Irish farmers and the food processing industry face an appalling vista as Commissioner Peter Mandelson prepares to sacrifice their interests at the WTO talks. Today in Dublin, European Commission President Jose Barroso attempted to obscure the realities with the smugness and arrogance of a man out of touch with reality. Indeed he displayed no small degree of condescension as befits an unelected bureaucrat.Below Michael Creed outlines the stark realities. Make no mistake about it , Irish agriculture teethers on the brink of destruction. Mandelson must be stopped.
Fine Gael Private Member's Motion: WTO Negotiations
Speech by Deputy Michael Creed
Fine Gael Spokesperson on Agriculture, Fisheries and Food
"It is difficult to recall a moment in our economic history when so much stands to be lost from the failure of this Government, and indeed its predecessor to defend a vital National Interest. The failure of the Minister for Agriculture, the lead Department in this fiasco to even quantify the consequences of failure is troubling in itself. It is matched only by the "pass the parcel" approach in Government, with the new Taoiseach-designate - Brian Cowen refusing to engage on the matter until his appointment is confirmed. Mr Cowen leaves the Department of Finance in a precarious state, unemployment and inflation on the rise, competitiveness slipping and tax revenues slumped. A word of warning to any "wannabe" Minister for Finance - if the proposals for Agriculture on the World Trade Organisation Agenda by Mr Mandelson become a reality, then the picture will get a lot bleaker. Thousands of jobs at farm gate and in the agri-business sector will be lost and farm incomes will fall significantly. We are most definitely in the last chance saloon and the signs are not encouraging.
Before dealing with the specifics of the motion, there are a few general observations that need to be made to put the debate in context.
(1) Over the course of the last 20 years the E.U. has slipped significantly as a trading block in agricultural commodities. Our share of world imports of virtually all agricultural commodities is increasing far faster than our share of exports. Nowhere is this more evident than in the meat sector where the EU share of trade is down in volume terms from 12% to 9% whilst actual trade in meat doubled over the same period (in volume terms). The latter is no surprise when you consider Chinese consumption per capita grew from 20kg to 50kg between 1980 and 2008. The same is true for the dairy sector with EU share down from 31% to 17%.
What this clearly proves is that the EU and Commissioner Mandelson are systematically exposing its citizens to increased dependence on imports of dubious quality and preventing us from capturing emerging markets, especially in China & India which will be left to those who out manoeuvre and outsmart us in negotiations - the USA, Brazil, Argentina, New Zealand & Australia.
(2) This decline of the EU position has occurred at the same time as the EU cost base for primary producers increased significantly. Reforms of the CAP and other initiatives this period have seen consumer concerns move centre stage with food quality, animal welfare and environmental policy at the core of every farmer's daily life.
(3) It is worth pointing out at this stage that the 2003 CAP reforms were widely believed to be the EU's contribution to the World Trade Deal. The radical changes farmers had to make to meet the reform requirements were the quid pro quo for a WTO deal.
Reality of current offer on WTO table
The reality of the predicament we find ourselves in is that we have now been negotiated into a situation far beyond what was asked of the agricultural sector under CAP reform. Concession after concession has left our beef and dairy industries in peril, our consumers exposed to unacceptable levels of risk and cost hikes and the future viability of the family farm as we know it in jeopardy.
I have asked you Minister to lay the facts before the House, to openly admit to agriculture producers and consumers what kind of impact the current WTO proposals will have on the Irish economy. However, you are either unable or reluctant to divulge to the House any kind of substantial evidence of economic analysis undertaken by your Department to assess the situation.
What we have seen however, are figures, undisputed by you, from those working in the industry and those figures are stark;
- €4bn lost to the economy on an annual basis
- 50,000 job losses in manufacturing and services
- 50,000 farmers put out of business
This is not just an agricultural issue, beef and dairy industries together contribute an estimated €6bn to the economy in terms of goods and services. How is this revenue going to be replaced if the current WTO proposals make their way to the finish line?
