White Paper on Rural Development: Statements.

Minister of State at the Department of Agriculture, Food and Rural Development (Mr. Davern)

I am pleased that the Seanad has agreed to discuss the White Paper on Rural Development today. This debate comes at a time when rural development is high on the political agenda. Infrastructural changes, including new information superhighways, new roads and improved rail transport will provide enhanced opportunities throughout rural Ireland. Rural development is now also an academic discipline, with new courses and even a new rural development institute, giving a clearer understanding and focus to rural development. The increased emphasis on encouraging investment in areas outside Dublin, coupled with an increase in housing provision and the proposed decentralisation of further public service jobs, reflect the desire to bring new life and new hope to rural Ireland.

The rural development policy agenda is defined in the White Paper as all Government policies and interventions which are directed towards improving the physical, economic and social conditions of people living in the open countryside, in coastal areas, towns and villages and in smaller urban centres outside of the five major urban areas. The agenda will, at the same time, facilitate balanced and sustainable regional development while tackling issues of poverty and social inclusion.

One of the Government's main concerns when drafting the White Paper was to diversify economically and to provide additional income and job creation opportunities in rural areas while cherishing the distinct features and culture of the countryside. We must exploit our natural advantages and potential to the full in the creation of more opportunities for enterprise both on and off farm while also maintaining viable rural communities.

The overall strategy decided by Government provides for balanced regional development to ensure that the benefits of economic and social progress are distributed throughout rural areas, investment in services and infrastructure, sustainable economic development, human resources development, and a determined focus on poverty and social exclusion. There are also commitments to the preservation of the culture and heritage of rural areas, including Gaeltacht areas, and to protecting the environment.

The success of the Government's strategy for rural development depends significantly on the extent to which the institutional arrangements support the process. Rather than creating further structures which might lead to overlap or duplication of effort, the intention is to integrate and better co-ordinate the activities of existing structures and so improve the effectiveness and efficiency of public service to rural communities.

A number of the promised institutional arrangements have been put in place. The name of my Department has been changed to the Department of Agriculture, Food and Rural Development to reflect its lead role in rural development. A Cabinet sub-committee chaired by the Taoiseach has been established, as well as an interdepartmental policy committee. The rural development fund, also promised in the White Paper, has been provided for in the national development plan with an allocation of some £6 million. The fund will finance research, evaluations and pilot actions, where appropriate, to provide information and advice to policy makers. The research should provide critical feedback in relation to such issues as assessing the impact and effectiveness of sectoral policies and institutional arrangements, quantifying and gathering data on trends and issues impacting on the rural community, identifying income and employment opportunities, and examining gender and other issues relating to rural inclusion. A provision of £900,000 has been made in this year's Estimates to support projects from the fund.

An essential element of our strategy is the commitment to establish a national rural development forum. The forum will debate current issues, review existing programmes to determine their impact and identify suitable policy responses to rural problems. It will have a wide membership including Departments, State agencies, regional assemblies and authorities, local authorities, the social partners, local development bodies and the wider voluntary and community sector. In response to my invitation, nominations have been received from almost all of the representative groups. Several groups have provided topics which they feel should be discussed at the forum. I expect that the inaugural meeting of the forum will take place in the next month or so.

Procedures for the rural proofing of all national policies have been introduced. In bringing forward proposals for Government approval, Ministers are now obliged to indicate the extent to which those proposals are likely to impact on the physical, economic and social conditions of the rural population. This will ensure that policy implementation responds appropriately to the needs of rural communities. The effect should be that strategy for economic and social development of rural areas works in conjunction with other policy initiatives such as the national anti-poverty strategy. Detailed guidelines to underpin this initiative are being prepared by my Department.

The national development plan was prepared on the basis of the requirement for rural proofing. The chapters dealing with the various operational programmes include sections on the rural impact of the proposals they contain.

The Government decided that the White Paper would be published in August 1999 so that the general commitments in it could be reflected in the preparation of the National Development Plan 2000-2006. The plan is the vehicle for delivering the commitments in the White Paper. There is a specific chapter on agriculture and rural development with a commitment to public investment of £6.7 billion over the next seven years in actions which directly impact on rural areas. This package involves £3.4 billion on REPS, early retirement, headage and forestry, £2.1 billion on rural infrastructure, £390 million on rural enterprises including western development, £377 million on capital investment for food and fisheries and for marketing, research and development for agriculture, food and fisheries, £322 million on agriculture and fisheries development and £120 million on training in agriculture, food, forestry and fisheries. In addition, rural communities will also benefit from the investments proposed in other areas of the plan. Employment and human resource development will receive £11 billion, national roads will receive £4.7 billion, housing will receive £6 billion, health will receive £2 billion and regional public transport will receive £0.6 billion. A sum of £1.1 billion is provided in the plan to support indigenous industry and small, medium and micro-sized enterprises. While all areas of the country will benefit from this provision, it will be of considerable assistance to rural areas.

The county development boards, now being established following the Government's decision to implement the recommendations of the Task Force on the Integration of Local Government and Local Development Systems, will make a key contribution to the integration of policies at county level. This will be achieved through the preparation of county strategies in consultation with, and with the participation of, local authorities, State agencies, Departments, local development bodies and the social partners, including the voluntary and community sector.

The county development boards will be an essential element in articulating and implementing the proposals in the White Paper. I am pleased and proud to say that South Tipperary County Development Board was the first board to be established in early January. These new arrangements will provide the opportunity to identify and prioritise local needs in a partnership approach between service providers and the local community. The outcome should be that quality, comprehensive State services will be available in rural areas.

The Leader programmes have been one of the most important developments in rural Ireland in recent years. Under the current programme, Leader II, there are 34 local action groups operating throughout the country and three sectoral bodies were approved to implement their business plans with total funding of almost £95 million. This programme has had a tremendous impact on rural development by providing the means and, crucially, the funding to allow local groups to identify needs and opportunities in their own areas and to respond to the situation to the best effect.

The success of the Leader II programme is reflected in the national development plan which is providing funding of around £110 million to support Leader type activity over the next six years. A sum of £35.4 million of this is to be provided by the EU in respect of the new Leader programme and will be called Leader+. The balance will come from the national Exchequer and will comprise national co-funding for Leader+ as well as support for a mainstream Leader type measure.

The European Commission is currently finalising the draft guidelines for Leader+. Based on these guidelines we will draw up the operational programme for Leader+ in Ireland. This will then be sent to the Commission for approval with a view to commencing Leader+ as soon as possible. The Commission will subject the programme to detailed examination to ensure that it meets the required standard for approval. This process will take a period of months. As with other measures provided for in the national development plan, it is also necessary to enable commencement of arrangements for the establishment of Leader programme mainstream activities.

Pending EU clearance for Leader+ and the Leader programme mainstream measures under the national development plan, it is not possible to define the precise arrangements for delivery. It is clear, however, that the Commission's intention is that funding for Leader+ will be confined to a limited number of rural areas and that the essential aim of the Leader+ measures will be to encourage the emergence and testing of new approaches to integrated and sustainable development.

The report of the Task Force on the Integration of Local Government and Local Development Systems requires that attention be given to the avoidance of overlap between agencies, including Leader programme groups. This will involve exploring mechanisms which will be capable of combining rural development and rural partnership activities in rural disadvantaged areas specifically. I am aware of the importance of continuity in the delivery of Leader+ and Leader type rural development programmes. It is clear that the work done by the local action groups under the first and second Leader programmes has significantly benefited local communities throughout the country and I am ensuring that every effort is being made to commence the two new Leader measures as quickly as possible.

