Mary Coughlan (Donegal South West, Fianna Fail)

I propose to take Questions Nos. 7 and 11 together.

In keeping with commitments given in the agri-vision 2015 action plan, in recent months I have announced investment packages totalling €150 million to support the development of the dairy, beef and sheepmeat processing sectors. A total of €100 million is earmarked for the dairy sector, while €50 million is being provided for the beef and sheepmeat sectors. This substantial grant assistance, which should trigger investment in excess of €400 million, is yet another clear indication of the Government's commitment to the continued development of a modern, competitive, innovative and market-focused food industry.

Financial support will be made available towards the cost of the construction and acquisition of buildings, new machinery and equipment and will significantly assist the industry in improving efficiency and competitiveness. I commend the positive response in recent years of the dairy, beef and sheepmeat sectors to the challenges presented in an ever-changing market. This has made a major contribution to the enhanced status and reputation of Irish produce abroad. The Government has striven to lead that progress and to assist stakeholders by adopting pragmatic, if ambitious, policies in supporting the development of the sectors.

The investment schemes will be managed by Enterprise Ireland which will evaluate the suitability of investment projects submitted for grant assistance. I launched the dairy investment fund in September 2006 and the closing date for applications was Thursday, 23 November. The dairy fund will support Annex 1 dairy projects in which the inputs and outputs consist of, at a minimum, 75% Annex 1 products. I was pleased to be informed by Enterprise Ireland that the dairy investment fund was over-subscribed. An evaluation committee comprising representatives from Enterprise Ireland, my Department and other experts will select the projects to be grant aided following a detailed technical and commercial analysis of each project.

While the scheme for the beef and sheepmeat processing sectors was announced as recently as 8 November, there has already been a very positive response from the industry and I expect significant progress to be made fairly quickly. At present I am in consultation with Enterprise Ireland and expect to be in a position to publish the full eligibility criteria and terms and conditions of this scheme in the near future.

See this speech in context