a job announcement of a similar order for the mid-west region since Fine Gael and the Labour Party formed a Government. I wish to highlight that to put pressure on the Minister and his Government colleagues to deliver a major announcement for the mid-west region. Recently, PayPal looked at two locations, one in County Louth and the old Dell facility in Raheen outside Limerick city. County Louth won, which is regrettable. I acknowledge that the Minister played a fulsome role in delivering yesterday’s key announcement, which is most welcome, but we in Limerick and the mid-west are waiting expectantly on the Minister and the Government, which is composed of the Fine Gael and Labour parties, to deliver to the mid-west, which they have not done in terms of a serious jobs announcement recently.

A number of important items were raised in the context of the farmers’ demonstration yesterday which have not as yet been aired in the debate. I refer to the third level college grant scheme and the potential impact on the farming community as the grant scheme is under scrutiny at the moment by the Minister for Education and Skills. The Minister is aware of the possible introduction of a capital asset test. My Labour Party colleagues are leaving the Chamber as we discuss the issue.

That should be colleague in the singular. Only one is going.

It is an issue of difference between the coalition parties. The farming community is entitled to certainty. It would be most unfair to introduce a change in the third level college grant scheme which would impact on farm families in that fashion. The suggestion is that where one has a productive asset, a capital asset, which is put to use to generate income, after one deducts one’s allowable business expenses it will give a taxable income to farm families on which they then will pay their tax and on which they have to live. To penalise them by virtue of the fact that they have assets from which they derive their income would be the same as taxing anyone else in a job by putting a capital value on the job. The Minister is aware of the arguments being made in that regard. The farming community deserves certainty. We all wish the Minister well in the future Common Agricultural Policy negotiations. We want to see it work out well for farm families because the CAP delivered a degree of relative stability at a time when the supply of food was much greater than the demand.

The downside was the creation of the wine lakes, butter mountains and beef mountains, but it got the farming industry through those years. Now demand has picked up again and this is leading to stability. However, farmers face many pressures in terms of uncertainty of weather and the prices they have to take. They are price takers and are not in control of the price-fixing mechanisms. From that point of view, we are on the side of the farming communities we represent, as is the Minister, on our behalf. We take this opportunity to tell the Minister we are here to help him in this regard.

There are two other items I wish to mention briefly. Unlike my two Labour Party colleagues, I did not come into the Chamber to speak about myself. I am not a farmer, nor was I a banker working in a banking institution over the years. We are behind the Minister in regard to REPS but we wish to hold him to account on both that scheme and the AEOS scheme. The Minister responded recently to a parliamentary question tabled by my colleague, Deputy Ó Cuív, on the reopening of the AEOS scheme. In his reply, he stated he expected payments under the reopened scheme to commence at the end of 2013 or in early 2014. That is a very long and unreasonable timeframe for people who are waiting for payment.

During the past two days a number of speakers mentioned the cost of diesel, which is hampering the farming community and other sectors in Irish industry and society. We must have a serious debate in this country about fuel prices and the Exchequer take thereby. The spike in prices is leading to an erosion of our competitiveness. We know that because the 90% of the farm produce we export leaves the country by road, taken by both international and national hauliers who are buying their fuel outside this country. That is a loss to the Exchequer. Stepping outside the agricultural sphere, many families living in rural Ireland, where there is a dispersed population, are decommissioning their cars or putting them out of service because they cannot afford to run them due to the price of petrol and diesel. The economies of scale are kicking in here. Will the Minister look seriously at this and try to strike a balance in reducing the costs? He would get it back through an increase in demand and uptake.

I welcome the opportunity afforded by my colleague, Deputy Ó Cuív, to highlight the plight of the agricultural sector. That plight is numbered among some positive and some negative things that are happening in the industry. Contrary to what Deputy Hayes had to say last night, our job as public representatives is, in the first instance, to keep the Government informed on behalf of those who gave us the privilege and opportunity to do so. We do that both to provide information and to seek to have policy derived from the representations of our constituents. In a predominantly rural constituency such as mine, I am in receipt of much representation from the farming community and its industry representatives.