The House will be aware that to assist continuity I agreed to provide special funding to Comhar Leader na hÉireann, the representative body for Leader programme groups, which will keep the organisation in operation pending the implementation of the new Leader measures. The Department will liaise closely with Comhar Leader na hÉireann in the drawing up and implementation of the new Leader programmes.

I have carefully considered the position in which groups will find themselves when the current programme finishes during the year and I have managed to secure funding for their administrative expenses for the period from 1 July to 31 December 2000 pending the implementation of the new Leader scenario. This will enable the maintenance of expertise in the areas and assist continuity of Leader programme operations. I must emphasis that the funding will be provided without prejudice to the award of contracts under the new programmes and will only be provided to groups who demonstrate a need for funding on the basis of a clear plan.

The strategy set out in the White Paper endorses and supports the objectives contained in the national anti-poverty strategy, NAPS, and will ensure that the overall strategy for rural development is underpinned by a socially inclusive dimension. It acknowledges that Government intervention is required to ensure balanced regional development and to provide a particular focus on addressing social inclusion needs. In the rural context, social exclusion manifests itself in ways that reflect the distinct features of rural life, especially in more remote areas. It is frequently the result of multiple disadvantage. Economic factors like unemployment or inadequate incomes together with wider social issues of isolation, unequal opportunity and participation are often compounded by further problems of distance from services and amenities.

In addressing rural poverty the target of the NAPS is to ensure that strategies are developed with regard to the provision of services in rural areas, especially those concerned with educational disadvantage, unemployment and income adequacy. The overall target is to reduce the numbers of those who are consistently poor from between 9 per cent and 15 per cent of the population to less than between 5 per cent and 10 per cent, as measured by the ESRI. The most recent data available in the ESRI's Living in Ireland survey shows that the numbers experiencing consistent poverty fell to between 7 per cent and 10 per cent of the population by 1997. In the light of this progress, the Government has set a target to reduce consistent poverty to below 5 per cent by 2004.

I am pleased that the White Paper on Rural Development has been so well received. In the recent NESC report, Opportunities, Challenges and Capacities for Choice, the council welcomes the broad approach to rural development adopted in the White Paper. It represents a new vision for rural Ireland. The structures for co-ordinating it are in place and funding has been provided to implement it. I am confident that, thanks to the Government's strategy outlined in the White Paper, the next few years will see a regeneration of rural Ireland.

Mr. T. Hayes

I am delighted the Minister of State, Deputy Davern, has attended the House for this debate. I know of his commitment, over many years, to rural development. I welcome the Government's White Paper on Rural Development. This side of the House is deeply committed to a policy of maintaining, developing and enhancing rural communities and we will support any positive initiative that will protect our much valued rural communities.

Here in our capital city, many people are removed from the realities of rural Ireland and there is little or no understanding of the plight of rural communities, many of which have come under severe pressure in recent years and are struggling to survive. It will require courageous and innovative policies and great commitment by the Minister of State and the Government to deliver the type of changes that are necessary to revitalise and rejuvenate communities in rural Ireland. The White Paper will be a waste of time and effort unless it leads to the implementation of new and effective policies that lead to real rural development.

There are many threats to rural Ireland. Demographic trends show that the population is an increasingly old and dependent one. Agriculture, formerly the backbone of rural life, is in crisis and faces increasing change and uncertainty. Education and employment opportunities are primarily focused in large urban centres and draw people from rural areas. The challenge to protect, preserve and develop rural Ireland is daunting, but it is very important and necessary.

The benefits of rural development are many. First, there are many important aspects of social, economic and cultural life that need to be preserved. Second, much of our heritage is derived from a rural way of life and it is important to a uniquely Irish identity in an increasingly cosmopolitan world. Third, our value system, which is increasingly threatened by materialism and commercialism, has its roots in the mutual support that underpins rural community. Fourth, rural development is a means of alleviating some of the problems that have arisen from the rapid development of urban centres that have neither the service nor the infrastructure to maintain their current rate of growth. Finally, rural living offers a quality of life unmatched by the large urban centres. It is unique and must be protected.

Let nobody tell me that rural development is solely for the benefit of a declining and insignificant portion of our population. An enlightened approach to rural development is about preservation and ensuring sustainable economic growth. We cannot continue with the chaotic expansion of the larger towns and cities while watching the decline and ultimate death of rural Ireland. Rural development is to the benefit of all.

I welcome the announcement that rural development is to be the responsibility of a single Department, the Department of Agriculture, Food and Rural Development. The Minister must guard against the dangerous and unfair public perception that rural development is solely about farmers or agriculture. The White Paper correctly recognises that the benefits of the rapid and unprecedented growth in the economy in recent years have not been evenly distributed throughout society. The Celtic tiger that roars so loudly in the affluent parts of the capital city is at best a tame kitten in many parts of rural Ireland.

I welcome the statement in the White Paper that the Government is committed to providing within a strategic framework the range of modern infrastructure in rural areas which will promote sustainable economic growth and the maintenance of a rural population. Achieving this will require significant planning and investment. The Government needs to recognise that the infrastructural deficit evident throughout the country in both urban and rural areas will not be easily resolved.

The national development plan and regional development plans make many commitments which, if delivered, will benefit rural communities. A major issue which concerns me is the ability of the Government to deliver on its plans. For example, from where will it get the labour resources? Will it develop the appropriate policies which will encourage labour to rural Ireland? We can develop plans but it is their implementation which matters.

The importance of technology and communications to rural development are also important. Traffic and transport problems pose significant difficulties for people getting to their place of work. The road network and the public transport system are wholly inadequate for today's needs and these problems will not be easily solved. Given the recent resignation from CIE, it is difficult to see how any progress can be made on public transport.

Advances in technology and communications offer a number of opportunities to further rural development. Teleworking or working from home are increasingly possible and the advent of e-mail, cheap videoconferencing and remote access to computers mean that people can be located hundreds of miles from their employer's office, and there are many examples throughout the country in recent years of this being very effective. Advanced telecommunications also makes it possible for service industries which do not require eye-to-eye contact with customers to locate anywhere in the country. Call centres are an ideal example of this type of operation. Rural Ireland does not have to be an industrial or commercial desert. It can offer many opportunities and a more affordable and less pressurised way of life.

Practical economic policies which exploit our technological capabilities and our highly educated workforce need to be developed as an integral part of our approach to rural development. Rural development must be an integrated part of our overall economic policy, not just a peripheral issue requiring lip service and a periodic initiative as we approach elections.

I have always said that rural Ireland is not just about farmers or agriculture. Nonetheless, agri cultural policies must be at the heart of any plan for rural development. Initiatives to reverse the decline in farm incomes and create sustainable and viable family farms are essential if rural development is to be a reality. We need a much more enlightened approach and a greater commitment to agriculture if it is to breathe new life into the farming sector. This means examining afresh policies from income support to farm retirement to ensure they are constructed in such a manner as to protect and not destroy rural communities. Agriculture needs at all times to be profitable. We need at all times to promote and assist agriculture at governmental and at European level because it is the cornerstone and the backbone of our economic life. Agriculture and farmers need to be protected in this regard.

The White Paper refers to investment in water and sewerage facilities. This is not before time. In fact, it is ten years overdue. One of the main obstacles to people building houses in rural areas is the lack of adequate sewerage facilities. This is unacceptable at the start of the new millennium. There are many cases in the Minister of State's constituency and the list of villages seeking sewerage schemes is huge. I could name them and the Minister of State knows them better than I do. We need to install sewerage facilities in many smaller villages which would expand greatly as a result.

