I welcome the Minister for Agriculture and Food, Deputy Walsh, and his officials to this meeting. The Minister has been invited to this meeting to advise the committee of the outcome of the recent WTO talks in Geneva and the effects of the outcome on Irish agriculture. The Minister is very welcome. I invite him to make his opening remarks.
WTO Negotiations: Presentation.
I am pleased to attend the meeting of the joint committee this afternoon to outline the framework agreement on world trade which was reached at Geneva last month. If members of the committee have any questions on the agreement, I will be glad to try to answer them as fully as I can. As the committee is aware, trade is extremely important to Ireland. The WTO deals with a range of trade matters, as well as non-trade issues, but I will deal with its agricultural aspects.
Ireland exports approximately 85% of its agricultural produce to approximately 60 countries. It is critically important for Ireland that there should be a coherent and disciplined world agreement under which agricultural trade can be conducted. The alternative to such an agreement is chaos. In such circumstances, larger countries would reach bilateral agreements to the detriment of relatively small countries like Ireland.
As the committee is aware, the EU reformed its Common Agricultural Policy last year in preparation for the world trade talks. It was agreed in the mid-term review to set the stage and to put the EU's house in order, in preparation for the WTO negotiations. Some people were sceptical about such an approach because they felt that if the EU carried out its reforms, they could not be sure they would get credit for the reforms they had made. In other words, they were worried that the other negotiating partners might pocket the existing reforms and seek further substantial reforms.
As it happened, I believe the outcome was satisfactory for Ireland and the EU. The framework which is now in place is most satisfactory from Ireland's point of view. The result copperfastens the benefits to Irish farmers of direct payments. The committee is aware that 122,000 farmers were given their statements of entitlement this week. They will receive an average payment of €13,000 per annum. The total annual payment will be €1.7 billion. Some people were concerned that the direct payments could be subject to challenge under world trade rules. In the negotiations, we succeeded in including the direct payments in the green box. They are copperfastened and safe, therefore, and there is no difficulty with them. The decision taken domestically in Ireland — to decouple the payments fully — has been proven to have been the correct one. The agreement also protects the essential interests of Irish agriculture in the domestic market. It provides a satisfactory framework for future world trade negotiations and the detailed negotiations will take place over the next 18 months.
The draft WTO agreement covers three pillars, the first of which is domestic support. I have spoken about the direct payments to farmers. The second pillar is market access. We need to access many countries for our export products, as I have said, but it is important that we have access to the domestic market. Many people are concerned about the arrival into Ireland of Brazilian beef and chicken and other poultry products from Thailand. Market access has been dealt with.
The third pillar is export refunds or subsidies. Ireland availed of export subsidies in the past when its products had large markets outside the EU. The vast bulk of our products have been sold within the EU in recent years, thankfully. There are an additional 150 million consumers in the EU as a consequence of its enlargement. It is my strong belief that we should concentrate on the domestic EU market of 450 million people. The EU is by far the most remunerative market because it has one of the highest standards of living of any economic block in the world.
I wish to speak about market access. I have spoken about domestic support, which is safe because it has gone into the green box. Our concerns in respect of market access are well protected because a clause in the agreement covers sensitive products. If greater access to the EU, including Ireland as a member state, is allowed for beef or dairy products we can designate certain products as sensitive. We can protect our own industry by pushing up the barriers. The area of sensitive products has been extremely important to us. We can get special treatment, as far as tariff protection is concerned, under the sensitive products area. We can designate our sensitive products from time to time if any product is giving us a problem.
In the case of export competition, under the framework all forms of export assistance, such as export credits, export guarantees, insurance schemes and State trading enterprises, will be subject to the same rules. Any changes or modifications in export support will have to be made in parallel by all the negotiating partners, including the European Union which negotiated on our behalf through Commissioners Fischler and Lamy. A reduction in any particular area will have to be mirrored by a reduction in another negotiating country's particular product. Parallelism is what we are talking about. With the aid of export subsidies or export refunds as they are called, we export beef to Russia and dairy products to a number of countries throughout the world. Ultimately, the subsidies will be eliminated although there is no end date for that. They will be eliminated gradually and in parallel with reductions in export credits, which the USA uses, and state trading enterprises.
Some countries have fairly novel schemes to get rid of surplus products under food aid. They say they are aiding a third, impoverished country when really they are dumping some of their surplus under the heading of food aid. There will be very close monitoring of that type of operation and very strict disciplines will be introduced on surplus disposal. Many citizens are concerned about the least well-off and impoverished countries and the way they are treated by the larger economic blocks in terms of surplus disposal etc. There is agreement that there will be special and differential treatment given to least developed countries. The EU has a very fine record of trade with least developed countries and is the largest importer of goods and products from them. We would like to see a number of the other negotiating partners follow suit. Under the "everything-but-arms" agreement, the USA has no quota or tariff for a range of goods from these countries. It is important in this civilised era that we continue to help out countries which are less well off than we are.
In a nutshell, the current round has been developed to reach a framework agreement, that is, the Uruguay round, while this development round — the Doha round — provides a great deal of protection and certainty for the future for Ireland which has such an open economy and is so dependent on exports. While there is no doubt that over the next decade or so there will be more liberalised trade, it will be fairer trade which gives us a fair crack of the whip. We will be able to access markets more easily with less tariffs as other countries will be able to access the EU. There will be a more level playing pitch. The current state of play in the Doha round represents a satisfactory outcome from Ireland's perspective.
