asked the Minister for Agriculture if his attention has been drawn to the details of a survey carried out by the Agricultural Institute which indicates that the total capital investment in farms, in real terms, has declined by about one-third since 1979; and, if so, the corrective action he proposes to take.
Ceisteanna-Questions. Oral Answers. - Agricultural Institute Survey.
5.
Mr. Leonard
While investment in agriculture declined in real terms after 1979 because of the recession, the fact remains that during the decade 1971-1980 total capital investment in agriculture amounted to some £2,700 million. This substantial amount of investment largely reflected a catching up process from very low levels of investment in the pre-EEC era and as a result of it many farmers are now well-equipped to benefit from any upswing in the farming sector without recourse to further heavy investment.
A key element of capital investment is investment in breeding stock and to a large extent investment in buildings, land and machinery is influenced by changes in breeding stock numbers. It is, of course, a prime aim of Government policy to increase the breeding herd and various measures to achieve this are already in operation. Future investment, which is aided by Government grants, will be guided towards productive projects which directly generate increased output.
Mr. Leonard
Would the Minister agree that that survey gives great cause for concern especially with the declining manufacturing industry who are dependent on imports? Does he agree that the value of the agricultural sector should be recognised at present? Will he accept that they by the withdrawal of the farm modernisation grants, demoralised farmers who had development plans especially for this year? Will he consider forthwith reintroducing those farm modernisation grants if he wants to get farming developed as it can and should be?
The Deputy's question refers to the period 1979-82 when his party were in Government, and he talks about investment decreasing by one-third. I fail to see how he can blame this Government for that decline.
Uimhir a sé.
As regards the second part of his supplementary question, we have suspended the farm modernisation scheme and we have stated that we will be re-introducing a revised version of that scheme later this year.
(Limerick West): I put it to the Minister that surely he has not replied to the second part of Deputy Leonard's question when he was asked what corrective action he proposes to take. There is no point in going back on what Fianna Fáil or previous Governments did. We want to know what he is doing and what his Government are doing.
I am refereing to the first part of the question which refers to 1979-82. I am perfectly entitled to refer to it. That is what I have been asked. As regards the latter part of the question, the answer is given in the second paragraph of my reply. I said that it is the prime aim of Government policy to increase the breeding herd and various measures to achieve this are already in operation. I illustrated that here last Thursday in giving figures for the various subsidies and premia which are available for increasing the breeding herd.
What the Minister told us last Thursday——
A question.
Ok, then I will ask a question. Would the Minister agree that the withdrawl of £147 million in the budget will decrease investment further in the agricultural industry?
(Interruptions.)
I am flabbergasted at the figure of £147 million. I would like it if it were illustrated. My figure is £12.3 million, maybe £12.8 million, no more than that.
Mr. Leonard
It has been illustrated on many occasions.
Never. I am waiting to hear it. None of us has seen the break-up.
(Limerick West): Is the Minister aware that the farming community are flabbergasted by the approach of the Minister for Agriculture with regard to agriculture?
Deputy Leonard, for a final supplementary.
Mr. Leonard
Would the Minister agree that this phraseology is not sufficient at present when he withdraws £10 million of grant aid for farmers? We ask him to restore that. If he wants to be positive that is the way to do it.
A question.
Mr. Leonard
Will the Minister restore the £10.3 million which he has withdrawn?
There is a hell of a difference between £10.3 million and £147 million.
Is it a fact that when we were in office in 1981 we introduced——
You lowered the grant levels.
——the in-calf heifer scheme and the calf subsidy scheme and also——
We cannot have argument.
(Limerick West): They are living in cloud-cuckoo land.
——we gave back the resource tax which the Opposition when in Government introduced? Is that not a fact?
The Deputy is indulging in an argument now. One final question from Deputy Byrne and I will leave the question then no matter what.
(Interruptions.)
Is the Minister admitting in his answer that his Government have no proposals whatever to increase investment? The only answer he has given us has been that there will be a continuation of the Fianna Fáil policy.
That is an argument. Ceist a sé.
6.
Mr. Leonard
asked the Minister for Agriculture if his attention has been drawn to the findings of a survey by the Agricultural Institute which indicates that the proportion of farmers planning to expand into dairying has increased from 34 per cent in 1981 to 38 per cent in 1982; and, if so, the action he proposes to take to diversify dairy products so that there will be a satisfactory market for the increased output.
I have seen the findings referred to and I welcome this as further evidence of renewed development in the dairy industry.
The question of product diversification is primarily a matter for the industry itself. Investment aid towards diversification of processing facilities is available from the Industrial Development Authority and, in certain circumstances, from the Guidance Section of FEOGA as well.
Mr. Leonard
Would the Minister admit that the effort at diversification of dairy products has been less than adequate? For example, our effort at marketing Irish cheese has been a dismal failure. A comparison of the ranges of cheese in Europe and their presentation shows the amount of leeway we have to make up. With those figures would the Minister accept that it is essential that we diversify rather than, as at present, increase the emphasis on butter making?
I agree fully with the Deputy. He is absolutely correct. It is the major problem facing agriculture in this country, and facing particularly the agricultural processing sector. We suffer from a gross restriction on diversification, but it is up to the industry itself to do it. It astounds me on going abroad to see the number of different varieties of dairy products which are available and then to see the restricted number in this country. Some firms in this country are attempting to diversify. It is a very costly exercise, but I would agree with everything the Deputy has stated. There is a greater need for it.
Mr. Leonard
Would the Minister agree that the money input into the production should have been examined before now? Would he agree also that milk production must be the basis of any major development in farming? Over the years we have had over-capacity in milk drying, skim etc., and the Department should have been examining other areas of production.
This would be more appropriate on an Estimate debate.
I agree fully with the Deputy.
(Limerick West): Would the Minister or his Department consider giving the lead in this area?
My Department are not in business. They are not a private enterprise. They are a Department to organise the affairs of agriculture. As I stated in my original reply, it is the business of industry itself to diversify but we have given every possible assistance to them to do so.