Yesterday, as many speakers mentioned, there was a fantastic announcement of an investment by Kerry Group, with up to 900 jobs to be created in County Kildare along with 400 temporary construction jobs. Such investment by an indigenous but global market leader is testament to the quality of the Irish food-producing sector. It is testament to the commitment and excellence of the farming and agricultural sectors and the contribution they make to the Irish economy. More importantly, it may be a testament to and a recognition of the principles of the Food Harvest 2020 programme, which was initiated and delivered in co-operation with farming bodies by the previous Minister for Agriculture, Fisheries and Food, Deputy Brendan Smith. That programme is underpinned by the three core principles the Minister mentioned last night, namely, smart farming, green farming and sustainable farming. I acknowledge the Minister's commitment to Food Harvest 2020 and compliment him on maintaining that policy which drives agriculture towards the targets contained in it, the principal one being growth of up to 42% in food production by 2020. I also acknowledge there has been progress and that, in spite of some blips in regard to prices in milk and beef at present, which are related to factory prices, improvements in the region of 19% have been made. We also acknowledge that 10% of the projected 42% growth in food production has been achieved.

We are well aware of the importance of exports to this economy, and agriculture plays an enormous part in that. We are well aware the beef- and milk-producing industries contribute greatly and that we are world leaders in terms of exports not only to Europe but also to world markets. However, we can also get lost in all this hype. When we talk about the broader economy and the great performance of our exports we must acknowledge that 60% of those exports come from the pharmaceutical and chemical industries. Although that contribution is well received and widely acknowledged, we must remember it is not a great provider of jobs.

When discussing this motion and the performance of the agricultural sector, it is important to give credit where credit is due and acknowledge the contribution the Minister has made to the improvements we have highlighted. As any credible Opposition would do, however, we must highlight his failings and the deficiencies we see in the way he manages his Department and delivers to those constituents to whom the Taoiseach gave him the privilege of delivering. As Deputy Ó Cuív noted, we must highlight the fact that in these austere and difficult times of budgetary process there was an underspend of €200 million by the Department in regard to the budget promises of last year. This amount could have addressed the failings we now observe in the Minister's AEOS scheme. It could have compensated for the Minister's failures to deliver a fodder scheme for weather-affected areas and address the diesel pricing system, as Deputy Collins noted. We must highlight the fact that this funding could have aided the Minister in delivering the disadvantaged area system.

It could not; it is not part-----

In addition, this Government has hit rural communities in other ways by virtue of last year's budget which affected rural schools and transport. Under the auspices of this motion, I call on the Minister to rubbish and banish the proposals mooted by the Minister for Education and Skills, Deputy Quinn, to include farm buildings in assessments for educational grants.

Leaving these failings aside, there is a principal reason we tabled this motion. We did not mention the CAP, as the Minister noted last night, and this was for a technical reason. Should we believe the Minister is not performing the duties we want him to perform in terms of the €1.6 billion envelope, we will not then be hamstrung by the rules and regulations of this Dáil into not being able to introduce another motion that might deal with the CAP when the time comes. We will hold that in reserve and watch very closely.

It was not only yesterday that we took the message; we take it regularly from our constituencies, from farming organisations and communities and from our neighbours and friends with whom we live. On behalf of this country the Minister must come back from Brussels with an envelope of €1.6 billion - which, in real terms, is a great reduction. That must be acknowledged and the rest of the population must know it too. The Minister also has a responsibility to deliver to that community in this year's budget, as Minister for Agriculture, Food and the Marine. If he fails to do that he will fail to acknowledge the input that sector makes into our society and our economy in these depressed times.

I, too, thank Deputy Ó Cuív for allowing us a chance to discuss agricultural issues, and I join all my colleagues in complimenting the Minister on the announcement yesterday by the Kerry Group and the earlier announcement by Dairygold, which was noted by Deputy Barry. For me, the most significant part of yesterday's announcement was that Enterprise Ireland seemed to be strategically involved in it. Perhaps that may give us a glimmer of hope that the silo method of government is beginning to collapse and that Enterprise Ireland will be crucial to the delivery of Food Harvest 2020. It sent out a powerful message about where our food industry is going and that Irish food companies such as the Kerry Group can be leaders in the new direction for food.

We must stand back from the announcement, however, and ask ourselves where is the next Kerry Group. Is there a company in the length and breadth of this country which has the ability to be the Kerry Group in ten, 15 or 20 years' time? We must ask ourselves seriously if we are doing all the right things to ensure that can happen.

I suggest that we are not and that we are actually choking many small indigenous food producers and businesses. They are not being choked on foot of anything the Minister is doing, rather their efforts are being stymied as a result of the rules and regulations relating to business and health and safety. We have created a situation whereby it is much more difficult for the small businesses to which I refer to get their operations off the ground than would be the case for their counterparts in other European countries. In the context of the CAP review - and if CAP is to be all about food in Europe - then we must give small indigenous and artisan food companies a chance. That is a matter which the Minister - in light of from where he comes - could bring to the table.

