Dáil Éireann díospóireacht -
Tuesday, 26 Mar 2002

Vol. 551 No. 2

Written Answers. - Agri-Food Sector.

Gerry Reynolds

Ceist:

191 Mr. G. Reynolds asked the Minister for Agriculture, Food and Rural Development his views on the report prepared by the FAPRI-Ireland Partnership, in the context of a medium-term analysis of the agri-food sector; and the measures his Department has put in place to secure the long-term survival of rural Ireland. [9866/02]

Minister for Agriculture, Food and Rural Development (Mr. Walsh)

The report to which the Deputy refers is the FAPRI-Ireland ‘Outlook 2000' report, which was published in March 2000. FAPRI-Ireland subsequently published an ‘Outlook 2001' report in April 2001. Its ‘Outlook 2002' report will be published at the end of April this year. There are considerable differences in the projections shown in each year's outlook report, due to changes in the market situation and prospects. The latest published results, which are in the Outlook 2001' report, project a baseline of no policy change in which aggregate farm income would increase by 4% in nominal terms over the period 2000 to 2010.

Average farm income is calculated by dividing aggregate farm income by the number of farms. As current trends both in Ireland and internationally suggest that there will be a decline in farm numbers, mainly in small farms under 20 hectares, over the same period average farm income in nominal terms will increase at a much faster rate than aggregate income. This should be sufficient to at least match inflation. It should also be borne in mind that over 60% of farm household income now comes from off-farm activities. This part of farm income is not included in the FAPRI-Ireland analysis but is likely to continue to grow, as the number of part time farmers increases in the future. Neither is income earned on-farm from non-farm activities such as rural tourism included in the analysis.

With regard to the planning for the future of rural Ireland, I established an independent group, the Agri Food 2010 Committee, to propose a long-term strategy for the agriculture and the food industries. The committee delivered its report in March 2000. In August 2000, I published the Agri Food 2010 plan of action, which sets out the Government's policy response to the committee's recommendations. The plan of action envis ages a dynamic agri-food sector in 2010 which offers farm families attractive and sustainable livelihood options, thus ensuring the maintenance of the maximum number on the land; has the necessary strength to compete successfully within the EU and on our main third country markets; values our rural environment as the basis of thriving rural communities; and is focused on meeting consumer demands, particularly for the highest standards of food safety.

The plan of action contains 197 specific action points aimed at achieving this vision. An implementation report, published last December, shows that 94% of the action points are either complete or have seen substantial action taken. In addition the White Paper on Rural Development, which was published in August 1999, sets out a vision and framework for the development of our rural communities. The overall strategy provides for balanced regional development; investment in services and infrastructure; sustainable economic development; human resources development; a determined focus on poverty and social exclusion; and preservation of the culture and heritage of rural areas and protection of the environment.

The main instrument for the delivery of the 2010 vision and the rural development strategy is the funding contained in the national development plan. The NDP provides €8.5 billion over the period 2000 to 2006 for rural areas, including just under €6.1 billion for agriculture, food and related rural development. The CLÁR programme for revitalising rural areas was launched in October 2001 to promote social inclusion in 16 targeted rural areas. In addition to the NDP investments, there will be €25.4 million available over the period to 2003 to underpin the success of the programme.

I am satisfied that the necessary policy framework underpinned by both national and EU funding is in place. Together with appropriate monitoring and review arrangements it ensures the development of agriculture and rural society in a manner which will benefit all rural dwellers.