(Limerick West): I move:
That Dáil Éireann solemnly declares that the imposition of the proposed super-levy on Irish milk producers is a matter affecting Ireland's vital national interest and calls on the European Commission to submit a proposal to the Agricultural Council granting an exemption for Ireland from the super-levy for the natural increase in Irish milk production until average European standards are reached.
It is my pleasure to move this motion. Farming and agriculture at the present time are in a climate of economic turbulence. This has come about because of the down-grading of agriculture by this Government over the past 18 months and policies pursued particularly by the European Economic Community. This proposed super-levy has no place in Ireland, and the proposals are no longer, and never were, a farmer issue. They strike at everyone in the country — those in towns and cities as much as those on the land. This is a national issue and calls for a resolute stand by the Government, and particularly by the Minister.
This proposal of a super-levy bodes nothing less than disaster. The huge reduction in family farm income will have consequential damage for the economy, lower everybody's standard of living and add to the already massive unemployment. The dairying industry is the bedrock of Ireland's national income, through the exports of dairy products and the supply of three-quarters of the calves which form the raw material in the beef industry, and it has a significant influence on the standard of living of every home.
The iniquity of this imposition on the dairy farmers is bordering on the criminal. They have responded magnificently to the call for increased output, and now they will have to pay a harsh penalty for that response. Ireland's dependence on dairying is unique in the Community, and this must be recognised. The magnitude of the present issue is far too serious for any compromise. This is no time for weakness. The fibre of our people is being put to the test and the nation expects leadership at this crucial time. Perhaps the key words in the motion are "vital national interest" and "until average European standards are reached".
Let me repeat the factors which to us make it incontrovertible that the issue is one affecting Ireland's national interest. The dairying industry represents 33 per cent of the total agricultural output. Its contribution to the national cattle and beef industry is immense as it provides 80 per cent of the raw material for that important industry. The overwhelming degree to which the beef industry is dependent on the continuing progress of the dairying sector has not been sufficiently brought to public attention. Dairying and the related cattle industry and beef exports account for 70 per cent of total agricultural exports and upwards of 50 per cent of total exports, when one considers the small import content.
Significant changes have been taking place within the dairying industry in recent years. Our creameries have been rationalised and there is a growing trend towards specialisation and greater efficiency on milk producing farms. This augurs well for the future of this most important branch of our economy, provided of course that the pricing conditions remain attractive and no artificial boundaries or barriers are placed in the way of normal progress. For reasons well known to this House, our dairying industry, in contrast to our continental neighbours, has been denied for centuries the opportunity to realise optimum potential.
Other member states have a distinct advantage over our dairy farmers at present. The representatives of the other member states do not deny this. Not to allow Ireland normal growth in milk output to no more than European levels is inequitable and would create a situation where we would be permanently disadvantaged vis-á-vis the other states, apart altogether from the overwhelming importance of our industry to the national economy.
Statutorily the Council of Ministers act on proposals from the European Commission. The Commission have publicly voiced their acceptance of the justification of Ireland's case. I hold that they have a responsibility to translate that acceptance into a formal proposal to the Agricultural Council. The only form that proposal should take must be to grant an exemption for Ireland from the super-levy for the natural increase in Irish milk production until average European standards are reached. Any questioning about the years after 1984-85 is not acceptable. What we are asking is that what the Commission propose is no more than reasonable and just. Our production is well below that in other European countries, and we are asking the Commission to recognise this.
The most appalling feature of the Government's handling of this matter was the Taoiseach's acceptance at the recent summit of a 5 per cent increase for 1984 with no guarantee beyond that. As if that was not bad enough, he accepted what was a disastrous situation for Ireland without knowing in advance that it was going to be rejected by the summit. One would at least have expected that before he voiced his acceptance of a downright bad deal he would have ensured beforehand that, bad and all as it was, it would not be refused by his colleagues. He has since admitted in public that his colleagues' reactions were not tested out beforehand. As our Leader said last week in this House, the Taoiseach was humiliated, as was the Minister for Agriculture at this week's meeting.
If Fianna Fáil were in Government today there would be no question of the super-levy being imposed on our farmers. In the past these proposals were on the table and were resisted by both Deputy MacSharry and Deputy Lenihan as Ministers for Agriculture representing this country. These proposals were withdrawn, and the negotiating hand of this Government must now be weakened by the approach and the lack of ability to deal with our European partners. The Government certainly have not pointed out to our partners that the milk surplus in Europe is not being caused by our farmers, and, furthermore, they have not pointed out that the super-levy proposal would unfairly penalise the smaller and less well-off Irish industry for the problems that I have already indicated are directly caused by the larger, stronger and better-off Europeans. It is worth also pointing out that the gallonage of milk per cow produced in these countries is already so high and the financial returns so large that the financial loss in their case resulting from the levy would be relatively much lighter than in the case of the Irish supplier.
The limitation of 5 per cent increase would be a disaster for Irish agriculture and our farmers could not plan ahead. In farming planning is fundamental. There is also the question of our young farmers with no programme of expansion. Many of our farmers are heavily in debt, and this would ruin the whole agricultural industry. Our plans for the future would be shattered if there were no guarantees beyond 1984.
The Taoiseach stated last autumn that these were the most important EEC negotiations we would ever undertake. I say that these negotiations have been badly bungled and Irish farmers have been let down. They expected better from a man with great EEC experience and, as he has stated himself, many contacts in Europe.
The Minister for Agriculture has again let down our farmers very badly. He promised at the Fine Gael Ard Fheis last year that he would accept nothing less than complete derogation. As so many times in the past, he has broken this promise. This, together with the total neglect of agriculture by this Government and a hasty retreat from rural Ireland, is the hallmark of this Government both at home and in Europe.
A solution in keeping with the ideal and spirit of the Common Market as outlined in this motion would be an agreement that no super-levy would be imposed on Irish farmers until we reach the European average of production. The Government must not yield to pressure in their opposition to such a levy, which would cause the stagnation of Irish milk production and make our farmers the poor relation of Europe.