That is what we are trying to do.

I agree with what Deputy Browne said in respect of the rural development programme. It is time this programme was brought back within the remit of the Department of Agriculture, Food and the Marine because the staff within the latter have a much better feel for it. In my opinion, the delivery in respect of this programme would be better if it were returned to the Minister's Department.

The various Government cheerleaders have left the Minister and his Minister of State, Deputy McEntee, alone. Many of them repeated the usual line to the effect that we ruined the country but they then spoke glowingly in respect of Food Harvest 2020. As far as they are concerned, Food Harvest 2020 is be best thing since sliced bread or whatever kind of bread is being produced these days. In fairness, the Minister fleetingly referred to the fact that Food Harvest 2020 was initiated by Deputy Smith and the previous Government.

I mention that fact on almost every occasion on which I refer to Food Harvest 2020.

I said that; I have given the Minister credit in that regard. However, the members of the Government choir could do with being reminded of that. At the next meeting of the Fine Gael Parliamentary Party, perhaps the Minister might mention the fact that Food Harvest 2020, which was put in place by Deputy Smith, his colleagues in government and the officials in the Minister's Department, is now the guiding document not just in respect of agriculture but for the entire economy. It took a great deal of work on the part of Deputy Smith to ensure that Food Harvest 2020 got off the ground. What he did shows that our commitment, as a party, is real and is expressed in Food Harvest 2020. When the choir returns to sing its final serenade, perhaps the Minister will remind its members of that fact.

As Deputy Cowen indicated, we did not specifically mention the CAP in the motion. However, reference is made to it in the Government's amendment. I am very concerned about an article which appeared on the front and back pages of last week's edition of the Irish Farmers' Journal, which outlines - including in tabular form - what those in government believe will be the payment levels per farmer. I do not know if the Minister of State has denied this story but perhaps he might take the opportunity to clarify the position. If this is the Government's strategy, then our battle plan for the negotiations on the CAP - in respect of which the Minister has our full support - has been laid out for everybody to see. The European Commission is now aware of the Minister's bottom line and what he is seeking for Irish farmers.

Five other EU countries have signed up to what we are trying to do.

The Minister should bear with me.

That is a matter of public knowledge.

Yes, but the Government's strategy has been laid out and Ireland's cards have been placed on the table.

It is a negotiating position.

We will see about that.

That is fine but when one places one's trump cards on the table, then those in the Commission who want to get a deal out of Ireland will not be obliged to do much negotiating.

The Minister will be held accountable.

The Minister indicated that he is working closely with the IFA in respect of the CAP negotiations. That organisation is not very impressed with the payment tables included in the article to which I refer, particularly as they overstate the potential of the deal which might be struck because they do not take account of the impact of the greening proposals. I congratulate the Minister on the fact that he proposes to travel around the country-----

The Deputy should not mislead people. We are seeking flexible greening and this is included in those-----

The Minister should address his remarks through the Chair.

The Minister needs to brief his people in respect of this matter because that which he has stated is not evident. The figures supplied are going to mislead farmers, who are of the view that the Minister's proposals are going to save them. Some of these individuals are going to be obliged to accept a 50% cut in their CAP payments. The Minister cannot accept that. Deputy Cowen is correct. We will hold the Minister to account in this Chamber when he returns with a deal. However, we genuinely wish him well. I am of the view that he has the capacity to be successful but a deal based on the figures that are in the public domain would not be worth signing up to.

The Minister must ensure that what goes to our farmers will end up at the gate of family farms. As much as I want large companies such as Kerry Group to be successful and create jobs, it must be remembered that family farms are the foundation stones upon which the Irish agriculture industry is built. Our industry is so good because it is based on the commitment of families rather than being run by huge private limited companies, PLCs, which operate by putting farm managers and workers in place.

