ECONOMIST COLM McCarthy yesterday defended the cuts he proposed in agriculture in his “Bord Snip” report at the annual general meeting of the Irish Creamery Milk Suppliers’ Association, his first public meeting with farmers since the report was published.
He told the farmers the Rural Environment Protection Scheme (Reps) which has already been cut had not been intended as an income support payment but for improving the environment and it was one of just many expensive schemes highlighted in the report.
Every element of spending had been looked at and he had received complaints from across all the sectors but Ireland needed an internal devaluation, cutting costs, wages and becoming more competitive. Farming had not been singled out.
“It is very unfortunate we had to propose cuts in farm spending in what has been two bad years but that is where we are at. There is a surefire way of having a 12-year recession and that is to do nothing,” he said.
Mr Mc Carthy said it was up to the Government to implement what cuts it decided but said he felt the Government was engaging with the problems and was doing something to address the financial mess in which the country found itself.
Minister for Agriculture Brendan Smith was also forced to defend his actions by the farmers attending the agm and during heated exchanges he told them they could not have it both ways.
“The Department of Agriculture is always being told by farmers to cut its costs but when we are implementing restructuring and closing our offices, every secretary of every county organisation of all the farm organisation writes to me to complain about that,” he said.
Mr Smith said despite this the department’s rationalisation programme would go ahead because it had to. He also said although entry to the Reps 4 scheme had been closed, there were now over 20,000 more farmers in Reps now than a year ago.
During a question-and-answer session, one farmer said he would be retiring in 2020 with very little future facing him while the Minister would be retiring on a full pension.
The president of the ICMSA, Jackie Cahill, who faces a challenge to his position from former president Pat O’Rourke on December 17th, called for a reduction in the cost of doing business in Ireland.
“Our prosperity is based on our international competitiveness. This competitiveness, in turn, is based on the cost of doing business in Ireland. And the cost of doing business in Ireland is – and has been for some time now – off the scale in terms of comparison with our trading partners.”
He repeated his belief the ending of the milk quota scheme would be very bad for the dairy sector and called for more cost savings by the Department of Agriculture by reducing levies and introducing lay inspection staff.
He said the loudest voice in deciding Ireland’s strategy was the public sector.
And the public sector was – by and large – completely insulated from anti-export currency movement. “Indeed it only seems to matter to them insofar as it provides cheap shopping in Newry on strike days,” he said.