PRESENTATION BY THE HON. NINU ZAMMIT, MINISTER OF AGRICULTURE AND FISHERIES, ON THE OCCASION OF THE AGRIBUSINESS FORUM 2001 ENTITLED NATURE AND FOOD SAFETY HELD AT SOFIA, BULGARIA ? 4TH MAY, 2001

Colleagues

Excellencies

Ladies & Gentlemen,

May I, in the first instance, thank Minister Varbanov for hosting this meeting, here in Sofia, the seat of wisdom, at this crucial moment during the current process of EU enlargement and when talk about CAP reform is continuously gaining momentum. I believe it is the right time to sit and reflect for a moment on the road leading to Wider European Integration. We do need a lot of enlightenment during our reflection.

I shall now briefly touch on each of the topics for discussion during this Forum.

Sustainable Rural Development sets the scene for viable agricultural production. This objective can only be achieved if the measures adopted consider the following guiding principles.

(1) First and foremost is the multifunctionality of Agriculture. I cannot but overemphasize this principle in view of my coming from a small island community where the conditions of a very fragile environment constitute a severe handicap for sustainable rural development. In Malta, agriculture's role in maintaining a typical landscape is magnified by its sheer smallness. It definitely goes beyond the production of foodstuff and also beyond the normal stewardship of the countryside. Malta's topological structure dictates that the farmer involves himself actively in conservation measures to preserve the means of production. Agriculture's value is much more than can ever be expressed in monetary terms. This implies the recognition and encouragement of the services provided by farmers.

(2) Secondly, sustainable rural development requires a multisectoral and integrated approach. The competitive demands on land and water require integrated resource management for their rational use. In view of our very high population density and consequent exorbitant land cost, economic and market price considerations are not sufficient to ensure an efficient utilization of land and water resources particularly in a situation as that prevailing in Malta where these resources are scarcer than anywhere else in Europe. It is therefore imperative for Maltese farmers to be assisted in a large way to create new sources of income through activities that are compatible with the protection of our rural heritage.

(3) Thirdly, such a sensitive and fragile structure demands handling with care. Abrupt changes would no doubt cause havoc. Change must occur gradually and smoothly. In this respect it is important that:

· the measures adopted are as flexible as possible, and

· the measures adopted must be compatible with the environmental parameters and with the modus operandi of the particular region, and

· the measures adopted are those required and requested by the grassroots, i.e. these measures should be based on subsidiarity and on the promotion of decentralization. The latter objective may thus be achieved through consultation and through the encouragement of local partnership and participation at the lowest level.(4) Fourthly, sustainable rural development means accessibility to funds without the need for lengthy procedures, assessments and bureaucratic red tape. Nonetheless, transparency remains a sine qua non in the drawing up and management of the programs.

The traditional standard criteria for allocation of funds generally comprise, inter alia, factors such as the size of the full-time farming population, the agricultural area and the GDP per capita. Clearly these same traditional criteria for funds' allocation simply cannot be applied to Malta's case owing to the limited and disadvantaged conditions in which our agricultural sector operates.

As such, the funds made available according to traditional criteria would not be sufficient to implement an effective rural development program in the case of Malta. The specific territorial situation requires to be given greater weight. Small size demands assistance which is disproportionate and in inverse proportion to the size. In fact I venture to suggest that small size should be one of the objective criteria required for higher allocation of funds.

Similarly agri-environmental programs must be designed to be more specific to the prevailing conditions in that particular location. Again, Malta is unique. Livestock holdings, including milk producers, are landless in Malta. Livestock is housed and all feed is bought in. There exists a big trade between herdsmen and growers of forage and roughage. Local milk producers cannot benefit from extensification schemes or from schemes related to area. Yet they are expected to comply with community measures on environmental protection. Clearly, specific and different criteria should apply to these agricultural producers for eligibility for payments necessary to resolve the specific problems arising from environmental measures.

Colleagues,

My Government gives the highest priority to consumer protection. The provision of high quality safe food to the consumer is the most important objective in the formulation of policy measures and in the building of administrative structures.

In recent months my Government developed further on even more stringent lines the Food Safety Strategy which was already very effective and very tight. This is being said in the light that on accession to EU, Malta must bear the responsibility of becoming a border entry point of the Union. Obviously, this advent carries greater weight because apart of the fact that Malta's fortunes have always been related to Trade and Maritime activities, such strict and rigorous import regulations are essential in order to guarantee an influx of safe food products.

Malta must thus continuously monitor and strengthen its border inspection points in order to ensure that the food entering the Union through Malta is safe. Again this responsibility is disproportionate to its size - hence the need for assistance both financial and technical in this matter.

I understand that the debate on the changing Common Agricultural Policy (CAP) has been added to the agenda of this forum in order to enable candidate countries to express their broad opinions on this issue. Malta agrees on the necessity to move from "producing more" to "producing better". The development of the concept of "a new contract with the farmers" appeals to Malta since our objective is to maintain agriculture as a viable enterprise rather than developing it through increase in output. It is clear, therefore, that the Common Agricultural Policy must be reoriented towards the satisfaction of this objective. The changes, however, need to be implemented gradually but surely. Hence the need for transitional periods - otherwise, farmers may be disoriented and may delay their investment plans. As economic agents operating in a relatively very rigid structure, farmers need medium-term visibility to be able to plan ahead and continue with their multifunctional activities besides the provision of healthy good quality food.

In deciding to pursue its policy of support for the sector, the Community must also take up the challenge of improving access to opportunities for development to small scale holders. This objective can be achieved through the further simplification of the administration. Moreover, the Community has to facilitate procedures so as to enable the small scale holders to draw benefits from the various programs that at present are more available to larger producers

I am sure that the response of small holders to this policy of better support would be a substantial improvement in the quality of production, an improvement in the production methods applied and also an improvement in the public services they provide. This will demonstrate in a concrete manner the effectiveness of public support to the small scale producer.

Thank you.