The issue of payments is referred to in the motion. I accept that the Minister is in a tight corner in this regard. However, the manner in which he made the cuts last year was particularly unfair. The way in which the cut to disadvantaged area payments was made specifically hit farmers on the west coast-----

-----who do not have the capacity to make the required changes in their stocking levels etc. If the Minister is obliged to make cuts this year, he should ensure that they will be applied in a fair manner across the board. Teagasc has indicated that farm incomes have taken a huge hit this year as a result of bad weather and increasing costs. I was listening to the radio as I travelled to Dublin yesterday and I am aware that many people were wondering why farmers were protesting in the city. Some individuals asked "How dare they come to Dublin?" They were very welcome to come here because they are in a very serious situation as a result of issues beyond their control It is correct that we are talking up the industry. However, our doing so leads people who are not involved in the industry to assume that everything is fine and that all farmers are doing well. The reality is that many of them are struggling as a result of matters beyond their control.

I suspect that we will be obliged to return to this matter. We look forward to discussing it with the Minister at various meetings. Perhaps he will explain to us the rationale behind the proposal highlighted in last week's edition of the Irish Farmers' Journal. We also look forward to discovering the kind of timeline he envisages in respect of this matter, although I accept that much of what is going to happen will be out of his control. I do not support the notion that he will be able to conclude a deal when he chairs the EU Council of Agriculture Ministers next year. Expecting him to do so would be to place unfair pressure on him. However, the reality is that the negotiations in which he is currently involved in respect of the CAP are as important as those in which the Minister for Finance, Deputy Noonan, is involved with regard to our banking debt. The CAP is extremely important and not just to agriculture. It is a shame there are so few Deputies present in the Chamber because this debate is as important to the growth and future of our economy as anything we might do with regard to banking or any of the other matters which we discuss and for which the Chamber tends to be full. If the Minister gets it wrong, he might as well put a torch to Food Harvest 2020. The latter will not be able to deliver on its potential in the manner in which it has to date if the deal on the CAP goes wrong. Given that the deal on CAP will be agreed on the Minister's watch, he will be judged on the basis of what is achieved.

The Minister and Minister of State have done a great deal of work in the area of farm safety. When the protest was taking place outside the Houses yesterday, another farm death occurred. I send my sympathies to the family of the person involved. Of course, we all remember the high-profile deaths of three members of the Spence family on the other part of the island. People involved in farming cannot take their safety for granted when working on their properties. Both of the Ministers commented on this matter during the summer period. On any occasion when we, as public representatives, speak about this matter to an audience comprising those involved in agriculture, we must drive home the message with regard to farm safety.

I thank Deputy Ó Cuív for tabling the motion and facilitating this debate. When one contributes at this stage in a debate, one always runs the hazard of entering the realm of repetition. However, it bears repeating that the agriculture industry is worth in the region of €24 billion annually to the economy. Over 7.4% of those in employment are involved in the industry. Agriculture truly is the engine of the rural economy.

The Minister's predecessor, Deputy Smith, brought forward Food Harvest 2020, which set out very ambitious targets for an industry which clearly has the potential to grow. When the arrangements relating to milk quotas were put in place in 1983, a member of Fine Gael was Minister for Agriculture. It is worth reflecting on the impact those arrangements have had on the development of agriculture in Ireland in the intervening period. If a milk quota system were not in place, what would be the position with regard to the dairy sector at present? Would that sector be a much expanded one and would there have been huge capital investment in it? I accept that capital investment of the type announced by the Kerry Group yesterday might not have occurred but would investment on a smaller scale have taken place in different parts of the country? Would such investment given rise to benefits such as greater spending in local economies and increased employment throughout the country?

The major bugbear when it comes to agriculture is price volatility. That fact is not fully appreciated by those who tend to have either a critical or a benign attitude towards the industry. The Common Agricultural Policy provides a vital safety net for the industry.

Some of the best milk prices were paid during 2011, but by April this year the price had suddenly taken a nose dive. Agricultural economists say the graph is moving in the right direction, price-wise. However, we should examine the origins of this hoped for increase in the price of milk. Is it happening because of serious climatic difficulties in the United States or because the dairy industry there had to cull to cut back the number of cows in its very large dairy units? If that is the main reason, we can quickly appreciate why there is price volatility. If there is a change in US climatic and market conditions, what will be the implications for the dairy industry here?

A cheap food strategy is being pursued in the Common Agricultural Policy area. Because of the growth of the global population, all projections point to a gradual increase in the price received for agricultural products. In the best of years, the return on capital investment in the beef and cereal sectors is moderate to poor. The range of mainstream enterprises associated with agriculture are capital intensive by nature. Anyone in the business of comparing the returns on money spent in different areas of economic activity will discount investment in agriculture because of the poor return on money spent, which is a great pity. Professor Jim Phelan's analysis of the industry researched and produced a number of years ago graphically illustrated the importance of the agriculture industry to the well-being of the national economy. I suggest this document be distributed much more widely. Anyone who has not read it should do so because it provides a much clearer understanding of the industry.