Non-trade issues
Apart from the obvious economic carnage in the countryside and the job losses in the food processing & agri-business sector, there are a number of other non-trade issues which have not been taken into account in the current negotiations. Where we are at now in a nutshell is legalising large volumes of imported food from outside the EU that it would be illegal to produce on Irish or EU farms. We are also in one fell swoop undermining the bio-security of the agric-sector and exposing consumers to salmonella, antibiotic resistance, hormone fed meat, avian flu, FMD and a whole host of dangers as yet unknown.
Thanks but no thanks, Minister. Thanks but no thanks, Commissioner Mandelson. This is a time, when the interests of farmers and consumers are at one and a time when that alliance needs political expression which is totally lacking to date.
Non trade issues, including climate change, and food security, should be centre stage at the WTO negotiations. We have received warnings from the IMF, the World Bank and the Food and Agriculture Organisation of the UN in the last few days relating to food security. Food riots, export bans and national inquiries have been introduced to try and maintain local supplies of food but yet this week, Minister, was the first time I heard you speak about food security and its importance in the context of WTO negotiations.
It is your failure, Minister, and that of your Governments that has us where we are now and no amount of bonhomie with farmers can mask that fact. This happened on your watch and whilst you might be preparing for pastures new, many farmers and others are facing annihilation of their livelihoods. Shame on you.
Have you ever bothered to meet Commissioner Mandelson?
Have you thought about the huge challenge ahead to feed the world - a world that is growing by 80 million per annum?
Have you raised with the Commissioner the challenges and consequences of climate change - food miles, CO2 emissions, desertification, increasing consumption, water shortages, record low levels of global food inventories, famine, death?
All of these issues feed into the proper defence of Ireland's and the EU's Common Agricultural Policy from the WTO. Or maybe your understanding of Climate change in this context is taken from Minister Gormley's pronouncements about the twin evils of the "Cow" and the "Car". It certainly looks like this and Minister Gormley could yet have his way as these proposals will decimate the Suckler Cow herd and in one giant leap allow the Government to meet its now legal obligations to reduce the CO2 emissions from agriculture. Somebody on the Government side of the house needs to nail this issue immediately.
Mandelson's WTO Brief
Much has been made by the Minster of the fact that Mr Mandelson is exceeding the brief given to him by the Council of Agricultural Ministers in October of 2005. This raises three questions
1. The 2003 CAP reforms were said to be the EU contribution to a World Trade Deal. Why should EU and Irish farmers have to pay twice for a World Trade Deal?
2. We are now reaching a crisis point in negotiations - what exactly have you done Minister in the last two and a half years to prevent us getting to this point? What have you done to put non-trade issues on the negotiating table?
3. Have you as yet managed to unearth any economic analysis of the consequences of the 2005 brief or is that as hard to come by as figures for the impact of the current proposals?
The answer to the second question is obvious. Nothing has been done. For all your talk about groups of 5, 10, 15, 20, you and your colleagues in the Council of Ministers have not reined in Commissioner Mandelson. That's a political failure - and you can't hide from that!
The consequences for Ireland of 2005 have never been laid before the House by the Minister. I am appalled that the Minister has no homework done on these matters and equally appalled that the Minister finds some sort of high moral ground in the 2005 brief. The 2005 brief mandated Mandelson to offer 50%-60% tariff cuts on Beef, Pigmeat & Poultry tariff cuts of 35%-50%. Butter and SMP 50% tariff cut. That you could find comfort in this sell-out raises questions about your judgement and that you now do nothing when what's on the table is substantially worse than 2005 can lead to only one conclusion. It is blatantly obvious why you have failed to publish a sectoral analysis. You know the consequences and hope to run from the problem in a reshuffle. Shades of Micheal Martin and the nursing home scandal.
Last week when asked whether or not your Department has prepared estimates on the impact of the World Trade deal you replied - and I quote - "We do not have a final analysis completed". How convenient for you Minister. No front page headlines to highlight the extent of the potential damage. No Prime Time Investigates into the death of Irish Agriculture. No public humiliation on radio talk shows.
Fortunately those involved in the industry have taken it upon themselves to assess the effect of Commissioner Mandelson's generosity. Mandelson's proposals will devastate the agri-sector and have a disastrous knock-on effect on associated industries. It is predicted that a 70% tariff cut on beef imports will see prices plummet to €2 per kilo or 70p per pound.