I thank the Minister for his presentation.
I thank the Minister for his discussion and the information he has just given us. In his submission, he stated that the green box system of payments which has been agreed with Irish farmers will not be under threat. That has been stated elsewhere. However, he also said the eligibility criteria would be examined. Is he referring to the USA and other countries? Will he elaborate? It is my understanding that his submission states that the EU system of direct payments will be fine. Will he inform us whether we can assume the system of payments in place will be fine until 2013?
I am sure the Minister will not mind making a comment on a matter which is topical at present though slightly outside his submission today. I see in our reports that the increase is eating into the reserve and creating greater demand for it. Does the Minister consider that he may have to re-examine how he constitutes the reserve for our own payments and will that constitute a difficulty for him?
I appreciate that in this country we produce mainly for export and cannot have it all our way. If we did not have open markets and globalisation in terms of foodstuffs, it would not suit us. The designation of sensitive products is an issue for member states. Can we be given an idea of what is involved? Are we talking about a certain commodity, cuts of beef or dairy products? Where stands the issue of sugar beet in this? I am not clear on the scenario. I remember that, during the Cancún round, sugar beet was an issue about which producers in this country were quite concerned.
I welcome the Minister and thank him for his presentation. I also welcome his colleagues, Mr. Brady and Mr. Burke. I am glad to hear the Minister is satisfied with the outcome of the talks as there is no doubt that, in the run in to the decoupling talks, there was great concern about the World Trade Organisation round and what would happen. It is good to know that matters are looking up on that score for Irish farmers. It is a period of great change. With all the entitlements emerging in recent weeks, farmers are beginning to see that matters are changing and the old ways are going. We are into a whole new ball game. The Minister's information on the WTO is welcome. I thank him for the way he has represented Irish farmers at both talks. He has done an exceptionally good job.
I thank the Minister for attending to provide us with a briefing. With the changes taking place, in practical terms the most important issue about which farmers will ask and which will be of interest to many involved in agriculture is the future of the beef industry. That industry is a significant employer and many people depend on it. Annually increasing beef imports are of major concern, especially such beef which is not clearly identified. We have been told a great deal about traceability and a significant effort has been made by the Department of Agriculture and Food to identify the sources of food. Is the Minister concerned for the future of the beef industry? I would like him to elaborate on this subject because he touched on it. I would especially like to deal with imports.
Regarding the pig and bacon industry, there has been a great deal of concern in my part of the country in recent months about Galtee and its future. While the small pig producer has gone out of business, will the larger producers be forced out as well? The future of pig and meat production in Ireland is of concern and I would like the Minister to address it.
I also extend a welcome to the Minister and his officials and thank him for his presentation. The Minister clarified some issues and provided a great deal of information regarding the World Trade Organisation. Agriculture has borne the brunt of the WTO decisions. All the agriculture community wanted was fair play and justice but all the agreements hammered out in the WTO seem to have been at its expense, while industry and big business benefited. A regime of severe restrictions and regulations imposed on the agricultural community has exacerbated the decline in farm numbers and the number of people on the land. The world trade agreement was reached on the backs of farmers, particularly Irish farmers, who must carry the can for it.
An RTE programme on environmental issues broadcast last night showed that large commercial interests have plundered the rainforests and polluted rivers and large tracts of land. Regulations do not apply to them to the same extent as to farmers, particularly Irish farmers. The same problem arises with the nitrates directive. We are a nation of smaller farmers who must compete on the world market with larger ranchers. Farmers are as concerned about the environment as everybody else but must carry the can for these agreements. I have serious difficulties with the agreement and ask the Minister to address some of the agricultural and environmental issues I have raised.
Will the payments to which the Minister referred be index linked in 2007, 2008, 2009 or 2010 or will farmers be forced to depend on the same payment they currently receive in five or six years?
A further issue, which was partially addressed by Deputy Hayes, relates to the beef sector. Aware that the farmer must sell his animals, the factories get together as a cartel at this time each year. Why does the price of beef continue to drop? It hits farmers at a time when they have no option other than to sell to the factories.
Does the Minister have good news regarding the sale of livestock on the open market, for example, to Russia, given that we were told Russia would accept no further imports from Ireland in a month?
I welcome the Minister and his officials. I read recently in a newspaper his call for diversification in the food sector. Is it too early to ask what new products for export he has in mind? Action of this nature will be required if we are to maintain our current high level of exports, which stands at 85% to 90% of what we produce. I congratulate the Minister on his role in the negotiations. He has returned with a good deal and I am sure farming will be secure under this agreement.
I welcome the Minister and his officials. The importance of the Minister's presentation is not insignificant. We should realise that in the constant and ongoing negotiations, he has laid down a framework which will be successful for Irish agriculture and production.
I share his one area of concern regarding the sugar beet industry. Other major areas of farm production, the beef and dairy industry, have been protected which is a considerable achievement. Farm produce has been replaced by food production and we must pay tribute to the Minister and his officials for steering agriculture into that area. Will he comment on the position of the sugar beet industry as enunciated by former Commissioner Fischler, who did not seem overly anxious to discuss the issue with us when he visited in July? Although he recognised there was a problem in this regard, he did not go beyond that. I am aware the Minister raised the serious concerns of beet growers regarding the future of the industry, employment and so forth. How does he see the future of the sector?
I welcome the Minister and his officials and, like other speakers, I welcome the deal he negotiated. From media reports, it appears this may be his final meeting. I thank him for the deals he has done in recent years.
