Thank you John for your introduction.
Minister Coveney, Commissioner Ciolos, Ladies and Gentlemen, It is a great pleasure to be here with you this evening and to have this opportunity to address your AGM dinner.
The IFA continue to make a positive impact on those living in rural communities and it’s important to acknowledge that during these difficult times.
I would like to take this opportunity to welcome Commissioner Ciolos to Ireland again.
I know that Minister Coveney has developed an excellent working relationship with you in the past year.
We welcome you to Ireland at a very exciting time for Irish agriculture and the wider food industry. Amidst the economic challenges facing us, these sectors have been a shining light.
I hope that you’ll have the chance to learn of some of the amazing feats of the sector while you are here. Many of our dynamic food companies are at the forefront of industrial innovation and continue to blaze a trail into new markets.
Irish exports have been performing strongly and this is due in no small part to our agri-food sector. New statistics released today show that Ireland's trade surplus rebounded in November to reach a new high. Some forecasts point to an overall trade surplus in 2011 of about €45 billion, a new record high.
The value of Irish food and drink exports increased by 12%, or €1 billion, in 2011 to reach an all-time high of €8.85 billion.
This added to positive economic growth last year after three years of contraction.
It is great to see that the hard work of many on farms, in processing plants and in laboratories is now bearing fruit.
Ireland is a well established global player in the agri-food industry, resulting in food exports to 170 countries worldwide.
We can be very proud of the reputation Ireland has developed in these countries for producing good quality and safe food products.
This reputation was hard earned and we must continue to maintain these standards so as to maintain our success.
The abolition of Milk quotas in 2015 represents a wonderful new opportunity for Ireland’s dairy farmers.
I am confident that the hard work will continue and that the agri-food sector will continue to perform strongly this year and beyond.
As we all know the success of agri-food is taking place against a more difficult economic backdrop for the wider economy. These are difficult times for our people.
The new Government is doing everything within its power to bring the public finances back in line and to advance new policies for job creation nationwide.
On both fronts we are making progress.
We recently introduced a budget that saw a €3.8 billion fiscal adjustment. It’s never easy but when both parties of this Government entered office we pledged to fix the deficit.
Restoring our public finances will improve the stability of the State, improve investor confidence, encourage new growth and, most importantly, create new jobs.
However, despite scare resources, the Government is providing over €1.3 billion to the Department of Agriculture, Food and the Marine’s in 2012, €18 million higher than planned by the previous Government.
This will be boosted by a further €27 million by way of carry-over of savings from last year. This is a very substantial increase in capital allocation and will allow a very worthwhile capital programme to be implemented this year.
In addition, the funding announced in the Budget does not include the €1.3 billion in payments under EU funded schemes which are administered by the Department.
The budget adjustments come at a very difficult time internationally. The euro zone debt crisis has still not been resolved and remains a clear and present danger to our fragile recovery efforts.
In the coming weeks there will have to be renewed efforts by the leaders of Europe to resolve this crisis and agree on a text for a fiscal compact.
Let me be clear – Ireland supports the creation of stronger economic governance throughout Europe, and particularly throughout the Eurozone.
The Irish people are paying the price now for the absence of such rules in the past. I am determined that we will never go back to the practices that drove our economy off a cliff – reckless spending, ignoring competitiveness, poor oversight of banks and over-reliance on property-related tax revenues.
A tragic result of such recklessness is job losses. Getting Ireland back to work will remain the top priority of the Government.
A key focus of the recent Budget was on job creation and tackling unemployment.
And there were a number of measures targeted specifically at developing the agriculture sector.
For example, reductions in the rate of Stamp Duty on the transfer of commercial property will also apply to farmland and the present relief for transfers to close relatives will continue to apply.
To encourage farm partnership formation, an enhanced 50 per cent stock relief for all registered farm partnerships and a 100 per cent stock relief for certain young trained farmers forming such partnerships will be introduced.
We also introduced a long overdue reform by amending the VAT refund order so that farmers may claim a refund on wind turbines purchased. Saving farmers money and promoting Irish jobs.
Beyond farming we will be shortly launching our ‘Pathways to Work’ activation plan which will completely overhaul the manner the State supports the unemployed and encourages them back into the work force.
It will implement the type of major structural changes long ignored by successive Governments and will offer new hope to the long term unemployed.
Later, the Government will be launching the first annual action plan for jobs. Minister Bruton was tasked with preparing this plan that identified necessary actions to exploit sectoral opportunities and to improve Ireland’s competiveness.
It will play a major role in influencing the work programme of Government in the coming year to ensure that Ireland grabs every possible extra job that can be created.
The future trend of employment in the primary farming sector will heavily depend on the ongoing CAP negotiations.
These negotiations on CAP reform will continue at technical and political level over the next year or more with a view to securing agreement.
Favourable medium-term forecasts in relation to global population and wealth growth offer the potential of the sector to grow further.
However, the challenge to maintain sustainable incomes can only be achieved if we get the fundamentals right.
Securing the most appropriate policy framework at EU level is one of those key fundamentals.
I know my colleague Minister Coveney has been speaking to you on this issue already today.
The CAP reform package launched last October, and the negotiating process that will unfold over the coming months is crucial for the future development of Irish agriculture.
It is, simply, vital that we get the right deal.
My Government fully supports Minister Coveney’s untiring efforts to secure a deal that allows the Irish agri-food sector to prosper and to fulfil the objectives of our Programme for Government.
We want a Common Agricultural Policy that:
supports the twin goals of competitiveness and sustainability
guarantees security of food supplies while allowing us to manage our natural resources in a sustainable manner, and
maintains the viability and prosperity of our rural areas.
Thus, Ireland’s priorities in these negotiations are:
to ensure that the next EU budget will deliver a well-resourced CAP to support sustainable food production in the EU;
to retain Ireland’s funding both for direct payments and for rural development in any redistribution of CAP funds between Member States;
to obtain flexibility for Member States in relation to payment models and transition arrangements for distribution of single payment funds to farmers;
to ensure that rural development policy includes appropriate targeted measures to support competitiveness and sustainability, and finally
to keep CAP processes as simple and as effective as possible and to minimise unnecessary bureaucracy for the farmer and costs for the State.
The Government will continue to use every channel available to secure the best possible deal for Ireland and for Europe.
I am aware that the Commissioner is genuinely interested in hearing the views of all stakeholders in the agri-food sector on the shaping of a reformed CAP.
In conclusion, I expect that the agri-food sector is going to perform a significant role in our economic recovery.
Our plans envisage growing food and drink exports to €12 billion by 2020.
This target is ambitious but achievable because our food industry is a highly innovative and technologically advanced, operating in a growing world market.
In response I’m committing that all Government agencies will work closely with you and the industry at all levels to maximise the potential for new growth, jobs and producer income.
I would like to wish you a very enjoyable evening and the very best for the year ahead.
Thank you.