The Deputy's time has expired.

Deputy Éamon Ó Cuív has afforded me a few extra minutes.

I refer to the challenges faced by the Minister and his Department in the negotiations on the Common Agricultural Policy which will fashion the future of the industry. I emphasise the importance of appreciating the active farmer in the mix. If the active farmer is to be subjected to the price volatility to which I referred, he or she will need the safety net of a viable and worthwhile Common Agricultural Policy payment system.

There are serious difficulties with the age profile of those involved in the industry. The agricultural colleges are bursting at the seams because they do not have adequate accommodation available. The college in the constituency of the Minister of State, Deputy Shane McEntee, was closed and sold a number of years ago, which was a great mistake. If it was still in operation, it would provide invaluable accommodation. If the Minister plans to expand agricultural education provision - as he needs to do - he will have to consider the provision of resources for Teagasc as a means of financially supporting the agricultural colleges. If they are not in a position to employ staff, the number of students will be severely restricted. Given the age profile of those involved in the primary sector of the industry, it would be remiss of the Minister to allow that to happen.

I refer to capital allowances which I accept are within the remit of the Minister for Finance, Deputy Michael Noonan. However, this issue is important in the case of agriculture. Capital allowances for the expansion or development of farm holdings are spread over a seven year period. I firmly believe that if this period was to be reduced to three years, it would have a significant impact on employment at a time when the building industry which is suffering the most in the downturn could be given a significant boost in rural areas. A change in the capital allowances regime by the Department of Finance would affect the creation of employment on farms.

The ESB plans to implement a smart metering system, but it needs to be done quickly. Electricity charges on dairy farms have become an albatross around the necks of individual farmers. If the smart metering system will help farmers to keep a lid on these costs, it will have been a good day's work.

The requirements in respect of minimum stocking density have adversely affected farmers on the Cooley Peninsula. Those in receipt of relatively small and modest sums of money are coming to me. I have been in daily contact with the unit in Portlaoise which deals with the payment made to thousands of recipients. I ask the Minister to examine this matter from a commercial point of view because the issues involved do not merit the level of bureaucratic attention recipients are receiving.

On behalf of the Government, I wish Deputy Éamon Ó Cuív the best of luck in his new portfolio which is the most exciting either in opposition or government. I also welcome the motion. I suggest to Deputy Éamon Ó Cuív that a motion on agriculture be tabled every month because every spokesperson has spoken about the positive aspects of agriculture and the importance of the way in which the industry is developed in the next nine months. The announcement made by Kerry Group is very important in this regard. The company has led the way - as Kerry people do - with its announcement yesterday. As some Members said, there are many small companies which are full of enthusiasm to get going. I was in the Slieve Bloom area in Deputy Barry Cowen's constituency where I met people with great products who needed a boost. I have no doubt that we will see new companies and hear more announcements like the one made yesterday.

We all know that the farming community is not afraid to accept whatever cuts are necessary. The Government was complimented on the manner in which it had produced the budget last year. I had not been involved in the making of arrangements for a budget previously, but the Minister made sure everything in the Department was accounted for. This meant that the size of the cuts to be made in the budget could be minimised. That is what we will do in the upcoming budget also.

The AEOS was announced at the national ploughing championships. My telephone was hopping because people were delighted with the announcement. Those involved the IFA were particularly delighted. Deputy Éamon Ó Cuív is in opposition, but he will know that the Government is a leader in the European Union in how it deals with the agriculture industry.

This morning I attended a meeting with grain importers at which a speaker from France made some interesting points. Since 2002, he told us, 1 million sheep per year have disappeared out of Europe, with beef numbers and dairy cow numbers likewise declining dramatically. The negotiations on reform of the Common Agricultural Policy afford all of us in the European Union an opportunity to move forward. Ireland is the leading light in Europe in terms of beef exports and in the production of quality beef and dairy products. I take this opportunity to welcome the announcement by the Kerry Group yesterday regarding the creation of 900 jobs in County Kildare. We must work to maintain our position in the sector.