The White Paper refers to the role of the county enterprise boards. I was a member of our own county enterprise board from its inception up to last June. One of the main problems with the county enterprise boards is the lack of funding over the years. The year's allocation is spent by August or September. The same applies to Leader. It is not good enough to say that county enterprise boards exist to promote rural development and initiatives. They need the finance to make the proper investment and it is not good enough that they have fallen short every year.

Local development plans leading to real action are vital to the vibrant and successful development of rural communities. In our constituency, South Tipperary County Council initiated the preparation of a development plan for the villages in its area. This is a proactive initiative designed to ensure that these villages remain as sustainable centres of economic, social and cultural activities for rural communities. The model adopted by South Tipperary County Council is a good one and the response of the council officials which is documented in the White Paper on rural development should be adopted by many other counties.

There are many issues with which the Minister of State dealt, but the most important is the issue of decentralisation. It has been spoken about in this House, in the other House and in the broader community over recent months. I welcome the Government's initiative in proposing to decentralise a huge number of public service workers to the regions. Despite what people say about these decisions being made for political reasons – the media certainly join in in spreading that perception – the key to rural development is that decentralisation should proceed in the manner the Government has proposed.

Mr. Callanan

Hear, hear.

Mr. T. Hayes

I agree with the policy.

Mr. Connor

Are they not given out on the basis of where the strong Ministers are located?

Mr. T. Hayes

Everyone looks after himself and I hope the Minister of State, Deputy Davern, looks after some of the places in south Tipperary which have lobbied hard for decentralised Departments.

Mr. Davern

The Senator should have no fear.

Mr. Chambers

I welcome the Minister of State and the opportunity to discuss the White Paper on Rural Development. From listening to the Minister's contribution, the contents of the paper could be a great thesis for the future of rural development if they were implemented effectively.

The White Paper sets out a vision and a framework for the development of rural communities. It analyses the needs of the communities and outlines in a structured way how these will be addressed most effectively. The White Paper recognises the need for a more even distribution of the benefits of economic growth and prosperity throughout all sectors of the community. It supports and facilitates the balanced and sustainable regional development of all areas and also identifies the need for poverty and social exclusion to be tackled and dealt. In the past there has been piecemeal development and analysis of the problems of rural decline. I compliment the Minister of State on publishing the White Paper at a time of economic success and before the launch of the national development plan.

All of the Government's policies must now be rural proofed to see how they affect communities. There are firm commitments in the national development plan to implement some of the strategies in the White Paper. These include the provision of money to combat social exclusion and the commitment to build vibrant and sustainable rural communities, while recognising the challenges facing them. The White Paper mentions the small agricultural holdings and highlights the deprived areas, many of which come within Objective One.

The White Paper and the national development plan outline the structures required at national, regional and local level. I welcome the recent announcement by the Minister of State that he will make funding available to ensure the Leader programme is continued until the new Leader+ programme is put in place. The Leader programme has been effective in highlighting the need for people in rural Ireland to become organ ised. It has helped people to develop skills and it has motivated them to look to their future so they can take advantage of what is included in the national development plan and the White Paper.

The White Paper recognises the traditions, culture and language of our people. It is committed to supporting and providing the framework for the important aspects of our social life. It also recognises the need for sustainable development. The long-term consequences of decisions for our people should be considered. Investment should continue to develop our resources and to give people better opportunities.

The White Paper recognises the need for national spatial planning which is now being implemented by the Government. This will help to define the important areas and aspects of our lives. It also recognises the potential for us to improve our human resources and the need for personal development in terms of adult education, literacy programmes and information technology.

The national development plan sets out substantial investment opportunities for services and infrastructure. This will help us to sustain our economic development and to focus on poverty and social exclusion. County development boards have recently been established and these will help counties to make progress. We must listen to the people and identify their needs.

I welcome the Minister of State's commitment to the Western Development Commission and its recent decision to commit substantial funding to develop our marine resources. Some parts of rural Ireland are greatly deprived, yet they have enormous natural resources. The recent statements by the Minister for the Marine and Natural Resources and the Minister for Arts, Heritage, Gaeltacht and the Islands on investment in the national development plan suggest we can improve people's standards of living by utilising and developing our natural marine resources. Successive Governments have failed to develop these areas because of lack of funding. People, particularly young people, recognise the opportunity to develop these resources. This will play an important part in developing our economy and securing family homes, particularly along the western seaboard.

I welcome the provision of £110 million in the national development plan for the Leader+ programme which will help to build on the strengths of the previous programmes. Concerns were expressed about money being wasted on multiple agencies and I welcome the fact that the White Paper deals with this in a co-ordinated way.

Local representatives, community leaders and the people must work out county development strategies in co-ordination with the national development plan which will be successful and will deal with the problems identified in the community. The people now have a great opportunity to face those challenges.

The White Paper will help to build a better rural Ireland and stronger communities. It will also help more young people to reside and work in rural communities by providing a future for them and their families. I welcome the White Paper on Rural Development and the Government's commitment to it.

Mr. Caffrey

I have no doubt about the Minister of State's commitment to rural development. I know his heart is in the right place as he comes from a rural community. I am sure he feels strongly about rural decay in Ireland today. Nevertheless, this commitment is not reflected in the Government's policy. It has huffed and puffed about rural development for years but there are serious shortcomings.

I have in my possession a document which I must read verbatim because it is so important, although I dislike reading in the House. It is entitled A Summary of the Proposed Revised Criteria for County and City Enterprise Boards and refers to "Capital Grant rate reduced from 50 per cent to 35 per cent in Border, Midlands and West Region (BMW) . . . ". How does the Minister of State equate that with the contents of the White Paper? This is a major step backwards in Objective One policy and, in many instances, it reduces the contents of the White Paper on Rural Development to aspirational codswallop. New criteria are being established for Objective One regions, which should be obtaining increased assistance for the generation of further jobs in rural areas.

The document continues:

Employment grants can now only be approved in exceptional circumstances where it can be demonstrated that labour shortages do not exist. The Employment Grant rate has been cut from £5,000 per job to a maximum of £3,500 per job in the BMW area, £3,000 elsewhere.

That means that an Objective One region will benefit by £500 for creating a single job. Is that the way to proceed in terms of job creation in rural areas? In my opinion the entire system discriminates in favour of the richer regions and against the Objective One regions. However, it does not end there because the summary also states:

At least one third of the financial assistance given must be repayable in the BMW area, 50 per cent in the S&E area. This reduces the effective level of grant assistance still further, to 23 per cent in the BMW area, and 15 per cent elsewhere.

The maximum permitted grant allowable in any circumstances is cut from £50,000 to £35,000 in BMW area and £30,000 elsewhere.

It gets worse because the summary also indicates:

Feasibility Study Grant rate reduced from 75 per cent to 60 per cent in BMW area, and 50 per cent in S&E area. Maximum grant of £5,000 in BMW area, and £4,000 in S&E area.

This means that an Objective One region will benefit to the tune of £1,000 from feasibility study grants. That is a retrograde step. In the context of what we are discussing today, it is appalling. The summary further states:

The eligibility criteria for approving grants has been amended. Now the only service type projects eligible for assistance are those that are involved in international traded services, which can in time graduate to the Enterprise Ireland portfolio. This means that a very large percentage of projects, which were eligible for grants in the past will now be ineligible for support. A similar approach is proposed for manufacturing enterprises. Again they must be capable in time of graduating to the Enterprise Ireland portfolio.

That is a litany of disasters and it is a recipe for further decay in Objective One regions.

The county enterprise boards have done tremendous work in helping to create jobs in small businesses which employ between one and ten people, particularly in the services area. This will be knocked on the head, not totally but substantially, by this significant reduction in the level of grants on offer. It will also prove to be a disincentive for young entrepreneurs who may have been considering establishing operations in rural areas.

