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Taoiseach’s address to the IFA Council

Introduction
Thank you for inviting me to speak to you here this morning.

Let me begin by acknowledging once again the role the IFA has played in Irish society, particularly in the rural community, over the last 60 years.

It has provided national, EU and international level representation to the hard working farm families in this country.

Agri-food in our Long Term Economic Plan
We meet together this morning at a cross roads in our recovery.

Together we have worked to bring Ireland back from the brink.

Far from being a ‘sun set’ industry as it was treated by previous Governments, for the past five years we have prioritised the agri-food sector as a key indigenous industry that led our recovery efforts across Ireland.
The choice now is who best will keep that recovery going.

The Government that I lead has a long term economic plan to do just that which includes three steps:
1. More and better jobs;
2. Making work pay, and;
3. Investing in better services.

With over 135,000 more people at work since we came into office we are now targeting 200,000 jobs by 2020.

More people in work creates the resources to cut taxes for working people and invest in better services, improving living standards for all.

This will ensure more people feel the benefits of a recovering economy in their own lives.

We'll continue to make responsible and sensible decisions to keep the economy strong and the recovery going.

This is why supporting the agri-food sector is of such importance.
Ireland’s economic recovery has been supported by strong export growth, and agriculture and the agri-food sector have played a key role in the recovery in terms of export generation and job creation.

Exports reached €10.83 billion in 2015, continuing the annual increases of recent years.

Step one of our Long Term Economic Plan is job creation and putting in place the structures that will allow the development of rural areas.

The agri-food sector accounts for around 165,000 jobs or almost 9% of total employment, and provides jobs in every part of the country.

As you will know, the Rural Development Programme will see an investment of €4 billion in the agriculture sector over the lifetime of the programme.

RDP schemes provide vital investment capital in the rural economy, prioritise agri-environmental protection and support the incomes of family farms.
The allocation of this funding is a clear signal of this Government’s commitment to supporting recovery and growth in Rural Ireland.

In addition, Minister Bruton has led the development and publication of eight regional Action Plans for Jobs, building on the success of the national Action Plan.

And later today I will launch a Rural Charter, which represents a strong commitment from Government to put the development of Ireland’s rural communities at the heart of Government policy.

Agri-taxation
We have made important progress on this in recent years. The taxation measures introduced by Minister Noonan in recent budgets, demonstrate the Government’s strong commitment.

The Agri-taxation Review published as part of Budget 2015 was the most substantial package of its kind ever introduced in a single budget.

Additional measures have been announced in Budget 2016, including, a major new initiative on ‘Family Transfer Partnerships’ to assist succession.

This will assist succession by encouraging important conversations within farm families about succession planning at an earlier stage, thereby facilitating earlier inter-generational transfer of family farms.

The removal of forestry income from the ‘High Earners Restriction’ for active foresters and farmers is a hugely significant measure in support of national forestry policy.

There is also a move towards more equity for the self-employed. Most farmers are self-employed and will see their tax liability fall with the introduction of the Earned Income Credit of €550. When combined with reduced USC rates, it will result in over €800 in additional net income, or 3.5%, based on the average ‘Family Farm Income’.

If we are returned to office, I plan to abolish the USC and finish the equalisation of the tax system for self employed people by 2018.
In addition, four existing tax measures on stock relief and stamp duty relief, vitally important to young farmers and partnerships in particular, have been renewed for a further three years.

The retention of the valuable 90% Agricultural Relief on Capital Acquisitions Tax is also essential to facilitate inter-generational farm transfers.

Food Wise 2025
As you will agree, it is essential that we plan for the future.

Food Wise 2025, which I launched last year, sets out a ten year plan for the agri-food sector.

Food Wise 2025 includes more than 350 separate recommendations for action, spread across cross-cutting themes of innovation, human capital, market development, sustainability and competitiveness affecting the Irish agri-food sector.

Through this plan the Government wants to create another 23,000 jobs in the sector with exports increasing by 85% to €19billion.


Dairy Sector
The ending of milk quotas in April 2015 offered a significant opportunity for major expansion in the milk sector.

This has already generated over €700 million in investment by industry and much more at farm level. Quotas were long recognised as being a significant hand-brake on the potential of our dairy sector.

Of course, with the opportunities for the dairy sector after quota abolition must come the realisation that there are also challenges to be faced.

One of the main aims of this Government has been to move the Irish economy away from the old boom and bust cycle which characterised our development over many years.

The same of course must be true of our agri-food sector and we must ensure that short-term price volatility is not a threat to the long term profitability of all parts of the supply chain.

Right now, we are seeing some uncertainty in dairy markets primarily as a result of increased stocks and other international events.

Minister Coveney has engaged constructively with his EU counterparts and the Commission to ensure that market support tools, such as Aids to Private Storage and Intervention are deployed to optimal effect.

