I thank the Chairman and members for having us before the committee. I will try not to talk about drink-link buses which I know gained much publicity in recent weeks. We have provided our submission for the committee and members will have a copy.
We argue that we have complemented the work of those who wrote the rural strategy. We know from the consultation process that a great deal of work went into it. We note there are obligations to adhere to the European Union guidelines, as well as the Lisbon strategy. In particular, we welcome the increased budget for rural development contained in Axis 3 and Axis 4. It is a €7 billion package. However, the table in our submission demonstrates that, effectively, rural development measures are allotted just €425 million, or approximately 5% to 6% of the total package. Therefore, despite being titled the rural development strategy, we draw attention to the reality that it is more an agriculture and farm support strategy. Nonetheless, we accept and welcome this reality because, without such a subsidy and support, farming, the main industry, would die and rural areas would be seriously affected. We do not suggest this funding should not be made available.
We acknowledge the prioritising of rural development in recent years, given the White Paper on rural development, the establishment of the Department of Community, Rural and Gaeltacht Affairs and initiatives such as CLÁR and the rural transport initiative, among others. We welcomed the publication of the national spatial strategy and the significant emphasis put on rural development in the recently published Towards 2016 agreement and the new national development plan. Clearly, the case for supporting agriculture is well established, given the many CAP reforms initiated since the beginning of the 1990s.
We also draw attention to the observations in the ex ante evaluation report which accompanied the strategy. It was a lengthy document in which certain recommendations or criticisms were made. We have not listed all of them in the submission, although they are contained in our analysis document which was also sent to the committee. Even if one discounted all criticisms and simply accepted the independent evaluation in the ex ante report, it would be a major step forward.
The issues highlighted by Irish Rural Link in its new strategic plan which will be launched in Buswells Hotel on 14 February, St. Valentine's Day, are as follows: the narrow economic base in many rural areas; the ongoing restructuring of agriculture; the development of the potential of rural areas as a source of energy; the development of the potential of rural areas as leisure destinations; the role and effect of planning for and within rural areas; regional inequalities and geographical peripherality; and rural disadvantage in the Border region. There was very wide consultation with our members which was carried out in the past year. These were the strong findings that emerged.
In meeting these challenges any rural development strategy, particularly one that highlights vision and strategic issues, must look to the longer term and address some of the fundamental weaknesses in the rural economy. It is our analysis that this paper is at least a beginning. However, as it stands, it is unlikely to achieve a sustainable future for families in rural Ireland. The independent ex ante report states:
There is an underlying assumption governing the whole plan that interventions are mainly implemented via farmers who are seen as central to the rural economy notwithstanding the decline in farm numbers. This is especially true in respect of Axes 1 and 2 and is consistent with the Regulation. In respect of Axis 3 the interventions are more applicable to the wider rural community.
We fundamentally believe rural development is not treated fairly in the document. While it will assist the rural economy through agriculture, it will not assist the wider development and diversity of other economies within the rural areas. Members should examine the figures we put before them if they wish to suggest otherwise. It is clear they relate to maintaining the status quo.
It is stated in the strategy that 59% of our overall population live in areas covered by the plan. Clearly, if they are to benefit from this plan, they can only do so if there is a strong, vibrant rural economy in place and if it is complemented by full accessibility to basic social services, including health care and housing. It is also clear that while the dominant industry in rural areas is farming, it is in decline, as has been shown by the AgriVision and Foresight reports. In the BMW region alone, employment in agriculture decreased by 17% in the 1999 to 2005 period. At the same time employment in the services and industrial sectors has increased by up to 55%. These figures, taken from the national development plan, point clearly to a trend that is not addressed in the rural strategy document.
In the audit of innovation report published by the BMW regional assembly there is evidence that higher income jobs are based in the greater Dublin area. A migration pattern is developing as the trend towards part-time farming continues. It is our view that were it not for the current building boom, we would be facing a degree of emigration.
The rural strategy clearly focuses on the application of measures geared at resolving many of the problems faced by farmers throughout Europe. In Ireland these problems are well documented in a range of reports published in recent years and in the plan submitted by the Government. Rural areas are still dominated by usage of the land. The preponderance of small holdings remains extremely high. In the global economy we now inhabit, however, these small holdings are no longer viable in economic terms.
The plan adopts a policy to continue as before, that is, to support by subsidy, in one form or another, the continuation of farming. However, farming cannot survive without subsidisation to the tune of 90% of the income derived from it. That is the figure produced by the Department of Agriculture and Food. It could be argued that staying with a failed and ultimately unsustainable model, without looking at effective and long-term solutions, is a weakness of the plan. There is little doubt that such large-scale assistance is required, now and in the medium term. Failure to examine viable alternatives, however, must be seen as a significant weakness.
The other weakness is the less than satisfactory resources available to the wider rural community. There are compelling arguments as to why this issue should have been addressed. The increased rationalisation of farm holdings, as supported by the strategy, means more and more people will be disconnected from farming but will want to remain within their own community, or at least have that choice. The benefits of a younger population remaining within their own community are huge in terms of economic and social sustainability.
Some 40% of the overall population live in dispersed settlements and, therefore, require a much higher level of service. The viability of such services depends on our ability to link a range of national strategies in such a way as to ensure their success in terms of community access. The strategy is likely to contribute to the rationalisation of farm units and, by extension, the number of families who can live and work in their own areas. For the first time there is evidence of linkage between the various strategies in the latest national development plan and the partnership agreement, Towards 2016. We welcome this as a major development.
The rural strategy could present the Government with a golden opportunity to redesign an entire range of education and training initiatives based on the establishment of a comprehensive education and training programme which would be available to all ages. While support for small enterprise is likely to increase under the strategy, obstacles such as planning, poor basic infrastructure and lack of cohesion in the availability of health and social services are not addressed.
Support for farming is essential. However, resources could have been made available under the strategy to examine more sustainable uses of land. There is some assistance available to those who wish to go down the alternative energy route but nowhere near what is possible, particularly in the establishment of a biofuel processing industry, for example.
The strategy does not fully address the difficulties faced by isolated rural communities, particularly those in the Border region. The Border brings a number of added adverse dimensions into the lives of those communities which are often dependent on the vagaries of the economies of both jurisdictions.
Our submission includes a list of recommendations which we also submitted to the Department. I will not go through them in detail but members can see that they are organised under the headings of bioenergy, education and skills, community supports, other strategy linkages, social inclusion and monitoring indicators. Irish Rural Link always tries to bring forward solutions, as we did in the negotiations on the social partnership agreement. We were pleased with the result of those negotiations. Our recommendations form only part of what we consider essential developments. Given the narrowness of the document that had to be submitted, these were the issues we considered most relevant. In the wider rural agenda there is far more to be done and Irish Rural Link is never hesitant in making the case for change.