We will return to that issue in a moment.
I have raised the nitrates directive, which is my major concern, at previous meetings. The last time I spoke to the Minister he was reasonably positive about the final outcome of the directive. Is he still positive?
I ask the Minister to make his concluding remarks.
I thank contributors to the debate to whom I will try to respond as fully as I can. Deputy Timmins raised the question of the green box system of payments. This issue is critically important because all direct payments to Irish farmers will be decoupled, which will be a buffer against variations in prices, markets and so on. The relevant section of the agreement reads: "Green Box criteria will be reviewed and clarified [this is what is causing concern] with a view to ensuring that Green Box measures have no, or at most minimal, trade-distorting effects or effects on production."
Decoupling which we recently announced and about which we sent statements to farmers is important. Most countries opted for partial decoupling and various hybrid types of decoupling systems, whereas Irish farmers opted for full decoupling because having a single payment would get rid of bureaucracy and red tape. It will also ensure there is no trade distorting element in the payments as they are not linked in any way to production. As such, they are safe. Only last week, at the Agricultural Science Association conference in Waterford, the chairman of the WTO agriculture group, Mr. Grosser, confirmed that the decision to adopt full decoupling had protected Ireland's payment.
Deputy Timmins referred to a domestic matter, the 3% special reserve we have established. We believe the 3% figure affords us adequate room for manoeuvre. A special advisory group made up of experts and representatives of the farming organisations is examining the best way of protecting people who are facing difficulties. We also have a review and appeals system. Issues such as younger entrants and people who either acquired or sold land during the reference years will be taken into consideration.
People must remember that when they claim special treatment for special sectors, whether for weanlings or calves, only other farmers can provide for it. In other words, to divvy it out, it will have to be taken from other farmers. It is fine for some people to demand something because of commercial decisions they took between 2000 and 2002 and to want every other farmer to help them out now. It is a tricky situation.
The article regarding sensitive products is to protect Ireland's industry as a member state of the EU. Article 31, dealing with sensitive products, states that "without undermining the overall objective of the tiered approach, members may designate an appropriate number, to be negotiated, of tariff lines to be treated as sensitive, taking into account existing commitments for these products". A member state can designate an appropriate number. If Ireland states that it has sensitive products in beef, sugar beet and dairy products that might arise from time to time, we can designate those products to protect our own industry. What we have is a framework or the heads of a Bill. Putting in the detail and dotting the i's and crossing the t's will be done over the next 18 months. We have the heads of the Bill and the article on sensitive products will help us in that regard.
Ireland exports a substantial number of agricultural products each year, amounting to €7 billion, which in the main is made up of beef and dairy products. As Ireland is the largest exporter of cattle and beef in the EU, exports, therefore, are critically important to us. Approximately 85% of the beef we produce is exported to other EU countries, while the other 15% goes to Russia. Only two weeks ago, an agreement was reached with the Russian authorities to allow our beef exports there to continue. A major question mark hung over these exports; the Russian authorities spoke about closing down their market to us. However, an agreement for the continuation of exports was reached and signed last week.
Ireland produces approximately 550,000 tonnes of beef each year. We consume it with the best will in the world. Some of us consume more than others and I admit I do away with a fair amount of it myself on a daily basis. However, Irish domestic consumption amounts to approximately 50,000 tonnes, meaning the rest of it must be sold abroad. Of the approximately 78,000 tonnes imported into Ireland, approximately 8,000 tonnes are re-exported in convenience products such as toppings for pizzas. The rest is sold to the catering sector such as restaurants.
Ireland already has a good traceability system with a comprehensive and extensive labelling system. I tried hard to get the EU to extend labelling to catering establishments and hotels to ensure that when anyone goes into a hotel, he or she will be able to tell that the Angus or Charolais beef on the menu is from Dungarvan, County Waterford or Ballinasloe, County Galway. People consuming food are entitled to know from where it has come. Within the next two weeks, I will introduce, with or without the blessing of the EU, a statutory instrument to ensure that menus in hotels and restaurants state that the beef is from Argentina or Brazil.
There are some concerns about this as we export a large amount of beef. As our beef will be designated in the catering trade in, for example, Italy, Italians may ask why there is Irish and not Italian beef on the menu. However, Irish beef has a good quality image and a high reputation. "Ireland — the food island" is an important marketing asset for us. I am satisfied that it is better in the long run to have comprehensive labelling right down to the final consumer.
Deputy Hayes referred to the beef industry and I have covered much of that area. Changes have taken place in the bacon industry and particularly at Galtee Meats. When I was growing up, we always had a few sows around the yard and I gave up many a night to minding their banbhs. I learned how to count minding them. At that time there might be 12 or 14 banbhs and one would be lucky if the sow had enough mammary development to feed all of them. If not, there was no option but to resort to the bottle and nipple in the kitchen. That was part of rural Ireland. Thankfully, we have modernised since then and now there is a relatively small number of large pig producers. Galtee is one of the few processing operations in the country that is owned and controlled by the farmers themselves, a fully fledged co-operative society. Any decisions taken are by its farmer members and their representatives on the board. I believe they know what they are doing in the best interests of their own members.
