Mary Coughlan (Donegal South West, Fianna Fail)

I sincerely hope Deputy Naughten will be wrong because my view is that the dairy investment fund will create significant opportunities for the sector. At present, Enterprise Ireland deals with Annex I products and manufacturing produce. Primary processing has now moved from Enterprise Ireland. Enterprise Ireland has been targeted at additionality, research and innovation. My view — this fund is being channelled through my Department — is that there is a considerable opportunity within the primary processing sector and that is why it amounts to 75% of Annex I. Our approach is two-pronged. One is straight primary, Annex I. The other involves considerable opportunities within Enterprise Ireland at innovation, research and new product line. These, married together, will provide significant opportunities for the companies.

The criteria were set down. I acknowledge it was a short timeframe, but this must be done in the confines of state aids and that was the issue. We had to get the applications submitted within the existing state aid rules. The changes in state aid could mean that a number of companies would not be eligible and that is why we had to move it.

The criteria for the beef sector and the sheepmeat sector are being dealt with and we hope to have them fairly soon. We have met with the industry on a number of occasions to ascertain its needs and worked with Enterprise Ireland, and will see how we can marry both of those criteria.

There are issues in sheepmeat. We need to take what could be our only, and last, opportunity to develop a sheepmeat sector which will survive and be competitive. The Malone report, as Deputy Naughten will be aware, was launched and I have put together an implementation group. I would hope to receive its outcome quite soon. At present there is much unrealistic talk because people have forgotten that we are in a decoupled system, and a number of Members on all sides of the House are being pressurised to perform miracles on a number of issues. Some of these are well founded and within the confines of the recommendations of the Malone report. Others fall far beyond it. I will be considering that report fairly soon with the chairman with a view to putting together a number of proposals that, hopefully, would support an industry which is extremely important, as Deputy Naughten will be aware from his part of the country.

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