Mary Coughlan (Donegal South West, Fianna Fail)

The National Development Plan 2000-2006 contains an indicative funding allocation of €358 million to the food industry for a range of measures covering capital investment, research, technology and innovation, marketing and promotion and human resources. A total of more than €72 million has been awarded to date in respect of the capital investment scheme administered jointly by my Department and the development agencies.

The element of the capital investment scheme administered by my Department assists capital projects which are intended to improve marketing and processing in the horticulture, potato, eggs, grain and livestock sectors which do not fall within the remit of the industrial development agencies or are not covered by my Department's on-farm schemes. In general, investments must exceed €100,000 and up to 40% grant aid is available. Following calls for applications in 2002 and 2004, my Department has allocated €30.31 million in respect of 112 projects across the various sectors as follows: grain sector — 31 projects, €12.60 million awarded; potato sector — 21 projects, €7.23 million awarded; livestock sector — 35 projects, €4.08 million awarded; horticulture sector — 18 projects, €3.64 million awarded; and egg packing sector — seven projects, €2.76 million awarded.

The client companies supported by Enterprise Ireland are primarily Irish manufacturing and internationally traded services companies employing ten or more people, Firms located in the mid-west are supported by Shannon Development, while firms in the Gaeltacht areas are supported by Údarás na Gaeltachta. The support mechanisms available from these development agencies to food companies engaged in marketing and processing of agricultural products include non-repayable grants, preference shares and ordinary share capital. The development agencies have also awarded a total of €42 million to client companies towards capital investment activities under the national development plan.

The measure relating to marketing and promotion is implemented by Bord Bia. The objective of this measure is to support the marketing and promotion of food and drinks products by facilitating the development of new markets and the expansion of current markets. Assistance is provided in the form of individual company support and support for the development of the industry as a whole. Under the NDP to date, almost €30 million has been committed by Bord Bia on these marketing and promotional activities.

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