Senator Coonan was concerned that agriculture was being singled out in having to carry the can in society. In recent years, society has demanded higher standards in animal welfare and environmental protection from farmers. Driving around the countryside now shows how different a scene it is compared to 20 years ago. A large number of pollution controls and environmental matters have been demanded by society. However, it must be remembered that the rest of society supports farming through direct payments and substantial export refunds. The EU agricultural commissionership uses almost half of the EU budget while the rest is divided among the others. That is substantial support for farming and agriculture. We need the rest of society to support farmers and agriculture. When the chips are down, the rest of society drops also.
Members will remember during the tractorcade two years ago how in every village and town the farmers received cups of tea and coffee and support. This innate support in society for farmers was more illustrated during the foot and mouth disease outbreak. Some of the best and most disciplined organisations were actually urban-based. Bingo halls in the heart of Dublin city had disinfectant mats outside because they wanted to support their farmer colleagues. Farmers need to respond to what society needs. If society needs greater appreciation and protection of the environment and animal welfare, we must be mindful of it.
Regarding the drop in beef prices, I remember when I was younger driving cattle to fairs. If the fair was good, the jobbers or tanglers were out the road to meet me to offer a reasonably good price. If they were not, I had to take the cattle to the middle of the fair and sometimes even bring them home that evening. It was not easy to bring home cattle from the fair because one needed cash. Wives and families had to be fed. Every autumn, when the cattle come off the grass, the same thing happens and I do not know if it ever will change. It is remarkable that each autumn we get over the problem of seasonality in cattle and beef production, most of the time only by the skin of our teeth. However, we do get over it.
I have made my views known on this matter a number of times, namely, that I am disappointed that farmers and their co-ops have abandoned the beef industry. It is not so long ago since Cork Marts IMP, the Kerry Group, Avonmore and North Connacht were involved in an integrated industry. Each one of them has left it. Now there is the problem that pressure must be applied each autumn to keep up the price.
Credit has to be given, however, to beef farmers and the beef industry generally for getting away from intervention. It is only ten or 12 years ago that we were processing and slaughtering tens of thousands of tonnes each month for intervention storage. This was a disastrous policy because there was no future in it and it could not be built on. The costs were enormous and there were not sufficient stores. Freezer ships had to be employed around the coast at one stage such was the gravity of the situation. That beef had then to come out of intervention and when it was released on to the market, prices were depressed straightaway. Not one solitary pound of beef is currently in intervention. The industry is prepared to get out into the marketplace to the French, Italians, the Dutch, Scandinavians and so on. The only third country market now required is Russia. We always need those type of outlets but, by and large, 85% is the actual figure that goes directly to the consumer and supermarket shelves.
Deputy Carty mentioned diversification and of course we need that. Not so long ago milk was converted into butter and the skim was brought home to feed the calves. The skim is the most nutritional part of milk and is converted into casein. We now have a substantial ingredients industry, with skim milk powder of many varieties. We can tailor our products for the end result, but we need to have greater variety and usage and a better product range to suit a society that is changing on a regular basis.
Senator Callanan raised the question of the sugar beet industry. This industry is vulnerable at present because there are proposals for reform. Those proposals, if they are brought into effect, would wipe out the Irish sugar beet industry. We have several thousand growers. They are relatively large, but nonetheless they would not survive the proposals as they currently stand. In addition, there are two factories in Carlow and Mallow, neither of which would survive those proposals. Like all proposals, however, they are there to be negotiated. I hope and expect that a good deal will eventually be negotiated and that there will be a satisfactory outcome to those proposals. Otherwise, the sugar beet industry will be finished. The sugar beet industry in Europe is high priced — about three times the world average — but it does not cost the taxpayer anything. There is internal support for the industry itself. There are certainly strong grounds for a reform of the regime, but reform that will protect the Irish industry because there is a good case to be made for that.
The nitrates directive was raised by a number of people, including Deputy Blaney. Much work has been done on that directive. I gave an assurance to this committee that I felt it was possible to get an action plan, which was necessary, because this directive was on the table since 1991. In tandem with that we look for a derogation which will allow commercial and everyday farming to be carried out in Ireland. My understanding is that negotiations and deliberations are going well in this regard. Teagasc has made a big input from a scientific viewpoint and Mr. Denis Brosnan, as an honest broker, is chairing the meetings of the farmers with the Department of the Environment, Heritage and Local Government and the Department of Agriculture and Food to facilitate an agreed action plan to be sent off to Brussels as well as the principles of a derogation. That will be done.
However, we cannot get away from the fact that society is demanding greater protection for our soil, streams and rivers because we have other industries as well such as agri-tourism. Water quality is important to our own people and to those who visit Ireland. Modern commercial farming can thrive alongside societal demands. It will only thrive, however, if it is cognisant of the demands of society and is in tune with and focused on what the consumer wants, both in terms of production and the end product required.
I thank the Chairman. It gives me great pleasure to talk to the committee at any stage. I was disappointed that nobody congratulated me on Cork's great victory at the weekend and that the entire time was spent talking about nitrates and other matters. I believe it was a tremendous victory, at any rate, regardless of what members of the committee might think about it.
There is no County Kilkenny man here today.
We would like to be associated with those kind remarks and wish Cork well. It was a great victory. I am sure Deputy Carty will be hoping that the Sam Maguire cup will go to Mayo. I thank the Minister. As this will be the last meeting attended by the Minister, members will want to pay tribute to Deputy Walsh prior to his retirement from office in two weeks time. I was personally saddened when I heard the news, as I am sure were other members of this committee and farmers across the country when they learnt of Deputy Walsh's retirement from office at the end of this month and his decision not to continue in public life after the next general election.
