Seanad Éireann debate -
Wednesday, 2 Feb 1994

Vol. 139 No. 1

Adjournment Matter. - Clare Leader Group Study.

Mrs. Taylor-Quinn

A Chathaoirligh, I thank you for giving me an opportunity to raise this important matter and I am pleased that the Minister for Agriculture, Food and Forestry has graced the House this evening. Undoubtedly the Minister has at his disposal the RRD Leader research programme report prepared by J. Mannion, J. Phelan, J. Kinsella and M. Kenny on the milk suppliers in County Clare.

Clare is primarily an agricultural county and specifically a dairy county. In 1992-93 there were over 2,332 milk suppliers in County Clare supplying milk to five different co-operatives. In the course of the study it became evident that of these 2,332 milk suppliers about a third would be forced to cease production of milk at some time in the near future. A high percentage of the remaining two thirds, about 48 per cent, were in danger and would need substantial support and assistance to maintain employment in the agriculture sector.

The Minister and the Government are undoubtedly aware of the importance of agriculture in employment. Unemployment in Clare is a serious problem. Unemployment, emigration and migration have left their mark across the entire county and the loss of any jobs in the dairying sector would have severe repercussions for the rural communities and for the towns throughout the county.

This study proposes initially to attempt to hold as many of those at risk farmers on the land and in dairying. It is accepted that it will not be possible for some of them to continue in dairying but some could be kept in dairying with some support from the Minister, his Department and through the structural funding from Europe.

It is very important that the Minister and his Department look seriously at this study. We must accept the sincerity of RRD Leader and in particular Father Harry Bohan, who has done tremendous work for rural communities in Clare and throughout Ireland, in the commissioning and preparation of this report.

The findings in one sense are frightening but they are presenting facts and identifying the problems. Prevention is always better than cure. They are asking the Minister to administer a prevention formula rather than trying to treat something much later that may be incurable. We do not want to see a further reduction in the numbers in rural communities in County Clare or a further reduction in the services provided in the rural communities — post offices, Garda stations, or schools. When fewer people live in a rural area services decline.

This is in a sense a case study for the entire west of Ireland. Every county from west Cork right up to west Donegal has similar problems.

This study asks that the recommendations outlined in it would be implemented by the Minister on a pilot basis in County Clare over a period of three to four years and closely monitored. If they prove successful a similar type of proposal would be administered on a national basis. I know that the Minister and his Department have looked at it and support has come from the Minister's Department in relation to this study. The bottom line is the implementation of the report and its recommendations. Support in the form of subsidies is needed to update housing facilities on dairy farms for milk purposes, to provide an opportunity to farmers to purchase additional quotas. Greater emphasis should be placed on the provision of support from Teagasc, particularly to direct and monitor those farmers in the high risk category so as to ensure that they do not have to leave farming. The Minister will see from the report the type of annual income many of these farmers receive and that over 48 per cent of the milk suppliers in County Clare are in the 9,000 gallon quota category. The Minister will agree this is a low quota relative to that in other parts of the country.

This is a fine study commissioned by people with genuine concern for the county and supported by all the farming and community organisations, both urban and rural. The business people in the towns recognise that unless there is a viable economy in the surrounding rural areas they will not be able to operate viable businesses. The study has extensive support throughout the county and has been welcomed by all sections of the community.

The Minister must now approve the implementation of the specific recommendations made in the report. I ask him to consider this seriously so that they will be implemented in County Clare on a pilot basis for three to four years and perhaps afterwards at national level. The Minister must recognise that the money involved is relatively small — approximately £15 million — when one considers that we are talking about 1,300 farming jobs which could be at risk. One is talking about a small investment to secure these jobs relative to the cost of job creation in the industrial sector. This report should commend itself to the Minister and I ask him to give it his full support.

I thank you, Sir, for allowing me this opportunity to present this case to the Minister.

Minister for Agriculture, Food and Forestry (Mr. J. Walsh)

I welcome the opportunity presented by this debate to say a few words in the Seanad on the Clare Leader group study and on the recommendations made about the milk quota restructuring arising from that study. I have also listened carefully to the case made by Senator Taylor-Quinn.

Senior officials in my Department and I have had ongoing contact with the Clare Leader group since the study was launched. I took the opportunity to visit County Clare to officially launch the study and I met Fr. Harry Bohan and the other people associated with the enterprise. Since then, senior officials from my Department have had several meetings with the group and have had the opportunity to discuss in depth the ideas presented. I was impressed with the study and the recommendations the group put forward. I instructed senior officials in the Department to study this report in depth and to work closely with the group in relation to it.