Instead of reducing the grants on offer to these areas we should increase them. Instead of tightening the criteria for eligibility, we should extend them to create more jobs. The White Paper, therefore, is in total conflict with the situation on the ground. As already stated, it is merely aspirational in its intent. The following illustrates my argument:

The Government is committed to developing a spatial development strategy which will be consistent with maximising national economic growth while ensuring that all regions benefit. The national spatial development strategy will have a long term timeframe, will facilitate optimal investment in public infrastructure and will enable the Government to plan for the balanced sustainable development of the country as a whole. The National Development Plan, 2000-2006, will outline the strategy for spatial development.

Over the years we have been presented with numerous strategies and reports and we have appointed more commissions, boards and quangos than ever before. However, the situation on the ground can be summed up in terms of the summary from which I read. That does not augur well for the future.

I welcome certain aspects of the Minister of State's speech and I wish to deal with a number of practical issues and move away from the aspirational codology that is contained in the White Paper. Senator Tom Hayes referred to problems in rural areas involving planning and sewerage. Small communities cannot develop in rural areas because there are no sewerage or other facilities on offer. We are not giving serious consideration to the provision of alternative sewerage facilities such as retreatment and biotechnology treatment for small units in rural areas. If the Government wanted to be practical in this regard, it could provide grant aid for the putting in place of alternative small sewage treatment systems and promote clusters of development in rural areas.

I am totally in favour of the decentralisation process. A section of the Department of the Environment and Local Government, comprising 130 staff, has been based in Ballina for approximately ten to 12 years. This provides a tremendous boost to the local economy and I urge that the entire Department be transferred to Ballina.

Mr. Callanan

The Senator should not hog it all.

Mr. Caffrey

A vital section of the Department is already based in Ballina and the town should have first claim on housing the entire Department if it is decentralised. There are approximately 516 people employed by the Department of the Environment and Local Government in Dublin. Transferring these people to Ballina would regenerate the entire economic and commercial landscape of the town and its environs. It is a long way from Tipperary but we in Ballina have first claim on the Department of the Environment and Local Government.

Mr. Callanan

I welcome the Minister of State, Deputy Davern, to the House for this important and long overdue debate on the White Paper on Rural Development. There is no better man to implement the recommendations in the White Paper than he – his knowledge, experience and commitment to the heart and soul of rural Ireland is well known. I welcome the conversion of Opposition Senators to the Government's decentralisation programme. Rural Ireland might be doing better if senior members of Fine Gael took up the same theme, rather than criticising the programme.

It is not easy to debate rural development in the time allotted. Our people are our most valuable resource and, as an island nation, our natural resources include the land and the sea. In the past 40 to 60 years people have been drawn away from rural Ireland leading to an increase in urbanisation. Life in urban areas has been made more attractive than in rural areas and there has been an imbalance in economic development which has had repercussions for our fine capital city. The over-concentration of industry has created problems for Dublin and the east coast and there is daily gridlock and many other problems.

Rural development will sustain rural Ireland and give back to it what it should always have had – its natural attractiveness as a place to live and a quality of life without equal or parallel. However, this will not be achieved easily and the Minister of State faces an extraordinarily difficult task. Money has been provided under the national development plan to achieve this objective. A total of £6.7 billion will be spent over the next seven years which will directly impact on rural areas. The package involves £3.4 billion on REPS, early retirement, headage and forestry payments, £2.1 billion on rural infrastructure, £390 million on rural enterprise, including western development, £377 million on capital investment for food and fisheries, and for marketing, research and development for agriculture food and fisheries, £322 million on agriculture and fisheries development and £120 million on training in agriculture, food, forestry and fisheries.

In addition, rural communities will also benefit from the investment proposed in other areas in the plan such as the £11 billion on employment and human resource development, £4.7 billion on national roads, £6 billion on housing, £2 billion on health and £600 million on regional public transport. A sum of £1.1 billion is provided in the plan to support indigenous industry and small, medium and micro-sized enterprises. While all areas of the country will benefit from this provision, it will be of considerable assistance to rural areas. This plan represents a substantial Exchequer funding commitment and I wish the Minister of State well.

This is the first time a Government has undertaken such a large programme of investment of financial and other resources directed towards rural development. As an island nation with land and sea resources, we must exploit the sea through mariculture and designate areas for such development. There has been an absence of such development over the past ten or 20 years and a failure to recognised the potential of these industries. The former Minister for the Marine and Natural Resources, Deputy Woods, did a good job for fisheries and the new Minister, Deputy Fahey, will do equally well.

We must ask whether the Celtic tiger, this marvellous fictitious animal put before us by the media and others, has been good or bad for us. Have we weighed up its consequences on society and on economic development? If we could look 20 or 25 years ahead would we like what we see? I question whether we would. I will leave it to others to take up this point but we should consider where we are being led by the massive growth resulting from the Celtic tiger and what type of society we will have in 25 years. A consideration of the last ten or 15 years gives some indication of what lies ahead.

I welcome the Government's decentralisation programme. Ballina does not deserve to benefit solely and the Minister of State will take care of Munster, particularly south Tipperary, and the best of Irish luck to him in doing so.

The land is a natural resource and there are about 18 million acres of land in this country. Between ten and 12 million acres of this land is arable, the remainder being in forestry. I question whether we have planned the utilisation of mar ginalised land. We have provided large grants towards drainage and other developments instead of exploiting its potential for woodland and afforestation. The benefits of such developments for the economy and the environment are self-evident. I welcome the recent success achieved by Minister of State, Deputy Byrne, in Europe in increasing grant aid and I hope there will be a rapid increase in the planting of trees in farming areas.

Banks and others are buying large tracts of land. This might be good for banks but I question its value to the rural population. Tourism is also very important to rural Ireland. Last Sunday's episode of "Glenroe" included a scene where a bank manager refused finance to Biddy and Miley. This is just a television drama series but it reflects what is happening in real life. We must examine the way in which financial institutions finance projects in rural Ireland.

Rates will be imposed on bed and breakfast accommodation. Does that help rural areas? No.

In this era of telecommunications, no rural area should be distant from development. The Minister knows that in west Cork we have a keen interest in Skibbereen. Let us bring education, services and hope to the people in that town and the surrounding areas. That will brighten rural Ireland. I wish the Minister well with this programme.

Mr. Connor

This is a timely debate. The document is very good in that it identifies the problems we face, but unfortunately the background to it is not so rosy. The Central Statistics Office published figures in December which showed that farm incomes, and by definition rural incomes, fell by 13.3% in 1999. In a similar exercise in 1998, the figures demonstrated that farm incomes fell by 8%. The aggregate fall in incomes in the past two years is in the order of 22% to 25%. The Government should be ashamed of that. These are not figures I have made up, they were published by the Central Statistics Office. They illustrate the reality of life in rural areas – continuing decline in income.

Other factors accompany that decline. Population shifts among those in their most productive years have an effect. In those areas which have experienced the most serious decline in incomes, the dependent sector of the population, those under 15 years and over 65 years, is over-represented.

The Central Statistics Office released the figures for household and per capita incomes throughout the State a few weeks ago and they reveal some interesting facts. County Roscommon has slipped into the position where it now has the lowest per capita and household incomes in the State. The maps accompanying the White Paper show that the majority of the population aged between 18 and 25 years do not live in counties Mayo, Galway, Sligo, Clare, Roscommon, Leitrim or Donegal. They live in the more prosperous east coast areas. The only exceptions to this on the west coast are found in Galway city and some of the larger towns. There is an enormous imbalance which is not being addressed. While there is a decline in farming incomes, the excellent recommendations in the White Paper are useless because they will not be followed up by action on the ground.