Deputy Walsh has served for just over 27 years in Dáil Éireann, during 17 of which he was a Minister. That is a credit to him. He will go down in history as the State's most successful Minister for Agriculture. Irish farmers and rural Ireland were fortunate to have had him in command during a difficult and crucial time for the country's largest industry. As Minister for Agriculture and Food he has reformed our farming and food industry. His commitment and expertise has ensured that we now have a world class agri-food industry. As Minister in 1992, he was Ireland's negotiator who brought about reforms of the EU Common Agricultural Policy, removing payments from the meat factories and giving them directly to farmers as income support. He successfully negotiated the complex CAP mid-term review, resulting in direct savings for Irish farmers of over €400 million and the preservation into the next decade of the financial gains of Agenda 2000. This most radical reform of CAP has led to the decision on full decoupling of direct payments from production. At WTO ministerial negotiations, Deputy Walsh protected the domestic market direct payments and ensured a level playing field for export supports.
In recent years he negotiated Agenda 2000, which resulted in increased direct payments to farmers of €1.6 billion annually. In 2001, when Irish agriculture faced potential disaster from foot and mouth disease, the Minister's resolute and effective action safeguarded Ireland's €16 billion agri-food industry. His negotiation skills, which were second to none, will be missed enormously by this country, particularly in Europe.
During my term as Chairman of this committee, the Minister and his officials were very willing to attend meetings when requested. On behalf of the committee I thank him and wish him many years of happiness with his wife and family in retirement.
That very passionate speech by the Chairman could have been made in the dressingroom in Donegan Park before Meath went out to play in the All-Ireland. Some of us would be very closely associated with Kilkenny. We congratulate Cork on its victory last Sunday. We were not aware that the Minister, being from west Cork, took an interest in hurling.
We congratulate the Minister on his long and fruitful association with the Department of Agriculture and Food. He has been the public face of the Department for more than a decade, doing a difficult job and dealing with one of the most politically aware groups in Irish society. I am sure that dealing with the farm organisations, and this is not a slight on them, is akin to trying to buy a sheepskin jacket in the old city of Jerusalem, where it is very hard to pinpoint exactly where they are starting and where they hope to finish.
Last week I listened to the deputy president of the IFA, Mr. Ruaidhri Deasy, speak on how wonderful the advent of decoupling would be for farming. I had to take down the literature for the last general election from all the political parties to see where they stood, which I am sure was reflective of the official IFA view at the time. It is not what Irish people say, but what they think that actually matters. The ability to discern that is a necessary quality of any Minister for Agriculture and Food. The Minister has that quality and on many occasions he had to say things that might not have been popular. He signalled to those involved in agriculture the need for a progressive and positive view. Before he steps down, I am sure he will make a state of the nation speech where he tells it as it actually is. Farmers often come to a realisation of the position before it has been articulated by politicians or in the media. We do farmers a disservice by not acknowledging that. We should have the political courage to stand up and say what we think — courage that has been shown by the Minister and his ministerial colleague, Deputy McCreevy. In Irish society, which is increasingly cynical about politicians, there would be more respect for those who articulate what they think.
The Minister will be a hard act to follow, because he has a tremendous grasp of his brief, regardless of the issues. I could not image a civil servant preparing replies to parliamentary questions and putting a prompt at the end that, if pressed, the Minister should continue to repeat the above. The Minister was able to field the balls that were thrown at him, like the performance of the Cork team last Sunday. Serving in politics is a difficult task, but travelling from the back end of the country, geographically, is especially difficult. I wish the Minister and his family the very best of luck. He is in good health to enjoy his time out. We look forward to the appearance of innovative dairy products on the shelves of the Bandon market.
It is rumoured that the Secretary General of the Department of Agriculture and Food may move with the Minister's racing buddy, Deputy McCreevy — was he part of the Punchestown exchange? The programme manager will move on when the Minister leaves office and perhaps he is watching these deliberations from the crows' nest. I extend best wishes to the Minister and his staff and acknowledge the courtesy, kindness and respect afforded to the Opposition during his term of office.
It is very hard to follow what has been said. The high points of the Minister's career have been highlighted again. The Minister presided over changing times in Irish farming, when what was needed was a steady pair of hands and superb negotiating skills. He had these in abundance. When one sought guidance from the farming organisations on what was happening on the farming scene, one would have needed an insight into their thinking on an issue. The IFA took a totally different stand on decoupling. However, things worked out, which is a great tribute to the manner in which the Minister approached and handled issues. He was courteous and dignified at all times. There are times in farming politics when it is not easy to do that, but it was noticeable that the Minister did.
The outbreak of foot and mouth disease was a national issue that had an impact in both rural and urban areas. It was important to protect the cattle industry and not allow a repeat of what happened in other countries. The Minister's guidance was very important and will have long-term results. Irish farming will benefit from the negotiations on decoupling and world trade.
It was always a pleasure to meet the Minister and he was always available when we asked to meet him. The newly elected Members appreciated the courtesy shown to them and I have many great memories of that. I wish the Minister a long happy and healthy retirement with his wife and family. If he is asked to stand in as a sub now and then, maybe he will be available.
I wish to be associated with the tributes to the Minister and wish him well on his retirement. To a novice in the Seanad, and spokesman on agriculture and food, the Minister was a thorough gentleman and never resorted to taking advantage of the situation. He went easy on me and I thank him.
