Labour party spokesperson on Agriculture & Food Seán Sherlock TD said the proposed cuts to Agriculture contained in today's McCarthy Report will have a negative impact on the agri-business and rural economy if implemented and further undermine our comparative advantage in food and drink production.

"This sector has already endured sweeping cuts with the axing of the Young Farmer Installation Scheme; Early Retirement Scheme and Farm Waste Management Scheme and now the closure of REPS 4,"

"Should this government go ahead with today's proposals then they can firmly establish themselves as the "anti-rural" party. The Suckler Cow Scheme is vital to the export market particularly at a time when milk prices have plummeted. The disadvantaged areas receive additional funds because of exactly that - they are disadvantaged.

"We are in dire need of jobs in the rural economy and cuts of this nature will further impact on the country's ability to maintain existing jobs in that sector."

"The Agri Sector has been identified over and over again by leading economists as the area in which there is huge potential for job creation yet the government has done little or nothing to foster this growth. Instead they are moving to take further inputs out of the rural economy which reduce the multiplier in terms of rural spending and reduce further our export potential, paricularly in relation to food and drink exports."

"They are now also targeting Teagasc which is a vital entity in terms of providing technical expertise and assistance to the food and drink sectors that are producing for a large export market. If we are to maintain growth in exports then we have to maintain and enhance the services being provided by Teagsac.

"The last thing we want is to force small sustainable family farms out of business and be left with a rural economy that is characterised by gentlemen farmers, such as exists in the UK."