Most recently the €500 million package agreed at EU level will have a positive effect on the cash flow position of primary dairy producers in particular, where the aforementioned effects have been most acutely felt.

Irish dairy farmers received €26.4 million in funds from this package after the Government decided to top-up the EU contribution with national funding.

The Irish dairy sector is now very well placed to meet higher global demand as a result of the efficiency and sustainability of our production systems coupled with far-sighted strategic infrastructural investments that have occurred at both industry and farm level.
Beef Sector
For the beef sector, I am very conscious of the challenges which farmers in this sector continue to face.

2015 was a relatively positive year for beef prices in Ireland.

The Government is firmly committed to the beef sector which is why we have invested €300 million in the Beef Genomics Scheme and €4.2 billion overall in the Rural Development Plan.

Within this RDP suckler farmers will also gain from schemes such as GLAS, TAMs and Knowledge Transfer.

All of these investments are a vote of confidence by this Government in the suckler sector because we believe, as you do, that it is a sector with a vibrant future if the correct measures are taken.

This is one of the reasons why Minister Coveney established the Beef Roundtable because in his role as Minister, he has always been conscious of the value of communication with all stakeholders in the beef sector.

International Trade Issues
I would like to touch briefly on international trade issues, which I know are of concern to your members.

The outcome of the “Nairobi Package”, which was adopted at the WTO’s Ministerial Conference last December, is seen as a positive one, particularly in light of the range of measures aimed at improving the trade prospects of developing countries.

The result on export competition was described by the WTO Director as the most significant outcome on agriculture in the organisation’s 20-year history.

It is seen as a balanced one, and in many respects perhaps better than could have been hoped for from an EU perspective in the lead-up to Nairobi.

An EU-US deal under TTIP is of significant importance for Ireland.

The US is one of our leading trading partners, and we have a large and growing agri-food trade surplus with them. Ireland therefore has a significant interest in the TTIP negotiations.

Beef is a unique sector where there are both opportunities and threats - concerns about the size, composition and administration of any quota offered to the US are balanced by the potential benefits of a specific EU import quota in the US when Ireland obtains access for manufacturing beef.

A number of key issues - hormone treated beef, food standards, GMOs and Geographical indicators - arose in the Canadian negotiations and were resolved, and I believe can also be resolved in TTIP.

The next round of negotiations is scheduled for the end of February, at which procurement offers should be exchanged as well as revised schedules on services.

EU Issues
Ireland looks forward to working closely with the Netherlands Presidency, and we welcome its focus on issues such as CAP simplification, the ongoing situation on agricultural markets, and the increasingly important debate on agriculture and climate change, all of which are of critical importance for Ireland.

Ireland welcomes the Commission’s efforts to date in introducing measures in 2015 aimed at addressing some of the difficulties experienced by Member States and by farmers on the ground.

Ireland also welcomes the additional measures proposed for 2016, in particular those announced last week by Commissioner Hogan, and looks forward to further initiatives in the area of greening in particular.

Flooding
Turning to the recent severe weather, I want to assure you that the Government is keenly aware of the impact of the flooding on a significant number of farmers particularly those in western counties and in the catchment areas of larger rivers including the Shannon.

From the outset all Government Departments were working ahead of flooding events and responding quickly as families and farmers were affected.

The Department of Agriculture, Food and the Marine engaged in a number of measures to assist affected farmers restore normal farming activities in the aftermath of this extremely difficult period. Funding has been provided by the Government for a Fodder Aid Scheme for farmers who suffered fodder losses as a result of this flooding.

In addition, Minister Coveney has just announced a further emergency flood damage relief measure to target a small number of farmers that experienced unique and additional difficulties due to the location of their farms, in areas that bore the brunt of the floods.

Longer-term, farmers whose farm facilities have been damaged by floods will be prioritised for investment support under the Targeted Agricultural Modernisation Scheme (TAMS).

The Government is aware that farmers were particularly affected by the recent flooding events and is working towards supporting farmers over the long term in overcoming these difficulties as quickly and easily as possible.

Farm Safety
Before I conclude I want to say something about farm safety.

Last year, there were 18 deaths on Irish farms, a 40% reduction on 2014 which was a particularly difficult year.

However, even one death is one too many or one farm accident that leaves a member of a farming family badly injured is one too many. I urge each and every one of you to play your part in helping to make your farm a safer place to work.

Conclusion
2016 will be an important year for our country, for the agri-food industry and for farmers across the country.

We recognise that farm families are the heartbeat of the rural economy and our vision for the sector will inspire the next generation to continue the tradition of family farming. Our ambition is to position Ireland as the highest quality food producing nation in the world, based on innovation, sustainability and family farming.

For this Government’s part we will continue to implement our Long Term Economic Plan to keep the Irish recovery going and to support a strong and innovative Agri-Food Industry.