We are all - the Government, Fianna Fáil, Sinn Féin and the Technical Group - speaking with one voice on this issue, with the backing of the Irish Farmers Association and the Irish Creamery Milk Suppliers Association. Our shared objective is to achieve the maximum amount of funding for Ireland from the CAP reform process and thereafter to have the right to distribute that funding as we see fit, to farmers in the northwest, the west and everywhere else in the country. We must encourage productivity on every hectare. Some people need a lift in terms of the premium they receive. Some farmers will not just have what they always had. The onus is on us to ensure that people understand the importance of farming to this country. I am still laughing at the story Deputy Sean Fleming told in the Chamber this evening about a sum of €100 and the circle it created in the space of half an hour. It was a fantastic story about how that modest sum satisfied seven people in the one parish and ended up back with the person who initially laid it out. The message was that money makes money. It is our responsibility to ensure that every cent is put back into communities. I am in favour of having a debate on agriculture every month for the next nine months. Members opposite should not worry; we will be well able to accommodate that. Nor should they be concerned about underspends.

I will conclude by referring to forestry, my own industry. The Department has decided to issue financial approvals for 1,500 hectares of new forestry planting for the current autumn planting season. Planting grants in respect of some 5,250 hectares have already been paid this year and we estimate there will be 6,900 hectares planted in the full year. We might find we have overspent in the forestry sector, but we will get the money somewhere.

I commend my party colleague and recently appointed spokesman on agriculture, Deputy Éamon Ó Cuív, on bringing forward this motion. It is a timely debate, which coincided with the march by 20,000 farmers in this city yesterday, whose purpose is to emphasise the importance of the agricultural sector to our economy and to highlight the challenges facing farmers in this country. The outcome of the CAP budget negotiations will have a crucial impact in the coming years on the viability of many family farms throughout the State. I acknowledge the work done by the Minister, Deputy Simon Coveney, and the Minister of State, Deputy Shane McEntee, in this regard. Their commitment to the sector is clear and their efforts clearly genuine.

They have, however, failed to live up to their promises in several areas. I refer in particular to the delay in the announcement of a replacement scheme for the agri-environment options scheme. It is disappointing, moreover, that the number of places under the new scheme has been capped at 6,000 and the allowance itself capped at €4,000. This does not offer the replacement that is required to the 13,000 farmers coming out of the REP scheme this year.

To clarify, there will not be a cap of 6,000. Rather, it will be a question of how many can be accommodated within the €20 million allocation. The number will be anywhere between 6,000 and 8,000.

It certainly does not come up to the mark that is required in order to satisfy demand. In addition, the underspend in this envelope last year, which reverted back to the Exchequer, shows that more could have been done earlier in regard to this particular scheme.

There has been a great deal of good news relating to the agricultural sector. 2011 was a particularly good year for farmers in terms of the weather and the fact that world prices for both meat and grain were, for various reasons, better than expected. As a result, agriculture was pointed to as a sector that was doing particularly well. When we drill down beneath the good news story, however, the reality is somewhat different. We see, for example, that for the 100,000 farmers in this country, the average income last year was just over €24,000, which was an increase of 32% on the 2010 figure. This year's poor weather and disappointing harvest - although it ultimately turned out slightly better than initially feared - mean that incomes will certainly be down. For the top one third, or some 33,000, of farmers - that is, the full-time and commercially viable farmers - the average income last year was €56,000. Meanwhile, the average beef farm income last year was €11,000, while the figure for sheep farming was €18,000.

It is clear, therefore, that we are not talking about a particularly well-off sector and that it is not particularly easy to survive as a farming family. An additional factor is that we have a situation where the percentage of farming families with off-farm income has declined from some 70% four years ago to less than 50% today. The importance of schemes such as AEOS becomes even clearer in this context, as well as the importance of ensuring there are replacement schemes in place. For many farmers, the €4,000 cap the Minister is imposing on AEOS will come directly from their bottom-line income. As such, the outcome of the Minister's negotiations with his European colleagues on CAP reform will have an even more crucial impact in the coming years.

My final point relates to the capital assets review group established by the Minister for Education and Skills, Deputy Ruairí Quinn. The group's recommendations may have a significant impact on potential future funding for the third level education of the children of farmers and the self-employed. Given that average farm income was €24,000 last year, the potential inclusion of capital assets would see many families no longer qualifying for a maintenance grant even though they do not have sufficient income to fund their children's college education. That issue must be addressed. I accept that the Minister, Deputy Coveney, has acknowledged the problem. However, we must ensure a positive outcome from the process, which will require a commitment from the Government as a whole.