The Minister mentioned the Leader programme. That is an excellent programme but it has always been short of money. At the end of every financial year it operates with no money. It is always in arrears in relation to the projects it is assisting or wants to assist. On 30 June the funding for the current Leader programme expires. The Minister must now make a recommendation to the European Commission, the Commission will make another recommendation and the Government will then come up with an operational programme which must be sent to Brussels for approval. I predict there will be no improvement for two years because there is so much red tape in this very important programme.

The Minister will tell us that he will put something in its place, but that is highly qualified. It will mean that the Leader programme will not be able to reach out to many worthy projects after 30 June. I predict that there will be a long pause between the end of funding on 30 June and the coming on stream of realistic funding after that. Experience has shown that is what will happen.

It should not be the case that the Leader programme has to refuse to become involved with projects because it does not have the money or because its remit does not allow it. The remit should be broadened and the money should always be provided. The amounts involved are very small when one considers the amounts other State agencies have spent to create employment. The Leader programme has made good use of the paltry sum of money it has received for the 32 company areas.

The problem is that within the Minister's Department and the Department of Finance there is a prejudice against such programmes. They are not seen as being able to deliver because there is a lack of understanding by the people who decide these things. The Minister may shake his head but I have been about long enough to know—

Mr. Davern

It is very unfair to attack those people in the Civil Service who are so enthusiastic.

Mr. Connor

This is the standard reply of Fianna Fáil Ministers if someone criticises a Department. I am not criticising civil servants, I am criticising their political heads. It is the political head of a Department who decides policy and how the money is spent. If there is a prejudice against a new and innovative policy, they can decide to put an end to it. I am a former civil servant and I know that civil servants stick to the way things have always been done. Political leadership is required for innovation.

Mr. Chambers

This White Paper is innovative.

Mr. Connor

There is much talk of innovation in it but the political will to put it into effect does not exist. There are some shocking facts about gross margins per farm. The State can be divided diagonally from the north-west to the south-east. The colours on either side of that line tell us everything. Viable income from agriculture is concentrated in the eastern region. The region from which the Minister and I come is coloured green and, according to the key, that means the incomes in those areas are not viable, even with subsidisation. That is the extent of the problem and one is dealing with hundreds and hundreds of thousands of people. We must tackle these matters with something better than the good intentions of the Leader programme, county enterprise boards and all the other measures in place. They are all very innovative and good but they are small in scale and scope and they do not have the funding or the wherewithal to tackle this huge problem. These matters should be aired and discussed in this House. Those contributing today do so in all sincerity. We all come from rural areas. I am in this House as a Member on the Agricultural Panel and, naturally, I have an interest in these matters.

There is so much in this which one could tease out on an occasion like this. It is a pity that when we have an opportunity to have a debate of this kind that we do not have more time to give vent to our views on these matters. The Oireachtas does not have an input into policy making because it is like turning a great ship around – we need a huge change in direction. I would love to see another White Paper in a few years – I take it that the currency of this White Paper will be about five years – but I wonder will the coloured indicators, whether of population density, the section of the population under 25 years or over 65 years, on the maps giving the distribution of income etc., will have changed? The mechanisms are not in place and we do not have the political will to ensure change.

Mr. Gibbons

This is a very opportune time to discuss this particularly important issue. Senator Connor has raised a number of salient points. I beg to differ with him in some respects. The development taking place under this Government is not as Dublin orientated as development under the previous regime, and the figures support that. That is the type of development we want but we want to move it even further. The serious problems in rural Ireland must be addressed.

The White Paper is an extremely cohesive document and its real strength is that it is people orientated. Too often documents of this nature have been either geared towards agriculture or food but this concerns people. Whatever policies and schemes are implemented, we want them to work for people. That is the real strength of this document. It refers to numerous areas and covers a very wide range of disciplines such as agriculture, food, enterprise, tourism, and the environment, which all interlink. This is one of the great strengths of this document. It is also very analytical and Senator Connor is right to say that the illustrated maps of the country are extremely analytical and are exactly what is needed. If one is looking for a direction, one must know where one stands first. The Paper identifies the problems but, more importantly, outlines the direction to take in the future. That must be applauded and I applaud the Minister of State on his efforts in this area.

As I said earlier, development in the past has been Dublin orientated. Much of the industrial development of the past ten years, particularly that of the past seven to eight years, has been centred on Dublin. There is a crying need to redress that situation. I can understand that when companies such as Intel want to set up in this country they are immediately attracted to centres such as Dublin, Cork and Galway. It is not easy to get them to move to the Ballyhales or the Fethards. There is great difficulty involved but we must try to put a strategy in place that makes these areas more attractive to them, than centering on Dublin. The objectives laid out in this document and the schemes to follow will do that. We must wait to see how successful they are and if they are not, we must strengthen them in the future.

The essence of rural development is not about the Intels of this world per se. The big organisations set up, employ huge numbers of people and are extremely welcome. We must not lose sight, however, of small industry which sets up with four to ten employees, many of them are indigenous industries. Some of them may be spin-offs from the bigger industries. These are the industrial units which must be set up in rural areas if we are to maintain a population in then. Senator Connor identified these maps as being very useful. They are extremely useful in showing just how the population has changed over the 1991-96 period. It is obvious that people are moving to the centres of population. We must redress that and it may be done using indigenous industries.

We have made considerable strides in agriculture over the past 12 months, particularly with the Agenda 2000 agreement, which was a fantastic achievement. It lays down a focus and a degree of certainty for the agricultural community to plan for the next six or seven years ahead. Up to that nobody knew where they were going. Now the agreement is in place and we must focus our attention on building on it.

One of the big problems currently with agriculture is the age profile of our farmers. We are not attracting young people into the industry as we have in the past. The improvements in the retirement scheme and the need for installation aid for young people must combine to redress this problem. It does not matter whether the installation aid we had in the past is the means used or whether it is by way of tax relief. We need incentives to get young people involved in agriculture and agri-based industries and to encourage them to stay there. It does not matter what the aid is called, only whether it works and investment is needed in these areas.

All the indications are that agriculture will break up into large commercial units and the other units. The real difficulty concerns the smaller units. Somebody with up to 100 acres currently involved in beef production is finding it very difficult to make a living. What should we do to help these people? We must put in place a system of on-farm enterprises that will attract younger people. We need to educate them far better in the agricultural colleges and to beef up our agricultural courses to make them more focused on particular enterprises.

The great success of on-farm enterprises over the past 20 years has been the mushroom industry which is based on satellite growing. The growers simply grew the produce and sold it to the market. There was an agreement between the producers and the marketer and they just focused on the production. That is the approach we must adopt. There are many other enterprises we can get involved in and that we should be involved in, where there are international markets that could be of great benefit to smaller units – farmers with anything from 30 to 50 acres. I am thinking in terms of organic production in which produce is of very high quality. There is also the area of nursery stock production. We could also look seriously at the area of biomass production which results in the production of biofuel. These are environmentally friendly enterprises.

I have a particular interest in nursery stock production. Last week I visited a young man in Kilkenny who spent two years doing a course in nursery stock production in Kildalton College ten years ago. When he completed the course, he returned to the 45 acre family farm in Stoneyford. His father was ill, his mother was quite elderly and a number of the man's siblings also lived on the farm. The family was unable to make a living. The young man erected some plastic tunnels and currently employs 23 local people on a full-time basis. He is also exporting his stock throughout Europe and the United States. The man's methods are scientific and I have no doubt that others could follow his example. We must encourage people to become engaged in this type of production. The young man informed me that one of the difficulties in his industry is whether it should be designated as a manufacturing industry for tax and other purposes. We must remove the barriers to people becoming involved in these industries. The White Paper addresses these issues and, for that reason, I welcome it sincerely.

