IFA warns that sugar industry could be 'wiped out'

The president of the Irish Farmers Association (IFA), Mr John Dillon, came to the Dublin Horse Show yesterday to warn the public…

The president of the Irish Farmers Association (IFA), Mr John Dillon, came to the Dublin Horse Show yesterday to warn the public that, despite the utterances of politicians, all was not well in agriculture.

Mr Dillon said the sector at greatest risk because of the recent world trade talks was the sugar industry, which could be "wiped out" because of what was being demanded of Europe in the talks.

"Such is the scale of the reform proposed - a 37 per cent cut to farmers with only 60 per cent compensation, a 16 per cent quota cut with no compensation, and potential movement of production between member-states - that sugar beet production and the total sugar industry could be wiped out here.

"The IFA is planning a major campaign on this issue for the autumn.

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"I expect that all sectors of the sugar industry, including the trade unions, will be working to defend the industry."

Mr Dillon said he was using his presence at the RDS to lay down the marker that he expected a strong defence from the Government and from local politicians on the issue as Ireland could could not expect much support from the EU mainland, particularly from France and Germany.

Mr Dillon, who was in Geneva monitoring the world trade talks last weekend, said most of the detail of the agreement remained to be negotiated.

This included the percentage reduction in import tariffs, agreement on "sensitive products", the pace of reduction in export refunds, parallel cuts in the US and other country supports, and recognition by other trade parties of environmental, animal welfare and traceability constraints on EU agriculture.

He said the IFA would oppose any threat to decoupled direct payments which have protected "green box" status in the negotiations.

The organisation's chief economist, Mr Con Lucey, said he expected a very busy year ahead for the farming community and for the Department of Agriculture and Food.

In the first week of next month farmers would be told of their single payment entitlements by the Department. He expected that many farmers would challenge the figures, and would be seeking the support of the IFA.

He said there would also be major negotiations on the Rural Development Fund which will cover REPS, Disadvantaged Areas Payments, early retirement and forestry, as well as on-farm investment scheme and LEADER payments next year.

He said there would be major difficulties on forestry payments, which the EU wanted to limit to 10 years.

This would be totally opposed by the IFA because it would severely diminish the development of forestry here.

Mr Lucey said these schemes were worth some €700 million annually. It would require strong negotiation by Ireland to protect this level of payments.