A great deal has been said in the past two days and it has proved a useful debate. I certainly welcome the offer from the Minister of State, Deputy Shane McEntee, for a monthly debate on agriculture. I remind him, however, that it is the Government which orders the business of the House. There are many important decisions to be made in the coming weeks and months. The first point to consider is that on the last occasion, we negotiated a provision of €1.6 billion per year under CAP. In terms of the current negotiations, we are already on a downer because even if we retain that level, it will be much less than before in real terms. Nevertheless, my colleagues and I will back the Minister and the Taoiseach the whole way if they come home with €1.6 billion. They must not come back with less.

Another issue that struck me last night is that while the Government mentions Food Harvest 2020 now and again, it has never had the grace to recognise the work done by the previous Administration in this regard. The Minister, Deputy Simon Coveney, claimed great credit for that initiative. Unlike his colleagues in government, however, he did at least mention that the document, which is the blueprint for progress, was authored by the last Government. The Minister also placed great emphasis on opening up the Chinese market, but failed to mention our efforts in this regard.

The previous Government worked on that issue for years and was criticised for sending trade delegations to China.

I did not criticise it.

The Deputy criticised us when he was in opposition. We heard about the development of Kerry Co-operative. Anyone who believes the company started negotiations on this development after March 2011 was never involved in the development of industry.

Is the Deputy trying to take credit for it?

Yes, the company had the confidence to start the negotiations when my party was in government. If the Deputy asks Kerry Co-operative when it started the negotiations, he will find the negotiations did not start on this Government's watch.

In that case, the previous Government was not very successful. It was a miserable failure.

Please allow the Deputy to continue, without interruption.

The Minister referred to the Animal Health and Welfare Bill but did not have the good grace to admit significant work was being done on that legislation before he entered the Department.

While I welcome the payment of the single farm payment today, I received telephone calls from farmers earlier asking why they had not yet received their disadvantaged areas scheme payments. The reason for the delay is the change in the rules introduced by the Minister and the time taken to deal with the derogations.

We heard a great deal about Greencore today. I thought when we decided to sell part of that company that the golden share would be used in the manner that had been indicated to us. I am the first to admit that the big mistake-----

Greencore closed the sugar company.

Allow me to finish.

The Fianna Fáil Party flogged Greencore.

I would be the first to admit that we should never have privatised Greencore. Does the Government realise that what it is proposing to do with the forest crop will eventually result in the same sorry tale? If Deputies believe the Greencore decision was wrong, they should ensure the decision to sell the forestry industry, about which I know a great deal, is reversed.

The decision to end the sugar industry was a political one.

It was made by Greencore.

No, it was made by the Government.

The decision was taken by Greencore, although the seeds were sown when we privatised the company.

Deputy Ó Cuív was at the Cabinet table at the time.

I put it to the Minister that if his Government sells the forest crop, the same problem will arise.

We will not allow Bertie Ahern to get his hands on it.

He is well positioned.

Please allow Deputy Ó Cuív to continue, without interruption.

The 2010 budget for rural environment protection scheme payments was €329 million and the entire sum was spent. In 2011, the Government was left €337 million by its predecessor but spent only €276 million of it, leaving €61 million unspent. The budget for REPS this year is €243 million. Next year, it will be €165 million, a reduction of €172 million from the budget we left this Government for REP and agri-environment option scheme payments.

The Deputy's Government left the country bankrupt.

I also noted in all the discussions on the Common Agricultural Policy that the only one of the Commissioner's proposals the Minister never refers to is the recommendation that special assistance be given to areas of natural constraint.

We hear much euphemistic talk about productive farmers, the implication being that the farmers in receipt of large payments are responsible for all the production. In fact 70% of farmers receive single payments of less than €10,000 per annum and this group includes many productive farmers.

In addition, 90% of farmers receive a single payment of less than €25,000 per annum. This group also includes many productive farmers. Payments of less than €50,000 per annum are made to 98% of farmers. Does the Minister believe this group includes a large number of unproductive farmers?

That is the reason we will have redistribution.

Some 2% of farmers receive a payment of more than €50,000 per annum. The efforts of the Minister appear to be to protect the 2% at the expense of the 98%. There is a sleight of hand taking place in favour of the 2% at the top. We will fight him on that issue.

Amendment put:
The Dáil divided: Tá, 87; Níl, 45.