We hope the measures he has put in place will change the trend in farming. When the Minister first took office, there were many more farmers and young people were anxious to take up farming. There has been a significant drift from the land, with fewer young people willing to take on the challenge. As a Tipperary man, I congratulate the Cork team on their win. We could describe the Minister's performance in terms of that game last Sunday. The team started out very slow and hesitant, got a right good pep at half-time and finished on a very high note — the Minister did likewise in his career. I wish him success, health and happiness in his retirement. I hope when he returns to Fairyhill outside Templemore with three or four horses that he will tell me which one will win.
I too pay tribute to the Minister. I got to know him first in 1978 when my predecessor, P.J. Morley, shared an office with him in this House. When he became Minister, he oversaw many changes in agriculture and brought back many good deals from the European Union. I will not go into them all as the Chairman has covered many of them in his opening remarks. There is no doubt that his skills as a negotiator were second to none. He has had a long and distinguished career in this House as a representative of his people in Cork, of his constituency and of his country. He has always given his best and that has been proven by the fact that his people have returned him to this House at every election since 1977 except for one short blip, yet others saw his qualities at that time and made sure he was still in the House. The many honours that have been bestowed on him by other EU members for his service to agriculture are also noted and are a tremendous tribute to him. I wish the Minister many long years in retirement with his wife and family and my greatest wish is that they all enjoy good health for that time.
I am delighted to have the opportunity to join with colleagues in paying tribute to the Minister and to acknowledge his long and illustrious career. I am certain that over the next few years he will continue to make a valuable contribution in these Houses and to agriculture. Farmers have to cope with the vagaries of the weather and of world markets. They have to look for dependency and consistency in their Minister more than anything else.
The Minister has shown himself to be a rock of common sense and a skilled and deft negotiator on behalf of Irish farmers and the Irish food industry, which will be indebted to him for many years. During my brief tenure in the Seanad I had the privilege of paying tribute to him for his work during the foot and mouth crisis. He gave leadership not only to the farming community but to the community at large where he broke down the barriers between the urban and the rural. In support of farmers, he brought out the great sense of citizenship that existed in the country. He has shown great courage to go for full decoupling. One of the great things he has done has been to challenge the naysayers. These are the people who constantly talk down agriculture and the prospects for Irish farmers. We will be in his debt for that.
I acknowledge what he has done for the bloodstock industry. He has recognised, more than any other Minister, the vital importance of the bloodstock industry to local economies and to the national economy. Earlier this year, I had the great privilege to attend the first annual gathering of the stable staff association during which about 600 people came from throughout Ireland to celebrate the bloodstock industry. One of the people to whom they paid particular tribute was the Minister for Agriculture and Food, Deputy Walsh. It was great to see that the people working in the industry recognise the understanding the Minister has of that industry and the contribution he has made. A fortnight ago I attended the Moyglare stakes with my family at which others paid tribute to what the Minister has done for that important industry. While there are also naysayers in that vital industry, the Minister has done more for it than anyone before him.
I want to say a word of thanks to the Minister for the Racing Apprentice Centre of Education in Kildare, a key element in providing education and training to people entering the bloodstock industry. That organisation will be forever indebted to the Minister. I join with all the others in wishing him long life and health and happiness in his retirement.
We should also include the greyhound industry. I go to Mullingar on a few occasions and know the great work that the Minister has done with the grant aid he has given to the track in Mullingar. Some night I intend to go to Dundalk because I believe it is a fabulous evening's entertainment and a credit to the Minister.
I nearly spoke too soon earlier. I too would like to join other members in thanking the Minister for all he has done. I have only been a Member for two years but have been watching his performance long before that. He reminds me of an uncle of mine, the former Minister, Neil Blaney. His attitude and his approach and the manner in which he answers questions show that he is clued in and knows the industry inside out. He does not take anything lying down and does not take no for an answer.
The Minister certainly has done farming a lot of good, especially over the past two years. Two years ago, things looked very poor, particularly for the small farmer, yet the Minister has obtained the best deals over the past two years, especially for the small farmer who was inclined to be left out by previous Ministers. He handled many things very well and it is a pity that he will not be in office in the next year or 18 months when those negotiations will be finalised. He has left matters in very good order for the next Minister. I wish him well in his years of retirement and hope he gets the chance to enjoy them.
Like Senator Coonan I am also a novice in the Oireachtas. The foot and mouth crisis was a serious issue in this country and there is no doubt that the Minister took a leadership role in that and co-ordinated what had to be done at the time. The perceived urban-rural divide was certainly not evident during that crisis.
Different farming groups made presentations to the committee on the mid-term review of Agenda 2000, yet the ICSA was the only organisation that was in favour of full decoupling. It annoys me at times to hear people from the IFA speak about the Department of Agriculture and Food on different issues. Its representatives did not have the guts themselves to come out and make a decision one way or the other. Someone had to make a decision and the Minister for Agriculture and Food, Deputy Walsh, made it. I think he read the feelings of farmers better than the leaders of the farming organisations representing them. There is no doubt that full decoupling was the best thing for farming. It has brought some stability into agriculture because at least people know what they will receive in direct subsidies and payments and farmers will reduce the numbers they try to maintain on farms. It will bring more stability to farming, leading to better quality animals and a better price in the marketplace.
I wish the Minister, his wife and family, the very best of luck and good health in his retirement. I think it is well deserved and well earned.
We will leave it to another west Cork man to wrap it up.
I come from almost the same parish as the Minister and have known him longer than most. We have already spoken about private personal matters and we will leave that be. Coming from Ahiohill where he was born and reared under the shadow of Dick Barrett, he could not but be good.
