Dáil Éireann Debate, Wednesday - 24 March 2004
20 Mr. Durkan asked the Minister for Agriculture and Food his plans to ensure the viability of the agriculture sector in the future; if the agricultural sector here is keeping pace with producers in other EU and non-EU countries; and if he will make a statement on the matter. [9085/04]
Amharc ar fhreagraAs Minister for Agriculture and Food, it is one of my priorities to ensure that viability is maintained and improved for the farming sector as a whole. This is an ongoing process. In June 2003 the fourth Department statement of strategy was published. The statement of strategy describes the environment, both internal and external, within which my Department operates and identifies the challenges ahead. It states our mission for the years ahead and identifies the goals and strategies of my Department on a long-term basis. Among the major goals is the ongoing commitment to maintain farm viability.
Farm viability is critical to the maintenance of the maximum number of farm households in the rural economy. In line with this ongoing concern, my Department has successfully implemented a range of measures including substantial market supports and direct payments. In 2003 my Department spent €2.8 billion for this purpose with €1.6 billion of this going in direct payments to farmers. In addition, the general developments in the economy with greater availability of employment and increased levels of participation within the labour force has resulted in greater opportunities for those who wish to improve their incomes by combining an off-farm job with their farming activities.
The recent reform of the Common Agriculture Policy and the implementation of the Luxembourg agreement will have important consequences for farmers. These changes will make returns from the market and overall farm efficiency all the more important. This in turn emphasises the need on the part of farmers to avoid any inefficient practices and to maximise their productive potential to ensure that they produce what the market requires.
With an eye to the medium to long-term, I formed the agri-vision 2015 committee to examine the findings and recommendations of the previous agri-food 2010 committee. This is to reflect and act upon the changes that have occurred in the external environment in which Irish agriculture operates. Developments at WTO level are potentially significant and the enlargement of the EU eastwards to incorporate ten new member states will obviously have implications some of which will be challenging for the agri-food sector. However, perhaps the most notable of these changes have been the mid-term review of the CAP with the move toward the decoupling of payments. The central lesson to be learned from this change is the need to address all aspects of competitiveness and the increased emphasis to be placed on the market place.
This new committee is examining a range of options and likely scenarios for the agri-food sector and I expect that the issue of viability, for farmers of all sizes, will be given appropriate attention in its report.
One aspect that is vital in ensuring viability is the issue of competitiveness. As the changes referred to previously will inevitably mean a greater range of competitive pressures and a greater exposure to market forces in the agri-food sector, there is a consequent need to re-focus on competitiveness.
Given the degree of importance that I place on this issue my Department has sponsored considerable research into the issue of competitiveness so that we may better understand where Ireland stands vis-à-vis our competitors both inside and outside the EU.
There is an interesting conjunction in the findings of the three separate studies published to date. Broadly speaking, the Irish dairy and tillage sectors have retained their competitiveness when compared to other food exporting countries. While a reasonable level of competitiveness is indicated for all sectors — dairy, beef, sheep and cereals — which have been examined, there is no room for complacency particularly when compared with certain countries outside the EU.
I am sure these matters will be addressed by the 2015 committee and, in any event, I will tailor my Department's strategies and policies to see that viability is constantly addressed and remains a priority.
