Brendan Smith (Cavan-Monaghan, Fianna Fail)

Only last Thursday I spoke at the IFA-Teagasc national conference on potatoes and I met individual farmers both before and after my address. The Minister for Agriculture and Food, Deputy Coughlan, the Minister of State, Deputy Browne, and I have had a number of meetings with different stakeholders in regard to the potato industry. We recognise that it is a very valuable and important part of our agrifood industry. We met individual groups and industry figures representing the processing point of view as well as that of the growers. We also met the IFA national potato committee on a number of occasions. In addition, the Minister has met numerous potato growers and farmers in Donegal.

We are very conscious of the issues outlined by the Deputy. The figures I supplied in my initial reply demonstrate that there has been a huge drop in the growing pattern in Ireland. At the same time, the value of the crop is approximately €85 million and is very important. Recently, the Minister approved projects to the value of €6 million. Some time before that, projects to the value of €3 million were approved in regard to the upgrading and provision of new facilities. I do not accept the Deputy's argument that the Government is suggesting people should get out of the industry. The message we are giving to the farmers is that the industry has a future. Individual farmers are investing hugely in providing modern facilities with the support of the Department, which demonstrates that we have absolute confidence in the industry.

The fresh potato sector has been under pressure for some time. I visited Ballymoney Foods in north Antrim at the request of Seán Farren of the SDLP where I met the SDLP and DUP representatives with the management and workers of that factory. The facility is owned by farmers north and south of the Border. We are anxious that they will be able to extend their processing facility. When I was in the Deputy's constituency I visited some state-of-the-art facilities where huge investment is taking place and where produce is being processed to the highest standards. We have invested a great deal in the past number of years in providing new facilities.

We must improve value added potato products. Consumer eating habits have changed. There has been a growth in demand for pasta and rice and the prepared and convenience food sector has grown enormously. The number of meetings the Minister, Deputy Coughlan, the Minister of State, Deputy Browne, and I have had with different stakeholders in the potato industry clearly shows that we are determined to arrest the decline, at a minimum. We are also anxious that further investment takes place.

Members who come from a different part of the country where livestock and dairying are the predominant agricultural activities have often spoken out against milk quotas and EU regulation. However, Deputy Sargent might agree that the common market organisation for certain products has had benefits as well, in that it provides stability. Potatoes are one of the few agricultural commodities that do not come within the common market organisation. In 2003, there was a 16% growth in potato production at EU level. Such growth leads to over supply and poorer prices for individual growers. That is part of the problem.

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