Agribusiness will play its part
Nevertheless, the budget measures drive home the impact of Ireland’s predicament more than bailouts of more billions than the ordinary person can grasp, and four year plans stretching into the future.
Perhaps the budget can serve to consign the madness of the Celtic Tiger to the history books, and bring about a better appreciation of more reliable ways to advance the economy.
We all deserve that — everyone whose work kept the per capita market values of goods and services produced by Irish workers and capital in the EU’s top three.
But work wasn’t enough, and the low interest rate policies of the European Central Bank; the headless charge into the property sector led by Anglo Irish Bank; and inadequate oversight of our major financial institutions, put Ireland in hock.
The stock market value of the three main banks slumped by €47 billion, devastating investors who considered them blue chip investments; house prices slumped more than 36%, the country is littered with empty property developments.
For more reliable ways to recover the economy, the country’s established agribusinesses stand out. Take Bandon Co-op in Co Cork, for example. Launching a history of their 107 years in business, chairman Dermot O’Leary said it was refreshing to be celebrating an enterprise that had worked, that was grounded in the community and espoused values either lost or discarded in some of our key institutions. The Co-op responded to economic challenges, re-invented and re-positioned itself, but always retained its fundamental ethos of service to farmers, and a close connection with the community. It did so while expanding its business, increasing its services and products and achieving significant commercial success, through the talents of its workers and application of values which have never had more currency than today — like integrity, accountability, common purpose and self-help.
It serves as a sound recommendation for agribusiness and for co-operatives, at a time when even the EU is threatened by collapse of credit systems.
In his budget speech, Finance Minister Brian Lenihan acknowledged the role of agriculture and the agri-food sector in strengthening the export sector, which he says can protect and expand high-value employment, and stimulate domestically trading sectors of the economy.
Agriculture and the agri-food sector have also been acknowledged in 2011 budget measures, none of which seems likely to particularly set back the sector, other than changes to the tax and PRSI regime which hit every household, and more so low-income families, many of which are in the farming sector.
Agriculture Minister Brendan Smith said a net reduction of 11% in his Department’s estimate for next year is largely accounted for by lower farm waste management scheme payments. But spending is maintained on disadvantaged areas, REPS and AEOS, and reduced only 1.66% in forestry and bio-energy.
Up to €100m of the final farm waste management scheme instalment, due early next year, is being brought forward to this month. The 2011 estimate ensures the department can make 2010 and 2011 suckler scheme payments next year.
Agribusiness can at least hold its breath until the next chapter in Ireland’s plight, and play its role in a world where food reserves are at 20-year lows, arable land per person has halved since 1960 and could halve again by 2050, and rising standards of living in emerging economies generate fast increasing demand.