The Clare study clearly demonstrates the vital social and economic role played by milk production in the area. Milk production is the most lucrative farm enterprise in disadvantaged parts of the country and we must retain the milk pool in the area if we want to maintain rural communities. The recommendation for a pilot milk quota restructuring scheme follows from the recommendation in the report. As recently as last Friday the group presented its recommendation to the Department. In the context of a meeting with senior officials, various details were teased out and the implications of such a scheme were examined in depth.

I applaud and understand the objectives of the Clare Leader group. I have always recognised the importance of milk production for the local economies. In the more disadvantaged areas where alternatives to milk production are limited, this is even more the case. As a rural development instrument, a milk quota tied to land is of crucial importance.

In the light of this, my approach to the management of the milk quota system and, indeed, to the renegotiation of the regime at European Community level, which took place in 1992, has been underpinned at every stage by a commitment to the small quota holder. There are a number of schemes in the quota system which provide flexibility to dairy farmers either to permanently increase their quota or to lease additional quota without land on a short term basis. There is also a scheme which provides for the reallocation of unused quota at the end of each year to producers who have exceeded their allocated quota and thus risk having to pay superlevy. In each of these schemes absolute priority is given to smaller producers and only when the needs of such producers are fully catered for can larger producers benefit.

These schemes work extremely well throughout the country and have contributed greatly to the ability of smaller producers to improve their lot. For example, the existing quota restructuring scheme which allows for the sale of quota by producers ceasing milk production to those wishing to expand has to date diverted approximately 80 million gallons of milk to small producers. Notwithstanding the orientation of the redistribution and reallocation schemes to small producers, the fact remains that in outlying and isolated rural areas smaller farmers are giving up milk production. The Department operates with the best will in the world in the administration of the schemes. The smaller farmers who have little help on the farm should be encouraged to retain milk production on each individual farm. Co-operatives serving those areas should also be encouraged to service the smaller milk producers in the outlying areas.

During last year's EU price review, I succeeded in negotiating an additional 6.6 million gallons of quota for Ireland as well as 1.9 million ECUs to be used towards the restructuring of quotas. It was my firm intention that the bulk of the quota and the money would be used for the benefit of small producers who had demonstrated both a commitment to milk production and a need for additional quota. With this in mind, strict criteria were devised to target such small producers and I hope to be in a position soon to make the quota allocations to individual farmers. I hope those allocations of milk, which will be free of charge, will keep a considerable number of smaller farmers in milk production.

Therefore, it can be seen that what the Clare Leader group is attempting to do in its area is similar to what I have been doing through the Department at national level. The group recommends that moneys be made available to certain categories of milk producer to upgrade facilities in the light of the new EU hygiene regulations. I share the thinking of the Clare group in this regard and I have already made provision for substantial funds to be made available from the Structural Funds for this purpose in the context of the National Development Plan. This plan, as the Seanad will be aware, is currently under consideration by the European Commission and until such time as this process is complete, details of a grant scheme for dairy farmers cannot be finalised. However, I take note of the views of the Clare group on this matter and I will take them into account when the scheme is being put in place.

Apart from the moneys to be provided under the Structural Funds, I succeeded in having 6 million ECUs from the EU Co-responsibility Fund made available for upgrading and providing on-farm refrigeration equipment for milking machine maintenance. This scheme is up and running at present and the individual grants are extremely attractive. Here again, smaller producers are given priority in order to ensure that everything possible is done to allow them not only to remain in milk production but to encourage them to realise fully their potential to develop their holdings still further.

I have also asked Teagasc, through their advisory services, to give special attention to these smaller milk producers. Additional funds were made available last year, and are being made available again this year, for a special intensive small farmer advisory service. It is mainly situated, of course, in the west of Ireland, including Clare. I would hope and expect that the Teagasc advisers would also contribute to keeping these small milk producers in business.

I am fully conversant with the original study carried out by the Clare Leader Group, and have considered the recommendations derived from that for a pilot scheme in Clare. The recommendations are being examined by my Department and are being considered in the context of the management of the milk quota system in the country as a whole. A total review of the milk quota system is to be implemented nationally. The Clare Leader Group report is of tremendous benefit to this review which is nearing completion. I will have it implemented in a very short time.

The objectives set out by the Clare Leader Group already reflect my overall approach to the milk quota system throughout the country.

The Seanad adjourned at 8.30 p.m. until 10.30 a.m. on Thursday, 3 February 1994.