Denis Naughten (Longford-Roscommon, Fine Gael)

The big numbers to which the Minister referred are impressive. We have been doing well and she and her predecessor spent loads of money. However, we are not doing as well as the Minister would like to suggest. By international comparisons, we are only doing all right.

It is predicted that by 2015 there will only be two major dairy processing companies here and that there will be a maximum of four or five beef slaughtering facilities in operation. The Government and the Minister appear to have buried their heads in the sand and are ignoring that issue. Deputy Deenihan referred earlier to small and medium sized food companies. Teagasc predicts that only 100 such companies will be left here.

Since the start of the year, the agri-food industry has lost more than 650 jobs. These include more than 400 jobs in Greencore, at Irish Sugar and in the malt and barley industry; 140 in Kantoher Poultry; and, as announced earlier today, 70 at Dairygold. These are the figures to which we must give consideration.

In its 2004 report, the enterprise strategy group expressed concern that the food and drink industry failed to grow its export trade to the extent other sectors achieved during the Celtic tiger years. Irish food and drink exports are growing at 3% per annum. As we move forward, we need to do more to develop the sector. Our international competitors — states across Europe and also countries such as New Zealand — have, in recent years, recognised that to successfully compete on new global markets, they will need to consolidate, up-scale and improve standards for research and development and innovation and marketing. The Irish agri-food sector is not adapting at the same pace. The Government avoids implementing reform and tackling the bottlenecks in the system, whether they exist in the areas of promotion, development, marketing or manufacture.

From listening to the Minister's contribution, it seems future reform does not feature highly on the Government's agenda. The Minster and her Fianna Fáil colleagues seemed far more interested in clapping themselves on the back for being able to have spent so much money. The ability to spend money is not a criterion for measuring success.

The Minister did not refer to increasing the State spend on research and development in the agri-food sector. I remind the House that, despite the proven economic importance of the food-processing industry to the State and the potential for future export growth, the food-processing industry receives significantly less State funding for research and development than other high-tech sectors. The standard in respect of a sector that produces 25% of our net exports is, therefore, second class. By international comparisons, the agri-food sector is doing all right. In the future, however, this will not be adequate. Only a secure and successful food processing industry will ensure that Irish farmers receive a fair price for their produce.

The Minister stated that Bord Bia is widely acknowledged as doing a thoroughly professional job in branding and promoting Ireland, the food island. She is correct. Bord Bia has done an excellent job in branding Ireland in this way. Why not associate this with an international label that could be used to promote Irish products throughout the European Union in order that consumers will specifically purchase such products? The majority of Irish beef goes into the catering trade at present, at a marginal profit to processors. Farmers are being squeezed as a result. We are clapping ourselves on the back because we are entering the catering trade but what we need to do is get our products on to the supermarket shelves and obtain premium prices for them. Unless we do the latter, Irish farms will not be viable in the future. To date the Government has ignored that reality.

The Government's failure to close off the various legal loopholes in the area of food labelling will undermine consumer confidence in the Irish meat industry. This is a matter of extreme concern, particularly as the Commission has already put forward proposals to allow an extra 116,000 tonnes of beef from Argentina, Brazil, Paraguay and Uruguay into the European Union. That is an increase of almost 300% in the level of third country beef exported into the Union. Irish farmers will be obliged to compete with that low-cost product. We need labelling now and we need it throughout the European Union. The Minister can take the first step by putting a labelling system in place here.

The system of pigmeat imports into this country is also being abused. Some of the Minister's colleagues stated earlier that it is great that the Food Safety Authority is responsible for tackling this abuse and that it is competent to deal with it. The authority does not have the resources available to it to draft the regulations and ensure that they are implemented and policed. It is great to pass the buck but everyone knows that doing so does not provide answers or ensure proper policing.

Currently, a number of State agencies have responsibility for dealing with the food processing sector. Throughout the European Union, there are 1,800 food quality labels.

There are massive tonnages of beef going into one of the premium markets, in the Netherlands, where some Irish beef is being sent at present. We should be trying to get more product in there. If we had product labelling and a quality label for the Irish market, it would enhance the opportunity we have. I call on the Government to stop trying to distort the debate on the future of Irish agriculture by trying to dazzle the House with self-congratulations and big numbers. Based on international comparisons, the agri-food sector is doing all right, but that is no longer sufficient.

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