Senator Caffrey requested that the Department of the Environment and Local Government in its entirety should be relocated in Ballina. The west Clare railway is moving back to Kilrush. Senator Cregan informed me last night that the Department of Agriculture, Food and Rural Development is to move to Newcastlewest.

Mr. T. Hayes

Deputy Finucane will welcome that.

Mr. Gibbons

It is now my turn to make a request. Speaking as a former Teagasc employee, I could never understand why its headquarters were based in Sandymount Avenue. Teagasc's research centres are located in seven major centres throughout the country. Last week the Minister for Agriculture, Food and Rural Development announced a very welcome investment of £25 million in biotechnology to cover new recruitment and facilities. That investment recognises that biotechnology is the new science for this millennium and we must embrace it as its prospects for this country are great. We have the necessary skilled personnel to work in this area.

Teagasc must be moved out of Dublin. Why should one of its centres be located in Kinsealy on a highly valuable 65 acre site?

Mr. Connor

It is close to a former Taoiseach.

Mr. Davern

This issue is distinctly a rural Dublin problem.

Mr. Gibbons

It is not.

Mr. Davern

Teagasc considers itself to be a rural Dublin organisation.

Mr. Gibbons

Of course it does. The work which is ongoing in Kinsealy could be carried out on any good land throughout the country. Teagasc headquarters, in which up to 100 people work, could be based anywhere in the country with the assistance of modern telecommunications. I suggest that there are arms within the Department of Agriculture, Food and Rural Development, particularly if one considers the work which is ongoing in Backweston and the seed testing being carried out in Ballinacurragh in Cork which is now coming to an end as the farm has been sold, which could be centred in one location. If common sense were to prevail, all crop science projects would be centred in Oakpark in County Carlow.

Mr. Davern

That is positively local.

Mr. Gibbons

It would make a great deal of sense. I hope the Minister will take this suggestion on board very seriously. Much of the analysis of work currently being carried out in Backweston in regard to seed and pesticide testing and monitoring is done in Oakpark. Why not move the entire operation, lock, stock and barrel, to a location where all Teagasc staff could interact with each other?

I welcome the White Paper which outlines a very good strategy for the future. If the necessary support, including that of the Opposition, is forthcoming we will make great strides in the area of rural development. I compliment the Minister on his efforts.

Mr. Davern

I enjoyed the Senator's comment about the aging profile of farmers.

Mr. D. Kiely

I welcome the Minister. Twelve, 13 or 14 years ago, it was rare for any investment to be made in rural Ireland. Due to the successful actions of this Government, our economy has turned around and we are now discussing expenditure of billions of pounds. I listened to my colleagues speaking about the decentralisation and relocation of various Departments to rural Ireland. There is very little left for me to ask for.

Mr. T. Hayes

Dick Spring already brought everything down to Kerry.

Mr. D. Kiely

Perhaps the Oireachtas could be relocated in Listowel.

Mr. T. Hayes

That would not suit the Senator.

Mr. Davern

It already happens every September.

Mr. D. Kiely

I will argue that the centre of Government should be relocated in north Kerry, and I am one of the few people in this House who can justify my request. The past two censuses of population have shown that the population of north Kerry has declined by almost 3%. It was the only part of the country in which such a decline was recorded.

Mr. Connor

There was a 6% population decline in County Roscommon.

Mr. D. Kiely

The population decline occurred primarily due to a lack of investment in the area. To listen to Senator Connor, one could be led to believe that the rural development programme only involved the Leader programmes. He neglected to mention the investment in fisheries, roads, housing and so on.

Mr. Connor

I acknowledged that.

Mr. D. Kiely

While I welcome the Leader programme, it is only a small part of the overall rural development programme. I compliment the Leader groups on their achievements and I compliment the Minister on his interest in the continuation of this programme which has resulted in the development of small towns and villages throughout the country.

The contents of the White Paper must be integrated with those of the national development plan. The two go hand in hand. A total of £45 billion is to be invested through the national development plan over the course of the next five years, some £7 billion of which will be invested in the rural development programme. That is a huge amount of money and people will be able to see its value.

The Minister referred to the establishment of the new county development boards. I am happy to say that Kerry was the first county to get its board up and running.

Mr. Davern

It was not. South Tipperary was the first county to do that.

Mr. D. Kiely

I apologise to the Minister of State. The Minister for the Environment and Local Government stated that Kerry was the first county to establish a county development board. I accept the word of the Minister of State. Local groups, as part of an umbrella organisation, have an important role to play in making policy decisions.

I am concerned about investment in roads, housing, health and public transport. The public transport service in north Kerry is not sufficient. Kerry is constantly excluded from decentralisation and rural development of the west, an area which begins in Donegal and ends in Galway, although with the help of Deputy Donal Carey, the last Government extended it to Clare. The other parts of the west are forgotten. We are isolated.

Mr. Connor

Deputy Healy-Rae made a case for Kerry.

Mr. D. Kiely

I compliment the Opposition on preventing us from obtaining Objective One status by creating a big fuss when Kerry was initially included, for which they blamed Deputy Healy-Rae.

Mr. Connor

He did his best.

Mr. D. Kiely

He became famous in Europe because everyone in Brussels wanted to know who he was. The people of Kerry thank the Opposition parties for removing them from Objective One status, to which we were entitled because of our low employment and high emigration. This is why I welcome the rural development plan. However, I must baptise my own child first and return to the subject of north Kerry. I would like to see the development of north Kerry. The National Roads Authority said the N69, which is about 30 miles long and runs from Tarbert to Tralee, was in a fine condition. It allocated £200,000 funding which would not repair 100 yards, from my village to the first cross in my parish. I wrote to the National Roads Authority inviting it to drive the roads with me. Our county roads are superior to our national primary routes. I disagree with the amount of money allocated to national secondary routes in the national development plan.

I welcome the expenditure on and promotion of the fishing industry which benefits the southern part of my county. In the northern part we have a landbank which was bought by the tax payers. It consists of 700 acres and is situated at the mouth of the Shannon. It is the most natural waterway in western Europe although it has not been developed. I am glad the former Minister for the Marine and Natural Resources, Deputy Woods, announced before Christmas that a survey on the area will be undertaken to see if international companies can aid its development. Some years ago I tried to get support for the building of a type of city ship there. Many people scoffed, but the same type of project is going ahead in a different country. The authorities did not have the courage to take this idea on board.

When we discuss rural development, consideration must be given to areas such as north Kerry, where there has been a decline in the population. There has been no investment in new industry in the north Kerry area in the past 25 years. People travel a great distance to work – they are lucky because I had to travel to New York. Many travel from north Kerry to Limerick where there is plenty of employment, on which I compliment the Government. People travel 50 to 60 miles daily because there is no local employment. With proper management, an employment infrastructure can be created in local areas – this is what rural development is about. The Tánaiste turned the sod of an advance factory in Listowel. However, since that, another factory in the area closed down. The IDA and Shannon development have not attracted an alternative industry to the vacant factory. A delegation will meet the Tánaiste shortly—

Mr. Connor

Put pressure on the Progressive Democrats.

Mr. D. Kiely

—and we will emphasise the need for development in genuinely rural areas, of which north Kerry is a prime example. People think that Kerry benefits from tourism, but this is not the case in the northern part which is agricultural and needs more industry and infrastructural development.

