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Dáil
‹ Ceisteanna-Questions. Oral Answers. - Agricultural Institute Survey.

Farm investment and modernisation grants

Summary

The exchange concerns declining farm investment and corrective measures. The Minister cited breeding-herd supports and said a revised farm modernisation scheme would return later in the year; members challenged the withdrawal of grant aid and disputed its financial impact.

Mr. Leonard

asked the Minister for Agriculture if his attention has been drawn to the details of a survey carried out by the Agricultural Institute which indicates that the total capital investment in farms, in real terms, has declined by about one-third since 1979; and, if so, the corrective action he proposes to take.

Comment on this

While investment in agriculture declined in real terms after 1979 because of the recession, the fact remains that during the decade 1971-1980 total capital investment in agriculture amounted to some £2,700 million. This substantial amount of investment largely reflected a catching up process from very low levels of investment in the pre-EEC era and as a result of it many farmers are now well-equipped to benefit from any upswing in the farming sector without recourse to further heavy investment.

A key element of capital investment is investment in breeding stock and to a large extent investment in buildings, land and machinery is influenced by changes in breeding stock numbers. It is, of course, a prime aim of Government policy to increase the breeding herd and various measures to achieve this are already in operation. Future investment, which is aided by Government grants, will be guided towards productive projects which directly generate increased output.

Comment on this
Mr. Leonard

Would the Minister agree that that survey gives great cause for concern especially with the declining manufacturing industry who are dependent on imports? Does he agree that the value of the agricultural sector should be recognised at present? Will he accept that they by the withdrawal of the farm modernisation grants, demoralised farmers who had development plans especially for this year? Will he consider forthwith reintroducing those farm modernisation grants if he wants to get farming developed as it can and should be?

Comment on this

The Deputy's question refers to the period 1979-82 when his party were in Government, and he talks about investment decreasing by one-third. I fail to see how he can blame this Government for that decline.

Comment on this
Thomas J. Fitzpatrick An Ceann Comhairle Fine Gael

Uimhir a sé.

Comment on this

As regards the second part of his supplementary question, we have suspended the farm modernisation scheme and we have stated that we will be re-introducing a revised version of that scheme later this year.

Comment on this

(Limerick West): I put it to the Minister that surely he has not replied to the second part of Deputy Leonard's question when he was asked what corrective action he proposes to take. There is no point in going back on what Fianna Fáil or previous Governments did. We want to know what he is doing and what his Government are doing.

Comment on this

I am refereing to the first part of the question which refers to 1979-82. I am perfectly entitled to refer to it. That is what I have been asked. As regards the latter part of the question, the answer is given in the second paragraph of my reply. I said that it is the prime aim of Government policy to increase the breeding herd and various measures to achieve this are already in operation. I illustrated that here last Thursday in giving figures for the various subsidies and premia which are available for increasing the breeding herd.

Comment on this

What the Minister told us last Thursday——

Comment on this
Thomas J. Fitzpatrick An Ceann Comhairle Fine Gael

A question.

Comment on this

Ok, then I will ask a question. Would the Minister agree that the withdrawl of £147 million in the budget will decrease investment further in the agricultural industry?

Comment on this

I am flabbergasted at the figure of £147 million. I would like it if it were illustrated. My figure is £12.3 million, maybe £12.8 million, no more than that.

Comment on this
Mr. Leonard

It has been illustrated on many occasions.

Comment on this

Never. I am waiting to hear it. None of us has seen the break-up.

Comment on this

(Limerick West): Is the Minister aware that the farming community are flabbergasted by the approach of the Minister for Agriculture with regard to agriculture?

Comment on this
Thomas J. Fitzpatrick An Ceann Comhairle Fine Gael

Deputy Leonard, for a final supplementary.

Comment on this
Mr. Leonard

Would the Minister agree that this phraseology is not sufficient at present when he withdraws £10 million of grant aid for farmers? We ask him to restore that. If he wants to be positive that is the way to do it.

Comment on this
Thomas J. Fitzpatrick An Ceann Comhairle Fine Gael

A question.

Comment on this
Mr. Leonard

Will the Minister restore the £10.3 million which he has withdrawn?

Comment on this

There is a hell of a difference between £10.3 million and £147 million.

Comment on this

Is it a fact that when we were in office in 1981 we introduced——

Comment on this

You lowered the grant levels.

Comment on this

——the in-calf heifer scheme and the calf subsidy scheme and also——

Comment on this
Thomas J. Fitzpatrick An Ceann Comhairle Fine Gael

We cannot have argument.

Comment on this

(Limerick West): They are living in cloud-cuckoo land.

Comment on this

——we gave back the resource tax which the Opposition when in Government introduced? Is that not a fact?

Comment on this
Thomas J. Fitzpatrick An Ceann Comhairle Fine Gael

The Deputy is indulging in an argument now. One final question from Deputy Byrne and I will leave the question then no matter what.

Comment on this

Is the Minister admitting in his answer that his Government have no proposals whatever to increase investment? The only answer he has given us has been that there will be a continuation of the Fianna Fáil policy.

Comment on this
Thomas J. Fitzpatrick An Ceann Comhairle Fine Gael

That is an argument. Ceist a sé.

6.

Comment on this