Many tributes have been paid to the Minister for Agriculture and Food, Deputy Walsh. When one talks about the Minister, one usually talks about the Department of Agriculture and Food but at this meeting we specifically refer to the performance of Deputy Walsh as Minister and Minister of State over the years. The Minister referred to litters of banbhs. Many in this country remember nothing of the 1960s but farming has changed much since then. The Minister played a significant role in overseeing the changes that took place in food production and he provided the necessary leadership and steadfastness to bring Irish agriculture to the forefront internationally.
We are now on the world stage producing a world-class product for the marketplace. Deputy Walsh led this process since first being appointed as Minister with responsibility for food, although this is not to take credit from anyone else. It is fair to say, as the Chairman said, that Deputy Walsh has been the best Minister for Agriculture and Food who has ever served this country. He has a safe and sure pair of hands and did his job well. This was recognised not only by the committee members present but also by three different taoisigh — Mr. Charles Haughey, Mr. Albert Reynolds and the current Taoiseach, Deputy Bertie Ahern. It is quite possible that others will recognise it also.
Everyone agrees that the Minister was a safe pair of hands; one need only note the comments of the representatives of the farming organisations. Even when there has been criticism, the uniqueness of the Minister's achievements, strengths and capabilities was recognised. It was nice to hear others at this meeting, including Deputy Timmins, speak of the Minister's courtesy to all, whether in his own or other parties or anywhere else. He is recognised outside Ireland by European countries and governments, and the French and Spanish Governments gave special recognition to him. Given his service in Europe, to the European and Irish agriculture industries and to his own community, the Minister will not be forgotten. His place in history is well secured.
The Minister walked tall in difficult times. Reference was made to BSE, foot and mouth disease and negotiations in Brussels, and the Minister referred to grouping all payments into the single payment. I remind him that it was his successful negotiation which grouped the funding for perhaps 13 different schemes and put it into our pockets through the European package. The Minister's final achievement was in achieving decoupling on behalf of Irish farming. If this had not been progressed over the years, it would not have been possible to do it now.
The Minister served and led well. As a party colleague, a person from the same territory and a member of this committee, I record my appreciation for his personal service to Ireland. God bless the Minister, his wife Marie and his family. I wish them long and happy days. It will be difficult to find a replacement for the Minister.
I sincerely and humbly thank the Chairman and members for their kind but exaggerated comments. I wondered for a while whether I was deceased. In my part of the country, you would be as dead as a doornail before people would be that generous.
This is my last meeting with the committee as Minister for Agriculture and Food. Last week I bid farewell to my colleagues at the Council of Ministers. I attended my first meeting there in 1989. In 2004, I am by a long shot the longest serving Council member. I recently asked a Council colleague who has served for a good while when he attended his first meeting. He replied that it was seven years after my first. I needed much support in my work from my family and the Civil Service, and I ask that my advisers be included in the credit for what has been achieved.
Much has been done to develop a modern agriculture industry. While I accept that not as many people now work in agriculture, this is the case for many occupations. Society is changing and will continue to change. However, at least there is a better standard of living, the drudgery has been taken out of farming and well educated young people get opportunities in our own economy. As late as the 1980s, we were forcing up to 60,000, thankfully educated, young people out of Ireland into other economies. Politicians felt good if they could get a visa for somebody to get out of the country. Many Governments have been in office since then and each, in its own way, helped many Irish people. Thankfully, for the past ten to 15 years we have for the first time since Independence made use of our independence to allow people to have a chance in their own economy.
For years there was much talk but little practical achievement. We have seen television programmes about Irish people who were forced out of this economy from the 1930s right up to the 1980s. I refer particularly to those who left in the 1930s and 1950s because they were not educated and were kicked around by every boss. Many ended up living in misery in hovels. We have much to answer for and, thankfully, in the past decade we have used our independence to much better effect.
I hope members of the current generation do not have to face the kind of hardship faced 30 or 40 years ago. They would not be used to it and would find it extremely difficult to get by. In many parts of the country, people have good housing and conditions but it is not so long ago that running water was a status symbol, as was electricity. There would be problems if one now tried to extend rural electrification throughout the country because people are more demanding and stand on their rights. Nonetheless, the past decade has been a purple patch for Irish society. We are performing at the highest level internationally in a range of disciplines and I am very proud of this. We no longer have an inferiority complex about being Irish. We are full of confidence, our stride is lengthening and I believe we will do even better than we are doing now.
More than anything else, as a Minister I was privileged to have good staff, good civil servants and, because the economy was doing well, the money to do in the main what I wished. Colleagues who held ministerial office in the past did not have the wherewithal to invest in development schemes because our economic performance was not good enough. At least in my time there was a reasonable amount of money to go around.
I feel extremely privileged, having started out as a lowly cumann secretary, that I went right up along the line to be appointed to Cabinet. I hope I showed respect at all times for everybody with whom I dealt, the people I worked with in Agriculture House and those of whatever party in Leinster House and on the committees if for no other reason than I know there comes a time when one enters a new phase of life and may again meet people on one's way down who are now on the way up and that it is as well not to have been rude or hostile to them.