I welcome the moneys provided in the rural development plan but I would like some of it to go to north Kerry. Main arteries should be provided for the county so that goods can be easily transported in and out. I would like to see the development of the Shannon estuary, which is the best and deepest waterway in western Europe, although it has been neglected for many years. Although the Government had the foresight to buy land there some years ago, the proposed development did not materialise. Given how the world is evolving, there must be some opportunities for development in north Kerry. I welcome the funding for housing in this plan. More money should be invested in rural housing. There is plenty of land in rural areas available for development and sites are cheaper than in Dublin, Cork, Limerick, Galway and other towns bursting at the seams. I would like to see some of this development in my part of the country.

It is difficult to manage in this day and age without transport, especially public transport. The only public transport in Kerry is the railway line from Tralee to Mallow which is closed and has been under repair for the past four or five months. We welcome the money being spent on the upgrading of this track. Many rural railway stations were closed over the years. This was a pity and was a short-sighted decision by those in power. They may regret it in the future because rail is the best way to travel and transport goods.

I welcome the White Paper. I am a member of the super regional authority where I represent rural areas, even though those of us on the south-western seaboard do not have Objective One status. I will have to ensure we are well represented because we seem to be forgotten. I compliment the Government on providing billions of pounds in funding and making the economy as strong as it is. When I first became a Senator one could not get a shilling for any project. Now billions are being spent. It is important that this money is spent wisely and properly, particularly for the rural population which is the backbone of the country.

I am delighted this programme has been introduced. I compliment the Minister and the Government on their initiative and foresight. I will wait anxiously to see the results of the plan for rural development and I hope to ensure that Kerry gets a proper slice of the cake.

Mr. R. Kiely

I compliment the Minister of State on introducing the White Paper on Rural Development which articulates a vision of the long-term future of rural industry. As the Minister said, the increased emphasis on encouraging investment in areas outside Dublin, coupled with an increase in housing provision and the proposed decentralisation of further public sector jobs, reflects the desire to bring new life and hope to rural areas.

There is new life and hope in rural areas since this Minister was appointed to office. In his speech at the Árd Fheis, which was loudly applauded, he said he would like to see planning regulations eased to ensure more houses are built in rural areas and that such houses should be grant aided. This is important to enhance the quality of rural life.

The White Paper is most welcome, especially in view of the fact that under the national development plan there will be an investment of £6.7 million over the next seven years in actions which directly impact on rural areas. This is most important and I compliment the Minister on announcing the investment of such a large amount of money in the programme.

Rural development comprises all aspects of rural life. Agriculture is one of them. There are various farming methods such as beef farming, dairy farming and tillage farming. The horse breeding industry is also an important part of the agriculture sector.

Mr. Davern

The Senator owns a horse. He should declare his interest.

Mr. R. Kiely

I own it with the Minister and it is most successful. Horse breeding is important for supplementing the income of farmers. Recently I attended the launch of the Limerick Lady and Matron competition which is generously sponsored by Aughinish for the Limerick Show. I compliment the agricultural shows on organising so many competitions to improve our horse breeding stock. The Minister of State attended the launch and he was complimented by the horse breeding association on his interest in promoting horse breeding. It is an important industry and the Minister has shown that it will be looked after.

I compliment FÁS on the wonderful work it is doing in villages throughout Ireland. That work is improving the appearance of villages, which is most important for the tourism industry. FÁS and the Leader groups are doing mighty work in this regard.

The Minister referred to the importance of the Leader programmes. He said:

The Minister of State has taken a special interest in these programmes. I accompanied him on a couple of occasions, especially around Charleville with the Ballyhoura group, and he saw the wonderful work being done. The group is developing farm attractions for tourists.

I also had the pleasure of accompanying the Minister when he toured West Limerick Resources and saw the great work it has done. One of the businesses there is a caravan parking site which could not be operated without the assistance of West Limerick Resources under the Leader II programme. There is also a home baking business which employs between ten and 20 people and offers other part-time employment. That business would not be there only for the Leader programme and the help it received from West Limerick Resources under that programme. The Minister saw many other small businesses, such as cabinet making, which provide employment in local areas. They are most important and I hope the Leader programme will continue.

The Minister said:

I am aware of the importance of continuity in the delivery of Leader+ and Leader type rural development programmes. It is clear that the work done by the local action groups under the first and second Leader programmes has significantly benefited local communities throughout the country and I am ensuring that every effort is being made to commence the two new Leader measures as quickly as possible.

I urge the Minister to ensure they are speedily implemented. They are most important for rural life, as the Minister saw. He should be commended for the interest he has shown. I am sure he has visited many other groups in addition to the Ballyhoura and the West Limerick Resources groups. That is most encouraging for the people administering these programmes. It is vital to develop small industries under the Leader programmes. A number of small industries have been set up in Dromcolliher, a small town in my constituency, as a result of help from Leader.

I am anxious to see greater decentralisation. There was a rumour that sections of the Department of Agriculture, Food and Rural Development were to be relocated in Newcastle West. I would be delighted with that. I hope it will come to fruition.

Mr. Davern

The Senator is dividing up the cake very easily.

Mr. R. Kiely

I will not detain the House. I compliment the Minister on the good work he has done on rural development and especially on his great interest in the Leader programme.

Mr. Moylan

I welcome this discussion on rural development. I compliment the Minister of State on his work in this area to date and I sincerely congratulate him on the White Paper to promote discussion on the long-term future of rural society.

The challenges facing rural society are many. There is a population decline and a reduction in the number of farmers and jobs in agriculture generally. There is a viability problem for many farms, particularly in the dry stock sector. There are difficulties getting job creating industries into rural areas. Protection of the environment is a problem and we will see the emergence of rural slums if the population decline continues. Poverty and isolation are also problems.

These are the challenges facing rural society. The future vision and policy agenda for rural areas are set out in the White Paper. I welcome the White Paper as a milestone for rural development and an indication of the Government's commitment to rural society. The White Paper indicates a commitment to integrating sectoral policies for rural areas, but I would like to comment on the agricultural sector. All the indicators show a continuing decline in the number of farmers, particularly those with 50 acres or less, a major drop in the number of dairy farmers and an increasing trend towards part-time farming. What concerns me is the future of family farm and strategies to prevent its demise.

A number of strategies are required. These include better targeting of direct payments, even if we have to use a two-tier premium system in favour of the smaller farmer and much more positive discrimination in favour of family farms in terms of investment schemes, allocation of quotas, REPS, installation grants and early retirement schemes. Better targeting of all the above would be a substantial contribution to maintaining the maximum number of farmers.

I recognise that the trend towards part-time farming will continue. A major training initiative is required to prepare farm households that must supplement their farm incomes with other income. In seeking off-farm employment, farmers or their spouses should not see themselves as failures in farming but rather as successful in generating a viable household income that will sustain themselves and their families in the rural societies. It should be the right of every farm household to get assistance from State agencies, such as Teagasc, to help them appraise the current viability status of their farm, identify income generating opportunities and, more importantly, identify training needs with a view to entering job markets. Recent studies in County Offaly and elsewhere have shown that off-farm employment of farm operators tends to be in unskilled areas.

I want to comment briefly on what the Minister has outlined in relation to financial help for rural areas in the national development plan. I compliment the Minister and all concerned on ensuring that financial help will be available. In particular, extra grant aid is available in the Border, midland and western regions, areas that need it. We must promote development in rural housing to ensure that rural areas are not denuded of their population. I compliment the Government on providing financial aid to develop and expand group water schemes in rural areas over the past few years. This will enable rural housing to be built in those areas. However, there is a responsibility on all local authorities to look again at their county development plans with a view to enabling members of farm families to build houses on their own holdings. People tend to blame Governments for lack of development, but members of local authorities have a responsibility to ensure that county development plans permit such development. Administrators tend to put forward county development plans on a day when there is a large agenda in the hope that it will get through. We tend to let that happen without ensuring that people can live in their own area and not experience undue problems in getting planning permission.

