THE IRISH Farmers’ Association has said the role of the agri-food sector in supporting and contributing to the recovery of the economy is now in greater focus.
In its submission to the Government’s economic recovery programme, the IFA said economic recovery will depend on achieving sustainable growth in the export-earning sectors.
It urged the Government to regain competitiveness. Since this could not be achieved by devaluing our currency, costs would have to be cut across the entire economy in 2009.
“In the traded sectors, market forces will drive down costs, and in some cases will force businesses to cease operating.
“The Government has direct responsibility for reducing costs in the sheltered sectors, most notably the public sector,” said the submission.
“The ESRI has recently identified the substantial degree to which incomes in the public sector exceed those in the private sector (over 20 per cent in 2006), when measured on a comparable basis,” it said.
“If costs are not reduced across all sectors, then the indigenous exporting sectors will bear the burden of cost cutting disproportionately,” the submission stated.
This it said would have the effect of eroding the potential for economic recovery.
The organisation sought support for its exposure because of the low value of sterling by way of a sterling equalisation support scheme.
Such a scheme would allow the exchange rate for exports to be fixed a 80p to the euro and this would be set for an agreed period.
It also sought an export credit insurance trade facilitation scheme to protect the 4,400 agri-food jobs at risk because of the situation.
The submission also sought a reversal of cuts in the Budget which would damage the capacity of agriculture to deliver sustainable farm incomes.
It said there was no justification for continuing high electricity costs given the falling cost of oil-based fuels.
The submission also proposed an audit of all inspections by Government departments, agencies and local authorities to ensure the costs to the State and farmers of compliance with schemes were minimised.