I am proud of what has been achieved in Irish agriculture and various related industries, particularly the food industry. Ireland is recognised internationally as an island where good, wholesome, nutritious and safe quality food is produced. Food to the value of €7 billion is exported annually to a range of societies, peoples and economies throughout the world. That is being done increasingly and with greater sophistication, and it was not easily achieved. Bord Bia has not been in existence for very long. Traceability and individual tagging of livestock has not been in place for very long. It had to be done although people at farm level did not want the hassle of having to tag cattle, sheep and pigs. However, the market in Paris demands traceability and it is the main market for our lamb and beef. The customer is always right and, if the customer makes such demands and we are in a position to meet them, it makes a great deal of sense to provide what the customer seeks.
There is a range of other areas for which we deserve credit. We have very good traceability and labelling systems. Our animal health status is extremely high. Only a few years ago in 2001, we had to incinerate 500,000 head of cattle in the absence of a market for them because of BSE. Confidence in red meat was at an all-time low and 80% of people gave up consuming beef. Now it is back on supermarket shelves. Consumer confidence has never been higher and people are consuming Irish beef to a greater extent than ever before. That achievement by Irish beef farmers and by the industry is an example of the professionalism of an industry with which it was a pleasure to work.
I made my decision to retire some months ago. I spoke to the Taoiseach about it and informed him that a few important negotiations had yet to be finalised. We attended the World Trade Organisation at Geneva and our framework is in place. We held the Presidency of the European Union. It is not an exaggeration to say that Ireland as a member state and the Irish team of negotiators, not just in relation to agriculture but in relation to foreign affairs and other disciplines, are regarded in Europe as the most professional in the EU. That is a great tribute to our maturity as a nation and to the professionalism of the team of civil and public servants that accompany Ministers at these negotiations.
I wanted to announce that I was retiring before the recall of the Dáil on 29 September to give the Taoiseach an opportunity to seek out talented people. There is always young blood and a new generation coming along. In farming a farmer may hang on too long and his son or daughter may get fed up. Each generation is entitled to its chance and the same applies in politics. If anybody gets the same opportunity I did, I wish them the very best and will co-operate in every possible way with them. However, given the way society and elections operate, it will not be easy to attain the privilege of 30 years in public life. I contested my first council election in 1974, my first Dáil election in 1977, and was given my first ministerial appointment 17 years ago in 1987. The last thing I would want is to have some sort of grudge or chip on my shoulder at the end of the day. I do not. I am entirely comfortable and want to see a new face and new blood getting the opportunity I did.
A number of speakers referred to various sectors of the industry and I have alluded to a number of them. The equine industry was one. I have a special grá for that industry and believe support for its development was a good investment. The same can be said of the canine industry which was referred to in the context of Mullingar. Each year, 1.4 million people go horse racing and 1.1 million go greyhound racing. Given the size of our population at 4 million, a sizeable section of society frequents those sports. Moreover, it is one of the areas where our performance is world class and we are at the very top. In the recent Olympic Games, commentators discussed our athletes, rowers and various other contestants, but they seemed to have thrown in the towel on whether there was any likelihood of getting a medal. However, in equestrian sport, Cian O'Connor, who is an example of the kind of new blood of young confident people to whom I referred, was so confident of winning that he has had the slogan "Going for gold" on his trailer for the past year. That would not have happened 25 or 30 years ago because we did not have that kind of confidence. He was not leading when he went out but he got a clear final round and collected his gold medal. That is not all. Dermot Lennon won a gold medal in the World Showjumping Championship in 2002 on his mare, Liscalgot. We now therefore have Olympic gold and World gold to show for our investments and have demonstrated that Ireland, a small island of 4 million people, can be at the very top of the league in an activity that is indigenous to the country.
We have 50,000 horses in the country, 27 racecourses, and 5,500 horses racing at any time. I brought one point-to-pointer to Templemore and I did not meet Senator Coonan before or since to give him some information, but it won on the day at any rate. There are many small operators and little syndicates throughout the country. At least some of us remember Ireland being at the top in the late 1940s when Cottage Rake won three successive Gold Cups and Hatton's Grace won three successive Cheltenham hurdles. Quare Times, Early Mist, Royal Tan, and Vincent O'Brien won three consecutive Grand Nationals. The Aintree Grand National is at the very top of national hunt racing worldwide. To date, five of the last six Grand Nationals were won by Irish bred, Irish trained and Irish ridden horses. In the Epsom Derby, four of the last five winners were trained, bred and ridden by Irish people.
In the Melbourne Cup, two of the last four winners were trained by Dermot Weld and ridden by Mick Kinane. Similarly in the US Breeders Cup, whether it is in Santa Anita Park in California, in Kentucky, Belmont Park in New York or Arlington Park in Chicago, we are at the very top of the profession internationally and that means more than just the winning of the prize money. It shows Ireland can compete at the top level and win. It is not easy to train animals to peak fitness, transport them all the way to Melbourne and have them fit enough to win against the top international performers. I believe strongly that the investment in the development of our equestrian sport and our thoroughbred industry has been worthwhile because, apart from the value of the industry, it has given us a status internationally which is above and beyond to what a small country might legitimately aspire.
Farewell to my colleagues, the members. I thank them for all their courtesies over the various meetings and the nice things they said about me. I know they were exaggerated but, nonetheless, I have a capacity for soaking up that kind of praise. I thank the committee and staff.
I ask the clerk to the committee to write to the former Minister of State, Deputy Aylward, who has departed to Brussels and who attended meetings of the committee on numerous occasions during the past few years. We wish him well in his new portfolio.
The joint committee adjourned at 5.40 p.m. until 11.30 a.m. on Wednesday, 29 September 2004.