Group water schemes are important because they leave us less dependent on underground water sources. I welcome the measures taken by some semi-State bodies in relation to proper percolation systems for septic tanks in rural areas to ensure that water sources are not polluted. The Government should consider the possibility of linking the £3,000 new house grant, which has been in existence for a number of years, to ensuring the installation of sewerage and percolation systems that prevent damage to underground water sources.

We recently produced a booklet on developing the farm and rural economy in County Offaly, which the Minister has seen and which highlights many of the problems that have been mentioned here. We look forward to the challenges and important developments facing the farming community and rural areas. I thank the Minister for his work in rural Ireland, particularly in relation to the strategy for ensuring the future of rural Ireland. A foundation is in place on which to develop rural areas in a fashion that is acceptable to people who want to see orderly development. I look forward to development in the future. I thank you, a Leas-Chathaoirligh, for your patience.

Labhrás Ó Murchú

I too compliment the Minister on this White Paper which has been underpinned by a very definite consultative process that is vital in this case. This is not the time-worn debate about the urban-rural divide. It is more basic and urgent than that. It arises from progress rather than the absence of progress. That progress, to some extent, is to be found away from rural Ireland and very much in cities, no longer the cities of Britain and America but the cities here in Ireland. That is why I refer to progress as perhaps the reason for decline in rural Ireland.

If we are to stem the decline, it is evident that we have to look in a very definite way at the infrastructure that is available in rural Ireland. That does not mean there has not been progress, but things change so rapidly that we have to have an ongoing examination of what the requirements are in rural Ireland.

Some years ago one of the most heartrending scenes was the sight of many small houses without roofs across large tracts of the country. The people had left Ireland and, perhaps, did well in other countries. It is sad to see a homestead decapitated in that way, so to speak, and no longer inhabited. It would make one ask why it happened, even at that time. One of the reasons was that farming was not as lucrative then as it is now – and I say that with a certain amount of caution. It was a matter of existence. One member of the family, usually male, would remain at home while everyone else had to move. If a person wanted to avail of third level education a particular financial status was required. Most people who did not inherit the land or the opportunity which the land provided had to leave. It was sad to see that happen.

A similar scenario is being repeated today but in a different way. It is sad to visit a rural area or a farm and talk to people about their current lifestyle. One of the first things they will say is that some years ago they could field a hurling or football team because there were enough people around. Now they are having difficulty in doing that because young people are leaving rural areas. That does not mean young people should be forced to remain at home. They are entitled to develop their career prospects in whatever way possible. Any Government has a responsibility to act when it realises there are danger signals for rural areas, not just for farmers but for others. Is it a matter of career opportunities any more? Perhaps so. If that is the case we must ask if can anything be done about that.

I am delighted the Government has focused on decentralisation recently. I am not talking about the decentralisation of major Departments. Many Government agencies employ 30 or 40 people and they could be decentralised into rural areas, and not necessarily to the rural towns. With the technology that is available today it is not necessary in most to be located in the capital. One can locate in any part of Ireland or the world and still do business. A positive effect of this measure is that it will underline a reversal policy. We can legislate, complain and debate all we like, but there needs to be a demonstration of that policy and I compliment the Government on taking that step. I am often disappointed when cynical people question a decentralisation policy when they should say, "Well done. Let's see more of it and let's have greater opportunities for people."

In addition to the pragmatic aspect, there is also the question of perception. There is a perception in rural areas that policies and funding are not weighted equitably between rural and urban areas. I do not make a pronouncement on that but it must be examined. There are arguments other than accessibility. We can see what has happened in Dublin as a result of some of the planning programmes. Many people say that Dublin is coming to a standstill. If anyone had forecast five years ago that it would take an hour and a half to travel across Dublin on any day, apart from a Friday afternoon, we would have said it could not happen. It is a sign of progress but it is not good for the city, its quality of life or for tourism. In the past one of our biggest claims was that we had space and people came here to avoid the worst excesses of New York, London and Sydney. Now visitors are experiencing those excesses, only they are worse in some ways because we are not able to absorb them. All our policies must be examined so that we can help the cities and rural areas.

The White Paper has focused on tourism. I have no doubt that the planned rural development forum will focus on tourism also. The average discerning tourists coming to Ireland, particularly those middle aged and older, are not looking for what they left behind. They are looking for a totally different experience. That experience can emanate from a particular quality of life and from the traditions that can still be found in rural areas.

Where Irish music and dancing is concerned, tourist surveys reveal that national monuments, Irish traditional music and high class evening entertainment made up three out of the six main pursuits of all tourists visiting Ireland. A total of 67% of tourists quote national monuments as their main pursuit. Where are the national monuments located? Most of them are in rural areas. We may have the monuments but we must also be able to service the needs of tourists when they visit them in a rural area.

The North of Ireland is an example of how serious the position can be because some of its finest attractions are totally under serviced by infrastructure, particularly its hotel industry. We know the reason for that. As a result the North has never been able to capitalise on its tourism assets. We have tourism assets but we also have much of the infrastructure. Many fine hotels have been built in rural areas. If we have been able to sustain that part of our heritage which has now given us a dividend and if we have been able to provide a back-up infrastructure, perhaps there are other elements of that jigsaw which need to be looked at.

I remember a famous debate on the "Late Late Show" some years ago when the late and revered Monsignor Horan was the guest. He had to put up with a lot of criticism from wise people, although not from the host of the show. He was ridiculed viciously about Knock Airport. In reply he said that he was only a simple parish priest. Then he explained the facts of life to people who were based in the city and who were making arguments about the so-called boggy land and the cost of the airport. He said that the cost of buying, running and maintaining one train carriage on the DART system cost more than his airport, but that because it was in rural Ireland it had to be excluded. That refers to an attitude of mind, a perception that must be tackled.

I am delighted that the White Paper contains a major section on the differentiation between rural and urban areas in terms of assets alone. We have those assets. I hope that we will never have an example of that problem again. Look at what Knock Airport has done. I travel to Britain on a regular basis and I have seen people travelling home from Luton and other places to County Mayo every week. Not only do they come back but they bring their earnings with them and invest them. The pioneer of that airport had to put up with ridicule.

I am certain that the Minister for Agriculture, Food and Rural Development has no fear of ridicule. He lives in a rural area and he knows its wants and needs. He and his family have given their lives to its development. We need to have strength because we will have ideological debates. Exceptionally smart people will tell us that we cannot do a certain thing because someone does not want it. When tour operators come to this country, there are people who can decide in advance where they should go. We can explain to them that they should visit rural Ireland.

Preferential treatment to rural areas with regard to State bodies and agencies and in the matter of funding. This should be done because the cities have accrued all the benefits, although they did not have a particular on them. If we are to redress the imbalance there is no reason not to do it in that way.

I compliment the Minister on the content of the White Paper and for establishing the forum. I hope a permanent structure will emerge from the forum which will cover all those with a rural remit, not just any specific group. I also hope it will give them an opportunity to come together and continue to advise and to help implement, facilitate and fund all developments in rural Ireland.

Seanad Éireann debate - Thursday, 9 Mar 2000

White Paper on Rural Development: Statements.

Seanad Éireann debate -
Thursday, 9 Mar 2000