  • Bannon, James.
  • Barry, Tom.
  • Breen, Pat.
  • Broughan, Thomas P.
  • Butler, Ray.
  • Buttimer, Jerry.
  • Byrne, Catherine.
  • Byrne, Eric.
  • Cannon, Ciarán.
  • Coffey, Paudie.
  • Collins, Áine.
  • Conaghan, Michael.
  • Conlan, Seán.
  • Connaughton, Paul J.
  • Conway, Ciara.
  • Coonan, Noel.
  • Corcoran Kennedy, Marcella.
  • Coveney, Simon.
  • Creed, Michael.
  • Creighton, Lucinda.
  • Daly, Jim.
  • Deasy, John.
  • Deenihan, Jimmy.
  • Deering, Pat.
  • Doherty, Regina.
  • Donohoe, Paschal.
  • Dowds, Robert.
  • Doyle, Andrew.
  • English, Damien.
  • Farrell, Alan.
  • Feighan, Frank.
  • Ferris, Anne.
  • Fitzpatrick, Peter.
  • Flanagan, Terence.
  • Griffin, Brendan.
  • Hannigan, Dominic.
  • Harrington, Noel.
  • Harris, Simon.
  • Hayes, Brian.
  • Hayes, Tom.
  • Heydon, Martin.
  • Humphreys, Heather.
  • Humphreys, Kevin.
  • Keaveney, Colm.
  • Kehoe, Paul.
  • Kelly, Alan.
  • Kenny, Seán.
  • Kyne, Seán.
  • Lawlor, Anthony.
  • Lynch, Ciarán.
  • Lynch, Kathleen.
  • Lyons, John.
  • McCarthy, Michael.
  • McEntee, Shane.
  • McFadden, Nicky.
  • McGinley, Dinny.
  • McHugh, Joe.
  • McLoughlin, Tony.
  • McNamara, Michael.
  • Maloney, Eamonn.
  • Mathews, Peter.
  • Mitchell, Olivia.
  • Mitchell O'Connor, Mary.
  • Mulherin, Michelle.
  • Murphy, Dara.
  • Murphy, Eoghan.
  • Nash, Gerald.
  • Nolan, Derek.
  • Ó Ríordáin, Aodhán.
  • O'Donnell, Kieran.
  • O'Donovan, Patrick.
  • O'Dowd, Fergus.
  • O'Mahony, John.
  • O'Reilly, Joe.
  • O'Sullivan, Jan.
  • Phelan, Ann.
  • Phelan, John Paul.
  • Ryan, Brendan.
  • Shortall, Róisín.
  • Spring, Arthur.
  • Stagg, Emmet.
  • Stanton, David.
  • Timmins, Billy.
  • Varadkar, Leo.
  • Wall, Jack.
  • Walsh, Brian.
  • White, Alex.

Níl

  • Browne, John.
  • Calleary, Dara.
  • Collins, Joan.
  • Collins, Niall.
  • Colreavy, Michael.
  • Cowen, Barry.
  • Crowe, Seán.
  • Daly, Clare.
  • Doherty, Pearse.
  • Dooley, Timmy.
  • Ellis, Dessie.
  • Ferris, Martin.
  • Flanagan, Luke 'Ming'.
  • Fleming, Sean.
  • Grealish, Noel.
  • Halligan, John.
  • Healy, Seamus.
  • Healy-Rae, Michael.
  • Higgins, Joe.
  • Kelleher, Billy.
  • Kirk, Seamus.
  • Lowry, Michael.
  • Mac Lochlainn, Pádraig.
  • McConalogue, Charlie.
  • McDonald, Mary Lou.
  • McGrath, Finian.
  • McGrath, Mattie.
  • McGrath, Michael.
  • McGuinness, John.
  • McLellan, Sandra.
  • Martin, Micheál.
  • Murphy, Catherine.
  • Ó Caoláin, Caoimhghín.
  • Ó Cuív, Éamon.
  • Ó Fearghaíl, Seán.
  • Ó Snodaigh, Aengus.
  • O'Brien, Jonathan.
  • O'Sullivan, Maureen.
  • Pringle, Thomas.
  • Ross, Shane.
  • Smith, Brendan.
  • Stanley, Brian.
  • Tóibín, Peadar.
  • Troy, Robert.
  • Wallace, Mick.
Tellers: Tá, Deputies Emmet Stagg and Paul Kehoe; Níl, Deputies Dara Calleary and Seán Ó Fearghaíl.
Amendment declared carried.
Motion, as amended, put and declared carried.
The Dáil adjourned at 9.20 p.m. until 10.30 a.m. on Thursday, 11 October 2012.
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