Do you think Minister that Irish farmers can survive on such a price - with the high cost of production in this region? Do you expect businesses to run on a loss? Minister, the future of the Irish beef industry - the fourth largest exporter of beef on the globe, 100,000 jobs, worth €4bn to the Irish economy, and a way of life on family farms from Malin to Mizen - is what is at stake. From the vantage point of this side of the House there appears to be an indifference to the consequences on the Government side at best, or at worst a lack of political will to face the issues concerned. Rumour has it Minister that you are preparing to fly the coop for pastures new. You may run but you will never be allowed to hide if this deal is your legacy to Irish agriculture.
This Government it seems views rural Ireland as the Achilles heel in our economic development. The reality is an estimated 25% of jobs outside of the Pale still depend on agriculture. Will your cabinet colleague Minister Gormley be pleased when we are forced to turn off all the lights, park the tractors and take the trains to the capital? Your Government has ensured infrastructure and employment has been focused on the east coast, while neglecting the rest of the country and you now stand poised to deliver the final nail in the coffin of rural Ireland by consigning 50,000 farmers to the dole queues.
Final Negotiations
And so Minister we are nearing end game in this process. With the possibility of a WTO Ministerial meeting next month - the time for talking is almost past.
You repeatedly say Minister that you are not prepared to accept an 'unbalanced deal' for Irish agriculture, that you are not prepared to allow Irish agriculture to be sacrificed for the sake of a deal going through. This begs the question, what exactly are you prepared to accept? Are you prepared to accept the agreement in its current format? Because if this is the case, that is an unbalanced deal, that is a step too far, Irish agriculture will be sacrificed, and for what? What are we getting in return?
Here is a clear example of how this Government has taken its eye off the ball, focusing on other issues while a vital part of our economy and heritage is slipping away. Surely the Taoiseach, in his final lap of honour should be using his remaining clout at European level to make contact with as many leaders as possible in an effort to call a halt to this deal, which is like a runaway train fast careering in the wrong direction? It is time for you Minister and your Government to show your mettle, to push for unanimity as a prerequisite in order to reject this deal. You have often spoken of a Group of 20 Agriculture Ministers opposed to the deal - you need to now ensure these Ministers are united against these proposals.
One of the objectives of this Private Member's Motion is to compel you and your Government colleagues to do the right thing for Irish agricultural interests. I call on you - to put it on the record of this House - that you will veto this World Trade Deal as it stands. If you refuse to do this Minister I call on you to look the farmers here present in the gallery in the eye and explain to them why you and your Government refuse to stand by them.
Article 39 of the treaty of Rome outlines the aims of the European Union in terms of agriculture. It seeks to ensure a fair standard of living for the agricultural community, increase the individual earnings of persons engaged in agriculture, stabilise markets, and assure food supply and reasonable price. Now Minister - in a year where all EU eyes are upon us - you have a responsibility to protect the rights enshrined in the founding document of the European Community. You jeopardise the commitment to the European project, of those who have been its most ardent advocates, by not showing honest and courageous leadership on this key issue. By saying no to WTO, you can allow the EU to sleep easy in the knowledge that the Reform Treaty will be ratified. You are allowing the waters of the Treaty debate to be muddied by your indecision and evasiveness on this Trade Deal.
Today Minister is an exercise in Parliamentary accountability. You need to be brought out of the comfort zone of Cabinet Governance and lay before this House once and for all where you stand on this World trade deal.
This is essentially about undue risk;
- You are putting the livelihood of primary producers at risk - farmers across the country who have stepped up to the plate so often to meet EU requirements.
- You are putting the food processing industry at risk, which will crumble and collapse in the face of cheap imports.
- You are exposing consumers to the risk of potentially unsafe products from throughout the world
- And finally, you are jeopardising the safe passage of the Reform Treaty.
Minister, you have failed this House by not putting before it the nature and extent of your intentions on this World trade deal. You have a final opportunity to redeem yourself. Take it and accept the motion which I commend to the House. "
